January 2005

Benton's Communications-related Headlines for 1/10/05

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

MEDIA OWNERSHIP
Five Giants That Decide What We See
Murdoch Will Buy Rest of Fox Shares in $7 Billion Deal

BROADCASTING
Staffer Says Hill to Act on DTV Transition, Converter Subsidies
HBO to Give 3 New Films for Viewing on Public TV

MEDIA & POLITICS
Bush Draws Fire Over Fee Paid To Columnist to Promote Policy
McCain Goes to Battle

NEW COMMUNICATIONS RESEARCH
The Future of the Internet
When Law and Social Science Go Hand in Glove
Market Structure, Station Ownership, and Local Public Affairs on
Local Broadcast Television
Media Economics and Media Policy
Report: Schools Wired, but Still Not Internet Savvy

QUICKLY
Comcast Plans Major Rollout Of Phone Service Over Cable
Commerce Secretary to Urge China to Tighten Piracy Rules
Showstealers
Your Daily Paper, Courtesy of a Sponsor
The Future Of The New York Times
A Voice From Above, And to the Left
Comcast-King County Refranchise Agreement
K.C. Burb's Muni Isn't OK With Time Warner
Viacom Taps GOP Bridge-Builder

MEDIA OWNERSHIP

FIVE GIANTS THAT DECIDE WHAT WE SEE
It's simple math. For a new show to launch in syndication, advertisers
demand that it be sold in the top three markets: New York, Los Angeles and
Chicago. But to get a syndicated product cleared in these markets requires
the participation of one of five major station groups: NBC, ABC, Viacom,
Fox and Tribune. "The 'five families' do control the landscape of
syndication," says John Nogawski, president of Paramount Domestic
Television. "If they decide a show should return, it's just one less place
a new show can really get launched." Some station groups that aren't quite
the size of the five giants are upping their hours of local news, figuring
it is better for their stations to do more local programming than to suffer
with subpar syndicated product. The new local shows include
advertiser-supported segments. "The industry is trending back to localism,"
says on station manager. "Doing local shows like this under the old format,
relying solely on advertising that came during the breaks, would be too
difficult. This way, you can create a greater revenue stream and still put
on a product that people care about seeing. Then you can overcome the
hurdle that has always been in the way of producing more local programming."
[SOURCE: Broadcasting&Cable, AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/article/CA493433.html?display=Special+R...
(free access for Benton's Headlines subscribers)

MURDOCH WILL BUY REST OF FOX SHARES IN $7 BILLION DEAL
Rupert Murdoch, consolidating his global media empire in the United States,
is expected to announce today that he will buy out the shareholders of his
Fox properties for about $7 billion. The deal would solidify Mr. Murdoch's
control over some of the nation's most valuable media assets like the Fox
broadcast network and the DirecTV satellite service and help simplify the
complicated structure of his far-flung company, the News Corporation, which
includes newspapers, television, film and satellite assets around the
globe. The move to bring Fox Entertainment back inside the fold of News
Corporation also gives Mr. Murdoch more flexibility to wield his
deal-making muscle in the United States, where he used to have to rely on
the often faltering stock price of his Fox subsidiary as leverage for
deals. News Corp currently owns 80% of Fox which includes television assets
like Fox News and Fox Sports Net, 21st Century Fox, Fox Searchlights and
DirecTV satellite service.
[SOURCE: New York Times, AUTHOR: Andrew Ross Sorkin & Geraldine Fabrikant]
http://www.nytimes.com/2005/01/10/business/media/10deal.html?hp&ex=11054...
(requires registration)

BROADCASTING

STAFFER SAYS HILL TO ACT ON DTV TRANSITION, CONVERTOR SUBSIDIES
At the Consumer Electronics Show in Las Vegas, the digital TV transition
was the topic for one panel with Pete Filon, the minority counsel of the
House Commerce Committee, promising that Congress will push this year to
"get more certainty" on the issue. What Congress does may well have a lot
to do with what the FCC does first. It will be up to Congress to subsidize
digital-to-analog convertor boxes, if any subsidies are needed. A
spokesperson from Zenith said those convertors could cost as little as
$50/each by 2006 or 2007 when produced in large volume. There's been "a lot
of progress" on the transition, Filon said, but he added that "many in
Congress feel the transition has been going a lot more slowly than they had
expected." He said the analog spectrum is "desperately needed" by emergency
responders and innovators. A cable lobbyist noted that high definition,
digital TV is already available to 90 million of 108 million homes passed
by cable.
[SOURCE: Communications Daily, AUTHOR: Michael Feazel]
(Not available online)

HBO TO GIVE 3 NEW FILMS FOR VIEWING ON PUBLIC TV
In the first agreement of its kind, Home Box Office has entered into a deal
to allow the Public Broadcasting Service to replay three original HBO films
after they have completed a monthlong run on HBO's premium cable channel.
The idea, according to Chris Albrecht, chairman of HBO, is to make the
series of films on topics of public interest - biological warfare, genocide
and AIDS - available to a much wider audience. PBS will produce panel
discussions to accompany the films. HBO is being backed in this new effort
by the Council on Foreign Relations, which is sponsoring a screening of the
first film, "Dirty War," for invited guests in New York and is supplying
several participants for a panel discussion that will follow. Richard Haass
the president of the council, said that his group, which had participated
in previous HBO projects, had agreed to offer support because "these are
serious films about serious issues."
[SOURCE: New York Times, AUTHOR: Bill Carter]
http://www.nytimes.com/2005/01/10/business/media/10hbo.html
(requires registration)

MEDIA & POLITICS

BUSH DRAWS FIRE OVER FEE PAID TO COLUMNIST TO PROMOTE POLICY
Armstrong Williams, a prominent commentator and frequent guest on
television news shows, lost his syndicated column after disclosures that he
was paid $240,000 by the Education Department to promote the "No Child Left
Behind" law to other black journalists. In the wake of the disclosure, the
Bush administration faces a closer look at how it tries to influence public
opinion as it readies campaigns to overhaul Social Security and the tax
code. Journalism ethicists said cases such as Mr. Armstrong's fan public
distrust of traditional media outlets and the pundits who appear on them.
"We have to then say: 'Is this happening on other fronts? Are there any
other journalists who are being paid by the government or advertising or
public-relations agencies to bring forth messages?'" said Bob Steele, who
studies journalism ethics at the Poynter Institute in St. Petersburg (Fla).
Such opinion management isn't a Bush-administration invention. In 2000,
President Clinton's drug czar, Barry McCaffrey, secretly paid television
networks to propagandize its antidrug message. The scripts of "ER,"
"Chicago Hope," "Beverly Hills 90210" and other programs were altered to
include antidrug messages. In return for changing scripts, the networks
were allowed to sell to higher-paying advertisers advertising time that had
been promised to the government.
[SOURCE: Wall Street Journal, AUTHOR: Christopher Cooper
christopher.cooper( at )wsj.com & Brian Steinberg brian.steinberg( at )wsj.com]
http://online.wsj.com/article/0,,SB110512313100320173,00.html?mod=todays...
(requires subscription)
Lawmakers Pressure White House Over 'Covert Propaganda'
House Minority Leader Nancy Pelosi ( D-CA) and a coalition of Democrats on
Friday asked President Bush to crack down on efforts by federal executive
agencies to covertly influence public opinion. In a Jan. 7 letter, the
Democrats asked President Bush to direct "all department and agency heads
to immediately provide to us all past and ongoing efforts to engage in
covert propaganda, whether through contracts with commentators, the
distribution of video news releases or other means."
[SOURCE: TVWeek, AUTHOR: Doug Halonen dhalonen( at )crain.com]
http://www.tvweek.com/news.cms?newsId=7036
(requires free registration)
See also --
USAToday
http://www.usatoday.com/printedition/news/20050110/a_williams10.art.htm
http://www.usatoday.com/printedition/news/20050110/edtwo10.art.htm (commentary)

MCCAIN GOES TO BATTLE
The 2004 election is over (really, it is, and it is safe to start watching
TV in Toledo again). Sen John McCain (R-AZ) and three other co-authors of
the 2002 campaign finance reform law -- Sen. Russ Feingold, (D-WI) and
Reps. Christopher Shays (R-CT) and Marty Meehan, (D-MA) -- promise to soon
introduce a bill that will eliminate 527 cash and impose other reforms. The
river of cash flowing through the current law's loophole helped fund a new
type of political advertising that came to characterize the 2004
presidential campaign; viewers were treated to massive negative TV ads
funded by nonprofit activist groups. Sen. Trent Lott (R-Miss), also says he
will back Sen McCain who received a commitment from President Bush to
support more reform. Sen McCain also hopes to restructure the Federal
Election Commission by replacing the current panel of six members (three
GOP, three Democrat) with five independent commissioners.
[SOURCE: Broadcasting&Cable, AUTHOR: ]
http://www.broadcastingcable.com/article/CA493528.html?display=News&refe...
(free access for Benton's Headlines subscribers)

NEW COMMUNICATIONS RESEARCH

THE FUTURE OF THE INTERNET
Who can guess what the Internet will be in ten years? In September 2004,
Pew sent an email invitation to a list of respected technology experts and
social analysts, asking them to complete a 24-question survey about the
future of the Internet and asked the initial group of experts to forward
the invitation to colleagues and friends who might provide interesting
perspectives. Some 1,286 people responded to the online survey between
September 20 and November 1, 2004. About half are Internet pioneers and
were online before 1993. Roughly a third of the experts are affiliated with
an academic institution and another third work for a company or consulting
firm. The rest are divided between non-profit organizations, publications,
and the government. See the results at the URL below.
[SOURCE: Pew Internet & American Life Project]
http://www.pewinternet.org/PPF/r/145/report_display.asp
See coverage in --
News.com
http://news.com.com/The+Nets+future+It+depends+on+whom+you+ask/2100-1028...

WHEN LAW AND SOCIAL SCIENCE GO HAND IN GLOVE: USAGE AND IMPORTANCE OF LOCAL
AND NATIONAL NEWS SOURCES
An analysis of the FCC's Diversity Index and the response to this index
from the U.S. Court of Appeals for the Third Circuit in Philadelphia. Dr.
Cooper's paper also outlines the parameters of a revised research approach
that the FCC could take as it revisits its Diversity Index.
[SOURCE: Donald McGannon Communication Research Center at Fordham
University, AUTHOR: Mark Cooper]
http://www.fordham.edu/images/Undergraduate/communications/Cooper%20Pape...

MEDIA STRUCTURE, STATION OWNERSHIP, AND LOCAL PUBLIC AFFAIRS ON LOCAL
BROADCAST TELEVISION
This study analyzes a two-week sample of broadcast television programming
in 2003 from a random sample of 285 full power television stations. Half of
the stations in the sample did not air any local public affairs programming
during the two-week sample period. That figure for commercials stations is
59%. In contrast, less than 10% of the sampled public stations failed to
air any local public affairs programming. In addition, the commercial
stations aired an average of 45 minutes of local public affairs programming
during the two-week sample period, significantly less than what the public
stations did. The results from the analyses showed that ownership by one of
the big four broadcast networks (ABC, CBS, FOX and NBC) significantly
decreased the amount of local public affairs programming on television. In
addition, among other findings, stations in larger television markets were
less likely to air any local affairs programming, contrary to popular
assumption.
[SOURCE: Donald McGannon Communication Research Center at Fordham
University, AUTHOR: Michael Yan & Philip M Napoli]
http://www.fordham.edu/images/Undergraduate/communications/publicaffairs...

MEDIA ECONOMICS AND MEDIA POLICY: THE GOOD AND THE BAD
This paper explores the role and function of economics in media
policymaking and policy analysis. This paper begins with an overview of the
distinctive economics of media industries in an effort to demonstrate the
importance of focused and specialized economic analysis of these
industries. The paper then chronicles the growing role of economics in U.S.
media policymaking and examines both the positive and the negative
implications of this transition for media policy. This paper represents a
first step in what should be a continued exploration of the implications of
the increased role of economics in media policymaking. While much more work
needs to be done, a number of points can be articulated at this stage that
can hopefully be useful in guiding future policymaking and policy analysis.
First, it is important to recognize that inefficiency can be good for media
markets. Indeed, inefficiency may very well be essential to media markets.
Second, there is much we still need to know about the dynamics of media
consumption and the appropriate contours of media markets. These issues
should be a focal point of future economic analyses. Ultimately, if we make
the mistake of treating and analyzing media markets like other markets, we
will suffer from a market failure far more profound and far more damaging
than economic tools can effectively capture or correct.
[SOURCE: Donald McGannon Communication Research Center at Fordham
University, AUTHOR: Philip M Napoli]
http://www.fordham.edu/images/Undergraduate/communications/Media%20Econo...

REPORT: SCHOOLS WIRED, BUT STILL NOT INTERNET SAVVY
Virtually all public schools in the United States have access to the
Internet, but few are taking full advantage of the technology to instruct
students, according to "Toward a New Golden Age in American Education: How
the Internet, the Law and Today's Students are Revolutionizing
Expectation." The new report from the US Department of Education urges
elementary and high schools to incorporate more computer technology into
classrooms, curriculum and school administration. Over the past decade, 99%
of schools have been connected to the Internet, with one computer for every
five students on average.
[SOURCE: C-Net|News.com, AUTHOR: Alorie Gilbert]
http://news.com.com/Report+Schools+wired%2C+but+still+not+Internet+savvy...
See Department of Education Press Release:
http://www.ed.gov/news/pressreleases/2005/01/01072005.html
See the report:
http://www.ed.gov/about/offices/list/os/technology/plan/2004/index.html

QUICKLY

COMCAST PLANS MAJOR ROLLOUT OF PHONE SERVICE OVER CABLE
Comcast plans to market an Internet-based phone service to 15 million homes
by the end of 2005 and to practically all 40 million of the households that
have access to its systems within 18 months. The company hopes to have 8
million phone subscribers within five years, or 20% of the homes its cable
lines pass by. Cable companies that have entered the phone business have
become the most effective competitors to the nation's local Bell telephone
giants since they were created by the breakup of the AT&T monopoly in 1984.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com]
http://online.wsj.com/article/0,,SB110531356429521132,00.html?mod=todays...
(requires subscription)

COMMERCE SECRETARY TO URGE CHINA TO TIGHTEN PIRACY RULES
Departing U.S. Commerce Secretary Don Evans said he would travel to China
this week to let leaders there know that President Bush expected greater
efforts to tighten rules against patent and trademark piracy. The U.S.
trade office says piracy is the biggest problem in its $181-billion
commercial relationship with China.
[SOURCE: Los Angeles Times, AUTHOR:Bloomberg News]
http://www.latimes.com/business/printedition/la-fi-evans10jan10,1,354962...
(requires registration)

SHOWSTEALERS
Alarmed that downloading content has the potential to damage everything
from the booming market for DVDs of TV shows (Merrill Lynch pegs sales for
2004 at $2.3 billion) to the all-important TV schedule itself, television
executives are racing to address a problem that barely existed 18 months
ago. To thwart this threat, the industry has launched a multifaceted
offensive, enlisting the help of the FCC; hiring lawyers to pursue
file-swappers in court; employing security firms to throw a monkey wrench
into the downloading process; and scrambling to develop their own
iTunes-inspired content-downloading services.
[SOURCE: Broadcasting&Cable, AUTHOR: Mark Lasswell]
http://www.broadcastingcable.com/article/CA493430.html?display=Feature&r...
(free access for Benton's Headlines subscribers)

YOUR DAILY PAPER, COURTESY OF A SPONSOR
Across the country each week, more than 1.6 million people who are not on
newspaper subscriber rolls are being delivered copies that did not cost
them a cent - but they are still being classified as paying customers. The
papers, which are typically paid for by advertisers, are delivered by small
and large dailies across the country, including The Miami Herald, The Wall
Street Journal, The San Jose Mercury News and The Boston Globe.
[SOURCE: New York Times, AUTHOR: Jacques Steinberg & Tom Torok]
http://www.nytimes.com/2005/01/10/business/media/10paper.html
(requires registration)

THE FUTURE OF THE NEW YORK TIMES
How is the Times weathering the profound changes in communications
technology, the current political climate and journalistic screw-ups? A
look at publisher Arthur Sulzberger Jr's business plan.
[SOURCE: BusinessWeek, AUTHOR: Anthony Bianco]
http://www.businessweek.com/magazine/content/05_03/b3916001_mz001.htm
See also --
Reuters:
New York Times Mulls Charging Web Readers
http://www.reuters.com/newsArticle.jhtml;jsessionid=IK1F4GZME2HKUCRBAEZS...
The Internet's Future? It Depends on Whom You Ask
http://www.nytimes.com/2005/01/10/technology/10pew.html

A VOICE FROM ABOVE, AND TO THE LEFT
A look at radio commentator Ed Schultz of Democracy Radio.
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A61992-2005Jan9.html
(requires registration)

COMCAST-KING COUNTY REFRANCHISE AGREEMENT
Comcast has negotiated a contract extension for its King County (WA)
franchise that reclaims some valuable analog real estate and provides
clarity on data "peering" requirements contained in the pact. Comcast's
franchise would have expired next month; it now lapses in February 2010.
Public, educational and government channels will be lost in the deal with
Comcast paying $1.2 million to reclaim the channels. The county will get
more DTV PEG channels when Comcast goes all-digital in the area. The
agreement covers about 800,000 homes currently served in the unincorporated
territory that surrounds Seattle.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA493399.html?display=Policy&referra...
(free access for Benton's Headlines subscribers)

KC BURB'S MUNI ISN'T OK WITH TIME WARNER
Shake, Shake, Shake. Whoops, not that KC. Time Warner sticks up for the
little guy again: the company is pursuing a court injunction against a
municipal fiber-optic project in North Kansas City (MO) claiming the city
must seek voter approval to develop a publicly owned network. Unless U.S.
District Court for the Western District of Missouri, Western Division
issues an injunction against the entire project, Time Warner wants it to
prevent the city from using the network it's planning for cable TV, unless
it puts the issue on a ballot.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA493406.html?display=Policy&referra...
(free access for Benton's Headlines subscribers)

VIACOM TAPS GOP BRIDGE-BUILDER
CBS parent Viacom Inc. is working overtime to get in the good graces of the
White House and the Republican-led Congress. In the latest move, the
company's lobbying office has hired Mehlman & Vogel led by Bruce Mehlman,
who was the Commerce Department's assistant secretary for technology policy
during President Bush's first term. His brother Ken ran the Bush reelection
campaign. Alex Vogel is Senate Majority Leader Bill Frist's (TN) former
chief counsel.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA493472.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 1/07/05

TODAY'S QUESTION: Broadcast localism -- myth or reality?

BROADCAST LOCALISM
Recording Artist Groups Call for More Local Radio
Clear Channel Defends Its Localism Efforts
NAB Sees Benefit in Sinclair Flap
NAB Slams EchoStar Carriage Proposal

BROADCASTING & ELECTIONS/POLITICS
Drug Control Office Faulted For Issuing Fake News Tapes
It's the Media, Stupid!
Staples Denies Dissing Sinclair News
The Political Standard -- December Issue

POLICYMAKERS
House Commerce Committee Picks 7 New Members
Senate Commerce Committee Approves Gutierrez
FCC chief buoys VoIP, Satellite Radio
Open Meeting Agenda -- 1/13/05
An Obscene Waste of Energy

TELECOM
FCC May Seek $500 Million From AT&T Over Phone Cards
Alltel Plans to Buy Western Wireless In $4 Billion Deal
Hawaii Consumer Advocate Supports Verizon Sale
Spectrum for Advanced Wireless Services

QUICKLY
Guidelines for Responsible Food Marketing to Children
E-rate Funds Coming Soon
Video-In-Car Plans Seen Hitting Some Roadblocks
Got an old PC? Don't trash it: Recycle it
Barely legal? Strip poker hits Cingular phones
Position Available: Media Access Project

BROADCAST LOCALISM

RECORDING ARTIST GROUPS CALL FOR MORE LOCAL RADIO
The Recording Artist Groups -- consisting of the American Federation of=20
Musicians, American Federation of Television and Radio Artists, Future of=20
Music Coalition, The
Recording Academy, and the Recording Artists' Coalition -- filed comments=20
in the FCC's localism proceeding. Their comments focus on: 1) Local=20
musicians=92 concerns about local programming and access to radio; 2) The=20
existence and impact of =93pay for play=94 business practices; and 3) The=20
domination of centralized programming masquerading as local programming=20
through insidious group owner innovations such as voicetracking. The=20
coalition calls upon the FCC to adopt A) a meaningful and effective license=
=20
renewal process which systematically evaluates the manner in which a=20
station has served the public interest through local programming; B) rules=
=20
that specifically prohibit payola practices; and C) standards by which the=
=20
Commission evaluates and measures the performance of stations under=20
license. In addition the coalition calls on the Commission to bring=20
low-power FM stations to more populated areas; view radio=92s transition to=
=20
digital audio broadcasting as an opportunity to recapture the inherent=20
value of broadcast radio by requiring incumbent licensees to expand access,=
=20
to increase the number of diverse voices on the air, and to meet local=20
communities=92 needs; and to reconsider the threat to localism inherent in=
=20
its loosened media ownership rules
[SOURCE: American Federation of Television and Radio Artists]
http://www.aftra.org/member/recording.htm
http://www.aftra.org/legislative/docs/localism_reply_comments_200500103.pdf

CLEAR CHANNEL DEFENDS ITS LOCALISM EFFORTS
In the Commission's proceeding on broadcast localism, a large coalition of=
=20
consumer groups told the FCC that big, consolidated corporations such as=20
Clear Channel suppress information or are biased in information=20
presentation. The group cited Clear Channel=92s alleged response to delete=
=20
the Dixie Chicks from the playlist on all stations after the lead singer=20
protested the invasion of Iraq. Clear Channel said that was a false=20
statement and that many listeners called and demanded that stations stop=20
playing the band=92s music. Moreover, Clear Channel told the FCC, localism=
=20
isn't in need of repair. Broadcast localism, Clear Channel wrote, is about=
=20
a station=92s responsiveness to the needs of the community, not the=20
equivalent of full, indiscriminate employment rights for air talent and=20
technicians.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

NAB SEES BENEFIT IN SINCLAIR FLAP
The National Association of Broadcasters has turned complaints over=20
Sinclair Broadcasting and Pappas Telecasting into arguments against new and=
=20
more specific government-mandated news and public affairs obligations.=20
Sure, there's a lot of logic in that, right? The broadcasters enraged the=20
public by trying to influence the outcome of recent elections. This is a=20
good thing? Sure, says the NAB. The fact that Sinclair only aired portions=
=20
of a controversial documentary, after pressure from advertisers and others,=
=20
and the FCC's decision to require Pappas to give money to candidates=20
running against people the broadcaster offered free time to, showed that=20
marketplace forces and current FCC regulations are sufficient. "Fair=20
evaluation of the ultimate resolutions of these two circumstances shows=20
that rule changes are not necessary," the NAB told the FCC.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA493132?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

NAB SLAMS ECHOSTAR CARRIAGE PROPOSAL
In comments to the FCC, EchoStar complained that stations serving as local=
=20
outlets of national programming should not get the same carriage rights of=
=20
stations providing local news and information in their home markets. The=20
satellite TV operator offered a content-for-carriage proposal, urging the=20
FCC to strip carriage rights from stations that failed to provide public=20
affairs and public service programming tailored to local viewers. Earlier=20
this week, the National Association of Broadcasters argued that federal law=
=20
does not authorize the FCC to deny satellite carriage to an otherwise=20
qualified station based on the content of the station=92s programming. The=
=20
NAB told the FCC that Congress knew that when it passed the satellite=20
carriage law, some TV stations did not provide locally originated=20
programming. The trade group said the fact that Spanish stations carried=20
national programming did not mean the stations were not serving local=20
Spanish-speaking viewers. Spanish programming, whether national or local,=20
has =93special importance=94 to Spanish speakers, the NAB said. The=
association=20
added that satellite carriage of all, rather than just a few, qualified=20
local stations would maintain the financial health of local TV stations so=
=20
that they could continue to serve consumers that chose not to subscriber to=
=20
=93costly cable and satellite service.=94
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA492885.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

BROADCASTING & ELECTIONS/POLITICS

DRUG CONTROL OFFICE FAULTED FOR ISSUING FAKE NEWS TAPES
The Government Accountability Office, the investigative arm of Congress,=20
has found that fake news reports produced and distributed by the Office of=
=20
National Drug Control Policy constituted illegal "covert propaganda." "You=
=20
think you are getting a news story, but what you are getting is a paid=20
announcement," said Susan A. Poling, managing associate general counsel at=
=20
the GAO. "What is objectionable about these is the fact the viewer has no=20
idea their tax dollars are being used to write and produce this video=20
segment." In May, the GAO concluded that the Department of Health and Human=
=20
Services violated two federal laws with similar fake news reports touting=20
the administration's new Medicare drug benefit. When that opinion was=20
released, officials at the drug control office decided to stop the=20
practice, spokesman Thomas A. Riley said. "Our lawyers disagree with the=20
GAO interpretation," he said. Nevertheless, if the video releases were=20
going to be "controversial or create an appearance of a problem," the=20
agency decided it was not worth pursuing, he said.
[SOURCE: Washington Post, AUTHOR: Ceci Connolly]
http://www.washingtonpost.com/wp-dyn/articles/A54651-2005Jan6.html
(requires registration)
NYTimes: http://www.nytimes.com/2005/01/07/national/07drug.html
In a related story see:
White House paid commentator to promote law
http://www.usatoday.com/printedition/news/20050107/1a_bottomstrip07dom.a...
tm

IT'S THE MEDIA, STUPID!
[Commentary] The reason that negative attacks could work so well for the=20
Bush campaign was the preexistence of a vast conservative media=20
infrastructure that serves as both an echo chamber for Republican messages=
=20
and a way to protect George W. Bush and other Republicans from attack.=20
Indeed, the conservative investment of tens of billions of dollars in media=
=20
over the past quarter century may be the biggest =AD and least reported =AD=
=20
money-in-politics story of modern American history. The conservatives=92=20
ability to saturate the airwaves with their version of reality has changed=
=20
how millions of Americans understand the world.
[SOURCE: Consortiumnews.com, AUTHOR: Robert Parry]
http://www.consortiumnews.com/2004/010505.html

STAPLES DENIES DISSING SINCLAIR NEWS
Office products chain Staples said Thursday that it has not adopted a=20
standing policy against advertising on Sinclair Broadcasting newscasts. The=
=20
company announced Tuesday that it was no longer advertising in Sinclair=20
newscasts as of Jan. 10. Media Matters for America had touted the move as a=
=20
response to its online campaign against the broadcaster, and a Staples=20
spokesman had confirmed that customer concern had partly prompted the=20
decision.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA493142?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

THE POLITICAL STANDARD -- DECEMBER ISSUE
Not available in stores! The December issue of The Political Standard=20
includes: 1) Local Stations Are Big Winners in Campaign 2004: TV=20
Broadcasters Rake in More than $1.6 Billion in Political Advertising. 2)=20
Reformers Set Sights on Upcoming Challenges: 527s, Presidential Public=20
Financing, FEC Reform and More on the Agenda for 2005. 3) Local, Network=20
News Tune Out Non-Presidential Candidates. 4) BCRA Regulations Improve=20
Disclosure, Help Voters Track Ad Sponsors and Campaign Spending.
Click your mouse now!
[SOURCE: Alliance for Better Campaigns]
http://www.bettercampaigns.org/standard/display.php?IssueID=3D46

POLICYMAKERS

HOUSE COMMERCE COMMITTEE PICKS 7 NEW MEMBERS
Republican Representatives Myrick (NC), Murphy (PA), Burgess (TX) and=20
Blackburn (TN) are likely to join the House Commerce Committee as are=20
Democrats Inslee (WA), Ross (Ark) and Baldwin (WI). Rep Myrick received=20
significant donations from RBOCs, according to the Center for Responsive=20
Politics (CRP). =93Telephone utilities=94 were the 6th largest donor to Rep=
=20
Myrick=92s 2004 campaign, giving $24,500. Rep Myrick has publicly urged the=
=20
FCC to act on broadband deregulation. He signed a letter to President Bush=
=20
that touted the job creation that would come from reducing regulations on=20
telephone carriers. Rep Myrick received $10,000 from SBC and $9,000 from=20
BellSouth, CRP reported, and $11,000 from the =93computer/Internet=94=
industry.=20
Microsoft ($69,000 for the 2004 election) was by far the biggest=20
contributor to Rep Inslee, according to CRP, while the next biggest=20
contributor was listed at $10,000. The =93computer/Internet=94 industry was=
=20
listed as the 2nd-largest donor to Rep Inslee, with $93,265 given. Telecom=
=20
service and equipment providers were listed as donating $6,500 to Rep=20
Inslee=92s campaign. CPR listed =93TV/Movies/Music=94 as donating $25,875 to=
Rep=20
Baldwin=92s campaign, along with $8,700 from the Communication Workers of=20
America and $6,000 from SBC.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

SENATE COMMERCE COMMITTEE APPROVES GUTIERREZ
On Thursday the Senate Commerce Committee announced it unanimously=20
recommended the confirmation of Kellogg Co. Chief Executive Carlos=20
Gutierrez as secretary of Commerce following a Wednesday hearing.
http://commerce.senate.gov/newsroom/printable.cfm?id=3D230477

FCC CHIEF BUOYS VOIP, SATELLITE RADIO
At the Consumer Electronics Show, FCC Chairman Michael Powell said the=20
Commission has no interest in regulating content on pay TV and radio=20
services. "I think it's a dangerous thing to start talking about extending=
=20
government oversight of content to other media just to level the playing=20
field," he said. Chairman Powell cited the fast-growing Internet telephony=
=20
industry as an endorsement of the FCC's new attitude against protectionism=
=20
and overregulation, saying the industry is taking off partly because the=20
agency put consumer interests ahead of those of traditional=20
telecommunications operators. "We should actually for once be proud of the=
=20
FCC," he said. "I think (VoIP) is the thing I'm most proud of in watching=20
the Commission go forward rather than backward." The switch from analog=20
television to digital high-definition signals is a frustrating issue given=
=20
that Federal laws set conflicting landmarks for requiring broadcasters to=20
make the switch, resulting in needless confusion for consumers, Powell=20
said. He said the FCC needs to decide by the end of the year when the=20
transition to all digital TV broadcasting should end.
[SOURCE: C-Net|News.com, AUTHOR: David Becker]
http://news.com.com/FCC+chief+buoys+VoIP%2C+satellite+radio/2100-7353_3-...
823.html?tag=3Dnefd.top

OPEN MEETING AGENDA -- 1/13/05
The FCC's open meeting on Thursday will focus on presentations by senior=20
agency officials regarding implementations of the agency's strategic plan=20
and a comprehensive review of FCC policies and procedures. Presentations=20
will be made in four panels: 1) The Chief of the Office of Strategic=20
Planning and Policy Analysis and the Managing Director. 2) The Chiefs of=20
the Wireless Telecommunications Bureau, the Office of Engineering and=20
Technology and the International Bureau. 3) The Chief of the Consumer &=20
Governmental Affairs Bureau, the Director of the Office of Workplace=20
Diversity and the Chief of the Enforcement Bureau. 4) The Chief of the=20
Media Bureau, the General Counsel and the Chief of the Wireline Competition=
=20
Bureau.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255929A1.doc
On Thursday, the FCC also released some reports:
* SEMIANNUAL REPORT OF FCC INSPECTOR GENERAL
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255895A1.doc
* BIENNIAL REVIEW OF TELECOMMUNICATIONS REGULATIONS
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-24A1.doc
* CONSUMER AFFAIRS REPORT
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-19A1.doc
* ENFORCEMENT BUREAU REPORT
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-18A1.doc
* INTERNATIONAL BUREAU REPORT
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-22A1.doc
* ENGINEERING REPORT
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-17A1.doc
* WIRELINE REPORT
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-21A1.doc
* WIRELESS REPORT
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-20A1.doc

AN OBSCENE WASTE OF ENERGY
[Commentary] Congress and the Bush administration should abolish the=20
Federal Communications Commission. Because the FCC has become so=20
politicized and beholden to big business, it has ceased to be protector of=
=20
the airwaves, which are supposed to belong to the citizens of this country=
=20
(but most believe they belong to big business). The Commission's regulation=
=20
of broadcast content is censorship. If it were really interested in=20
protecting the public, the FCC would take on the issue of violence on TV,=20
which it doesn't consider indecent, instead of getting worked up over a tit=
=20
and profanity.
[SOURCE: Wired, AUTHOR: Adam Penenberg, assistant professor at New York=20
University]
http://www.wired.com/news/print/0,1294,66181,00.html

TELECOM

FCC MAY SEEK $500 MILLION FROM AT&T OVER PHONE CARDS
AT&T is the nation's second-largest seller of prepaid calling cards because=
=20
it offers low per-minute rates something it has accomplished by not paying=
=20
federally required fees to local phone companies for connecting its=20
intrastate calls and by not making contributions to a federal fund that=20
subsidizes phone and Internet service to rural areas, schools and=20
libraries. By its own estimates, AT&T has withheld payments totaling $500=20
million. But the Federal Communications Commission seems poised to rule=20
that AT&T now needs to pay the piper. FCC Chairman Michael Powell and=20
fellow Republican Kathleen Abernathy have signaled their support for such a=
=20
ruling, which would need one additional vote to be carried by the=20
five-member commission.
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo=20
annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB110505632712219478,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
See also --
USAToday
http://www.usatoday.com/printedition/money/20050107/1b_attfees07.art.htm

ALLTEL PLANS TO BUY WESTERN WIRELESS IN $4 BILLION DEAL
Alltel, the country's sixth-biggest cellular carrier, is close to a deal to=
=20
acquire Western Wireless, a largely rural cellphone company, for roughly $4=
=20
billion. If the deal is completed, Alltel would remain the country's=20
sixth-largest cellular carrier, operating in various regions across the=20
country, with close to 10 million U.S. subscribers. Alltel would also take=
=20
on Western's more than one million subscribers overseas. Along with its=20
wireless service, Alltel also provides telephone, Internet and high-speed=20
data services in rural and suburban areas in 26 states, making it the=20
country's second-largest non-Bell local telephone company after Sprint,=20
with roughly three million land-line customers. The company's cellular=20
customers are scattered across the country, in markets including Phoenix;=20
Tampa, Fla.; Cleveland; New Orleans; Charlotte and Raleigh, N.C.; and=20
Charlottesville, Va. The deal could mark the beginning of a consolidation=20
of ownership among the country's smaller, regional carriers, which still=20
control about 20% of the nation's wireless subscribers.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB110501790439818676,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
Also coverage in --
LA Times:
http://www.latimes.com/business/printedition/la-fi-alltel7jan07,1,274945...
ory?coll=3Dla-headlines-pe-business
NY Times:
http://www.nytimes.com/2005/01/07/technology/07phone.html
In a related story see:
Sprint, Virgin Weigh Wireless IPO Amid Resurgent Telecom Market
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com and=
=20
Jesse Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB110505728722619515,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

HAWAII CONSUMER ADVOCATE SUPPORTS VERIZON SALE
Hawaii Consumer Advocate John Cole advised the Hawaii Public Utilities=20
Commission that state Division of Consumer Advocacy support of the proposed=
=20
$1.65 billion sale of Verizon Hawaii to the global private investment firm=
=20
The Carlyle Group. Carlyle and Verizon have agreed to the following terms:=
=20
1) Verizon Hawaii will provide $12 million to fund a customer-appreciation=
=20
bill credit equal to roughly one month's basic phone service for=20
subscribers. 2) Any transaction and transition costs incurred by Carlyle in=
=20
connection with the acquisition cannot be passed on to ratepayers. 3)=20
Carlyle will not file for a general rate increase before 2009 unless the=20
PUC finds a compelling reason for such a request. If Carlyle is able to=20
demonstrate a compelling reason for a rate increase before 2009, it must=20
make an additional equity investment in the telephone company equal to the=
=20
amount of the annual increase it wants from ratepayers. In addition, 67=20
percent of Carlyle's revenues from local directory operations would be=20
counted against its revenue requirement for purposes of calculating any=20
such rate increases. 4) Additional conditions deal with access to=20
information, reporting requirements, creditor access to pledged assets only=
=20
upon PUC approval, and the treatment of income tax expenses in future=20
proceedings.
http://www.state.hi.us/dcca/dca/index.html

SPECTRUM FOR ADVANCED WIRELESS SERVICES
The Commerce Department=92s National Telecommunications and Information=20
Administration (NTIA) sent federal agencies formal notification of their=20
new obligations under the Commercial Spectrum Enhancement Act. Thursday's=20
notification, contained in a letter from Assistant Secretary of Commerce=20
Michael Gallagher, requests that each affected agency submit its cost=20
estimate and timeline for relocation to NTIA by September 15, 2005. Radio=20
spectrum occupied by federal users will be auctioned to private users as=20
early as June, 2006, and costs of relocating incumbent users will for the=20
first time be funded by auction proceeds.
[SOURCE: National Telecommunications and Information Administration]
http://www.ntia.doc.gov/ntiahome/press/2005/auction_01062005.htm

QUICKLY

GUIDELINES FOR RESPONSIBLE FOOD MARKETING TO CHILDREN
The Center for Science in the Public Interest (CSPI) today released new=20
Guidelines for Responsible Food Marketing to Children, which call on food=20
manufacturers, broadcasters, restaurants, movie studios, and schools to=20
reform the way drinks, snacks, fast-food meals, and other foods are=20
marketed to kids. The Guidelines propose curbing certain marketing=20
techniques but unlike the food industry's self-imposed guidelines, CSPI is=
=20
proposing basic nutritional thresholds for determining which foods should=20
be marketed to kids in the first place. The Guidelines were developed with=
=20
input from experts from academia, government, and industry.
[SOURCE: Center for Science in the Public Interest Press Release]
http://www.cspinet.org/new/200501051.html
http://cspinet.org/marketingguidelines.pdf
See also --
CSPI Asks Nets to Trim Kids Ads
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA492714?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
* Washington Post
http://www.washingtonpost.com/wp-dyn/articles/A54915-2005Jan6.html

E-RATE FUNDS COMING SOON
The Universal Service Administrative Company announced that Wave 11 E-rate=
=20
Funding for Year 2004 will be issued on Tuesday, January 11, 2005. This=20
wave will include funding for approved Internal Connections requests down=20
to the 81% discount level. With this wave, the School and Libraries=20
Division of USAC expects to resume issuing biweekly funding commitment=20
decisions on FY2004 applications. There is no decision yet on whether funds=
=20
will be sufficient to fully fund Internal Connections requests with=20
discount percentages below 81%. Further information on funding requests=20
for Internal Connections below 81% will be posted to the USAC web site as=20
it becomes available. The issuance of this wave is consistent with HR 5419,=
=20
which President Bush has signed into law. Among other things, this law=20
provides a temporary suspension (through December 31, 2005) of the=20
Antideficiency Act as applied to the Universal Service Fund.
[SOURCE: Universal Service Administrative Company]
http://www.sl.universalservice.org/whatsnew/2005/012005.asp

VIDEO-IN-CAR PLANS SEEN HITTING SOME ROADBLOCKS
The fight for the next big entertainment market is shifting from the couch=
=20
to the car, but analysts say ambitious media companies aiming to roll out=20
video for automobiles face licensing and regulatory hurdles. For example,=20
Sirius Satellite Radio said it will beam video to cars in 2006, using=20
Microsoft software. But the Federal Communications Commission said it was=20
exploring whether such plans were permitted under Sirius' current=20
authorization or if it would require a new regulatory decision.
[SOURCE: Reuters, AUTHOR: Sue Zeidler]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DUSEJ222VXF1X0CRBAE...
A?type=3DtechnologyNews&storyID=3D7259600

GOT AN OLD PC? DON'T TRASH IT: RECYCLE IT
EBay unfurled an initiative Thursday to lead PC makers and environmental=20
groups in a major push to recycle more of the 400 million electronic=20
products that are trashed annually.
[SOURCE: USAToday, AUTHOR: Jon Swartz]
http://www.usatoday.com/printedition/money/20050107/ebay07.art.htm

BARELY LEGAL? STRIP POKER HITS CINGULAR PHONES
Could the indecency debate come to your cell phone? A tepid version of=20
strip poker for cell phones has debuted in the United States, and while=20
there's no nudity--on the screen, at least--the game's distributor is=20
preparing for complaints that it stretches the boundaries of good taste.
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/Barely+legal+Strip+poker+hits+Cingular+phones/2100-1...
3-5515346.html?tag=3Dnefd.top

POSITION AVAILABLE: MEDIA ACCESS PROJECT
MAP has an immediate opening for a staff attorney. MAP represents public=20
interest clients before the FCC and federal courts to provide a voice for=20
the public interest in media and telecom policy. Candidates must have JD=20
and bar membership in good standing. Candidates must have at least two (2)=
=20
years experience and familiarity with FCC practice. See=20
http://www.mediaaccess.org/employment/StaffAttorney_announce.pdf for a job=
=20
description.
[SOURCE: Media Access Project]
http://www.mediaaccess.org/employment/#attorney
--------------------------------------------------------------
...and we are outta here. 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 1/06/05

The FCC will release the agenda for next week's open meeting today. For=20
upcoming media policy events, see http://www.benton.org/calendar.htm

LOOKING AHEAD
Sneak Peak 2005: Media & Telecom
The Rise of a New News Network
Nomination of Carlos Gutierrez to be Secretary of Commerce

BROADCASTING
Paxson Calls FCC Response 'Misleading'
Broadcast Stations Serving "Language Minorities"
Radio Stations Vow to Speed Digital Moves
Stern: Still Talking, Still Feisty

PAY TV
Breaking Free of Cable's Stranglehold
DBS Is Slight Rein on Cable Prices
DirecTV: FCC Merger Condition Met

TELECOM
PUC Member Seeks Delay of 'Bill of Rights'
FCC Poised to Act on AT&T=92s Prepaid Calling Cards

INTERNET
Researchers See Gigabit Data Over Power Lines
Curbing Internet Gambling
Court Enters Preliminary Injunction Against Spyware Purveyor

OWNERSHIP
Boston Herald Publisher Vows to Stop Deal
Tech Firms Aim to Change Copyright Act
Lawsuit claims Apple violates law with iTunes

INTERNATIONAL CONSUMER ELECTRONICS SHOW COVERAGE
All the free press you can shake a joystick at...

LOOKING AHEAD

SNEAK PEAK 2005: MEDIA & TELECOM
Forbes editors and writers take a look ahead in the media business. 1)=20
Peter Newcomb On Media: The end of "reality TV" is in sight; illegal=20
downloading is an overblown problem; Disney will buy Pixar. 2) Brett Pulley=
=20
On Radio: The industry is both healthier than people think, but=20
underestimating the potential impact of satellite radio. 3) Peter Kafka On=
=20
The Music Industry: The music business may have an answer to its digital=20
woes: subscription services. Consumers pay a monthly fee to rent all the=20
digital music they desire, but can still buy tracks if they wish. 4) David=
=20
Ewalt On Telecommunications: Expect to see continued consolidation and more=
=20
heated competition in the telecommunications industry. The regional phone=20
companies will scramble to snatch up long-distance businesses. Strong=20
subscriber gains and the popularity of new digital services will give cable=
=20
operators a shot in the arm, exploding earnings. 5) Ed Lin On=20
Telecommunications: Consumers will continue their march to cable and=20
multiple-services operators for their telecommunications needs. Telecoms=20
will see their fixed-line businesses go the way of long-distance carriers=20
and the candlestick telephone. Increasing the depth of mobile services will=
=20
provide the only refuge for telecom companies as voice-over-Internet=20
Protocol wins more acceptance. 6) Susan E. Stegemann On Telecommunications:=
=20
FCC Chairman Michael Powell is expected to step down early in the year. He=
=20
has been hands-off when it comes to regulating the Internet. Will his=20
replacement be the same? 7) Scott Woolley On Telecommunications: No major=20
mergers of telecom carriers will be announced in 2005.
[SOURCE: Forbes]
http://www.forbes.com/business/2004/12/14/sp05_14_x_media.html
http://www.forbes.com/business/2004/12/14/sp05_17_x_telecom.html

THE RISE OF A NEW NEWS NETWORK
The 1990s proved to be the decade when cable news networks replaced network=
=20
television as the primary source of breaking news for many Americans, just=
=20
as the 1960s saw newspapers supplanted. In the new millennium, a=20
broadband-enabled, always-on Internet threatens to usurp those cable news=20
networks. The recent tsunami disaster, perhaps, marked the first time=20
Americans turned to blogs for breaking news. Already 32 million Americans=20
are reading weblogs. That's a large enough number to make even the biggest=
=20
skeptic believe that this is a real revolution. How much of an impact will=
=20
this have on the media giants? It's too early to tell. But one thing's for=
=20
sure: This trend is too big to ignore.
[SOURCE: Business 2.0, AUTHOR: Om Malik]
http://www.business2.com/b2/web/articles/0,17863,1013980,00.html
More on blogging and traditional media --
* Newspaper 2.0: The Blog Revolution
[SOURCE: Editor & Publisher, AUTHOR: Jesse Oxfeld ]
http://www.editorandpublisher.com/eandp/columns/newspaper_2point0_displa...
p?vnu_content_id=3D1000745992
* One Story Line About News Blogs: They Lag Far Behind Mainstream
[SOURCE: Investors Business Daily, AUTHOR: Brian Deagon]
http://story.news.yahoo.com/news?tmpl=3Dstory&cid=3D1471&ncid=3D1471&e=3...
=3D/ibd/20050104/bs_ibd_ibd/200513tech

NOMINATION OF CARLOS GUTIERREZ TO BE SECRETARY OF COMMERCE
At a Senate Commerce Committee Hearing, Carlos M. Gutierrez outlined his=20
goals if he is confirmed as Secretary of Commerce: 1) Fostering the=20
environment in which our free enterprise system will flourish, by serving=20
as an advocate for reducing trade and regulatory barriers that unreasonably=
=20
burden our businesses and their workers; 2) Collaborating with the U.S.=20
Trade Representative both in the negotiation of sound trade agreements that=
=20
will open markets to U.S. exports, and in vigorous challenges to policies=20
and practices abroad that violate those agreements; 3) Enhancing management=
=20
of our marine resources, especially our marine fisheries and threatened=20
marine ecosystems; and 4) Finally, developing greater analytical and=20
predictive capabilities concerning the global climate system, including an=
=20
enhanced forecasting capability with regard to potentially hazardous=20
weather and maritime conditions. That said, his first question from a=20
Senator was about broadband deployment in rural areas. Mr Gutierrez said=20
he =93hoped to have more knowledge=94 of the issue and would elaborate in=
the=20
future. However, he said President Bush=92s goal of affordable access to=20
broadband for all America by 2007 was a =93very powerful goal=94 that he=20
=93totally endorses and supports.=94 Sen. Gordon Smith (R-Ore.) told Mr=20
Gutierrez that enforcement of trade laws is particularly critical in=20
industries such as movies, music and software that are losing sales because=
=20
of copyright violations.
[SOURCE: Communications Daily]
(Not available online)
Commerce Nominee Gutierrez Vows to Fight Unfair Trade
[SOURCE: Washington Post, AUTHOR: Martin Crutsinger, Associated Press]
http://www.washingtonpost.com/wp-dyn/articles/A51942-2005Jan5.html
(requires registration)
See links to prepared statements at:
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1349

BROADCASTING

PAXSON CALLS FCC RESPONSE 'MISLEADING'
Paxson Communications Wednesday told the D.C. Circuit Court of Appeals that=
=20
the FCC's response to the broadcasters' call for an immediate decision on=20
digital must carry was "self-serving and misleading," and asked the court=20
to "require agency action on full digital must-carry." Paxson claims the=20
FCC has had six years to decide on the matter, and that its failure to act=
=20
threatens the transition to digital. Paxson wants the FCC to require cable=
=20
companies to carry all of the programming that TV stations can offer via=20
their new digital spectrum. That would increase the value of=20
Paxson's mostly-UHF stations, which are widely believed to for sale.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA492391.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

BROADCAST STATIONS SERVING "LANGUAGE MINORITIES"
House Democratic Caucus Chairman Robert Menendez (D-NJ) introduced=20
legislation (HR-148) on Tuesday that would require the FCC to report to=20
Congress on the ownership and control of broadcast stations serving=20
=93language minorities.=94 Last July, Rep Menendez testified before the=
Senate=20
Commerce Committee on media ownership, saying Spanish-language markets=20
should be treated and evaluated separately from the English-language market.
[SOURCE: Communications Daily]
(Not available online)

RADIO STATIONS VOW TO SPEED DIGITAL MOVES
Major radio companies announced Wednesday that they are accelerating their=
=20
move to digitize their broadcasts, using new technology that could make=20
broadcast radio more like the Internet.
[SOURCE: C-Net|News.com, AUTHOR: John Borland]
http://news.com.com/Radio+stations+vow+to+speed+digital+moves/2100-1027_...
13693.html?tag=3Dnefd.top
See also:
* LA Times
http://www.latimes.com/business/printedition/la-fi-rup6.6jan06,1,6893059...
ry?coll=3Dla-headlines-pe-business
* Radio Ink
http://www.radioink.com/HeadlineEntry.asp?hid=3D126573&pt=3Dtodaysnews

STERN: STILL TALKING, STILL FEISTY
Viacom's Howard Stern said on his Tuesday radio show that the company's=20
employees are now required to take an indecency law test as part of a deal=
=20
the media giant recently struck with the FCC. As part of that agreement,=20
which took effect Dec. 23, Stern will be pulled off the air -- and possibly=
=20
fired -- if the FCC lodges another formal complaint against Infinity (owned=
=20
by Viacom) over a future broadcast. When Stern learned last month of the=20
possible discipline he faces, he threatened to play only music during his=20
four-hour, five-day-a-week morning show. But in two live broadcasts since=20
returning Jan. 3 from a two-week vacation, Stern has been just as feisty as=
=20
before. In addition to the employee quiz, he detailed a company description=
=20
of the words and sounds that might run afoul of FCC rules. Stern said=20
possible profanity includes 'go to hell,' 'goddamn you,' and any=20
"personally reviling epithets." As for sounds, Stern said banned=20
intonations include flatulence and heavy breathing. His staff then played a=
=20
few examples.
[SOURCE: CNN Money]
http://money.cnn.com/2005/01/04/news/newsmakers/stern/

PAY TV

BREAKING FREE OF CABLE'S STRANGLEHOLD
"Damn those cable guys!" Well, no one actually says that in this article=20
that addresses what the CableCard/set-top box debate means for consumers.=20
Subscribers to the most current versions of digital cable service - the=20
kind with the most channels and advanced features - must now use a set-top=
=20
box provided by the cable system, usually for a monthly rental fee. Those=20
cable company boxes make it hard for devices like flashy flat-screen=20
televisions or advanced video recorders, to truly control the signals they=
=20
are receiving. Moreover, the cable companies are increasingly muscling in=20
on the electronics makers' business by enhancing their set-top boxes with=20
digital video recording abilities and other new features. The FCC, seeking=
=20
to curtail cable's hegemony, has required cable companies to give=20
subscribers the option of forgoing a cable set-top box by renting a device=
=20
the size of a credit card that can be inserted into a television or video=20
recorder and allowing it to tune into the cable system's digital channels.=
=20
But this system, called CableCard, does not yet allow users to tap into the=
=20
most advanced services, like video-on-demand programming, that are among=20
the main selling points of digital cable. The cable industry, for its part,=
=20
bristles at the accusations of the electronics makers. It is fighting to=20
have one part of the current FCC rules on CableCard relaxed: the=20
requirement that, starting in mid-2006, set-top boxes provided by the cable=
=20
operators must eventually use CableCards. The cable companies say that rule=
=20
adds an unnecessary expense to the boxes, but the electronics makers say it=
=20
is the only way to force the cable companies to properly support CableCard=
=20
technology.
[SOURCE: New York Times, AUTHOR: Saul Hansell]
http://www.nytimes.com/2005/01/06/technology/06cablebox.html
(requires registration)

DBS IS SLIGHT REIN ON CABLE PRICES
A new FCC study finds that the threat of losing subscribers to satellite TV=
=20
somewhat dampens cable operators=92 price hikes. =93Even for basic cable=20
services, consumers appear to turn to DBS as a substitute for cable=94 when=
=20
facing large price increases, wrote FCC economists Andrew Wise and Kiran=20
Duwadi. But the typical cable price hikes have not been sufficient to push=
=20
cable subscribers to flee to DBS because long-term contracts, installation=
=20
and equipment fees create =93switching costs=94 that discourage customers=
from=20
dropping their services after moderate price changes.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA491776.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
Competition between Cable Television and Direct Broadcast Satellite =AD It=
=92s=20
More Complicated
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255869A1.pdf

DIRECTV: FCC MERGER CONDITION MET
DirecTV vice president of government relations Susan Eid has reported to=20
the FCC that the company has added 30 local TV markets above what DirecTV=20
had planned before merging with News Corp, meeting conditions set by=20
regulators to win approval of the merger. The company now offers local TV=20
signals in 130 markets (out of 210 nationwide), including 92% of U.S. TV=20
households. DirecTV also plans to launch new satellites capable of=20
delivering up to 1,500 local TV stations in HDTV. The U.S. has 1,748=20
commercial and public TV stations, according to FCC data from last November.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA491619.html?display=3DBreaking+News
(free access for Benton's Headlines subscribers)

TELECOM

PUC MEMBER SEEKS DELAY OF 'BILL OF RIGHTS'
On Wednesday, Public Utilities Commission member Susan P. Kennedy proposed=
=20
shelving what would be the nation's first consumer protection rules for=20
those who use cellphones and other telecommunications services saying=20
carriers need more time to comply with the "bill of rights." Among other=20
things, the rules provide a 30-day trial period allowing customers to test=
=20
products and calling plans and to return them without paying penalties. The=
=20
rules also require clearly organized billing, specific disclosures and=20
writing that is unambiguous. Deceptive marketing is prohibited.=20
Commissioner Kennedy, a vociferous opponent of the consumer protection=20
rules, was on the short end of a 3-2 vote last May that adopted the bill of=
=20
rights. Gov. Arnold Schwarzenegger also had opposed the action, as did the=
=20
cellular phone industry.
[SOURCE: Los Angeles Times, AUTHOR:James S. Granelli]
http://www.latimes.com/business/printedition/la-fi-puc6jan06,1,5590417.s...
?coll=3Dla-headlines-pe-business
(requires registration)

FCC POISED TO ACT ON AT&T PREPAID CALLING CARDS
Because it considers its prepaid long distance calling cards an information=
=20
service, AT&T has been withholding millions of dollars of access charges=20
and universal service contributions. The company petitioned the FCC for a=20
permanent exemption and, apparently, a draft order has moved from the=20
Commission's Wireline Bureau to Chairmen Powell's office for review.=20
Chairman Powell could share the order with other commissioners by the end=20
of the week. The highly charged issue has become even more controversial=20
since Congress passed a resolution directing the FCC not to take any action=
=20
that would =93directly or indirectly=94 raise the rates charged to military=
=20
personnel for phone calls placed using prepaid cards. AT&T=92s enhanced=
cards=20
are often used by military personnel, although company officials say it=92s=
=20
nearly impossible to determine
what proportion of the cards. The FCC is expected to rule against AT&T.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)

INTERNET

RESEARCHERS SEE GIGABIT DATA OVER POWER LINES
In a research paper released Wednesday, engineers at Penn State University=
=20
said they had found a way for power lines to transmit data to homes at=20
rates far faster than high-speed Internet connections from cable and=20
telephone companies. Pouyan Amirshahi and Mohsen Kavehrad estimate that=20
their system could deliver data at close to one gigabit per second over=20
medium-voltage electrical lines in ideal conditions, with speeds of=20
hundreds of megabits per second available to home users. Their system would=
=20
uses repeaters placed every one kilometer, (0.62 miles) and requires power=
=20
lines to have been modified to reduce interference with the data signals.=20
The engineers said their estimates were based on computer models, and that=
=20
the data speeds available in a real-world version would depend on how many=
=20
repeaters a power company used. The Penn State study was funded with a=20
grant from AT&T, which has taken part in prior trials of power-line=
broadband.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DNCMCQDS0K5NBICRBAE...
A?type=3DtechnologyNews&storyID=3D7247854

CURBING INTERNET GAMBLING
[Commentary] Last year, more than 1,800 gambling websites took in some $7=20
billion in online wagers. Those revenues could grow to $9.8 billion this=20
year and to $18.4 billion. Although the Justice Department has been=20
cracking down on companies carrying ads for gambling websites and has gone=
=20
after banks that have allowed their credit cards to be used for online=20
betting, Congress has done very little to control the expansion of online=20
gambling. One change Congress ought to make: Revise the 1961 Wire Act,=20
which prohibits placing or taking bets across state lines, to specifically=
=20
include the Internet. Federal, state, and local governments also should=20
remain mindful of the myriad problems that gambling can cause. They need to=
=20
help prevent a money-draining addiction to a belief in chance that has=20
adversely affected the lives of so many individuals, instead of playing to=
=20
special interests.
[SOURCE: Christian Science Monitor, AUTHOR: Editorial Staff]
http://www.csmonitor.com/2005/0106/p08s03-comv.html

COURT ENTERS PRELIMINARY INJUNCTION AGAINST SPYWARE PURVEYOR
Seismic Entertainment and Smartbot.net agreed to a court order requiring=20
that the companies cease exploiting security vulnerabilities to force=20
software onto Internet users' computers. The order extends a similar,=20
earlier injunction and also gives the FTC access to company business=20
records. No trial date has yet been set for the FTC's first spyware case,=
=20
brought in October on the basis of a complaint filed by CDT.
[SOURCE: Center for Democracy and Technology]
(http://www.cdt.org)
Preliminary Injunction Order:
http://www.cdt.org/privacy/spyware/20041220seismicorder.pdf
CDT's Spyware Page:
http://www.cdt.org/privacy/spyware

OWNERSHIP

HERALD PUBLISHER VOWS TO STOP DEAL: METRO'S SALE TO TIMES 'ANTICOMPETITIVE'
Not so fast New York Times Company, says Boston Herald publisher Patrick J.=
=20
Purcell. He says he will try to block the agreement by the New York Times=20
Co., owner of the Boston Globe, to buy a 49% stake in the free daily Metro=
=20
Boston. Purcell said, "This deal is aimed directly at the Herald. It is=20
clearly anticompetitive and not in the best interests of the general public=
=20
or advertisers. We intend to contest this on grounds that the largest=20
newspaper in Eastern Massachusetts is making an in-market acquisition that=
=20
does not meet Justice Department standards."
[SOURCE: Boston.com/Boston Globe, AUTHOR: Mark Jurkowitz=
jurkowitz( at )globe.com]
http://www.boston.com/business/articles/2005/01/05/herald_publisher_vows...
fight_deal=20

TECH FIRMS AIM TO CHANGE COPYRIGHT ACT
Several of the world's largest high-tech corporations plan to urge Congress=
=20
today to force Internet service providers to crack down more aggressively=20
on their users who swap copyrighted software, music or video files online.=
=20
Although members of the Business Software Alliance, including Microsoft,=20
International Business Machines, Intel and Adobe Systems, have not suffered=
=20
losses from illegal file sharing as great as the entertainment industry's,=
=20
they believe the problem will only worsen as technology improves and more=20
people get high-speed Internet access. The effort could reshape a long=20
legal tradition of shielding phone, cable and other communications=20
companies from liability for the actions of their customers. Mike Godwin,=20
legal and policy director for Public Knowledge, a digital rights advocacy=20
group, called the BSA interest in amending the digital copyright act a=20
"terribly bad idea." He said the country has long kept communications=20
services as neutral conduits, free from obligations to monitor how people=20
use them. "We already don't ask the phone companies to go after people who=
=20
engage in infringing performances of songs over the telephone," Godwin said.
[SOURCE: Washington Post, AUTHOR: Jonathan Krim]
http://www.washingtonpost.com/wp-dyn/articles/A51966-2005Jan5.html
(requires registration)

LAWSUIT CLAIMS APPLE VIOLATES LAW WITH iTUNES
An unhappy iTunes online music store customer is suing Apple Computer,=20
alleging the company broke antitrust laws by allowing iTunes to work only=20
with its own music player, the iPod, freezing out competitors.
[SOURCE: Reuters, AUTHOR: ]
http://news.com.com/Lawsuit+claims+Apple+violates+law+with+iTunes/2100-1...
3-5514244.html?tag=3Dnefd.top

INTERNATIONAL CONSUMER ELECTRONICS SHOW COVERAGE

* Washington Post
http://www.washingtonpost.com/wp-dyn/articles/A51742-2005Jan5.html
* Wall Street Journal
http://online.wsj.com/article/0,,SB110496816504118140,00.html?mod=3Dtoda...
s_personal_journal
http://online.wsj.com/article/0,,SB110496715215718100,00.html?mod=3Dtoda...
s_personal_journal
* USA Today
http://www.usatoday.com/printedition/money/20050106/1b_gatesintro06.art.htm
http://www.usatoday.com/printedition/money/20050106/2b_gatesside06.art.htm
http://www.usatoday.com/printedition/money/20050106/b_baig_06.art.htm
* San Jose Merc
http://www.mercurynews.com/mld/mercurynews/business/technology/10578736.htm
* LA Times:
http://www.latimes.com/business/printedition/la-fi-tv6jan06,1,1828400.st...
coll=3Dla-headlines-pe-business
*CSM
http://www.csmonitor.com/2005/0106/p12s02-stct.html
*Reuters
http://www.reuters.com/newsArticle.jhtml?type=3DtechnologyNews&storyID=3...
0785
http://www.reuters.com/newsArticle.jhtml?type=3DtechnologyNews&storyID=3...
9824
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DTHPFWIUYUQ0XGCRBAE...
Y?type=3DinternetNews&storyID=3D7246460
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DTHPFWIUYUQ0XGCRBAE...
Y?type=3DinternetNews&storyID=3D7247239
*News.com
http://news.com.com/CES+2005+Digitizing+entertainment/2009-7353_3-550138...
ml?tag=3Dnefd.lede
http://news.com.com/Gates+taking+a+seat+in+your+den/2008-1041_3-5514121....
?tag=3Dnefd.lede
--------------------------------------------------------------
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 1/05/05

BROADCAST LICENSES
Free Press, NAACP Target TV License
Journalists Petition FCC to Challenge Fox License Renewal
Puerto Rican Media/Community Group Urges FCC to
Yank License of Univision Station in San Juan
Staples Shuns Sinclair News
Upton Plans to Reintroduce Indecency Legislation
Of Desperate Housewives and Desperate Regulators
Media Bureau Announces Requirement to File Radio
Joint Sales Agreements

MEDIA OWNERSHIP
Media: New Generations Steal The Show
Newspaper Domino Effect?
Times Co. to Buy Stake in Free Boston Paper
Why Can't I Be Comcast?

WIRELESS
Digital Democracy's Future Turns on Wireless Debate
Broadband Boondoggle in the Making
Consumers Gripe About Cell Phones in Survey
Cellphones, Net could have Saved Thousands from Waves
Wireless Industry Agrees to Study Standard to Boost Network Speed

HARDWARE
Why HDTV Hasn't Arrived In Many Homes
NCTA Wants to Talk Set-Tops with FCC

QUICKLY
Bell-Friendly IP-Video Bill Introduced
Verizon Applies for Cable Franchises in 3 States
Court Says RIAA Can't Subpoena ISPs Under DMCA
Nonprofits Receive $1 Million for Tech in Youth Civic Engagement,
At-Risk Youth & Homeless Programs
NAB Salutes Clear Channel Chief

BROADCAST LICENSES

FREE PRESS, NAACP TARGET TV LICENSE
As expected, media activists at Free Press and the National Association for
the Advancement of Colored People late Monday petitioned the Federal
Communications Commission to deny Media General's request for permission to
keep both WMBB-TV Panama City, Fla., and the Jackson County Floridan, one
of the market's daily newspapers. Free Press and NAACP said Media General
has given no compelling reason why it should receive a waiver from the
FCC's ban on crossownership of TV stations and newspapers in the same
market. The company purchased the station in spring 2000 and the Floridan
in September of that year thinking the FCC would relax media ownership
rules. "Media General took the risk of gambling that the
newspaper-broadcast crossownership rule would be repealed or modified
before the WMBB-TV license would come up for renewal. Media General lost
that bet," wrote lawyers for Free Press and NAACP. The groups noted that a
side benefit of an FCC order to divest one of the Panama City outlets would
be creating an opportunity for a minority owner to acquire the property.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA491352.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

JOURNALISTS PETITION FCC TO CHALLENGE FOX LICENSE RENEWAL
Two Tampa (Florida) TV journalists have challenged the broadcast license
renewal of WTVT Fox-13 asserting it deliberately broadcast false and
distorted news reports. In a petition filed at the FCC the two claim that
the licensee is not operating in the public interest and "lacks the good
character to do so." The challenge stems from what the reporters describe
as a year-long experience working at the station where they resisted their
managers who, they allege, repeatedly ordered them to distort a series of
news reports about the secret use of an artificial hormone injected in
dairy cattle throughout Florida and nationally. The petition also charges
WTVT violated federal rules about keeping viewer complaints and comments on
file. The reporters say no communication regarding the dispute over the
hormone story was found in the files even though there were several
examples of letters that should have been there, they said. "The public
interest is by law the primary obligation of every broadcaster who uses our
public airwaves to make their corporate fortune, especially when
broadcasting the news," said one of the reporters in a release.
[SOURCE: Tampa Bay Business Journal, AUTHOR: Alexis Muellner]
http://www.democracyinaction.org/dia/track.jsp?key=4880057&url_num=20&ur...

PUERTO RICAN MEDIA/COMMUNITY GROUP URGES FCC TO YANK LICENSE OF UNIVISION
STATION IN SAN JUAN
Citing "cultural insensitivity" and failure to live up to required local
broadcast standards, an alliance of Puerto Rican media unions and community
groups is urging the Federal Communications Commission to deny license
renewal to the island's largest television station, WLII in San Juan, which
is operated by U.S. media conglomerate Univision. The Alliance of Puerto
Rican Artists and Support Groups, whose acronym in Spanish is APAGA,
charged that Univision has all but dropped local production of telenovelas
and game shows in favor of canned programming from Mexico and Venezuela,
the source of most of Univision's production. Puerto Rican programming has
dropped from about 50 programs a week down to only three since Univision
took over in 2002 under a local marketing agreement with station owner
Raycom Media. Besides causing substantial job loss locally, the station's
shift to foreign news and entertainment programming has had an insulting
and damaging impact on Puerto Rico's culture and language, APAGA stated.
[SOURCE: Communications Workers of America Press Release]
(http://www.heritage.org/Research/InternetandTechnology/index.cfm)

STAPLES SHUNS SINCLAIR NEWS
Office supply products chain Staples is pulling its advertising from
newscasts on Sinclair Broadcast Group TV stations as of Jan. 10.
Anti-consolidation activist group Media Matters for America was trumpeting
the move, attributing it to its campaign against the broadcaster.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA491503.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
See MMFA press release:
http://sinclairaction.com/press_release_3.html
More coverage --
Washington Post:
http://www.washingtonpost.com/wp-dyn/articles/A48745-2005Jan4.html
LA Times:
http://www.latimes.com/business/printedition/la-fi-sinclair5jan05,1,7979...
Also see:
"The Point's" New Year's resolutions look an awful lot like the GOP's
http://mediamatters.org/items/200501040006

UPTON PLANS TO REINTRODUCE INDECENCY LEGISLATION
House Telecom Subcommittee Chairman Fred Upton (R-MI) will reintroduce
legislation aimed at increasing broadcast indecency fines. The legislation
passed in the House last year, but stalled in the Senate. The bill will
allow the FCC to fine on-air talent directly, a provision that sparked
controversy. The legislation would also institute a 180-day "shot clock"
for the FCC to decide on complaints. The bill would also make the FCC hold
a revocation hearing on any station cited 3 times for broadcasting indecent
content. Broadcasters fought this "3 strikes" rule hard in the Senate.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)
See coverage in Broadcasting&Cable
http://www.broadcastingcable.com/article/CA491198.html?display=Breaking+...
See also --
Watch Your Language
Motley Crue rocker Vince Neil said the f-word on "The Tonight Show" Friday,
but after 10 p.m. -- outside the FCC's safe harbor for "decency." NBC
edited out the offending word for West Coast viewers. Still, given that
many kids get to stay up late on New Year's, some parents might have been
taken aback -- though unlike the Super Bowl fiasco, Neil's use of profanity
seems to have gone unnoticed by activist groups.
[SOURCE: Variety.com, AUTHOR: Josef Adalian jadalian( at )reedbusiness.com]
http://www.variety.com/index.asp?layout=story&articleid=VR1117915677&p=0...

OF DESPERATE HOUSEWIVES AND DESPERATE REGULATORS
[Commentary] Expect the Parents Television Council to target "Desperate
Housewives" for indecency complaints now that Nielsen television ratings is
the most popular broadcast-network television show with kids aged 9-12.
"I've always been particularly troubled by the fact that so many
conservatives, who rightly preach the gospel of personal and parental
responsibility about most economic issues, seemingly give up on this notion
when it comes to cultural issues," Thierer writes.
[SOURCE: Cato Institute, AUTHOR: Adam Thierer]
http://www.cato.org/dailys/01-04-05.html

MEDIA BUREAU ANNOUNCES REQUIREMENT TO FILE CERTAIN RADIO JOINT SALES AGREEMENTS
FCC rules require the filing of radio joint sales agreements (JSAs) that
result in attribution under the Commission's multiple ownership rules. So
parties with existing attributable JSAs in Arbitron Metro markets must file
such agreements with the Commission by February 22, 2005, and parties that
enter into such JSAs in the future must file the JSAs with the Commission
within 30 days of their execution. Upon filing, the JSAs will be placed in
the appropriate station license files and will be made available for public
inspection in the Commission's Reference Information Center.
(DA No. 04-4035). MB. Contact: H. Taft Snowdon at (202) 418-2742
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-4035A1.doc

MEDIA OWNERSHIP

MEDIA: NEW GENERATIONS STEAL THE SHOW
By all indications, 2005 will be a year in which just about every
traditional media company gives up market share to some next-generation
rival. Cable-TV operators will continue to lose subscribers to satellite,
and perhaps even to telephone companies. Networks will see even more
eyeballs defect to cable. And despite lawsuits and legal download sites,
the music industry will still confront more illegal downloads. The
challenges come in all shapes and sizes. Broadcast networks will look on as
they're zapped by a rising army of remote-wielding couch potatoes with
digital video recorders (DVRS). Film studios will see more movie-loving
teens forgo the neighborhood cineplex for video games and DVDs -- some of
which will play on new hardware platforms such as the Sony PlayStation
Portable, hitting the U.S. this spring. One immediate result of the
turmoil: consolidation.
[SOURCE: BusinessWeek, AUTHOR: Ronald Grover]
http://www.businessweek.com/magazine/content/05_02/b3915441.htm

NEWSPAPER DOMINO EFFECT?
Is consolidation of local newspaper ownership on the way? Is your hometown
newspaper subject to the same Darwinian economics that play out with other
industries, or does it provide a unique public service that merits special
treatment? "Newspapers are not just any other kind of business. They're
about manufacturing journalism and democracy, not just computer chips or
steel," said Jeffrey Chester, executive director of the Center for Digital
Democracy. "They're living, breathing institutions that are of critical
importance to the democratic process, and the consolidation of newspapers
is just an American tragedy." The net effect when bigger chains gobble
smaller ones is that readers get less local coverage and fewer independent
voices from their papers, Chester said. "The thing about companies like
Pulitzer is they're newspaper-oriented companies, companies that don't have
major television interests or other media interests," he said. "In essence,
what these companies are doing by selling to these big chains is throwing
good newspapers to the ravenous wolves like Gannett."
[SOURCE: Arizona Daily Star, AUTHOR: Thomas Stauffer tstauffer( at )azstarnet.com]
http://www.dailystar.com/dailystar/allheadlines/54932.php

TIMES CO TO BUY STAKE IN FREE BOSTON PAPER
The New York Times Co., owner of The Boston Globe, said it will buy a 49
percent stake in Metro Boston, the free newspaper distributed to commuters.
Under the accord, the Globe will provide nonexclusive news stories, much as
wire services now do, to the Metro, which will remain editorially
independent. Metro, launched in Boston in 2001 and now profitable,
distributes about 180,000 papers a day, reaching an estimated 300,000
readers. For about half its audience, Metro is the only paper they read.
Metropolitan newspapers in several markets, including Chicago, Washington,
and Dallas, have in recent years launched free papers similar to Metro, a
tabloid targeting young readers with short news stories and a heavy diet of
arts, entertainment, and lifestyle features.
[SOURCE: Boston.com, AUTHOR: Robert Gavin rgavin( at )globe.com]
http://www.boston.com/business/articles/2005/01/04/times_co_to_buy_stake...

WHY CAN'T I BE COMCAST?
[Commentary] I dream of having a bevy of high priced lawyers at my beck and
call that can swoop into small towns at the drop of a hat and intimidate
the locals. I want to develop the skill to talk out of both sides of my
mouth with ease and grace. I long to host a national political convention
just to remind the doubters which side their bread is buttered on. But more
than anything else, I want freebies! I want to have an ex-mayor now
governor in my hip pocket so that when the going gets tough I can get over
fifty million dollars in public subsidies and tax breaks to build a 57
story skyscraper tribute to myself in downtown Philly. But you can bet I
won't be a piggy about it, I'll actually create 600 jobs. And everyone will
be happy because those jobs only cost the Pennsylvania taxpayers ninety
thousand dollars a piece to create!
[SOURCE: Riedel Communications, AUTHOR: Bunnie Riedel]
http://www.riedelcommunications.blogspot.com/

WIRELESS

DIGITAL DEMOCRACY'S FUTURE TURNS ON WIRELESS DEBATE
Are Wi-Fi networks the future of digital democracy? By providing
inexpensive, high-speed access to the Internet, these networks defy spatial
boundaries and historical precedent. What makes wireless networks so
attractive is their openness, which blasts conventional concepts of
Internet access, mobility and cost. Wi-Fi spans uncharted territory in
networking, enabling people to send and receive information, often free of
charge, from anywhere within range of a Wi-Fi base connection -- a
coffeeshop, park, a house or street corner. On the ground, countless
nonprofit organizations, government agencies and corporations large and
small are racing to establish networks using wireless technology. In the
realm of policy, meanwhile, advocates are pushing to expand the unlicensed
electromagnetic spectrum for community use. In both arenas, groups
advocating for free public networks face resistance from corporate players
that have long dominated the nation's telecommunications landscape.
[SOURCE: MediaChannel.org, AUTHOR: Michelle Chen]
http://www.mediachannel.org/views/dissector/affalert305.shtml

BROADBAND BOONDOGGLE IN THE MAKING
[Commentary] The new Pennsylvania law which precludes any local
municipality from providing telecommunications services to its citizens is
a major speed bump on the road to providing broadband access to all
Americans. The law will have the effect of reducing competition while
slowing the availability of low-cost broadband access. If we are to ever
bring pervasive broadband access to the multitudes, cities should be able
to choose the best way to deliver broadband services to their citizens.
[SOURCE: C-Net|News.com, AUTHOR: Ron Sege, CEO of Troops Networks]
http://news.com.com/Broadband+boondoggle+in+the+making/2010-7351_3-55114...

CONSUMERS GRIPE ABOUT CELL PHONES IN SURVEY
More than half of U.S. consumers are less than satisfied with their mobile
telephone service and give the lowest ratings to providers involved in
large mergers, according to a Consumer Reports survey. Poor call quality,
difficulty comparing service plans and less than helpful customer service
were problems cited in a survey from the magazine's September survey of
39,000 people in 17 major cities. The survey results, which were largely
unchanged from a similar study a year earlier, will be published along with
a separate look at the merits and drawbacks of Internet-based telephone
services in Consumer Reports' February issue.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=Y0RPUUCJAU1UICRBAEOC...

CELLPHONES, NET COULD HAVE SAVED THOUSANDS FROM WAVES
Tens of thousands died from the tsunamis last week because they didn't know
what was coming. That's an information breakdown, not an act of nature. Why
didn't warnings race around the Web ahead of the tsunami? We live at a time
when news of Scott Peterson's guilty verdict can spread in minutes from
cellphone text messages sent from inside the courtroom to millions of
people across the planet. Yet no one took advantage of the Web as the
tsunami dashed toward shorelines. Information couldn't have stopped the
tsunamis from destroying cities and villages. Yet if it saved even 1% of
the lives, that's 1,500 people. More than likely, timely information
could've saved tens of thousands more.
[SOURCE: USAToday]
http://www.usatoday.com/printedition/money/20050105/maney05.art.htm

WIRELESS INDUSTRY AGREES TO STUDY STANDARD TO BOOST NETWORK SPEED
Some 26 wireless carriers and telecommunications-equipment makers --
including Cingular, Vodafone, Qualcomm, Lucent Technologies and Motorola
-- have agreed to study the development of advanced wireless technology to
greatly increase the speeds offered by wireless networks. Third-generation,
or 3G, cellular networks can relay information at speeds far faster than
dial-up Internet connections, and even sometimes are comparable with wired
digital subscriber lines. Services generally using one of two technologies
-- either UMTS or EV-DO. Both standards are based on the CDMA technology
developed by Qualcomm.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB110486572838716637,00.html?mod=todays...
(requires subscription)

HARDWARE

WHY HDTV HASN'T ARRIVED IN MANY HOMES
The Consumer Electronics Show opens tonight in Las Vegas. Shortcomings in
existing products, battles over technical standards and fear of video
piracy are slowing manufacturers' ability to deploy new technologies from
high-definition TV to home networking to interactive TV. But, hey, they're
working on it. (Just not very quickly.) Take, for example, the issue of
content compatibility. Imagine that a movie purchased from a Best Buy store
could only be played on a DVD player that also was bought at Best Buy --
and not on a player from Circuit City or Radio Shack. That is, in essence,
what is happening in online music, the first big digital-content
battleground. The only major paid download service that works with Apple
Computer's iPod device is Apple's own iTunes, because of the copyright
protection used by the computer maker. In July, a rival online music
service, RealNetworks, cracked the Apple system with a technology called
Harmony so that customers who bought songs from RealNetworks could play
them on an iPod. Apple has taken steps to modify its offerings to prevent
iPods from working with Harmony.
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com,
Phred Dvorak phred.dvorak( at )wsj.com & Don Clark don.clark( at )wsj.com]
http://online.wsj.com/article/0,,SB110488131948416964,00.html?mod=todays...
(requires subscription)
See more coverage of the CE Show --
* USA Today
http://www.usatoday.com/printedition/money/20050105/ces05.art.htm
http://www.usatoday.com/printedition/money/20050105/ces_side.art.htm
http://www.usatoday.com/printedition/money/20050105/ceshp.art.htm
* NYTimes
http://www.nytimes.com/2005/01/05/technology/05gadget.html

NCTA WANTS TO TALK SET-TOPS WITH FCC
National Cable & Telecommunications Association president Robert Sachs has
asked for a face-to-face meeting between Federal Communications Commission
chairman Michael Powell and some "technical and business leaders" before
the FCC decides whether to hold to a July 2006 deadline for making cable
operators deploy set-tops with separate security modules and
channel-surfing functions.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA491128.html?display=Breaking+...
http://www.multichannel.com/article/CA491129.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
Also see NCTA Press release:
http://www.ncta.com/press/press.cfm?PRid=563&showArticles=ok

QUICKLY

BELL-FRIENDLY IP-VIDEO BILL INTRODUCED
Reps. Cliff Stearns (R-Fla.) and Rich Boucher (D-Va.) Tuesday introduced
legislation from last year that would allow the Baby Bells to offer
Internet-protocol video free from traditional state and federal regulation.
The bill specifically shields IP-video providers from federal and state
regulation -- a deregulatory step that would seem to support SBC
Communications effort to offer pay-video services in competition with cable
without local franchises. The bill, first unveiled last July, is designed
to be a marker as Congress gives consideration to legislation that would
update the Telecommunications Act of 1996.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA491504.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

VERIZON APPLIES FOR CABLE FRANCHISE IN 3 STATES
Verizon has been quietly applying for cable franchises as part of a plan
seeking interim regulatory relief for broadband services until the FCC
establishes an appropriate regulatory framework. The company is building
fiber networks out to homes and plans to provide commercial video as well
as videoconferencing, security services and enhanced services for the
disabled such as real-time signing for the hearing-impaired.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)

COURT SAYS RIAA CAN'T SUBPOENA ISPS UNDER DMCA
The Recording Industry Association of America can't force ISPs to divulge
the identity of customers under the Digital Millennium Copyright Act, the
U.S. 8th U.S. Appeals Court, St. Louis, ruled Tuesday. The ruling
overturned a lower court decision, deciding whether the law can be used to
subpoena names, addresses and phone numbers of illegal file sharers.
[SOURCE: Communications Daily, AUTHOR: Randy Barrett]
(Not available online)
See coverage in Multichannel News
http://www.multichannel.com/article/CA491528.html?display=Breaking+News&...

NONPROFITS RECEIVE $1 MILLION FOR TECH IN YOUTH CIVIC ENGAGEMENT, AT-RISK
YOUTH & HOMELESS PROGRAMS
Nearly 50 community-based organizations from across the U.S. have received
nearly $1 million in grants through two unique capacity-building programs
designed by the CTCNet. Grants and technical assistance totaling $750,000
have been awarded to 37 Massachusetts community-based organizations meeting
the needs of
at-risk youth and homeless individuals, including people with disabilities,
through Connections for Tomorrow (C4T), a three-year collaboration with the
Alliance for Technology Access http://www.ataccess.org and TechMission
http://www.techmission.org.
[SOURCE: CTCNet Press Release]
http://www.ctcnet.org/index.htm

NAB SALUTES CLEAR CHANNEL CHIEF
Which one is not like the others? Edward R. Murrow, Bob Hope, Walter
Cronkite, Oprah Winfrey, Clear Channel Lowry Mays. Sorry, trick question.
They are all the National Association of Broadcasters' "Distinguished
Service Award" which recognizes broadcasters "who have made significant and
lasting contributions to the broadcasting industry." Clear Channel is the
largest radio station owner in the country with over 1,200 outlets, which
has brought it under fire from anti-media consolidation activists who argue
that such concentration is at odds with "local" broadcasting. The award
will be given April 18 in, where else, Las Vegas.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA491203.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
See the NAB press release
http://www.nab.org/Newsroom/PressRel/n2005/nab2005_dist_service_award.htm
--------------------------------------------------------------
For upcoming media policy events, see http://www.benton.org/calendar.htm
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 1/04/05

The Senate Commerce Committee has scheduled a hearing on the nomination of
Carlos Gutierrez to be the Secretary of Commerce. For this and other
upcoming media policy events, see http://www.benton.org/calendar.htm

TELECOM
The Telecom (Better Late Than Never) Revolution
Bells Dig in to Dominate High-Speed Internet Realm
Wireless Net Calling Targets Masses
Cellphones Become 'Swiss Army Knives' As Technology Blurs

BROADCASTING
Citadel Drops Stern's Radio Show

INTERNET
A Year After Legislation, Spam Still Widespread

TELECOM

THE TELECOM (BETTER LATE THAN NEVER) REVOLUTION
[Commentary] The Telecommunications Act of 1996 was supposed to usher in a
great new era of competition and innovation, but regulators at the FCC may
just be realizing that some nine years later. When implementing the Act,
the FCC created new layers of regulation, setting up separate rules for
local phone, long distance, and cable activity, even when all three were
offered by the same company. The dashed promise of telecom reform ought to
be a cautionary tale about what happens when government tries to regulate
an industry evolving faster than even its leading participants recognize.
The essence of the telecom revolution is bundling services -- phone calls,
e-mails, and episodes of "Sex in the City" -- onto one network. McCourt
ends: The good news is that the FCC may finally understand this and stop
trying to establish the structure of the industry from Washington. And it
won't be soon enough. Before long an aspiring entrepreneur will sell video
over the Internet just as Vonage and others are now selling voice over the
Internet, reconfiguring the boundaries of telecommunications all over again.
[SOURCE: Wall Street Journal, AUTHOR: David McCourt, chairman and CEO of
Granahan McCourt Capital]
http://online.wsj.com/article/0,,SB110479489775015825,00.html?mod=todays...
(requires subscription)

BELLS DIG IN TO DOMINATE HIGH-SPEED INTERNET REALM
The regional Bell companies have made much of their billion-dollar plans to
run broadband networks across the USA. Yet they're also quietly trying to
erect hurdles that would make it hard -- or expensive -- for anyone to
compete with them. The Bells are going after their phone rivals, Internet
carriers, small cities and major metro areas -- anyone with an interest in
building services that might compete with the Bells. "If municipal
governments and others are blocked from entering this market, the vast
majority of Americans are going to wind up on the wrong side of the digital
divide, because they will be unable to afford high-speed services," says
Gene Kimmelman of Consumers Union. Experts say they worry about diminished
competition in broadband services. Unless others can step into the fray and
compete aggressively, broadband could fall under the control of just two
players, just as the cellphone business did for years. With just two
cellphone carriers per market, operators tended to keep prices high.
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
http://www.usatoday.com/printedition/money/20050104/fibercover04.art.htm

WIRELESS NET CALLING TARGETS MASSES
Vonage, the No. 1 Internet phone company, will unveil plans today to offer
subscribers a wireless Wi-Fi phone that can make calls over the Internet at
homes or at public Wi-Fi hot spots. For Vonage subscribers, the phone could
amount to a kind of limited-use cellphone that would cost nothing extra.
The service poses at least some threat to wireless carriers because Wi-Fi
calls are effectively free. Cellphone calls, by contrast, eat up a monthly
bucket of minutes.
[SOURCE: USAToday, AUTHOR: Paul Davidson]
http://www.usatoday.com/printedition/money/20050104/2b_wifiphone04.art.htm

CELLPHONES BECOME 'SWISS ARMY KNIVES' AS TECHNOLOGY BLURS
Cellphones have a decisive advantage over many other electronics devices:
People typically carry them wherever they go, unlike laptop computers, MP3
players or digital cameras. As a result, cellphones have become products on
which all sorts of industries want to attach their wares and services.
Several factors are making such these attachments possible and attractive.
For one thing, cellphone network coverage has improved, even in rural
areas, to the extent that building cellphone headsets into ski jackets and
motorcycle helmets has become attractive. The second factor is new
technology such as a short-distance wireless system called Bluetooth, which
enables cellphone users to don headphones that connect to their phones
without cords. Third, better digital networks and improvements in the
software inside cellphones have made the phones much more powerful and
capable of handling an assortment of accessories. And finally, prices are
coming down, turning the latest high-end features into mass-market
offerings within months
[SOURCE: Wall Street Journal, AUTHOR: Christopher Rhoads
christopher.rhoads( at )wsj.com]
http://online.wsj.com/article/0,,SB110479366994115788,00.html?mod=todays...
(requires subscription)

BROADCASTING

CITADEL DROPS STERN'S RADIO SHOW
Because of his constant references to his planned move to Sirius Satellite
Radio, Citadel Broadcasting has decided to drop the Howard Stern radio
show. Citadel owns more than 200 radio stations in midsize markets around
the country including four that aired Stern's show. Citadel's decision to
drop Mr. Stern reduces the number of stations carrying his program to 41.
It also comes almost a year after Clear Channel Communications dropped his
show from six of its stations, citing indecency concerns, Mr. Stern more
than made up for those losses by signing other stations later.
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com]
http://online.wsj.com/article/0,,SB110479643493715875,00.html?mod=todays...
(requires subscription)

INTERNET

A YEAR AFTER LEGISLATION, SPAM STILL WIDESPREAD
The Can-Spam Act, the nation's first law aimed at curtailing junk e-mail,
produced mixed results after a year on the books, inspiring some Internet
service providers to take legal action against spammers but failing to stop
the overall proliferation of the unwanted online messages. Spam levels rose
in 2004, by most accounts. At the beginning of 2003, spam accounted for
about 50 percent of all e-mail, according to Postini, a Redwood City,
Calif.-based anti-spam firm that scans about 400 million e-mail messages a
day for its clients. By the time Can-Spam passed at the end of 2003, that
figure had grown to roughly 75 percent. Throughout 2004, spam accounted for
75 to 80 percent of all e-mail, said Chris Smith, Postini's senior director
of product marketing. As a result, most of the e-mail industry has turned
its attention toward technology, rather than litigation, as the primary
means for combating spam.
[SOURCE: Washington Post, AUTHOR: David McGuire]
http://www.washingtonpost.com/wp-dyn/articles/A46037-2005Jan3.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 1/03/05

HAPPY NEW YEAR!

ON THE HORIZON
A January To Remember
The Advertising Outlook for 2005
Telecom Revamp May Cost Cities

BROADCASTING
Alliance Considering License Challenges
FCC Resists Paxson Court Ploy
FCC May Act Soon on CEA's DTV Tuner Petition
European Regulators Urged to Promote Wide-Screen
TV to Spur DTV Takeup

CABLE
Cable Has to Like 'Brand X' Case Chances
Cable Programs Up Across Board
Charter Asks For Basic Deregulation In Northwest
CEA Keeps Up Heat on Set-Tops

QUICKLY
Powell Moves Quickly to Initiate AWS Auction
California Appeals FCC VoIP Order
Judicial Nominees Have Left Telecom, Internet Footprints
The State of Blogging
A "Year in Review" of "The Point"
The Children's Television Rules
Digital Communities 2005

ON THE HORIZON

A JANUARY TO REMEMBER
What's on the agenda this month? Broadcasting&Cable highlights a half-dozen
items: 1/4 -- Sens. Ted Stevens (R) of Alaska and Daniel Inouye (D) of
Hawaii become chairman and ranking Democrat on the Senate Commerce
Committee, setting the stage for them to oversee a sweeping rewrite of the
country's telecommunications laws. 1/5 -- Paxson Communications explains to
the federal appeals court in Washington why the FCC should be forced to
quickly decide whether broadcasters are entitled to cable carriage for each
of the six or so digital channels that digital TV allows them to offer.
1/18 -- The FCC must file a brief with the Supreme Court explaining why
cable operators' Internet services should remain free of telephone-style
"open access rules." 1/20 -- With an eye toward an FCC vote in February or
March, Chairman Michael Powell formally proposes his controversial plan for
ending the digital TV conversion. 1/24 -- Congress gets busy, including
hearings on Chairman Powell's DTV plan. 1/31 -- The FCC faces a choice:
either ask the Supreme Court to uphold its 2003 deregulation of broadcast
ownership limits or accept a lower court order to rewrite the rules.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA490662.html?display=News&refe...
(free access for Benton's Headlines subscribers)

THE ADVERTISING OUTLOOK FOR 2005
In 2004, advertisers spent $46 billion on broadcast TV and $15.6 billion on
cable. They are projected to spend $46.7 billion on broadcast and $16.7
billion on cable in 2005. The slight rise for TV advertising highlights
TV's changing role. Once the undisputed king of media buys, television may
surrender to a new, broader communications mandate, say industry sources.
"If last year was about branded entertainment, this year will be about
total communications planning," predicts Steve Moynihan, executive vice
president/managing director of MPG, Boston, the media-buying agency of
Havas. Communication planning targets all communication channels, such as
PR, the Internet and place-based media, not just TV, radio, magazines and
newspapers. Media buyers, planners and ad insiders predict renewed efforts
to regulate at least two top commercial categories: prescription drugs and
food aimed at kids.
[SOURCE: Broadcasting&Cable, AUTHOR: Joe Mandese]
http://www.broadcastingcable.com/article/CA490658.html?display=Advertisi...
(free access for Benton's Headlines subscribers)

TELECOM REVAMP MAY COST CITIES
Local governments are bracing for a rough Congress next year, with an eye
on telecommunications legislation that could impact their bottom lines.
"Local governments' interests were and are under attack in Washington and
in the state legislatures. Absent a unified and strong response by local
government (and where possible, with state government groups), matters will
only get worse in 2005 and 2006," according to a report prepared by the
Local Government Telecommunications Alliance. The seven-page report
indicates that Congress will come under pressure from industry next year to
limit state and local oversight of Internet protocol-based services,
whether voice, video or data. The report explains that events in 2004 sent
"a not-so-subtle message to local government" that Congress might pass a
new law that shields IP service providers from state and local regulation,
except in the areas of consumer protection and emergency services.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA490768.html?display=Top+Stories&re...
(free access for Benton's Headlines subscribers)

BROADCASTING

ALLIANCE CONSIDERING LICENSE CHALLENGES
The Alliance for Better Campaigns is still sifting through data on TV
stations' coverage of the 2004 elections, and it hasn't yet decided whether
to challenge any licenses coming up for renewal, Executive Director
Meredith McGehee said. The Alliance monitored the amount of time TV outlets
devoted to covering local and national campaigns in their nightly
newscasts, public affairs shows and special programs such as debates.
During the run-up to the election, McGehee said the Alliance was holding
out the option of challenging licenses as they come due across the country
over the next three years.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA490719.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

FCC RESISTS PAXSON COURT PLOY
Paxson Communications, dismayed by years of alleged FCC inaction on
digital-television issues, has asked a federal court to force the FCC to
rapidly bring clarity to the regulatory picture. The policies sought by
Paxson would require cable companies to carry every digital service that a
TV station can cram into its bandwidth. Today, that's about five or six
channels. Paxson's proposal would also require cable operators to carry one
service in down-converted analog format and the others in digital, for
viewing by cable subscribers with DTV sets or digital set-tops. In 2001,
the FCC tentatively rejected the idea of forcing cable to carry analog and
digital signals during the transition to all-digital broadcasting -- and it
unequivocally limited cable carriage to a single DTV programming stream
after the transition, rejecting Paxson's so-called multicast carriage
mandate. The cable industry applauded that outcome. According to the FCC,
Paxson created a procedural problem for itself by failing to take the
agency to court promptly after adoption of the DTV rules in 2001. Instead,
Paxson asked the commission to reconsider its action, a procedural step
that blocks the company from taking the FCC to court while the
reconsideration request is pending.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA490701.html?display=Policy&referra...
(free access for Benton's Headlines subscribers)

FCC MAY ACT SOON ON CEA'S DTV PETITION
In November, the Consumer Electronics Association and the Consumer
Electronics Retailers Coalition, in a joint petition, asked the FCC that
the July 2006 date by which all TV sets with 25"-36" screens must have
digital TV tuners be moved up to March 2006 and that the July 2005 date by
which 1/2 the sets must be ATSC-capable be eliminated. Sources now say that
an order on the petition is being circulated to FCC commissioners.
Broadcasters oppose delaying when tuners should be implemented, which they
see happening if the July 2005 deadline is eliminated. "It's counter
intuitive. You're just flooding the market with more analog sets that won't
work in 4-5 years," one broadcast official said. Eliminating the July 2005
deadline would affect the crucial holiday selling season, he said, because
most consumers purchase those size sets during Christmas time and before
the Super Bowl.
[SOURCE: Communications Daily 1/3, AUTHOR: Tania Panczyk-Collins]
(Not available online)

EUROPEAN REGULATORS URGED TO PROMOTE WIDE-SCREEN TV TO SPUR DTV TAKEUP
European telecom regulators should encourage the rollout of wide-screen TV
in order to spur digital broadcasting, according to a study presented to
the European Commission (EC) last month. With several of the
"chicken-and-egg" problems that led to market failure in the 1990s now
resolved, wide-screen format should be
able to "play its role in the cluster" of DTV technologies, said
Eurostrategies, a joint subsidiary of 3 consultancies -- BIPE Conseil
(France), Interconnect Communications (U.K.) and European Research Assoc.
(Belgium).
[SOURCE: Communications Daily 1/3, AUTHOR: Dugie Standeford]
(Not available online)

CABLE

CABLE HAS TO LIKE 'BRAND X' CASE CHANCES
The Supreme Court has agreed to hear a case, informally known as Brand X,
that could decide whether cable companies have to open their lines to
competing Internet-service providers, just like the Baby Bells. As cable
and phone companies battle for high-speed data customers, cable companies'
ability to exclude ISP rivals while the Baby Bells could not gives cable a
regulatory leg up that helps protect their current 60% market share. The
case comes to the Supreme Court by way of the 9th U.S. Circuit Court of
Appeals which, for the nine-year period ending in 2001has been reversed by
the Supreme Court in 90% of its cases. Andrew Jay Schwartzman, an attorney
with Media Access Project who is representing the Center for Digital
Democracy in the case, said he was disappointed that the court agreed to
hear the case. "The outcome of this case will -- quite literally --
determine the future of the Internet as we know it. If the Supreme Court
rules against Internet open access, cable companies will be able to block
content at will for political and financial reasons and deny the public the
ability to choose among competing Internet providers," Schwartzman said.
Cable attorneys said the court has scheduled oral arguments for March 23
(though that could change), and a decision is expected to be released
before the court's summer recess in late June or early July. The case is
titled Federal Communications Commission and U.S. v. Brand X Internet Services.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA490762.html?display=Top+Stories&re...
(free access for Benton's Headlines subscribers)

CABLE PROGRAMS UP ACROSS BOARD
Six of the top-10 rated cable networks increased their primetime delivery
to persons aged 2 and older in 2004. In contrast, only two of the seven
broadcast networks saw gains. Cable's victories against broadcast in
overall viewership have almost become old hat. But now cable is dominating
additional genres, or what TNT and TBS CEO Steve Koonin called "programming
pockets." Koonin noted that viewership for sports and kids' programming has
already shifted to cable. But last year, audiences were also turning to
cable for their news, late-night viewing and even original scripted shows.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA490769.html?display=Top+Stories&re...
(free access for Benton's Headlines subscribers)

CHARTER ASKS FOR BASIC DEREGULATION IN NORTHWEST
The basic cable tier includes local TV stations, public access channels,
and any cable networks placed there by the cable company. The rates for the
basic tier remain under local control until a cable company demonstrates
that effective competition has emerged. With adoption of direct-broadcast
satellite services around the country, cable operators are asking for
deregulation of basic tier rates in areas where DBS penetration is 15% or
more. Charter Communications has filed a petition with the FCC seeking
total rate deregulation for 21 cable franchises serving 15 areas in
Washington state and six in Oregon.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA490695.html?display=Policy&referra...
(free access for Benton's Headlines subscribers)

CEA KEEPS UP HEAT ON SET-TOPS
Cable operators are facing a July 2006 deadline to deploy new digital boxes
that function with CableCARDS. But the industry is resisting, claiming the
cost to lease boxes would rise without any offsetting benefits. But
consumer electronics manufacturers say cable operators are exaggerating the
costs and complications associated with opening the digital set-top box
market in a way that would allow consumers to buy units from Best Buy and
Circuit City. The cable industry has asked for an extension on the July
deadline and the FCC had promised a ruling by January 1. Broadcasting &
Cable now reports that the FCC is promising a decision before February.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA490763.html?display=Top+Stories&re...
(free access for Benton's Headlines subscribers)

QUICKLY

POWELL MOVES QUICKLY TO INITIATE AWS AUCTION
FCC Chairman Michael Powell asked the National Telecommunications and
Information Administration to begin the process that will lead to an
auction of 90 MHz of spectrum for advanced wireless services (AWS) in June
2006. In a letter to Assistant Secretary for Communications and Information
Michael Gallagher, FCC Chairman Michael Powell stated that the Commission
intends to commence an auction for Advanced Wireless Services licenses in
the 1710-1755 MHz and 2110-2155 MHz bands as early as June 2006. The
1710-1755 MHz band is currently occupied by federal government users that
would be relocated pursuant to the recently enacted Commercial Spectrum
Enhancement Act. That Act requires the Commission to notify NTIA at least
18 months in advance of beginning an auction of spectrum transferred from
federal government to commercial use. It also requires NTIA to provide the
Commission the estimated costs and timelines for the relocation of Federal
entities from the bands at least 6 months prior to the auction.
[SOURCE: Communications Daily 12/30, AUTHOR: Howard Buskirk]
(Not available online)
Letter to NTIA:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255803A1.pdf
FCC Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255802A1.doc

CALIFORNIA APPEALS FCC VOIP ORDER
The California Public Utilities Commission filed an appeal in the Ninth
U.S. Circuit Court of Appeals Dec. 22 challenging a FCC ruling in November
that barred states from regulating voice-over-Internet-protocol providers,
including cable companies, as traditional phone-service providers. The CA
PUC claims that the FCC exceeded its authority in shielding VoIP providers
from traditional state regulation. Also Dec. 22, the U.S. Court of Appeals
for the Eighth Circuit upheld a permanent injunction against Minnesota that
Vonage had obtained from a lower court. The court said the FCC's order
pre-empting state regulation of VoIP supported the injunction, and
opposition to the FCC's ruling had to be brought in a separate case.
California regulators began that process with the Ninth Circuit appeal.
[SOURCE: Multichannel News]
http://www.multichannel.com/article/CA490713.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

JUDICIAL NOMINEES HAVE LEFT TELECOM, INTERNET FOOTPRINTS
Last month, President Bush renominated several people to federal judgeships
including some with ties to the telecom and Internet industries, or cases
involving them. Each of the nominations had been held up by the Senate but
was resubmitted by the Administration in anticipation of a stronger
majority in the 109th Congress. Paul Crotty, renominated to a judgeship in
US Distict Court, New York City, is a longtime Verizon executive. U.S.
District Judge Terrence Boyle (Raleigh, NC), renominated to a seat on the
4th U.S. Appeals Court, Richmond, sat on the 4th Circuit Appeals Court
panel that unanimously said AOL isn't responsible for anonymous postings
that resulted in dozens of harassing phone calls to a Seattle businessman.
The opinion said the Telecom Act expressed clear intent that online service
companies not be liable for "material posted by third parties on their
system." Thomas Griffith, renominated to a seat on the U.S. District Judge,
D.C. is an ex-partner at communications law firm Wiley, Rein & Fielding.
[SOURCE: Communications Daily 12/28, AUTHOR: Michael Feazel]
(Not available online)

THE STATE OF BLOGGING
By the end of 2004 blogs had established themselves as a key part of online
culture. Two surveys by the Pew Internet & American Life Project in
November established new contours for the blogosphere and its popularity:
1) 7% of the 120 million U.S. adults who use the Internet say they have
created a blog or web-based diary. That represents more than 8 million
people. 2) 27% of Internet users (32 million Americans) say they read
blogs, a 58% jump from February 2004. 3) 5% of Internet users say they use
RSS aggregators or XML readers to get the news and other information
delivered from blogs and content-rich Web sites as it is posted online. 4)
The interactive features of many blogs are also catching on: 12% of
Internet users have posted comments or other material on blogs. 5) At the
same time, for all the excitement about blogs and the media coverage of
them, blogs have not yet become recognized by a majority of Internet users.
Only 38% of all Internet users know what a blog is. The rest are not sure
what the term "blog" means.
[SOURCE: Pew Internet & American Life Project]
http://www.pewinternet.org/

A "YEAR IN REVIEW" OF "THE POINT" REVEALS A YEAR OF BIAS AND DISTORTION
Media Matters for America keeps the spotlight on Sinclair Broadcast Group's
"The Point," a commentary segment included in "local" newscasts on
Sinclair-owned stations around the country. Last month, "The Point" has
offered a "Year in Review" series featuring "some of the most popular
commentaries" from 2004 presented by Sinclair vice president Mark Hyman.
[SOURCE: Media Matters for America]
http://mediamatters.org/items/200412230010http://mediamatters.org/items/...

THE CHILDREN'S TELEVISION RULES
The legal department of the National Association of Broadcasters offers
stations a summary of the FCC's newly-adopted children's television rules.
[SOURCE: National Association of Broadcasters]
http://www.nab.org/membersonly/nabsays/legal/kid-vid2004.htm

DIGITAL COMMUNITIES 2005: CALL FOR PAPERS AND ORGANIZERS
Digital Communities is an international network of scholars, policy makers,
and urban analysts who share an interest in the relationship between
information technologies and urban life. The next Digital Communities
conference in 2005 will be held in Italy and will explore a wide range of
themes associated with information technology, the knowledge economy,
technology policy, and the significance of place in cyberspace. Of special
interest is the experience of locations within the Mediterranean region. To
present a paper or organize a session see the URL below.
http://www.ssc.msu.edu/~espace/DC2005Location.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.
--------------------------------------------------------------