February 2005

DIGITAL TELEVISION
FCC Denies Multicast, Dual Must-Carry
Powell Drops DTV-Transition Plan
House Panel Sets DTV Hearing
Comcast, Sinclair Near Digital, HDTV Deal
Cablevision to Sell Remaining Assets Of Voom to Dolan

MORE MEDIA POLICY
McCain Calls for a la Carte Trials
E/I Bug Not Yet a Requirement
Consuming Kids: How Marketing Undermines Children=92s Health,
Values & Behavior
TV Plugs Not Inherently Deceptive
PBS Creates Programming-Audit Panel
Children's Show Faces PBS Inquiry

TELECOM
Verizon-MCI Talks Advance; Merger Deal May Be Days Away
Telecom-Gear Mergers May Start to Heat Up
Chairman Stevens Reacts to AT&T's Use of Prepaid Calling Cards to
Lobby on the Universal Service Fund

QUICKLY -- # of Broadcast Stations; Online Banking Growing Rapidly;=20
Flexibility in the 900MHz Spectrum Band; 2005 Susan G. Hadden Awards

REACTION TO FCC DIGITAL MUST CARRY DECISION

DIGITAL TELEVISION

FCC DENIES MULTICAST, DUAL MUST-CARRY
As expected, the FCC has denied broadcasters mandatory cable carriage of=20
both their analog and digital television (DTV) signals during the DTV=20
transition or of any DTV signal but their primary one. The vote was a 5-0=20
victory on dual must carry and 4-1 on multicasting must carry, with=20
Commissioner Kevin Martin dissenting on the multicasting part of the=20
decision. The FCC concluded that such carriage was not necessary to the=20
survival of over the air TV, and was not sufficiently narrowly tailored to=
=20
justify the expansion of must carry and curtailment of cable speech. The=20
Commission did not address the public interest obligations associated with=
=20
broadcasters primary digital signal, saying it would address those by the=20
end of the year. That did not sit well with Commissioners Michael Copps and=
=20
Jonathan Adelstein. Commissioner Jonathan Adelstein said he voted to deny=20
multicasting must-carry, though with some trepidation, in part because=20
public interest obligations were not made part of the decision, and that=20
without that guarantee of public service, he was not ready to grant that=20
carriage. In an extensive statement, he also argued that granting multicast=
=20
must-carry without some public interest strings attached would not=20
necessarily mean more diversity of voices, but could give a bigger=20
megaphone for big media companies with ideological agendas. The battle over=
=20
the transition to DTV is now expected to move to Congress.
The decision has garnered lots of coverage (see below) and lots of reaction=
=20
(see section at end of this e-mail).
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA502953.html?display=3DBreakin...
ws&referral=3DSUPP&referral=3DSUPP
(free access for Benton's Headlines subscribers)
See FCC Press Release:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256701A1.doc
Links to additional coverage:
http://www.multichannel.com/article/CA502996.html?display=3DBreaking+New...
ferral=3DSUPP
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DUCD2FJINH1YSWCRBAE...
Y?type=3DtechnologyNews&storyID=3D7597876
http://www.tvweek.com/news.cms?newsId=3D7285
http://www.washingtonpost.com/wp-dyn/articles/A15539-2005Feb10.html
http://www.usatoday.com/printedition/money/20050211/fcc11.art.htm
http://www.latimes.com/business/printedition/la-fi-fcc11feb11,1,5504120....
y?coll=3Dla-headlines-pe-business

POWELL DROPS DTV-TRANSITION PLAN
Federal Communications Commission Chairman Michael Powell expects to leave=
=20
the agency next month before finishing work on a plan to end TV stations'=20
conversion to digital-only transmission by Dec. 31, 2008. Chairman Powell=20
is stepping down from the Commission next month. Congress is expected to=20
consider digital-TV-transition legislation this year. House Energy and=20
Commerce Committee Chairman Joe Barton (R-TX) supports ending the=20
transition Dec. 31, 2006, two years earlier than the deadline in Powell=92s=
plan.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA503079.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

HOUSE PANEL SETS DTV HEARING
The House telecommunications subcommittee has announced a hearing Feb. 17=20
to consider "the role of technology in achieving a hard deadline for the=20
DTV transition."
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=3D7289
(requires free registration)

COMCAST, SINCLAIR NEAR DIGITAL, HDTV DEAL
Comcast, nation=92s largest cable company, and Sinclair Broadcasting --=
which=20
owns, operates or provides sales services to 62 TV stations in 39 markets=20
-- are close to agreeing on a long-term digital-HDTV-carriage deal.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA503059.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

CABLEVISION TO SELL REMAINING ASSETS OF VOOM TO DOLAN
In a last-ditch effort to save his cherished Voom satellite TV service,=20
Charles Dolan, the chairman of Cablevision, has decided to acquire what=20
remains of the service himself. This includes Voom's 21 high-definition=20
channels, customer agreements and satellite licenses. While Voom no longer=
=20
owns its own satellite, it would be able to keep providing service by=20
leasing capacity on other spacecraft. The service had 26,000 subscribers at=
=20
the end of the third quarter.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com]
http://online.wsj.com/article/0,,SB110808819331652160,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
http://www.multichannel.com/article/CA503192.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

MORE MEDIA POLICY

MCCAIN CALLS FOR A LA CARTE TRIALS
Sen. John McCain (R-Ariz.) Thursday called on cable networks to permit a la=
=20
carte market tests by cable companies to determine whether such a=20
program-purchase system can hold down cable rates. Sen McCain's statement=20
came in response to the recent Federal Communications Commission report=20
showing that cable rates rose 5.4% in 2003. The senator claimed that cable=
=20
rates keep rising faster than inflation due to the absence of significant=20
wireline competition to cable incumbents. The FCC report, Sen McCain said,=
=20
showed that cable rates don't rise as quickly in so-called overbuild=20
markets, where consumers can choose between two local cable providers.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA503172.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

E/I BUG NOT YET A REQUIREMENT
New FCC children's television rules require an on-screen logo throughout=20
the show indicating that the station wants the program to qualify for the=20
three hours/per week minimum the FCC mandates. But the requirement is=20
considered an information collection obligation, which must first be=20
approved by Office of Management and Budget per the Paperwork Reduction=20
Act. The FCC expects the OMB OK in April or May. Once OMB signs off, the=20
FCC will release a public notice. It could technically make the effective=20
date immediate, but would probably give broadcasters, both commercial and=20
noncommercial, 30 days to add the logo.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA503086?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

CONSUMING KIDS: HOW MARKETING UNDERMINES CHILDREN'S HEALTH, VALUES &=
BEHAVIOR
Howard University, Blackburn Center, Washington, DC March 11-13, 2005
Presenations include: Sacrificing Development for Dollars: The Corruption=20
of Child's Play Michael Brody =B7 Gun Play and Greed: The Marketing of=20
Violence to Children Nancy Carlsson Paige =B7 So Sexy, So Soon: The=20
Sexualization of Childhood in the Commercial Culture Diane Levin =B7 How=
=20
Consumer Culture Undermines Children's Well-Being: Evidence from a Survey=20
of 10-13 year olds Juliet Schor =B7 ACME Style Media Literacy Education:=20
Turning Couch Potatoes Into Citizen Activists Rob Williams =B7 Life=
Lessons=20
from Marketing: If Values are Right, than What's Left? Susan Linn =B7=20
Government: Hand-Maiden of Commercial Exploitation of Children . . . And=20
What To Do About It Rep. Sean Faircloth =B7 Promising Approaches for=20
Reducing Junk Food Marketing to Children Margo Wootan =B7 Protecting=
Children=20
and Free Speech Angela Campbell =B7 Youth of Color: Commercialism's=20
Challenges to Health and Wellbeing Velma Lapoint, and Carlota=20
Ocampo =B7 The 90-Minute Commercial: Using Feature Films to Sell to Kids=
=20
Nell =93The Movie Mom=94 Minow =B7 Children in Poverty: A Target for Food=
=20
Marketing Fern Gale Estrow =B7 Building Resilience to Consumer Culture=20
through Community Involvement Tim Kasser =B7 Safeguarding Children in the=
=20
Digital Marketplace Kathryn Montgomery =B7 Hidden (In Plain Sight)=20
Persuaders Rob Walker =B7 Kid Can Make a Difference Larry Levine. Plus=
=20
presentations and workshops by Jeff Chester =B7 Enola Aird =B7 Joan=20
Almon =B7 Patti Miller =B7 Rob Williams =B7 Frank Vespe =B7 Makani=20
Themba-Nixon =B7 CCFC =96 Quad Cities
[SOURCE: Campaign for Commercial-free Childhood]
http://www.commercialexploitation.org/events.htm

TV PLUGS NOT INHERENTLY DECEPTIVE
Mary Engle, the Federal Trade Commission's associate director for=20
advertising practices, told Commercial Alert that there=92s nothing=20
inherently deceptive about product placements that should trigger a=20
requirement that programmers tell viewers that Coca-cola, Budweiser or=20
McDonald=92s paid to have their products appear or be named in a show. She=
=20
added however, that the commission will continue its policy of judging on a=
=20
case-by-case basis whether some product placements are deceptive. Gary=20
Ruskin, executive director of Commercial Alert, said it still has a=20
complaint pending at the FCC and will also push for a product placement=20
disclosure act on Capitol Hill. =93As TV programs look more like commercials=
=20
our case will get stronger and stronger.=94
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA503093?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
Additional coverage --
WashPost:=
http://www.washingtonpost.com/wp-dyn/articles/A15671-2005Feb10.html

PBS CREATES PROGRAMMING-AUDIT PANEL
PBS has formed an independent review board -- chaired by PBS Board Chairman=
=20
Alberto Ibarguen, Publisher of the Miami Herald -- to vet its programming's=
=20
"quality, integrity and independence," with a report due in June. The first=
=20
meeting of the board, comprising academics, journalists and station=20
representatives, is slated for Feb. 14. Members include former CNN anchor=20
Bernard Shaw; Marvin Kalb, senior fellow at the Joan Shorenstein Center on=
=20
the Press, Politics and Public Policy; and John Siegenthaler, founder of=20
the First Amendment Center at Vanderbilt University. Tom Rosenstiel,=20
director of the Project for Excellence in Journalism, will be an adviser to=
=20
the committee.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA503004.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

CHILDREN'S SHOW FACES PBS INQUIRY
The head of PBS has ordered an internal review of the children's show=20
"Postcards From Buster" after Education Secretary Margaret Spellings and=20
other critics attacked an episode that featured real-life lesbian mothers.=
=20
Pat Mitchell, president and chief executive of the Public Broadcasting=20
Service, said in an interview Thursday that she had asked an internal team=
=20
to analyze events leading up to the controversial "Buster" episode. The=20
team will outline the chronology and seek input from the series' producers=
=20
at Boston public television station WGBH, Mitchell said. Separately, PBS=20
announced that next week it would convene an independent panel of=20
journalists and academics to review its editorial standards. (SEE ABOVE)
[SOURCE: Los Angeles Times, AUTHOR: Lynn Smith]
http://www.latimes.com/news/printedition/asection/la-na-pbs11feb11,1,698...
.story?coll=3Dla-news-a_section
(requires registration)

TELECOM

VERIZON-MCI TALKS ADVANCE; MERGER DEAL MAY BE DAYS AWAY
Talks between Verizon Communications and MCI advanced yesterday, and the=20
two companies could announce a deal in the next few days. Movement toward a=
=20
deal has gathered momentum.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com and=
=20
Dennis K. Berman dennis.berman( at )wsj.com]
http://online.wsj.com/article/0,,SB110808295781552014,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

TELECOM-GEAR MERGERS MAY START TO HEAT UP
Having survived a three-year bust, the suppliers of the gear used in the=20
world's communications networks are facing a new challenge: the sudden and=
=20
rapid consolidation of their customers. A wave of acquisition activity=20
among U.S. wireless and traditional fixed-line carriers is forcing the=20
telecommunications-equipment companies to ponder their futures, including=20
whether to do deals of their own. Such transactions have thrust several=20
equipment companies into the spotlight as possible targets, including=20
Lucent Technologies, Nortel Networks and Marconi. Some of these companies=20
also could become acquirers to strengthen their positions.
[SOURCE: Wall Street Journal, AUTHOR: Christopher Rhoads=20
christopher.rhoads( at )wsj.com]
http://online.wsj.com/article/0,,SB110809109601452235,00.html?mod=3Dtoda...
s_money_and_investing
(requires subscription)

CHAIRMAN STEVENS REACTS TO AT&T'S USE OF PREPAID CALLING CARDS ON THE=20
UNIVERSAL SERVICE FUND
AT&T is using its prepaid calling cards in an effort to lobby Congress on=20
Universal Service Fund payments. Sen Stevens (R-Alaska)'s office has been=20
inundated with calls from other Senators about the practice of AT&T. He=20
said that AT&T has launched a disinformation campaign on the Universal=20
Service program - a program that he helped begin back in 1996. The=20
Universal Service Program assesses a small fee on long distance calls to=20
help offset the high cost of telephone service to rural America. In=20
addition, the fund is used to bring the Internet to schools, libraries, and=
=20
health facilities across the nation. Sen Stevens is none too happy. See the=
=20
URL below.
[SOURCE: US Senate]
http://commerce.senate.gov/newsroom/printable.cfm?id=3D232004

QUICKLY

BROADCAST STATIONS
Just how many radio and TV stations are there in the US. Well, we have some=
=20
numbers for you. 13,525 radio stations including 2,533 stations. And 1,748=
=20
TV stations including 382 educational stations.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256657A1.doc

ONLINE BANKING GROWING RAPIDLY, PEW FINDS
Nearly half of all U.S. adult Internet users now manage their bank accounts=
=20
online, making banking the fastest-growing online activity, according to a=
=20
survey by the Pew Internet and American Life Project.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3D32UQG1SMIAEMYCRBAE...
A?type=3DtechnologyNews&storyID=3D7582874
http://www.pewinternet.org/PPF/r/149/report_display.asp

FLEXIBILITY IN THE 900 MHz SPECTRUM BAND
On Thursday the FCC proposed to eliminate unnecessary regulatory=20
restrictions in the 900 MHz spectrum band. The Commission's proposal would=
=20
allow more flexible use of "white space" in the 900 MHz band and allow=20
users in the band to respond to evolving market demands.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256704A1.doc

APT PRESENTS 2005 SUSAN G. HADDEN AWARDS
The Alliance for Public Technology (APT) (www.apt.org) presented the 2005=20
Susan G. Hadden Awards today at the National Press Club in Washington, D.C.=
=20
to the following recipients:
* Senator Conrad Burns (R-MT), United States Senate, for his authorship of=
=20
Section 706 of the Telecommunications Act, and his leadership in promoting=
=20
advanced telecommunications capability to improve life in rural areas and=20
revitalize communities across the nation.
* Carolyn Breedlove, Senior Professional Associate, National Education=20
Association, for her work in ensuring that the key educational provisions=20
of the Telecommunications Act became law, and her support for innovative=20
educational technology and quality children=92s television programming.
* Raul Yzaguirre, National Council of La Raza, for his efforts to improve=20
opportunities for Hispanic Americans through advanced technologies, which=20
help to scale barriers that impact educational attainment and socioeconomic=
=20
mobility.
http://apt.org/confer/

REACTION TO FCC DIGITAL MUST CARRY DECISION

* Statement of FCC Commissioners
- Powell: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256701A2.doc
-=
Abernathy:http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256701A3.do=
c
- Copps: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256701A4.doc
- Martin: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256701A5.doc
- Adelstein:=
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256701A6.doc

* Statement of Meredith McGehee, Director of the Campaign Legal Center's=20
Media Policy Program:
This morning, the Federal Communications Commission put the cart before the=
=20
horse in voting on multicasting must-carry rights for broadcasters. The=20
agency missed a golden opportunity to address the public interest=20
obligations of digital broadcasters. Indeed, there has been a Notice of=20
Inquiry into this subject outstanding at the FCC for more than five years.=
=20
Until the Commission acts to implement meaningful public interest standards=
=20
for broadcasters, there is no compelling case to be made either for or=20
against multicasting must-carry. As the FCC moves forward to consider two=20
important items -- the Notice of Proposed Rulemaking dealing with=20
disclosure and the five-year-old NOI on the public interest obligations of=
=20
digital broadcasters -- and as Congress considers legislation on the=20
digital television transition, the public interest must be at the forefront=
=20
of any debate. Otherwise, we are left simply with competition between=20
commercial interests, and any notion of service to the American people will=
=20
again be overlooked.
http://www.campaignlegalcenter.org/press-1505.htmlhttp://www.campaignlegal=
center.org/press-1505.html

* Rare Victory Against Media Concentration (CCVM)
We've been tough on FCC Chairman Michael K. Powell. But this time, he's got=
=20
it right. And we are pleased that Commissioners Copps, Adelstein, and=20
Abernathy joined him to deny multi-cast must carry. In the absence of any=20
showing that broadcasters truly serve the public interest, there's no=20
reason for our nation=92s policymakers to give them preferential treatment=
by=20
requiring cable to carry their extra digital channels. Such a huge giveaway=
=20
would only further concentrate an already overly-concentrated media. It=92s=
=20
not in the public interest, it=92s only in the broadcasters=92 interest.
http://www.creativevoices.us/php-bin/news/showArticle.php?id=3D106&PHPSE...
=3D0ba23efd349bbbe2235945c49292cb3f

* Statement of Jeff Chester, executive director, Center for Digital=
Democracy
The FCC's expected decision on "multicasting must-carry" [February 10] for=
=20
broadcasters fails to grapple meaningfully with the real problem at hand:=20
media consolidation. The cable industry's monopoly over much of what=20
America can view just got stronger--thanks to FCC Chairman Powell. There=20
clearly need to be policies that force cable to open up its pipeline to a=20
host of programmers, especially independent and community producers. The=20
broadcast lobby was relying on its brute political power to advance its=20
interests. But broadcasters are unwilling to provide the public with any=20
meaningful commitment to decent public service: with programming tailored=20
to the needs of voters, parents, and children, for example. Thus they don't=
=20
deserve a federally sanctioned multi-billion public handout. As Congress=20
takes up this media industry food fight, it should keep the needs of the=20
public in mind. The new TV and broadband landscape permits the emergence=20
of many new local and national programmers. Content providers interested in=
=20
serving the public interest must be given access to tightly controlled=20
cable and satellite distribution. People now cut off from the TV=20
business--especially women and people of color--could gain an important=20
foothold in the media marketplace. A new generation of quality children's,=
=20
public affairs, and entertainment content would be the result.
http://www.democraticmedia.org/news/JCMulticastatement.html

* Consumers Must Benefit Before Cable Must Carry (Benton Foundation)
At the dawn of the digital television age, federal policymakers have a=20
fresh opportunity to create meaningful public interest obligations for=20
broadcasters. But once again broadcasters and the FCC missed a valuable=20
opportunity to adopt meaningful public interest obligations which might=20
have brought new value and reason for extending must carry obligations to=20
more channels. I continue to believe consumers must benefits before cable=
=20
must carry. Creating meaningful public interest obligations will put the=20
television policy remote control back into the public's hands and give the=
=20
public greater control over the children they raise, the kind of democracy=
=20
they participate in, and the discourse they deserve. I look forward to=20
working with a new commission and Congress as they contemplate the digital=
=20
television transition and rethink television."

* Statement of National Association of Broadcasters President Eddie Fritts:
In Washington, there are no final victories and no final defeats. We salute=
=20
Commissioner Martin for recognizing the importance of providing additional=
=20
programming choices for consumers. NAB will be working to overturn today's=
=20
anti-consumer FCC decision in both the courts and in Congress. We look=20
forward to the fight, because consumers deserve more. And broadcasters will=
=20
continue to serve our communities, because that is what local stations do=
best.
http://www.nab.org/newsroom/pressrel/statements/021005multicasting.htm

* Statement of Robert Sachs, President & CEO National Cable &=20
Telecommunications Association:
Today=92s decision is a major victory for consumers because it ensures that=
=20
the marketplace, not government, will determine which programs local cable=
=20
systems carry, ensuring greater consumer choice, and more diverse and=20
better quality programming.... Cable operators want to carry HDTV and other=
=20
compelling digital TV content, especially if that content addresses local=20
needs. In fact, cable operators already carry the digital signals of more=20
than 500 local TV stations. To further advance the DTV transition, on=20
January 31, 2005, the National Cable & Telecommunications Association, the=
=20
Association of Public Television Stations, and the Public Broadcasting=20
Service announced a long-term agreement that will ensure the carriage of=20
public TV stations' digital signals on cable systems. Consumers who=20
purchase digital TVs can look forward to enjoying a wealth of HDTV and=20
other high-value content in the digital era. It=92s time now for all parties=
=20
concerned to direct their energies to helping our country complete the=20
digital TV transition.
http://www.ncta.com/press/press.cfm?PRid=3D579&showArticles=3Dok

* Statement of Belo Corp Chairman Robert W. Decherd:
Belo, along with other broadcasters, will continue to pursue this vital=20
issue because of its importance to local broadcasters and the communities=20
they serve. We look forward to working with the new FCC Chair and members=20
of Congress to readdress multicast must carry, along with other aspects of=
=20
the transition to digital television that still need to be considered.=20
Significant concerns exist about today's decision because it restricts=20
local broadcasters' ability to use today's digital technology to offer=20
consumers additional news, information and other local programming.=20
Instead, today's FCC decision allows cable operators to take advantage of a=
=20
portion of local broadcasters' licensed spectrum for their own financial=20
gain without any public interest obligation.
http://media.prnewswire.com/en/jsp/myPRNJ.jsp?profileid=3D1112624&resour...
=3D2873926
--------------------------------------------------------------
See you Monday; have a good weekend.
--------------------------------------------------------------

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

MUST CARRY FIGHT CONTINUES
NCTA: Belo Paper Breached Ethics
Some House Dems Oppose DTV Vote

BROADCAST INDECENCY
Indecency Bill Slated for Wed. Markup
FCC Aims to Speed Evaluation of Indecency Complaints
What's indecent?
Republicans Make 'Indecent' Proposal to Bush

MORE MEDIA POLICY
LPFM Bill Reintroduced
The Fairness Doctrine -- How we lost it, and why we need it back

ED TECH
$500M ed-tech grant slated for elimination
Tiny District Finds Bonanza of Pupils and Funds Online

OWNERSHIP
AT&T's Long-Term Benefits To SBC May Be a Big Stretch
MCI Holders Aren't Jumping at Bid
Tribune breakup? Investors wonder...

QUICKLY -- "Less is More" Is A Success; Who Killed Telecom?; What Call Is=20
Worth a Life?; Could Your Car Catch a Virus?; Changes to Children's Online=
=20
Privacy Act; Ask Jeeves Buys Bloglines; Podcasting; High-Speed Wireless=
Links

MUST CARRY FIGHT CONTINUES

NCTA: BELO PAPER BREACHED ETHICS
The National Cable & Telecommunications Association has written the Dallas=
=20
Morning News telling the Belo Corp.-owned paper that it failed in its=20
ethical duty to disclose its parent's financial interest in the=20
digital-TV-multicasting issue. The paper, in a Feb. 7 editorial entitled=20
"Go Digital, Stay Local," argued that the FCC should mandate cable carriage=
=20
of all of a broadcasters' digital channels, an argument that Belo Chairman=
=20
Robert Decherd has been making to Congress and the FCC.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA502374?display=3DBreaking+New...
ferral=3DSUPP
http://www.multichannel.com/article/CA502441.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
In a related story, over 80 cable networks have signed an "open letter to=20
Congress" asking members to oppose TV stations' "bid for multicast=20
must-carry." Notably absent were cable nets including ESPN, Bravo, USA,=20
Nickelodeon, Sci Fi, TV Land, and others, owned by either Disney, Viacom,=20
NBC Universal or Fox, all of whom also own TV stations seeking multcast=20
carriage.
http://www.broadcastingcable.com/article/CA502569.html?display=3DBreakin...
ws&referral=3DSUPP
http://www.multichannel.com/article/CA502573.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

SOME HOUSE DEMS OPPOSE DTV VOTE
Reps Butterfield (D-NC), Diane Watson (D-CA), David Price (D-NC), Neil=20
Abercrombie (D-Hawaii), Sam Farr (D-CA), Mike McIntyre (D-NC), Sheila=20
Jackson Lee (D-TX), Charles Melacon (D-LA), Stephanie Tubbs Jones (D-OH),=20
and Sanford Bishop (D-GA) have written a letter to the FCC asking the=20
Commission to delay the vote on multicasting mustcarry scheduled for=20
Thursday. They want Congress to have the opportunity to weigh-in on a DTV=20
transition plan or for the Commission to offer a comprehensive plan. A=20
plan, they say, should take into account new DTV public interest=20
obligations, and the possibility that broadcasters would provide more=20
"diverse, public-oriented programming" with additional channels.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA502570?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

BROADCAST INDECENCY

INDECENCY BILL SLATED FOR WED MARKUP
The House Commerce Committee is expected to vote today on the Broadcast=20
Decency Enforcement Act of 2005. The bill would: 1) boost FCC fines for=20
indecency from $32,500 per violation to $500,000 and for performers from=20
$11,000 to $500,000; 2) remove the first warning for performers (although=20
the FCC has never fined a performer, under the present rules it cannot do=20
so until it has issued one warning); 3) make license revocation a potential=
=20
penalty for three violations; 4) require the FCC to act within 180 days on=
=20
complaints and make annual reports to Congress on its enforcement actions;=
=20
5) take mitigating factors into account when levying fines, including=20
ability to pay, whether the broadcast was live or taped, and whether the=20
broadcaster had ample time to review the material; and 6) require=20
broadcasters, as part of their penalty, to air PSA's that reach up to five=
=20
times the audience of the indecent broadcast.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]]
http://www.broadcastingcable.com/article/CA502322?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

FCC AIMS TO SPEED EVALUATION OF INDECENCY COMPLAINTS
The Federal Communications Commission is overhauling the system it uses to=
=20
process complaints about indecency on the public airwaves after struggling=
=20
to deal with the flood of concerns it received last year over the content=20
of television and radio shows. The Commission is creating a new complaint=20
inbox to keep tabs on the e-mailed, written and phoned-in complaints when=20
they arrive and will scan the filings promptly to determine whether they=20
warrant action, in hopes of clearing cases more quickly. In 2004, the FCC=20
received 1.07 million complaints about racy or off-color fare, largely=20
spurred by Janet Jackson's brief exposure during the Super Bowl halftime=20
show. The outpouring was enough to buckle the system: In 2000, the agency=20
received just 111 indecency complaints.
[SOURCE: Washington Post, AUTHOR: Frank Ahrens]
http://www.washingtonpost.com/wp-dyn/articles/A9272-2005Feb8.html
(requires registration)
To air =97 or is that err?
A look at the FCC's indecent year.
[SOURCE: USAToday]
http://www.usatoday.com/printedition/news/20050209/opcom09.art.htm

WHAT'S INDECENT?
[Commentary] Clearing up confusion about just what programming is=20
"indecent" should be a priority for the next chairman of the FCC. Currently=
=20
the Commission defines broadcast indecency as =93language or material that,=
=20
in context, depicts or describes, in terms patently offensive as measured=20
by contemporary community broadcast standards for the broadcast medium,=20
sexual or excretory references.=94 And its Web site adds with emphasis:=20
=93Context is key!=94 As long as there is uncertainty, TV executives will=
err=20
on the side of not airing or producing shows with the slightest chance of=20
bumping up against the indecency strictures. That will include programs on=
=20
important, if sensitive, topics. The lack of clarity also undermines any=20
valid concerns about indecent programming. The new chairman should take a=20
new look at the agency's indecency rules and process. He or she also should=
=20
start a dialogue with the public and industry to find some kind of a=20
consensus about what exactly are the nation's proper =93community broadcast=
=20
standards.=94 There also needs to be a mechanism that provides quick and=20
ongoing guidance to broadcasters.
[SOURCE: USAToday, AUTHOR:John Solomon]
http://www.usatoday.com/printedition/news/20050209/oplede09.art.htm

REPUBLICANS MAKE 'INDECENT' PROPOSAL TO BUSH
Approximately three-dozen House members have sent a letter to the White=20
House asking that President Bush name a new Federal Communications=20
Commission Chairman who is just as proactive on indecency enforcement as=20
Michael Powell. "We would like to stress our belief in the need for a=20
Chairman who will continue to uphold the laws passed by Congress and=20
continue to crack down on patently offensive material on public airwaves,"=
=20
the legislators wrote.
URL below includes text of Congressional letter.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA502343?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
Variety
http://www.variety.com/index.asp?layout=3Dstory&articleid=3DVR1117917561&p=
=3D0&s=3Dh

MORE MEDIA POLICY

LPFM BILL REINTRODUCED
Longtime low-power FM-radio advocate Sen. John McCain (R-AZ) has=20
reintroduced a bill that would allow more of the stations to be added to=20
the radio dial by reducing the separation between them and existing=20
full-power stations. Under current rules, LPFM's must now be separated by=20
two channels (no closer than the third adjacent channel) from existing=20
FM's, while Sen McCain's bill would allow only a single channel to separate=
=20
the new stations. Sens Maria Cantwell (D-WA) and Patrick Leahy (D-VT) are=20
co-sponsoring the bill.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA502525?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See Press Release from Sen McCain's office:
http://mccain.senate.gov/index.cfm?fuseaction=3DNewsCenter.ViewPressRele...
Content_id=3D1514
The FCC held a LPFM forum yesterday. See Chairman Powell's remarks at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256625A1.doc
NAB Urges Congress Not To Remove LPFM Protections
Surprisingly, not everyone is a fan of low power radio. The National=20
Association of broadcasters is urging Congress to keep in place=20
restrictions on the number of LPFM stations.
[SOURCE: National Association of Broadcasters Open Letter to Congress]
http://www.nab.org/Newsroom/Issues/lpfm/020705letter.htm

THE FAIRNESS DOCTRINE -- HOW WE LOST IT, AND WHY WE NEED IT BACK
There are many fewer broadcast licenses than people who would like to have=
=20
them. Unlike publishing, where the tools of the trade are in more or less=20
endless supply, broadcasting licenses are limited by the finite number of=20
available frequencies. Thus, as trustees of a scarce public resource,=20
licensees accept certain public interest obligations in exchange for the=20
exclusive use of limited public airwaves. One such obligation was the=20
Fairness Doctrine, which was meant to ensure that a variety of views,=20
beyond those of the licensees and those they favored, were heard on the=20
airwaves. The Fairness Doctrine had two basic elements: It required=20
broadcasters to devote some of their airtime to discussing controversial=20
matters of public interest, and to air contrasting views regarding those=20
matters. Stations were given wide latitude as to how to provide contrasting=
=20
views: It could be done through news segments, public affairs shows or=20
editorials. From the 1920s through the =9270s, the history of the Fairness=
=20
Doctrine paints a picture of public servants wrestling with how to maintain=
=20
some public interest standards in the operation of publicly owned=97but=20
corporate-dominated=97airwaves. That all changed when Ronald Reagan became=
=20
president.
[SOURCE: Extra!, AUTHOR: Steve Rendall]
http://www.fair.org/index.php?page=3D2053

ED TECH

$500 MILLION ED-TECH GRANT SLATED FOR ELIMINATION
President Bush is asking Congress to cut more than $1 billion in total=20
education spending and eliminate entirely the $500 million Enhancing=20
Education Through Technology (EETT) state block-grant program, the primary=
=20
source of federal funding for school technology. Still reeling from a=20
last-minute decision by Congress to cut EETT by nearly 30 percent in=20
2005--from $692 million in fiscal year 2004 to $500 million this fiscal=20
year--several ed-tech advocates nationwide condemned President Bush's=20
proposed dismantling of the program as "short-sighted" and criticized the=20
administration for failing to provide the leadership and funding necessary=
=20
to support the use of technology in the nation's schools.
[SOURCE: eSchool News, AUTHOR: Corey Murray]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D5502

TINY DISTRICT FINDS BONANZA OF PUPILS AND FUNDS ONLINE
Vouchers and charter schools have gotten a good deal of attention, but a=20
new entry in the school choice movement is online or cyberschools. Local=20
educators around the country, working in partnership with private=20
companies, have founded at least 100 Internet-based public schools. They=20
can be a financial windfall for some communities, but their academic=20
performance is in question. A report on online schools nationwide, issued=20
last May by the North Central Regional Educational Laboratory, a nonprofit=
=20
group based in Illinois, concluded that states should monitor the academic=
=20
and other performance of Internet schools more closely. "The rapid=20
expansion of K-12 online learning threatens to outpace the development of=20
appropriate state-level policies," it said.
[SOURCE: New York Times, AUTHOR: Sam Dillon]
http://www.nytimes.com/2005/02/09/education/09online.html?hp&ex=3D110801...
&en=3D2b01f17ca88d243b&ei=3D5094&partner=3Dhomepage
(requires registration)

OWNERSHIP

AT&T'S LONG-TERM BENEFITS TO SBC MAY BE A BIG STRETCH
SBC has told investors that it is buying AT&T to become a national player=20
and shore up its business servicing corporations, an area of strength for=20
AT&T. It also believes scale will help it compete better in a marketplace=20
beset by falling prices. There are some ancillary benefits to the deal,=20
too. The deal eliminates the most powerful lobbying counterweight to the=20
regional Bells. Washington still has vital telecommunications regulatory=20
issues on its plate. But it is hard to avoid a nagging feeling that SBC may=
=20
be empire-building just for the sake of it. SBC and its partner BellSouth=20
just made an acquisition in the wireless industry last year, when their=20
joint venture Cingular bought AT&T Wireless. Ostensibly, that deal was=20
meant to improve Cingular's position so that SBC would have more exposure=20
to the growth area of telecom, wireless. Now, however, its most recent deal=
=20
exposes SBC to a business in rapid decline, long distance. Would SBC have=20
been better off waiting patiently to merge with BellSouth?
[SOURCE: Wall Street Journal, AUTHOR: Jesse Eisinger jesse.eisinger( at )wsj.com]
http://online.wsj.com/article/0,,SB110789444137749127,00.html?mod=3Dtoda...
s_money_and_investing
(requires subscription)

MCI HOLDERS AREN'T JUMPING AT BID
After making a $6.3 billion tentative offer for MCI, Qwest seems eager to=20
buy the long-distance company. Yet a number of MCI shareholders are=20
indicating they could have problems with a Qwest deal if it offers little=20
or no premium to the current share price. The shareholders are hoping=20
Verizon will enter the bidding for MCI.
[SOURCE: Wall Street Journal, AUTHOR: Gregory Zuckerman=20
gregory.zuckerman( at )wsj.com]
http://online.wsj.com/article/0,,SB110790874436549455,00.html?mod=3Dtoda...
s_money_and_investing
(requires subscription)
See also --
NYTimes: http://www.nytimes.com/2005/02/09/business/09phone.html

TRIBUNE BREAKUP? INVESTORS WONDER...
Could someone be looking to buy the Tribune Company? The company's stocks=20
are selling low, making it attractive. Analysts have long speculated that=20
Time Warner, the largest U.S. media conglomerate, would like to own=20
Tribune's broadcast stations in order to merge its WB Network with the=20
largest station group carrying it, essentially creating a true network.=20
Time Warner could either enter the newspaper business or sell the papers to=
=20
a publisher such as New York Times, Washington Post or McClatchy.
[SOURCE: Chicago Business, AUTHOR: Jeremy Mullman]
http://chicagobusiness.com/cgi-bin/news.pl?id=3D15412

QUICKLY

CLEAR CHANNEL SAYS "LESS IS MORE" IS A SUCCESS
Clear Channel says two independent listenership studies confirm the value=20
and effectiveness of fewer interruptions and shorter commercial breaks to=20
listeners. The first, a national study commissioned by Clear Channel Radio=
=20
from Burke Inc. found that creative, compelling commercials are effective=20
at any length. Among the specific conclusions: 1) Over time, fewer=20
commercials and more music are likely to improve listener loyalty; 2) A=20
commercial=92s effectiveness is not dependent on length; and 3) Creative,=20
well-executed, relevant spots generate strong recall. The second study,=20
from Atlanta-based media and market intelligence company Navigauge,=20
measures audience behavior during and around commercial breaks. Among this=
=20
study=92s findings: 1) A first-position, 30-second spot retained more=20
audience than a first-position, 60-second spot, no matter how many spots=20
are in the break; 2) With shorter commercial breaks (i.e., those having=20
four or fewer ads), roughly 80% of the qualified audience is still=20
listening after the second commercial, and roughly 70% are still listening=
=20
after the third spot.
[SOURCE: RadioInk]
http://www.radioink.com/HeadlineEntry.asp?hid=3D127169&pt=3Dtodaysnews

WHO KILLED TELECOM? WHY THE OFFICIAL STORY IS WRONG
[Commentary] Video killed the radio star and former FCC Chairman Reed Hundt=
=20
killed the telecom revolution. Who knew?
[SOURCE: Cato Institute, AUTHOR: Lawrence Gasman]
http://www.cato.org/pub_display.php?pub_id=3D3662
http://www.cato.org/pubs/pas/pa533.pdf

WHAT CALL IS WORTH A LIFE?
[Commentary] Phone driving is the drunken driving of the new millennium.=20
Seemingly everyone does it, and all of them seem to believe that they are=20
skilled in a way that prevents their powers of perception from being=20
clouded by the fog of isolation that envelops drivers who talk on the=20
phone. Everyone who isn't on the phone while driving sees evidence of it=20
every day, as drivers weave and stutter drunkenly through traffic while=20
negotiating peace in the Middle East over the phone, or their kid's=20
allowance, or some other question that, while too important to wait,=20
doesn't merit pulling over to the side and parking for a few minutes to=20
make the call.
[SOURCE: Washington Post, AUTHOR: Dan Carney]
http://www.washingtonpost.com/wp-dyn/articles/A9443-2005Feb8.html
(requires registration)

PHONES, CAR ENGINES FACE SECURITY THREATS
Daily computer security headaches such as viruses and spam threaten to=20
spread to a far wider range of devices -- from phones to car engines, a=20
survey to be published by IBM on Wednesday has found.
[SOURCE: Reuters, AUTHOR: Eric Auchard]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DJKTYZKDFKAOAICRBAE...
A?type=3DtechnologyNews&storyID=3D7574852

CHANGES TO CHILDREN'S ONLINE PRIVACY ACT
Commercial Web sites which want to gather information from children under=20
13 for their own use, but which do not plan to share the information with=20
others, can currently meet their obligation to obtain parental approval=20
first simply by getting an e-mail from the parent=92s e-mail address. This=
=20
rule, which was initially temporary, would become permanent under proposed=
=20
changes to the Children=92s Online Privacy Protection Act (COPPA). Advocates=
=20
worry that this is not a sufficient safeguard, because there is no=20
guarantee parents will ever be aware of the exchange of e-mails. The=20
Federal Trade Commission is seeking public comments, which must be filed by=
=20
February 14.
http://www.ftc.gov/opa/2005/01/coppafrn.htm
(from Connect for Kids)

ASK JEEVES BUYS BLOG SEARCH PROVIDER BLOGLINES
Web search company Ask Jeeves said late on Monday it bought privately held=
=20
Bloglines, which helps users search for articles posted on Web logs, or=
blogs.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D7...
93

PODCASTING
Follow the URLs below to get a handle on the "podcasting" phenomenon.
[SOURCE: USAToday, AUTHOR: Byron Acohido]
http://www.usatoday.com/printedition/money/20050209/b_podcastcover.art.htm
http://www.usatoday.com/printedition/money/20050209/podcastingbasics.art...
http://www.usatoday.com/printedition/life/20050209/d_cover09.art.htm

ON-LINE REGISTRATION FOR HIGH-SPEED WIRELESS LINKS
As part of the President=92s initiative to streamline U.S. spectrum policy,=
=20
fiber-speed wireless communications links in several spectrum bands may now=
=20
be coordinated and approved for non-federal use in a matter of=20
minutes. These extremely large =93millimeter wave=94 bands were once used=
=20
exclusively by the federal government and radio astronomers. Commercial=20
users can now establish high-speed, point-to-point data links through a=20
Web-based registration process first activated on Tuesday. Before now,=20
applications in these bands could take months to be processed while the=20
potential interference to government systems was assessed. Under the new=20
system, non-federal users and third party database operators can determine=
=20
whether a proposed high-speed point-to-point link could be operated without=
=20
causing interference to government operations, and register the link=20
immediately. The public may access the automated system at the following=20
url: http://FreqCoord.ntia.doc.gov. Applicants must have a Federal=20
Communications Commission Registration Number (FRN) and license in order to=
=20
file using the new Universal Licensing System (ULS). Applicants can obtain=
=20
an FRN using the FCC Wireless Telecommunications Bureau web site at=20
http://wireless.fcc.gov. and selecting CORES/Call Sign Registration from=20
the right-hand menu under the heading of Licensing.
[SOURCE: National Telecommunications and Information Administration Press=20
Release]
http://www.ntia.doc.gov/ntiahome/press/2005/708090website_02082005.htm
--------------------------------------------------------------
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.
--------------------------------------------------------------

CABLE VS BROADCASTING
Cable Might NAB a Win
No Cash, No Carry

MORE ON CABLE
L.A. Within Reach
Video Competition Report
Report on Cable Industry Prices

OWNERSHIP
Powell=92s Legacy: He Riled the Masses
Pay-to-Play Fracas Goes Prime-Time
Strike Four for Sinclair
Critics: Ad Bans Curry Bush Favor
As Piracy Battle Nears Supreme Court, the Messages Grow Manic

CONTENT
Remember Our First Priority
Political Perspectives With Tunnel Vision
FTC Boss Presses Industry To Self-Police
The Picture Isn't Perfect, But It Is Better

TELECOM
Nextel OK's $500M to TV Stations
Qwest Plays Field As MCI Gets Coy On Deal Proposal
Frontiers Change for Phone Giants
AT&T=92s Deal For Dominance Led to Its Demise
FCC Releases UNE Rules Order

INTERNET
Internet Radio Poised for a Tune-Around
Broadband Advertising Takes Flight

CABLE VS BROADCASTING

CABLE MIGHT NAB A WIN
Barring a major script change, the FCC is about to hand the National=20
Association of Broadcasters its biggest policy defeat in years, a setback=20
cemented by last week=92s announcement of a long-term digital carriage deal=
=20
between cable and public broadcasters. Broadcasters have been lobbying the=
=20
FCC for seven years in a quest to secure mandatory cable carriage of every=
=20
digital-TV service they provide free to their over-the-air viewers. While=20
limited to one signal in an analog world, broadcasters can use their=20
digital capacity to pump out five or six programming services, potentially=
=20
converting stations in each market into multichannel rivals to cable and=20
satellite. But broadcasters argue that multicasting for the benefit of=20
viewers who don't use pay TV is a digital pipe dream, if those services=20
can't reach cable=92s mass subscriber base. The FCC vote is expected to=20
include Chairman Powell and Republican Commissioner Kathleen Abernathy. The=
=20
all-important third vote is expected to come from Democrat Jonathan=20
Adelstein, whom cable helped get re-confirmed late last year, when his FCC=
=20
career was just days away from oblivion. An FCC source last week said that=
=20
agency officials told the National Cable & Telecommunications Association=20
more than a year ago that any hope of securing Adelstein=92s decisive vote=
=20
was contingent upon completion of a carriage deal with public-TV stations,=
=20
owing to Adelstein=92s concern about the fate of 350 public-TV stations in=
an=20
uncertain digital world.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA501656.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)
More on the digital must-carry decision coming on Thursday:
* The cable lobby told the FCC: "After four years and a steady stream of=20
comments and ex parte filings, it is clear that the commission's decision=20
not to require dual or multicast carriage was the right one. It was right=20
as a matter of statutory construction. It was right as a matter of=20
constitutional law. And it is right as a matter of sound public policy. It=
=20
should be affirmed and reconsideration should be denied."
http://www.broadcastingcable.com/article/CA501429?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
* The Boards of the National Cable & Telecommunications Association, the=20
Association for Public Television Stations, and PBS have all approved a new=
=20
noncom multicasting carriage deal which would require the majority of cable=
=20
systems to carry the digital multicast signals of noncommercial stations=20
after the switch to digital, and at least for multicast channels of one=20
station in each market in the interim. The deal must also be ratified=20
individually by stations reaching at least 80% of U.S. households, and=20
cable operators comprising at least 80% of U.S. subscribers.
[SOURCE: Broadcasting&Cable]
http://www.broadcastingcable.com/article/CA501420?display=3DBreaking+New...
ferral=3DSUPP
http://www.multichannel.com/article/CA501517.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
* Two members of the Congressional Black Caucus, G.K. Butterfield (D-SC)=20
and Diane Watson (D-CA), are trying to find Congressional support for a=20
delay of the multicast must-carry decision
[SOURCE: Broadcasting&Cable]
http://www.broadcastingcable.com/article/CA501516?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

NO CASH, NO CARRY
Unlike cable operators, over the past few years, DBS companies have paid=20
15-20 cents per subscriber monthly for local broadcast signals. But=20
broadcasters are starting to fight with cable operators to get them to pay=
=20
cash for carrying stations. At the heart of the fight is a 1992 law that=20
gives stations the right to attempt to negotiate payment or simply demand=20
guaranteed carriage for free. Now, with technology advances promising new=20
high-definition TV and digital channels, broadcasters think they have new=20
leverage to get some cash for their content. Broadcasters are also looking=
=20
for new payments for digital channels they plan to create as they make the=
=20
transition from analog signals. Their hopes could be dashed, however, by an=
=20
expected ruling this week that would hand cable tremendous leverage in=20
carriage of digital broadcast programming. Broadcasters are hoping to delay=
=20
the vote until after Chairman Michael Powell -- who favors cable in this=20
dispute -- actually departs in March.
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins and Bill McConnell]
http://www.broadcastingcable.com/article/CA501628.html?display=3DFeature...
ferral=3DSUPP
http://www.multichannel.com/article/CA501659.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)

MORE ON CABLE

LA WITHIN REACH
Part of what's at stake in the auction for Adelphia's properties is the=20
control of the #2 US market, Los Angeles. Los Angeles has long been a=20
target for consolidation. Currently, five separate cable companies,=20
including Adelphia, serve the area. Comcast appears willing to give up its=
=20
interest in the Los Angeles properties -- it owns a 25% interest in=20
Adelphia's systems there -- as well as its 500,000 wholly owned customers=20
in the area to Time Warner for other Adelphia or Time Warner Cable=20
properties. Time Warner currently has about 355,000 subscribers in the Los=
=20
Angeles market. Adding Adelphia's 1.2 million customers there and Comcast's=
=20
500,000 would give the media giant about 2.1 million Los Angeles customers.=
=20
That would dwarf other players in the market: Charter Communications has=20
507,000 and Cox Communications has 274,000 subscribers in nearby Orange=
County.
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
http://www.multichannel.com/article/CA501650.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
Los Angeles Times:
http://www.latimes.com/business/printedition/la-fi-adelphia7feb07,1,7862...
story?coll=3Dla-headlines-pe-business
(requires registration)

VIDEO COMPETITION REPORT
The FCC released its 11th Annual Assessment of the Status of Competition in=
=20
the Market for the Delivery of Video Programming, a report that examines=20
the status of competition in the market for the delivery of video=20
programming, changes that have occurred in the market over the past year,=20
and factors that have facilitated or impeded competition among video=20
programming providers. Almost all U.S. consumers have the choice between=20
over-the-air broadcast television, a cable service, and at least two direct=
=20
broadcast satellite (DBS) providers. In some areas, consumers also can=20
choose to receive service via one or more emerging technologies, including=
=20
digital broadcast spectrum, fiber, and video over the Internet. In=20
addition, the report finds that as a result of system upgrades and=20
increased competition from DBS services, cable subscribers are enjoying a=20
broad range of advanced services, such as digital tiers and video on=20
demand, as well as more channels of video programming. The report states=20
that overall cable subscribership remained relatively stable over the past=
=20
year, as the multichannel video programming distribution (MVPD) market=20
grew. In contrast, DBS subscriberships continued to increase at=20
double-digit rates of growth, which is due in part to the continued=20
increase in the number of markets where local broadcast television stations=
=20
are distributed by DBS under the authority granted to them by the Satellite=
=20
Home Viewer Improvement Act of 1999 (SHVIA). As of June 2004, 92.3 million=
=20
households subscribed to an MVPD - with 71.6 percent subscribing to a=20
franchised cable operator, 25.1 percent receiving their video programming=20
from a DBS operator, and 3.3 percent of subscribers choosing service from=20
other types of providers. The report offers analysis of other potential=20
competitors to cable television and discusses the transition of traditional=
=20
over-the-air broadcasting to digital technology, emerging technologies such=
=20
as Internet Protocol television, and developments in foreign markets. In=20
addition, the report examines horizontal concentration in the MVPD=20
marketplace, vertical integration between cable television systems and=20
programming services, competitive issues in small and rural markets, and=20
technical advances.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-13A1.doc
Press Release:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256563A1.doc
Chairman Powell:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-13A2.doc
Commissioners Copps & Adelstein:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-13A3.doc

REPORT ON CABLE INDUSTRY PRICES
The FCC released its annual report on cable industry prices. The report=20
shows that the overall average monthly rate for cable service -- including=
=20
basic and expanded basic cable programming services and equipment --=20
increased by 5.4% over the 12-month period ending January 1, 2004, from=20
$42.99 to $45.32 (Specifically, the average monthly charge for basic and=20
expanded basic services increased by 5.4 percent, from $38.95 to $41.04,=20
and the average charge for equipment increased by 5.9 percent, from $4.04=20
to $4.28, over the same period.). This was a slower rate of increase than=
=20
the 7.8% increase recorded over the 12-month period ending January 1, 2003.=
=20
The report also provides information on the number of channels offered in=20
each tier of service, the average capacity of cable systems, and the=20
percentage of cable subscribers that are offered advanced services such as=
=20
digital service, Internet access, and telephone service. In addition, the=
=20
report compares the prices charged by cable operators that face effective=20
competition, referred to in the report as the "competitive group", with the=
=20
prices charged by operators that do not face such competition, referred to=
=20
as the "noncompetitive group." (The determination of whether a cable=20
operator is eligible for effective competition status is based on an=20
objective statutory test.) As of January 1, 2004, cable operators facing=20
effective competition charged an average of $42.48 per month for=20
programming and equipment, while those not facing effective competition=20
charged $45.56.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-12A1.doc
Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256564A1.doc
Additional coverage --
http://www.broadcastingcable.com/article/CA501620?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
http://www.multichannel.com/article/CA501614.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
http://www.tvweek.com/news.cms?newsId=3D7246

OWNERSHIP

POWELL'S LEGACY: HE RILED THE MASSES
[Commentary] Michael Powell=92s legacy as chairman of the FCC may be that,=
=20
more than any other person, he is responsible for the emergence and success=
=20
of the nation=92s media-reform movement. His performance in the=20
media-ownership proceeding was a galvanizing example of how not to regulate=
=20
=93in the public interest,=94 prompting over 3 million Americans to file=20
protesting comments with the Commission. Now it appears the FCC will have=20
to take up yet again its media-ownership rules. This time, the media-reform=
=20
movement that Chairman Powell aroused calls on the FCC to reconsider its=20
fundamentally flawed 2003 order and establish new media policies that=20
promote its oft-stated -- and oft-ignored -- core values of localism,=20
competition and diversity of viewpoints and voices. And this time, before=20
the FCC adopts new rules, it must let the public meaningfully weigh in and=
=20
help define exactly what constitutes the =93public interest.=94 The full=20
Commission should, at a minimum, schedule hearings across the country to=20
engage the American people on the future of their media and gain a better=20
understanding of the impact of media consolidation on our nation=92s=20
communities, democracy and culture. If it does not, yet another flawed=20
media-ownership deal will emerge from behind closed doors to serve only the=
=20
interests of the media conglomerates. In our democracy, that is something=20
the public has no interest in.
[SOURCE: Broadcasting&Cable, AUTHOR: Jonathan Rintels, Executive Director=20
of the Washington-based Center for Creative Voices in Media]
http://www.broadcastingcable.com/article/CA501639?display=3DOpinion&refe...
=3DSUPP
(free access for Benton's Headlines subscribers)

PAY-TO-PLAY FRACAS GOES PRIME-TIME
Viacom-owned CBS got into major tussles last week with Walt Disney's=20
Touchstone Television and News Corp's 20th Century Fox Television over the=
=20
issue of coproductions, just as the network was announcing the last of its=
=20
drama pilot pickups. The unofficial practice of content providers such as=20
Touchstone or 20th sharing ownership in their projects in exchange for=20
network pickups-whether to pilot or to series-is hardly new; however, last=
=20
week's negotiations played out more overtly about ownership than in the=20
past because Viacom's Paramount Network Television unit brought nothing new=
=20
to any of the four projects in question. CBS is the only broadcast network=
=20
whose parent company has a stake in the back-end of virtually every=20
scripted series on its current prime-time schedule. (Other networks have a=
=20
stake in the majority of their shows.) And powerful multiple system cable=20
operators have begun taking stakes in cable networks seeking carriage on=20
their system. All of this raises the question of how good industry=20
consolidation really is for the business, as companies face the choices=20
between doing what they have power to do versus doing what might be best=20
for the creative product.
[SOURCE: TVWeek, AUTHOR: Christopher Lisotta]
http://www.tvweek.com/article.cms?articleId=3D27190
(requires free registration)

STRIKE FOUR FOR SINCLAIR
For the fourth time, the FCC this week will give the thumbs down to=20
Sinclair Broadcast Group=92s bid to buy five stations from Cunningham=20
Broadcasting. Sinclair already owns stations in the affected markets, which=
=20
are too small to permit two-station =93duopolies=94 under FCC rules. =
Sinclair=20
has tried every legal maneuver its lawyers can think of to keep the issue=20
alive. Chairman Michael Powell has been asking fellow commissioners to vote=
=20
down the latest request since August, but his colleagues have struggled to=
=20
craft their opinion tightly enough that it will close the door on a court=20
appeal by the Baltimore-based station group. Powell put the item on=20
Thursday=92s agenda because he is trying to wrap up lingering proceedings=20
before he steps down in March.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA501590?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

CRITICS: AD BANS CURRY BUSH FAVOR
TV networks claim the right to reject issue ads on controversial topics,=20
but are they arbitrarily choosing what to air and what to reject? Citizens=
=20
for Responsibility and Ethics in Washington is asking the FCC to=20
investigate each network's policy on advocacy advertising. Although the=20
networks say they reject all controversial issue ads, CREW argues only=20
spots likely to get stations in hot water with the White House are turned=20
down. CREW points out the nets have run ads advocating White House=96backed=
=20
ideas such as limits on asbestos lawsuits.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA501626?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

AS PIRACY BATTLE NEARS SUPREME COURT, THE MESSAGES GROW MANIC
With the Supreme Court scheduled next month to hear a pivotal case pitting=
=20
copyright holders (represented by MGM Studios) against the makers of=20
file-sharing software (Grokster and StreamCast Networks), some participants=
=20
are putting their message machines into high gear. Copyright owners say=20
they are threatened by digital piracy, while technology advocates voice=20
their opposition to strict controls on the copying of digital media.
[SOURCE: New York Times, AUTHOR: Tom Zeller Jr.]
http://www.nytimes.com/2005/02/07/technology/07sharing.html
(requires registration)

CONTENT

REMEMBER OUR FIRST PRIORITY
[Editorial] Just how scary is the new Knight Foundation report that found=20
that nearly three-quarters of American high school students are clueless=20
about the First Amendment, more than a third think it would be a good idea=
=20
if journalists received prior approval from the government before they=20
report anything, and that one-third think news organizations need even more=
=20
restrictions on what they produce? Well, put into the context of increased=
=20
FCC indecency fines, legislation in Congress to limit the flow of=20
information, and a White House bent on keeping every document under lock=20
and key. Television's First Amendment rights are in serious jeopardy, B&C's=
=20
Editor in Chief writes. Far too often, Big Media giants say nothing to=20
defend their First Amendment rights, too fearful to fight back and have the=
=20
government take retribution out in some other area of their far-flung=20
enterprises. The whole atmosphere of cowardice and inaction is only=20
worsened by errant news organizations that abuse the rights they possess.
[SOURCE: Broadcasting&Cable, AUTHOR: J. Max Robins, Editor in Chief]
http://www.broadcastingcable.com/article/CA501669.html?display=3DNews&re...
al=3DSUPP
(free access for Benton's Headlines subscribers)
A second B&C editorial thanks NAB Chairman Phil Lombardo for finally=20
speaking out against indecency fines, but questions why his message appears=
=20
to be "fine everyone."
[SOURCE: Broadcasting&Cable, AUTHOR: Editorial Staff]
http://www.broadcastingcable.com/article/CA501640.html?display=3DOpinion...
erral=3DSUPP
(free access for Benton's Headlines subscribers)

POLITICAL PERSPECTIVES WITH TUNNEL VISION
Taking money from the government without disclosing it is dumb, but too=20
many pundits these days shill for free. The world of opinion now resembles=
=20
a choose-up-sides playground, with the players rarely straying from their=20
assigned spots. The only real motion is when they jump back and forth=20
between politics and journalism, or demonstrate agility by keeping a foot=20
in both camps. "Everyone's more partisan now -- magazines, pundits,=20
individuals," says Washington Monthly Editor Paul Glastris. But he offers a=
=20
frankly partisan explanation, that it's "largely driven by the extreme=20
partisanship on the right." Says Weekly Standard Executive Editor Fred=20
Barnes, who wrote a piece last week calling Democrats "The Ruthless Party":=
=20
"We live in a more polarized time. There are so many people who've come=20
into journalism from politics and other fields rather than straight=20
reporting. . . . As Republicans and Democrats divide more, commentators who=
=20
are sympathetic to one party or the other divide more, and I'm no=
exception."
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A3418-2005Feb6.html
(requires registration)

FTC BOSS PRESSES INDUSTRY TO SELF-POLICE
New Federal Trade Commission Chairman Deborah Majoras has declared war on=20
ads for bogus diet drugs. For the past year, the FTC has been urging=20
broadcast stations, cable operators and other media to reject diet-drug ads=
=20
that make bogus claims and to report the marketers to the FTC. When=20
TV-station staff members spot ads that make claims too good to be true,=20
they have been asked to reject the ad and tip off the FTC. In addition,=20
the FTC is considering proceedings snack-food commercials during children=92=
s=20
programming, as well as paid product placements. The TV business could see=
=20
a drain on profits. The $3 billion spent yearly on TV food advertising to=20
kids is critical to the survival of children=92s programming on commercial=
=20
stations, and product placements are considered by the industry as a way to=
=20
counter the loss of ad dollars as more viewers use TiVos to zap through=20
commercials.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell ]
http://www.broadcastingcable.com/article/CA501672?display=3DNews&referra...
SUPP
http://www.broadcastingcable.com/article/CA501643?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

THE PICTURE ISN'T PERFECT, BUT IT IS BETTER
In 1999, NAACP President Kweisi Mfume referred to network TV as a =93virtual=
=20
whitewash=94 and threatened a boycott. The threat led the Big Four to=20
implement strong diversity efforts including writing and acting programs=20
and hiring diversity chiefs. In a study of prime time released in May 2004,=
=20
public-interest group Children Now found that 73% of all prime time roles=20
were played by whites, 16% by African-Americans and 6.5% by Latinos. Of all=
=20
ethnic groups, Latinos saw the greatest improvement from 2001 to 2003.=20
Behind the camera, the gains have not been nearly so great, according to an=
=20
October 2003 NAACP study. Initially, each network had just a handful of=20
minority writers, although those numbers have improved significantly. In=20
1999, Fox, to cite the most extreme example, reported that just 5% of its=20
writers were minorities; by 2002, that number was nearly 25%. The NAACP is=
=20
collecting new statistics now and will look at both cable TV and TV news.
[SOURCE: Broadcasting&Cable, AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/article/CA501677.html?display=3DSpecial...
ort&referral=3DSUPP
(free access for Benton's Headlines subscribers)

TELECOM

NEXTEL OK'S $500 MILLION TO TV STATIONS
Nextel CEO Tim Donahue today will approve a deal that gives TV stations up=
=20
to $500 million for some special channels the cell phone giant wants to=20
use. Nextel has until today to accept an FCC plan to hand the company a=20
chunk of frequencies used by local TV news crews to beam live remotes back=
=20
to their studios. In return, Nextel must compensate the stations, write a=20
$2.2 billion check to Uncle Sam, and give some of its current cell phone=20
spectrum back to the government.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA501612?display=3DBreaking+New...
ferral=3DSUPP
http://www.broadcastingcable.com/article/CA501670?display=3DNews&referra...
SUPP&referral=3DSUPP
(free access for Benton's Headlines subscribers)

QWEST PLAYS FIELD AS MCI GETS COY ON DEAL PROPOSAL
Doesn't anyone believe in commitment anymore? MCI has not responded to=20
Qwest's $6.3 billion acquisition and the long distance company begins talks=
=20
with Verizon. Qwest, in turn, has started exploring alternative scenarios=20
in case the deal falls through.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com=20
and Dennis K. Berman dennis.berman( at )wsj.com]
http://online.wsj.com/article/0,,SB110773503218447245,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
See also --
Qwest-MCI: A Ring of Desperation
BusinessWeek News Analyst Rosenbush sees the proposed merger of Qwest and=20
MCI as a combination of two companies that have dim prospects of surviving=
=20
on their own. But even if they pull off the deal, the new company would=20
emerge as a relatively small and weak player as other telcos are busy=20
joining up as well. And there's still a chance Verizon or BellSouth will=20
try to crash this party.
[SOURCE: BusinessWeek, AUTHOR: Steve Rosenbush]
http://www.businessweek.com/technology/content/feb2005/tc2005024_9429_tc...
htm

FRONTIERS CHANGE FOR PHONE GIANTS
The proposed SBC-AT&T and Qwest-MCI mergers speak to the perceived=20
importance of the corporate business, a $250 billion annual segment of the=
=20
telecommunications market. But the long-term implications are broader, some=
=20
industry analysts say, because they threaten to take the regional telephone=
=20
companies out of their geographic comfort zones. SBC and Qwest could use=20
the AT&T and MCI networks as entrees into new parts of the country and, in=
=20
turn, force Verizon and BellSouth to fight back. Could the war between the=
=20
Bells be poised to get a whole lot less civil? The fact that these=20
companies compete in the business market "does not mean the competition=20
will ever spread to the residential market," said Mark Cooper, director of=
=20
research for the Consumer Federation of America. The Bells' "primary=20
interest is in protecting their franchise product."
[SOURCE: New York Times, AUTHOR: Matt Richtel]
http://www.nytimes.com/2005/02/07/technology/07newcon.html
(requires registration)

AT&T'S DEAL FOR DOMINANCE LED TO ITS DEMISE
In exchange for being allowed monopoly status nearly a century ago, AT&T=20
agreed to be highly regulated. But when times changed and lawmakers fell=20
under the sway of its enemies, not even AT&T=92s legendary powers of=20
political persuasion could save it from its downfall. As recently as the=20
1970s, AT &T was considered invincible-but not because of its=20
Washington-based lobbyists. Its entire strength rested with the thousands=20
of Ma Bell employees who lived in virtually every city and burg in the=20
country. The 1984 consent decree to break up AT&T was the beginning of the=
=20
end. AT&T's homegrown lobbying network was inherited by the Baby Bells,=20
which started to deploy it to batter their former parent. The=20
telecommunications act of 1996 demonstrated the growing clout of the Baby=20
Bells. AT&T picked the right people and did the right things to lobby for=20
favor from Washington policymakers, but so did the Bells. The battle=20
between them was pitched enough to stall for the better part of a decade=20
legislation that would have made matters even worse for AT&T. But finally=20
regulators sided with the Baby Bells and took away the discount rates that=
=20
allowed AT &T to provide local phone service in addition to long distance.=
=20
Ma Bell was finally unmasked as a humbled giant. AT &T may well be gobbled=
=20
up by SBC and its voice of opposition to the Baby Bells will be silenced.=20
The fate of its lobbying program, however, is still up in the air. The Baby=
=20
Bells will need all the help they can get. After all, as with any companies=
=20
that have made that devil=92s deal, they will need to keep fighting to=
retain=20
the government=92s blessing. The next major contest: Baby Bells vs. the=
cable=20
companies.
[SOURCE: Washington Post, AUTHOR: Jeffrey Birnbaum]
(http://www.washingtonpost.com/)
(requires registration)

FCC RELEASES UNE RULES ORDER
Ending the first phase of post-Telecom Act of '96 phone competition, the=20
FCC released its latest order on phone network sharing on Friday. Although=
=20
other attempts at writing these rules were challenged and overturned in=20
court, that's not as likely this time as =93this is a narrow order=
addressing=20
the court=92s concerns,=94 said Precursor analyst Scott Cleland. =93This is=
the=20
elegy of UNE-P, the end of Tele-World War I.=94 Cleland said Tele-World War=
=20
II will be between the Bells and cable companies over franchising.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
Trouble sleeping? See the Order at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-290A1.doc

INTERNET

INTERNET RADIO POISED FOR TUNE-AROUND
Today, about 38 million Americans listen to the radio on their computers at=
=20
least once a month, according to a 2004 study by Arbitron and Edison Media=
=20
Research. Internet users can hear music, programs from National Public=20
Radio and an array of obscure fare. The highly specialized nature of=20
Internet radio means programming can be tailored to deliver precisely=20
targeted audiences to advertisers. Arbitron and ComScore Networks have just=
=20
begun jointly producing monthly ratings of online radio services from=20
America Online , Microsoft and Yahoo. Virgin Digital has begun to turn a=20
profit with a subscription service featuring 60 music channels produced by=
=20
its staff in Los Angeles.
[SOURCE: Los Angeles Times, AUTHOR:David Colker]
http://www.latimes.com/business/printedition/la-fi-radio7feb07,1,1102960...
ry?coll=3Dla-headlines-pe-business
(requires registration)

BROADBAND ADVERTISING TAKES FLIGHT
Madison Avenue's dalliance with broadband commercials may soon blossom into=
=20
a full-scale romance. While the broadband video ad marketplace pales in=20
comparison with the $60 billion TV ad market -- broadband brought in just=20
$121 million in 2004 revenues -- it is growing. Streamed to online users=20
with broadband access, the medium is similar to cable in the 1980s.
[SOURCE: Broadcasting&Cable, AUTHOR: Joe Mandese]
http://www.broadcastingcable.com/article/CA501592.html?display=3DAdverti...
&referral=3DSUPP
(free access for Benton's Headlines subscribers)
--------------------------------------------------------------
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.
--------------------------------------------------------------

Punxsutawney Phil saw his shadow on Gobbler's Knob so bundle up.

OWNERSHIP & SOCIETY
Belo's Decherd Warns of Media Monopolists
Consolidation of Media Rapped at Indie Confab
Plan B: Why CNN and CBS News Should Merge
Grokster and America's Future
Latest Research Will Be Accessible
All the News that's Fit to be Given Away
After Death, a Struggle for Their Digital Memories
Mergers Narrow Telecom Choices for Consumers
Qwest Is in Talks to Buy MCI, Further Roiling Telecom World
Time Warner Plan Is to Merge Assets With Adelphia's

CONSUMER PROTECTIONS?
Request for a Congressional Investigation into the FCC Consumer
Advisory Committee
Spam Fighter has a Honey Pot of an Idea
D.C. Seeks Sales Ban On Violent Games
The Year of Living Indecently
DOE Disinvites Buster Producer

LEGISLATIVE AGENDA
Barton=92s First Priority: 2006 DTV Transition Deadline
Legislation to Ensure Continued Internet and Phone Service to=20
Rural Areas

TELECOM
Universal Service Fund Oversight Guy
Running From Dial-Up Access
FCC lets SBC Dial Direct to get Net Phone Numbers
Not Just for Emergencies Anymore

CABLE
FCC Staff Rejects Massive Cable Dereg
NRB Asks White House For DTV Delay

QUICKLY -- Benton Critiques Industry of Giants; WMD: The Movie

OWNERSHIP & SOCIETY

BELO'S DECHERD WARNS OF MEDIA MONOPOLISTS
Having built a virtual local news monopoly in Dallas, Robert Decherd,=20
chairman of broadcast group/newspaper publisher Belo, is warning that=20
"without full digital must carry...the government sets in motion an=20
information delivery infrastructure that will be controlled by just seven=20
companies" (the top five cable companies, plus EchoStar and DirecTV). He=20
says marketplace forces are not sufficient given that lopsided power=20
structure, which threatens an essential diversity of voices. Decherd=20
concedes that pay TV, not broadcasting, is now the delivery mechanism of=20
choice for TV channels. "Given that 85% of Americans subscribe to one of=20
these services and receive their broadcast signals directly through them,=20
the cable and satellite companies operate as the gatekeepers between the=20
local braodcasters and the local communities they serve." Decherd says=20
those who believe that broadcasters like Belo are well positioned to=20
negotiate multicast carriage with cable and satellite operators for=20
themselves are "dead wrong." He argues that Cable operators have the=20
monopoly muscle to dictate their own terms. Broadcast networks are in a=20
better position, he says, because they can leverage their cable nets to get=
=20
carriage for their owned stations, but not so for owners like Belo. Decherd=
=20
argues that multicast channels and the new sources of news and information=
=20
they provide are an important reality check in a world where news bombards=
=20
viewers at the speed of light, and often with few editorial filters.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA500987?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

CONSOLIDATION OF MEDIA RAPPED AT INDIE CONFAB
The Independent Press Association, a San Francisco nonprofit dedicated to=20
supporting independent publishers as the "antidote to media monopoly," held=
=20
its fourth annual conference this past weekend, drawing more than 320=20
publications. It featured speeches by FCC Jonathan Adelstein, National=20
Public Radio and Air America radio personality Laura Flanders, Barnes &=20
Noble newsstand director Jaime Carey and venture capitalist Melissa=20
Bradley. FCC Commissioner Adelstein said, "This past year has truly been=20
the year for the independents. Independent media brings necessary new=20
perspectives, and can change and shape opinions in important ways."=20
Focusing on "the effects of media consolidation on democracy," Adelstein=20
talked about the public's appetite "for a more nourishing media diet" in=20
the face of the "McDonaldization of the media. Don't get me wrong,"=20
Adelstein said, "I love McDonald's, once in a while. But when you have to=20
deal with so much homogenized, prepackaged, predigested . .." Adelstein=20
paused as the audience chuckled, "uh, material, coming at you every day,=20
you can get sick." Adelstein linked current issues, such as the Armstrong=20
Williams payola scandal and other breachings of editorial- advertising=20
lines, to the broader problem of consolidation. "In the increasing quest=20
for revenue, managers are under huge pressure from their bosses to perform,=
=20
and that bottom-line pressure forces the commercialization of the news at=20
the expense of truth."
[SOURCE: San Francisco Chronicle, AUTHOR: Reyhan Harmanci=20
rharmanci( at )sfchronicle.com]
http://www.sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2005/02/02/DDGJCB3D3J...
L

PLAN B: WHY CNN AND CBS SHOULD MERGE
[Commentary] CNN needs more viewers to justify its global news operation.=20
CBS needs more TV news platforms. So why don't the two moribund outfits=20
team up? As recently as 2003, the two companies were reportedly discussing=
=20
joining forces. Two weeks ago, Time magazine wrote there were "rumors" of a=
=20
merger between the two once again, but it wasn't clear whether that was=20
true. Proponents of the idea -- mostly news people, but a financial=20
analyst as well -- suggested that a CNN=96CBS News partnership could bulk up=
=20
the integrity and competitiveness of both operations.
[SOURCE: New York Observer, AUTHOR: Joe Hagan]
http://www.nyobserver.com/pages/nytv.asp

GROKSTER AND AMERICA'S FUTURE
[Commentary] The technology revolution is in peril because of the=20
Government's efforts to protect the rights of content producers over=20
content consumers. Next month, a case entitled MGM v. Grokster will go=20
before the U.S. Supreme Court. The case is about whether peer-to-peer=20
software that enables the peer-to-peer networks most of us read about--and=
=20
few of us use--should be illegal or not. The big entertainment companies=20
are pushing the argument that because some of their content gets stolen=20
through the use of this software, all uses of the software should be=20
illegal. They are not, however, arguing that there aren't legitimate=20
reasons to use the software. They acknowledge that businesses and=20
individuals are using the software for purposes other than those that=20
impact their music or movie businesses. They just feel that because it=20
impacts their business (they still don't know if it's a positive or=20
negative impact) in a way they can't control, it's better to make it=20
illegal than adapt to the new technology. In reality, this case isn't=20
about whether music or movies are illegally downloaded using P2P software.=
=20
This is purely about control. In reality, this case isn't about whether=20
music or movies are illegally downloaded using P2P software. This is purely=
=20
about control. The entertainment industry wants control over technology=20
that could impact its business.
[SOURCE: C-Net|News.com, AUTHOR: Mark Cuban]
http://news.com.com/Grokster+and+Americas+future/2010-1028_3-5559340.htm...
g=3Dnefd.ac

LATEST RESEARCH WILL BE ACCESSIBLE
The National Institutes of Health, moving to disseminate publicly funded=20
medical research more broadly, will issue rules today making scholarly=20
articles produced by scientists getting NIH grants available to the public=
=20
free. The rules are likely to require that government-funded works be made=
=20
available on a government Web site 12 months after being published.
[SOURCE: Wall Street Journal, AUTHOR: Bernard Wysocki Jr.=20
bernie.wysocki( at )wsj.com]
http://online.wsj.com/article/0,,SB110738447096144147,00.html?mod=3Dtoda...
s_personal_journal
(requires subscription)

ALL THE NEWS THAT'S FIT TO BE GIVEN AWAY
The rising expectation that news should be free has implications for both=20
the industry and a democracy that depends on it for information. On the one=
=20
hand, some observers believe that the proliferation of free newspapers and=
=20
free news sites on the Internet means a larger number of voices that cater=
=20
to niche audiences. But others worry that websites and newspapers supported=
=20
purely by advertisers may not be able to sustain a vast network of=20
professional news gatherers. Whatever its perils and promises, the march=20
toward free news seems unstoppable.
[SOURCE: Christian Science Monitor, AUTHOR: Stephen Humphries]
http://www.csmonitor.com/2005/0203/p12s01-ussc.html

AFTER DEATH, A STRUGGLE FOR THEIR DIGITAL MEMORIES
As computers continue to permeate our lives, what happens to digital bits=20
of information when their owners pass away has become one of the vexing=20
questions of the Internet age. Much of that data are stored in accounts on=
=20
remote servers and have no physical manifestation that can be neatly=20
transferred. There are no clear laws of inheritance, meaning that Internet=
=20
providers must often decide for themselves what is right. Many Internet=20
firms have found themselves facing criticism no matter what they do. If=20
they decline to release the information, they are labeled villains by=20
people supporting the families. If they give it up, they are chastised for=
=20
violating their own privacy statements. Complicating such disputes is the=20
very nature of e-mail, which many consider to be more personal and informal=
=20
than regular letters; some even use it to correspond anonymously, to hide=20
aspects of their lives they may not want revealed to others.
[SOURCE: Washington Post, AUTHOR: Ariana Eunjung Cha]
http://www.washingtonpost.com/wp-dyn/articles/A58836-2005Feb2.html
(requires registration)

MERGERS NARROW TELECOM CHOICES FOR CONSUMERS
SBC's proposed $16 billion purchase of AT&T is another reminder of the=20
dramatic technological and regulatory changes sweeping the=20
telecommunications industry and reshaping the choices consumers face when=20
they shop for communications services. The notion of phone companies=20
battling one another for local customers is all but dead. Instead, the=20
emerging competition is between phone giants, such as SBC Communications=20
and Verizon Communications, and cable behemoths such as Comcast. Both are=20
encroaching on each other's turf, hoping to entice consumers by bundling=20
Internet access and phone and television services into all-in-one packages.=
=20
Mobile phone companies and Internet phone start-ups such as Vonage will try=
=20
to steal away slices of the telephone market. But experts predict the=20
lion's share of the phone market will go to the regional Bell phone=20
companies and cable companies. Whether this new type of competition will be=
=20
good for consumers or not is open for debate. Outgoing FCC Chairman Michael=
=20
Powell has said that this type of "intermodal" competition is as good as=20
any for consumers. "It underscores the fact that the vision of rigorous=20
competition for the residential customer has failed," said Mark Cooper,=20
analyst with Consumer Federation of America. "We're getting a duopoly, and=
=20
it's a crummy duopoly. Two companies is not enough to trigger vigorous=20
price competition or innovation."
[SOURCE: San Jose Mercury News, AUTHOR: Michael Bazeley]
http://www.mercurynews.com/mld/mercurynews/business/technology/10796961.htm

QWEST IS IN TALKS TO BUY MCI, FURTHER ROILING TELECOM WORLD
Another day, another merger to consider. MCI and Baby Bell Qwest=20
Communications I are in talks that could lead to a merger as pressure on=20
telecom companies to consolidate increases in the wake of SBC's agreement=20
to purchase AT&T earlier this week. Qwest, which has been in on-and-off=20
talks with MCI for months, is offering about $6.3 billion to acquire MCI,=20
close to its market value. Verizon is also in talks with Qwest. The sale of=
=20
MCI would mark a quick end to the nation's independent long-distance=20
telephone industry. Just six weeks ago, Sprint agreed to acquire Nextel=20
Communications for $35 billion in a bid to define itself primarily as a=20
wireless company.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com and=
=20
Dennis K. Berman dennis.berman( at )wsj.com ]
http://online.wsj.com/article/0,,SB110738875129944310,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

TIME WARNER PLAN IS TO MERGE ASSETS WITH ADELPHIA'S
The joint bid for Adelphia Communications by Time Warner and Comcast calls=
=20
for merging Time Warner's cable operation into Adelphia to form a new=20
company that would be mostly owned by Time Warner, according to people=20
familiar with the matter. Comcast has agreed to contribute $1 billion to $2=
=20
billion in cash and its 21% stake in Time Warner Cable to the deal, which=20
is valued by Time Warner and Comcast at $17 billion to $17.5 billion. In=20
exchange, Comcast would get 2 million to 2.5 million subscribers. The Time=
=20
Warner-Comcast bid is believed to have the inside track in the closely=20
watched auction of the country's fifth-largest cable operator, which has=20
been operating under bankruptcy protection since 2002. A bid for the entire=
=20
company also was submitted Monday by a venture of private-equity firms=20
Kohlberg Kravis Roberts & Co. and Providence Equity Partners.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com]
http://online.wsj.com/article/0,,SB110738939286344340,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

CONSUMER PROTECTIONS?

REQUEST FOR A CONGRESSIONAL INVESTIGATION INTO THE FCC CONSUMER ADVISORY=20
COMMITTEE
Teletruth, an independent, national customer alliance today will request an=
=20
investigation under the Federal Advisory Committee Act (FACA) of how phone=
=20
company interests, and not consumers, are in control of the FCC's Consumer=
=20
Advisory Committee (CAC). Teletruth has served on the committee lending=20
expertise on the auditing and correcting of mistakes on residential and=20
small business phone bills, as well as covering other areas of the phone=20
and broadband industries for the public interest. However, Teletruth=20
writes, it has become clear over the course of two-years of events that=20
this Committee is the epitome of "regulatory capture" - the=20
telecommunications industry has been able to unduly influence events on=20
this Committee and at the Commission, and has harmed the public interest.
[SOURCE: Teletruth Press Release]
http://www.newnetworks.com/CACpressrelease.htm
http://www.teletruth.org/consumeradvisory.html
See complaint at:
http://www.newnetworks.com/CACletterfinal20205.htm

SPAM FIGHTER HAS A HONEY POT OF AN IDEA
Matthew Prince believes we should try to stop spam at the source, not at=20
your In box. He's going after those who harvest e-mail addresses -- a=20
practice that carries criminal penalties under a slew of anti-spam laws,=20
including the federal CAN-SPAM Act. To do so, Prince launched Project Honey=
=20
Pot, a service that relies on anti-spam volunteers all over the world to=20
upload phantom Web pages on their sites. The pages are invisible to Web=20
surfers, but not to software that crawls the Web to collect e-mail=20
addresses. When a crawler visits one of those pages, the page will generate=
=20
a unique e-mail address that contains information about the time it was=20
harvested and the IP address, or identity, of the computer that harvested=20
it. In a little over three months, volunteers have installed some 5,000=20
Honey Pot pages, which have generated more than 41,000 Honey Pot addresses.=
=20
The data linked to the Honey Pot addresses works like a "homing beacon" on=
=20
a harvester's identity.
[SOURCE: San Jose Mercury News, AUTHOR: Miguel Helft]
http://www.mercurynews.com/mld/mercurynews/business/technology/10797707.htm
See also --
Deleting Spam Costs Billions, Study Finds
http://www.mercurynews.com/mld/mercurynews/business/technology/10800628.htm

DC SEEKS SALES BAN ON VIOLENT GAMES
In December, Illinois Gov. Rod Blagojevich (D) proposed making it illegal=20
for anyone younger than 18 to buy violent or sexually explicit games.=20
Similar bans have been considered in Michigan. Now Washington, DC may enter=
=20
the debate as well. Council member Adrian M. Fenty (D-Ward 4) and 11=20
colleagues are scheduled to introduce a measure today that would limit the=
=20
sale of such games as the Grand Theft Auto series, Halo 2 and Mortal=20
Kombat. A store that sells the games to minors could lose its business=20
license and face a fine of as much as $10,000. Washington DC Mayor Anthony=
=20
A. Williams says he supports a ban.
[SOURCE: Washington Post, AUTHOR: ]
http://www.washingtonpost.com/wp-dyn/articles/A58996-2005Feb2.html
(requires registration)

THE YEAR OF LIVING INDECENTLY
You can read it now or over breakfast in Sunday's New York Times. Rich=20
offers a glimpse of what Janet's breast has wrought. It might all be=20
laughable were the government not expanding its role as cultural cop. But=20
it is. The departures of Michael Powell, the Savonarola of the Federal=20
Communications Commission, and John Ashcroft, whose parallel right-breast=20
fixation was stimulated by a statue in the Justice Department, are red=20
herrings. That our government is now both intimidating PBS and awarding=20
public money to pundits to enforce "moral values" agendas demonizing=20
certain families is the ugliest fallout of the campaign against indecency.=
=20
That campaign cannot really banish salaciousness from pop culture, a rank=20
impossibility in a market economy where red and blue customers are united=20
in their infatuation with "Desperate Housewives." But it can create public=
=20
policy that discriminates against anyone on the hit list of moral values=20
zealots. Inane as it may seem that some are conducting witch hunts against=
=20
Buster and SpongeBob SquarePants, there's a method to their seeming idiocy:=
=20
the cartoon surrogates are deliberately chosen to camouflage the harshness=
=20
of their assault on nonanimated, flesh-and-blood people.
[SOURCE: New York Times, AUTHOR: Frank Rich]
http://www.nytimes.com/2005/02/06/arts/06rich.html
(requires registration)

DOE DISINVITES BUSTER PRODUCER
Many PBS stations may still be deciding to accompany Buster into the home=20
of a family with two mothers, but the Department of Education (DOE) has=20
decided to disinvite the show's executive producer, Carol Greenwald from=20
speaking at a children=92s-TV conference the DOE is co-sponsoring with PBS=
in=20
Baltimore Friday. The Baltimore conference is being co-sponsored by PBS and=
=20
DOE, but the first two days of the conference have been set aside for DOE=20
to talk about new guidelines for educational literacy TV programming it=20
funds. Buster is majority funded by DOE as part of PBS=92 Ready-to-Learn=20
initiative, a five-year partnership between it and DOE under a grant that=20
expires in August. That partnership is likely to change, though, under=20
terms of a new request for proposal DOE is about to issue. Commercial as=20
well as noncommercial kids programmers may be eligible to bid for the grant=
=20
under the new guidelines, and the DOE may seek greater control over the=20
programming produced with its money.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA501189.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

LEGISLATIVE AGENDA

BARTON'S FIRST PRIORITY: 2006 DTV TRANSITION DEADLINE
House Commerce Committee Chairman Barton (R-TX) and Telecom Subcommittee=20
Chairman Upton (R-MI) made clear that their top priority is legislation, to=
=20
be introduced this Spring, that would enforce a 2006 transition date for=20
conversion of analog TV signals to digital by 2006. Universal service=20
reform is another priority -- Rep Barton believes is should be repealed,=20
but will allow for continuing to keep rural telephone rates low. The=20
Commerce Committee leaders also said there would be sweeping
reform of telecom law, with an emphasis on regulatory parity. They said the=
=20
E-rate program has already met its goal and has now essentially become =93a=
=20
maintenance program.=94 These are all big issues, but first legislators may=
=20
tackle some issues from the Congress: indecent broadcast programming and=20
junk faxes.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

LEGISLATION TO ENSURE CONTINUED INTERNET AND PHONE SERVICE IN RURAL AREAS
Senate Commerce Committee Chairman Ted Stevens (R-Alaska) will support the=
=20
Universal Service Anti-Deficiency Permanent Exemption Act (S-241)=20
introduced by Sen. Snowe (R-ME) that would make permanent the universal=20
service fund=92s exemption from the Anti-Deficiency Act (ADA). Congress near=
=20
the end of last session enacted a year=92s moratorium on application of the=
=20
ADA to USF. Sen Stevens is a co-sponsor of the legislation, along with=20
Senate Commerce Committee ranking Democrat Inouye (D-Hawaii) and Sen.=20
Rockefeller (D-WV). =93Exempting the Universal Service Administrative=
Company=20
from the Anti-Deficiency Act is crucial to retaining Internet access to our=
=20
schools and libraries and ensuring the continued success of rural=20
tele-medicine programs. We have worked to ensure that rural America is not=
=20
left off the information highway and failure to act on a permanent=20
exemption will put us on the exit ramp,=94 said Sen Stevens. Sen Inouye=
said,=20
=93Congress cannot allow beneficiaries of universal service support - our=20
schools, libraries, rural health providers and telecommunications carriers=
=20
- to lose critical services that connect underserved communities to the=20
promise of the digital age. To avoid a repeat of the disruptions that=20
plagued universal service beneficiaries last year, I stand ready to work=20
with my colleagues on a permanent solution to this problem.=94
[SOURCE: Communications Daily]
(Not available online)
[SOURCE: US Senate Commerce Committee Press Release]
http://commerce.senate.gov/newsroom/printable.cfm?id=3D231423

TELECOM

UNIVERSAL SERVICE FUND OVERSIGHT GUY
Mark Stephens has won one of the plumb jobs in DC -- he'll be the FCC's=20
Special Advisor for Universal Service Fund Oversight in the Wireline=20
Competition Bureau's Telecommunications Access Policy Division (TAPD). In=20
this position, Mr. Stephens will advise the division chief and the division=
=20
management on issues related to oversight, audits, accounting, and --=20
that's not all -- administration of the Universal Service Fund. Stephens=20
will lead the division's efforts to strengthen oversight, improve=20
administration and further safeguard the Universal Service Fund from waste,=
=20
fraud, and abuse. After creating Strat-O-Matic (TM) bseball, Stephens=20
joined the FCC in 1991 as an auditor in the Common Carrier Bureau's=20
Accounting & Audits Division. Stephens has served as an auditor and systems=
=20
accountant in the Common Carrier Bureau's Accounting & Audits Division and=
=20
as an audit team leader in the Enforcement Bureau's Investigation &=20
Hearings Division. Stephens joined the Wireline Competition Bureau in=20
August 2003 and has been working on Universal Service Fund oversight issues=
=20
since that time. Before joining the FCC, Stephens worked at a public=20
accounting firm and maintained the position of Controller in a private firm.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256492A1.doc

RUNNING FROM DIAL-UP ACCESS
The nation's two top dial-up Internet providers are jumping into different=
=20
lifeboats as the broadband Internet wave threatens to sink their leaky=20
business models. It remains unclear whether either lifeboat will float.=20
EarthLink, the No. 2 player in Internet dial-up access, is trying to remake=
=20
itself as an uber-broadband provider, buying wholesale high-speed=20
connectivity from all kinds of network operators and reselling it under its=
=20
own name. America Online, the leader in dial-up access, largely abandoned=20
that broadband strategy last year and is counting on advertising to keep it=
=20
afloat as dial-up customers defect to rivals selling faster or cheaper=20
Internet connections. AOL is partnering with high-speed network operators,=
=20
hoping to snag a sliver of their subscription revenue, while trying to=20
remake itself in the image of ad-centric Yahoo.
[SOURCE: Washington Post, AUTHOR: Leslie Walker]
http://www.washingtonpost.com/wp-dyn/articles/A57740-2005Feb2.html
(requires registration)

FCC LETS SBC DIAL DIRECT TO GET NET PHONE NUMBERS
In a boost for Internet telephone service (VoIP), the FCC has made it=20
easier and cheaper for SBC and other Internet phone service providers to=20
get 10-digit phone numbers directly from their official source--a privately=
=20
run, quasi-government agency known as the North American Numbering Plan=20
Administration. Before the FCC's action, only those Net phone providers=20
certified by states could approach the agency directly. The SBC division=20
selling Net phone services argued that it wasn't fair; the calls actually=20
use the Internet and are therefore off-limits to any regulation. Also,=20
requiring certification multiplies the already onerous amount of expensive=
=20
state and federal telephone regulation.
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/FCC+lets+SBC+dial+direct+to+get+Net+phone+numbers/21...
352_3-5560894.html?tag=3Dnefd.top

NOT JUST FOR EMERGENCIES ANYMORE
The cellphone, once viewed by older people solely as a device for use in=20
emergencies, is becoming an everyday convenience. Encouraged by inexpensive=
=20
calling plans, older Americans are using cellphones to call their=20
grandchildren at college, or to set up a bridge game at their retirement=20
community. Half of Americans ages 65 to 74 own mobile phones, according to=
=20
the Yankee Group, a technology research firm, as do 30 percent of those 75=
=20
to 84. Four years ago, the firm estimates, only 15 percent of people over=20
65 were wireless customers. And older users are increasingly attracted to=20
cellphones for general use, not merely safety, the firm says. The increase=
=20
in cellphone use among older Americans is coming despite, not because of,=20
the wireless industry. Carriers make little effort to appeal to older=20
customers, directing most of their marketing efforts to younger people who=
=20
are more likely to use (and pay for) extra features like text messaging and=
=20
voice mail. Indeed, older consumers often complain that all those features=
=20
- accessible on ever-smaller phones with tiny keys - leave them confused.=20
AARP, the advocacy and lobbying group for older Americans, says cellphone=20
service is the benefit most requested by its 35 million members. In=20
response to complaints about poor service and hard-to-use phones, the=20
organization is testing a program that will provide members with discounted=
=20
calling plans and handsets from several carriers as well as materials about=
=20
how to operate the devices.
[SOURCE: New York Times, AUTHOR: Jeffrey Selingo]
http://tech.nytimes.com/2005/02/03/technology/circuits/03elde.html
(requires registration)

CABLE

FCC STAFF REJECTS MASSIVE CABLE DEREG
FCC staff apparently have rejected a cable-industry proposal designed to=20
trigger rate deregulation across the country and allow cable systems to set=
=20
basic-cable and equipment rates without local approval. The proposal,=20
floated by the National Cable & Telecommunications Association nearly four=
=20
years ago, called for total cable-rate deregulation in at least 41 states=20
unless state regulators assigned lawyers to prove to the FCC that=20
deregulation was unjustified in thousands of discrete communities. Under=20
current FCC rules, cable systems are presumed to be monopolies unless the=20
cable operator files a petition with the agency demonstrating that the=20
franchise area served is subject to effective competition. To gain=20
deregulation, a cable system must provide evidence that competing pay TV=20
providers -- mainly direct-broadcast satellite providers DirecTV and=20
EchoStar Communications -- serve more than 15% of households in the=20
franchise area.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA501057.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

NRB ASKS WHITE HOUSE FOR DTV DELAY
Add religious broadcasters to the list of organizations asking policymakers=
=20
to delay a decision on multicast must-carry until after a new FCC chairman=
=20
is chosen. "The ultimate impact of that decision [to deny multicast=20
must-carry]," says NRB President Frank Wright, "would be less of our=20
programming in the nation's homes."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA501184?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

QUICKLY

BENTON CRITIQUES INDUSTRY OF GIANTS
A report on Charles Benton's recent trip to Ithaca College from the=20
school's student newspaper. You can also read Benton's major remarks,=20
"Where's the Public? Media Reform in the Digital Age", at=20
http://www.benton.org/press/2005/speech01-05.doc
[SOURCE: The Ithacan, AUTHOR: Nathaniel Weixel]
http://www.ithaca.edu/ithacan/articles/0501/27/news/5benton_cr.htm

WMD: THE MOVIE
Amy Goodman talks to Danny Schechter about his new documentary exploring=20
the U.S. media's inadequate coverage of the war in Iraq from the lead-up to=
=20
the fishy deaths of unembedded reporters. WMD will be opening in New York=20
at the Village East Theater (12th and Second Avenue) and New Metro (99th=20
and Broadway) on Friday evening February 4th.
[SOURCE: AlterNet, AUTHOR: Amy Goodman, Democracy Now]
http://www.alternet.org/mediaculture/21157/
--------------------------------------------------------------
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.
--------------------------------------------------------------