April 2005

Benton's Communications-related Headlines for 4/12/05

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

BARTON, BARTON, BARTON
Barton Pushes Broad Telecom Overhaul
Barton Wants DTV Tuners Sooner
Barton Wants to Delay Indecency Legislation for Cable, Satellite

OWNERSHIP
FCC Dem Spurs Hollywood to Fight Mergers
Gannett CEO: Media Ownership Ruling May Take Two Years

BROADCASTING
Broadcast TV Networks Rattled by DVR Inroads
Study: Digital Audio to Surge

LOBBYING
Defend Local Access
TeleCONSENSUS

FROM THE BLOG-O-SPHERE
Verizon Lies = Media Truths
Unmuddling The Metaphysical

QUICKLY -- New Lawsuits from Media Companies; Florida Injunction Against
Spammers; Six Firms Charged with eRate Fraud

BARTON, BARTON, BARTON

BARTON PUSHES BROAD TELECOM OVERHAUL
Addressing the Federal Communications Bar Association Tuesday, House
Commerce Committee Chairman Joe Barton said that Internet technology and
broadband distribution require an entirely new regulatory model: "I believe
that the best thing to do is just start from scratch." Wow, that sounds
like a major undertaking... we'll have months of public hearings and a
broad, democratic debate, right? Not so much. Rep Barton said he's
negotiating details on a bill with Reps. Fred Upton (R-MI), John Dingell
(D-MI) and Edward Markey (D-MA). Rep Barton wants to introduce a bill in a
couple of weeks, move it through the Commerce Committee sometime this
summer and get it ready to go to the Senate before the August break. Sounds
peachy.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA516900.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

BARTON WANTS DTV TUNERS SOONER
House Commerce Committee Chairman Joe Barton would like everyone to pick up
the pace. He's already asked that the deadline for the transition to all
digital television broadcasting be moved up to the end of 2006. Tuesday he
asked TV set manufacturers to chip in, too. Currently, all DTV sets
13-inches and larger must have the tuners by July 1, 2007; Rep Barton now
wants the deadline move up to "late 2005 or early 2006." He says an
accelerated equipment deadline is needed in order for broadcasters to go
all-digital by Dec. 31, 2006, as current law recommends, but does not mandate.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA516897?display=Breaking+News&...
http://www.multichannel.com/article/CA516957.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

BARTON WANTS TO DELAY INDECENCY LEGISLATION FOR CABLE, SATELLITE
In what could be a major break for cable TV, Rep. Joe Barton (R-TX) said
Tuesday he wants to put off until at least next year consideration of any
legislation that would subject cable and satellite TV to indecency
regulation. He wants Congress to focus first on an indecency bill that
addresses over-the-air broadcasting only. That bill, approved by a 389-38
vote in the House in February, would increase fines for off-color
broadcasting from $32,500 to $500,000. It focuses exclusively on
broadcasting, continuing to exempt cable and satellite programming. The
prospects of cable and satellite avoiding indecency regulation are expected
to rise dramatically if they aren't included in the broadcast bill, because
most of the legislative momentum on the issue is expected to dissipate with
the broadcast bill's passage.
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=7631
(requires free registration)

* Who is Joe Barton, you ask? Check info out from Project Vote Smart:
http://www.vote-smart.org/bio.php?can_id=H3831103

OWNERSHIP

FCC DEM SPURS HOLLYWOOD TO FIGHT MERGERS
The Federal Communications Commission's Michael Copps urged Hollywood
guilds and activists not to become complacent in their battle to curb media
consolidation during an address at the Caucus for Television Producers,
Writers & Directors dinner Sunday night, saying it is "all up for grabs
right now" and that renewed action on regulation will likely occur in the
next year. Commissioner Copps noted that the industry's creative talent
needs to deliver "a collective message." They must remain vigilant because
major media companies are reluctant to cover the implications of
deregulation. He also reiterated his support for a 25% to 35% set-aside of
the primetime schedule for independent producers to promote a diversity of
voices in production.
[SOURCE: Variety, AUTHOR: Brian Lowry]
http://www.variety.com/index.asp?layout=story&articleid=VR1117920915&p=0...

GANNETT CEO: MEDIA OWNERSHIP RULING MAY TAKE TWO YEARS
Gannett chief executive Doug McCorkindale predicted Tuesday that it will
take 18-24 months to ease the FCC's restrictions on television-station and
newspaper ownership. He added that uncertainty about the rules has had a
"dampening effect" on merger-and-acquisition discussions "where there are
overlaps" with Gannett, which owns USA Today and 101 other daily newspapers
in the U.S., as well as broadcast television stations. McCorkindale said
he's encouraged by the appointment of Kevin Martin as FCC Chairman.
[SOURCE: DowJones, AUTHOR: Janet Whitman janet.whitman( at ) dowjones.com]
http://money.excite.com/jsp/nw/nwdt_rt.jsp?section=news&news_id=dji-0006...

BROADCASTING

BROADCAST TV NETWORKS RATTLED BY DVR INROADS
Although the broadcast networks publicly play down the impact of
ad-skipping technologies, TV moguls see the spread of digital video
recorders as a serious threat to their ad base. How will they combat it? 1)
Live programming -- sports, news, events -- that people tend to skip less.
2) Get consumers to pay directly for content, such as with video-on-demand
services and DVDs. 3) Network ad departments will work more closely with
advertisers to provide them with branded entertainment sponsorship deals or
product integrations.
[SOURCE: Ad Age, AUTHOR: Claire Atkinson]
http://adage.com/news.cms?newsId=44754

STUDY: DIGITAL AUDIO TO SURGE
By 2010, more than 20.1 million households will be hooked to satellite
radio, up from 4.5 million subscribers at the end of 2004, market research
firm Forrester predicted in a report released on Monday. Also by that time,
nearly 12.3 million households will use MP3 players to listen to podcasts,
it forecasted. Streaming audio is also expected to grow significantly as
players like America Online and Yahoo, along with traditional broadcasters,
shift or step up their online programming, the research firm said. By the
end of the decade, online radio will reach 30 percent of all U.S.
households and about half of homes that have broadband connections.
[SOURCE: C-Net|News.com, AUTHOR: Dinesh C. Sharma]
http://news.com.com/Study+Digital+audio+to+surge/2100-1025_3-5667524.htm...

LOBBYING

DEFEND LOCAL ACCESS
Free Press has launched a new tool to support those fighting franchise
renewal fights -- as well as to support those working to counter industry
efforts to take away community control over communications needs.
[SOURCE: Free Press]
http://www.freepress.net/defendlocalaccess/http://www.freepress.net/defe...

TELECONSENSUS
The United States Chamber of Commerce along with the National Association
of Manufacturers, the National Black Chamber of Commerce and other business
organizations, launched a new coalition on telecom issues. The
TeleCONSENSUS coalition is calling on Congress to update telecommunications
laws in order to create jobs, spur investment, foster innovation, expand
consumer choice, enhance efficiency, and increase productivity. All sectors
of the U.S. economy will benefit from modernized telecommunications laws,
according to the Chamber. TeleCONSENSUS supports legislation based on the
principle that telecommunications markets should be driven by consumer
demand, advances in technology, and competition between telecommunications
companies, rather than by government regulation. Investment and employment
in the telecommunications industry have fallen dramatically. From March
2000 to July 2004, market capitalization in the telecommunications industry
dropped from $1,135 billion to $375 billion, a decline of 67
percent. Between March 2001 and May 2004, the industry lost 380,500 jobs
and continued to shed jobs in the first quarter of 2005. TeleCONSENSUS will
educate Congress, the business community, and the public about the
importance of telecommunications and broadband to the U.S. economy. Over a
five-year period, modernizing the nation's telecommunications laws has the
potential to generate more than 212,000 jobs, create $58 billion in new
capital spending, and increase the GDP by $634 billion.
[SOURCE: US Chamber of Commerce Press Release]
http://www.uschamber.com/press/releases/2005/april/05-58.htm

FROM THE BLOG-O-SPHERE

VERIZON LIES = MEDIA TRUTHS
Verizon has seeded the media with their own "covert propaganda." This time
it takes the form of memos quietly forwarded by Verizon's external
communications department to trade journalists and congressional offices.
What's clear is that Verizon hopes that spreading lies about municipal
broadband will turn media and politicians against citizens-powered efforts
to provide access at a price more Americans can afford. Verizon is building
an argument out of hot air. Sadly, it's enough to float many in the media.
[SOURCE: MediaCitizen, AUTHOR: Tim Karr]
http://mediacitizen.blogspot.com/2005/04/verizon-lies-media-truths.html

UNMUDDLING THE METAPHYSICAL
Report after report catalogues the rapid increase in cable rates over the
last few years. Some say as much as six percent a year. My own cable bill
was $45 one month and mysteriously became $50 the next. Just like that, a
9% increase. Then you look at the report Dick Treich and Garth Ashpaugh did
on Comcast and you find out that Comcast charges way too much for
installations and equipment. Next is the passing on to customers what it
costs them to upgrade their systems, which in my opinion should be absorbed
by the companies themselves, and you could easily arrive at the conclusion
that we all should be paying $20 to $30 dollars less per month. It all
could drive a guy crazy.
[SOURCE: Riedel Communications, AUTHOR: Bunnie Riedel]
http://www.riedelcommunications.blogspot.com/

QUICKLY

MEDIA COMPANIES TARGET TRADING ON RESEARCH NETWORK
Record label and movie studio investigators said on Tuesday they plan to
sue more than 400 college students who used Internet2 to copy songs and
movies. Designed for academic research, Internet2's extremely fast speed
allows users to download a movie in 5 minutes or a song in less than 20
seconds. Existing cable or DSL broadband networks usually take an hour to
download a movie and 2 minutes to download a song.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml;jsessionid=OVUZZXKQGDGNKCRBAE0C...

FLORIDA WINS FIRST INJUNCTION AGAINST SPAMMERS
The state of Florida won its first victory against "spam" when a judge
granted an injunction against two men accused of running mass emailing
operations.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=OVUZZXKQGDGNKCRBAE0C...

SIX FIRMS CHARGED WITH ERATE FRAUD
Six more companies have been indicted on allegations of defrauding the
eRate, the $2.25 billion-a-year federal program that subsidizes Internet
access in the nation's schools and libraries. The Hall of Shame includes
Howe Electric Inc.; Sema4 Inc.; Digital Connect Communications; Expedition
Networks Ltd.; and ADJ Consultants Inc., and its owners, Allan and Judy Green.
[SOURCE: eSchool News]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=5619
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 4/12/05

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

INTERNET/TELECOM
City-Owned Broadband Networks Gain Allies
Stevens Worries About Timeline on USF-ADA Issue
Senators Don't Want 1898 Tax to Hit Net
MCI Plans to Push Verizon to Increase Its Takeover Offer

TELEVISION
Ferree Throws Hat In Ring for CPB
Adelphia Deal Is Complicated
Microwave TV Goes to Court
RTNDA Issues New VNR Rules

QUICKLY -- New TV Ratings Technology; New Board for Cable Lobby; You'll Eat
More Spam and Like It; Teachers Pick PBS; Videos Challenge Accounts of
Convention Unrest; Grouper & Copyright; Sale Casts MGM in Supporting Role;
Microsoft & Antitrust; Investigative Journalism Proves Life-Threatening in
Mexico; Women, Weight and Media; C Is Not for Cookie Today; Cell Phone
Interruptus

INTERNET/TELECOM

CITY-OWNED BROADBAND NETWORKS GAIN ALLIES
Battling bills in at least 10 states that seek to ban or curb their
provision of broadband services, municipalities are enlisting new allies.
Two reports released Mon. by groups including the Media Access Project and
Consumer Federation of America counter cable and telephone incumbent
arguments driving the bans. The reports followed a High Tech Broadband
Coalition declaration of opposition to statewide barriers to municipal
entry earlier this month. One report, Connecting the Public: The Truth
About Municipal Broadband, argues that the private sector does a "good job"
of providing service where profitable but doesn't provide "timely
deployment to address health education and welfare issues." For more info,
see links below.
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)
* Connecting People: The Truth About Municipal Broadband by Harold Feld,
Gregory Rose, Mark Cooper, Ben Scott
Free Press, the Consumer Federation of America, and the Media Access
Project examine municipal broadband through several lenses, including
historical context and competitive impact, and indicts prohibitions against it.
http://www.freepress.net/docs/mb_white_paper.pdf
* Telco Lies and the Truth About Municipal Broadband Networks by Ben Scott
and Frannie Wellings
In response to an industry document, Free Press prepared this analysis
comparing fact and fiction regarding several municipal broadband case
studies. The report finds industry claims to be false and shows how public
networks have benefited communities.
http://www.freepress.net/docs/mb_telco_lies.pdf
* Broadband and Economic Development: A Municipal Case Study from Florida
by George S. Ford, Thomas M. Koutsky
http://www.freepress.net/docs/broadband_and_economic_development_aes.pdf

STEVENS WORRIES ABOUT TIMELINE ON USF-ADA ISSUE
Last year, Congress passed a law exempting the Universal Service Fund from
the Anti-Deficiency Act for one year, presumably allowing for work on a
more permanent fix. But as the Senate Commerce Committee considered a bill
Monday that proposes a fix, the Committee's chairman, Sen Ted Stevens
(R-Alaska), expressed fears federal funding for school Internet services,
rural telephone service and library computers could be threatened
temporarily. The exemption allows USF monies to be allocated before they
are collected.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)See testimony from the CEO of United Utilities, a
telecom carrier in Alaska.
http://www.usta.org/news_releases.php?urh=home.news.nr2005_0411_2
More info at:
http://commerce.senate.gov/hearings/witnesslist.cfm?id=1443

SENATORS DON'T WANT 1898 TAX TO HIT NET
Sen. George Allen (R-VA) on Monday announced a bill to prevent the IRS and
the Treasury Department from levying a 3 percent federal excise tax to
e-mail, broadband links or voice over Internet Protocol services. Sen. Ron
Wyden (D-OR) also is backing the legislation which would amend the IRS code
to say that any "Internet access service" would be immune from the
Spanish-American War tax. That term is defined as applying to any service
that lets users "access content, information, electronic mail, or other
services offered over the Internet."
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Senators+dont+want+1898+tax+to+hit+Net/2100-1028_3-5...

MCI PLANS TO PUSH VERIZON TO INCREASE ITS TAKEOVER OFFER
Verizon said Saturday it agreed to acquire the 13% stake in MCI held by
Mexican billionaire Carlos Slim Helu. Verizon said it will pay Mr. Slim
$25.72 a share in cash, as well as an effectively free call option, or the
right to buy, on potential appreciation in Verizon shares. That represents
a premium to the $23.10 in cash and stock Verizon agreed to pay MCI in a
takeover deal announced by the companies nearly two weeks ago. So MCI's
board is planning to seek an improved offer from Verizon to stem rising
anger in other shareholders. Legal scholars say it would be highly unusual
for MCI to let the current deal with Verizon go forward. "There's no case I
know of where a board has permitted some shareholders to be paid on the
front end a higher cash price and for the other shareholders to be paid
less than the cash price on the back end," said Samuel C. Thompson Jr., a
law professor and director of the UCLA Law Center for the Study of Mergers
and Acquisitions. Allowing the deal to go forward could conceivably leave
the MCI board open to litigation risks, he said.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com
and Almar Latour almar.latour( at )wsj.com]
http://online.wsj.com/article/0,,SB111323778741703618,00.html?mod=todays...
(requires subscription)
LATimes:
http://www.latimes.com/business/printedition/la-fi-mci12apr12,1,2087083....

TELEVISION

FERREE THROWS HAT IN RING FOR CPB
Ken Ferree, acting president of the Corporation for Public Broadcasting,
said Monday he wants to be considered for CPB's permanent president post
but can't handicap his chances in the board's search for candidates. Ferree
said he joined CPB because of his interest in free media and a desire to
work in media operations, not just law and regulation, as he has at the FCC
and in private law practice. Some media activists are not thrilled with the
prospects of a Ferree CPB (see link below).
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA516710?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Conservative Coup at CPB Brings Anti-Public-Interest-Oriented Ken Ferree
to Agency's Head
http://www.democraticmedia.org/news/JCFerreestatement.html
* Public Broadcasting Group Will Replace Top Executive
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2005/04/12/business/media/12pbs.html
(requires registration)

ADELPHIA DEAL IS COMPLICATED
Headlines may imply that the sale of Adelphia assets to cable giants Time
Warner and Comcast is a done deal, but U.S. Bankruptcy Court Judge Robert
Gerber needs to determine whether the $18 billion bid meets his criteria
for making as many Adelphia creditors as possible whole. Sources said
Gerber could decide whether to approve the Time Warner-Comcast bid within
7-10 days of receiving it April 7.
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
http://www.multichannel.com/article/CA516671.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

MICROWAVE TV GOES TO COURT
The long saga over the Federal Communications Commission's plan to use a
chunk of direct-broadcast satellite frequencies for a new land-based
pay-TV/broadband service began what might be its final stage Monday when
federal appeals judges heard oral arguments in legal challenges to the new
service. Satellite TV providers are suing to have the new service killed
before it gets started, based on what the industry says will be hours of
harmful new interference each year to their customers' signals.
Representing the DBS industry, attorney Richard Bress argued that the FCC
violated the law by approving the new service after it conceded that DBS
customers might have to employ mitigation measures to prevent new
interference from the land-based service, which will be delivered via
microwave from towers disbursed throughout the country.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA516698.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

RTNDA ISSUES NEW VNR RULES
Not a moment too soon, the Radio & Television News Directors Association is
offering new guidelines to help stations navigate the murky waters of
video-news releases. The integrity of radio and TV stations, the group
says, "might, at times, come into question when stations air video and
audio provided to newsrooms by companies, organizations, or governmental
agencies with political or financial interests in publicizing the
material." RTNDA is advising news managers to weigh a number of factors
before airing VNRs, see what's raised at the URL below.
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
http://www.broadcastingcable.com/article/CA516582?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

QUICKLY

OUR RATINGS, OURSELVES
Technology is to radically change the monitoring of TV audiences.
"Television and media will change more in the next 3 or 5 years than it's
changed in the past 50," says Nielsen's tech chief.
[SOURCE: New York Times Magazine, AUTHOR: Jon Gertner]
http://www.nytimes.com/2005/04/10/magazine/10NIELSENS.html

NEW NCTA BOARD
Election results are in and Brian L. Roberts, President & CEO of Comcast
Corporation, will now also serve as Chairman of the Board of Directors of
the National Cable & Telecommunications Association (NCTA). See more on the
make-up of the board at the URL below.
[SOURCE: National Cable & Telecommunications Association Press Release]
http://www.ncta.com/press/press.cfm?PRid=595&showArticles=ok

SPAM AN PHISHING
More than a year after the CAN-SPAM Act became law, email users say they
are receiving slightly more spam in their inboxes than before, but they are
minding it less.
[SOURCE: Pew Internet & American Life Project, AUTHOR: Deborah Fallows]
http://www.pewinternet.org/PPF/a/111/about_staffer.asp

TEACHERS PICK PBS
The nation's educators have -- for the third year in a row -- chosen PBS as
the top source of video in the classroom, for both off-air taping and
purchasing.
[SOURCE: , AUTHOR: ]
http://www.pbs.org/aboutpbs/news/20050412_grunwaldstudy.html

VIDEOS CHALLENGE ACCOUNTS OF CONVENTION UNREST
A videotape shot by a documentary filmmaker shows that the New York City
Police Department may have exaggerated claims against protesters during
last summer's Republican National Convention.
[SOURCE: New York Times, AUTHOR: Jim Dwyer]
http://www.nytimes.com/2005/04/12/nyregion/12video.html?hp&ex=1113364800...
(requires registration)

TESTING COPYRIGHT LIMITS
A look at file sharing software called Grouper and copyright concerns.
[SOURCE: Los Angeles Times, AUTHOR:Jon Healey]
http://www.latimes.com/business/printedition/la-fi-grouper12apr12,1,6804...
(requires registration)

SALE CASTS MGM IN SUPPORTING ROLE
With the nearly $5-billion acquisition of Metro-Goldwyn-Mayer Inc. by a
Sony Corp.-led investment group now final, the new owners are initiating
plans to scale back the studio: the workforce will be trimmed from 1,500 to
200 and it will no longer make or distribute self-initiated movies.
Essentially, the company will morph into a licensor of the 4,000 films and
more than 10,000 television episodes in its library. It also will continue
to oversee some TV production, cable channels and consumer product businesses.
[SOURCE: Los Angeles Times, AUTHOR:Claudia Eller]
http://www.latimes.com/business/printedition/la-fi-mgm12apr12,1,6543539....
(requires registration)

MICROSOFT TAKES ANTITRUST CHARGE OF $714 MILLION
Microsoft said it will take $714 million in charges to cover antitrust
claims in its third fiscal quarter, including a charge to settle a dispute
with computer maker Gateway.
[SOURCE: Wall Street Journal, AUTHOR: Robert A. Guth rob.guth( at )wsj.com]
http://online.wsj.com/article/0,,SB111322438044603390,00.html?mod=todays...
(requires subscription)
See also --
USAToday:
http://www.usatoday.com/printedition/money/20050412/2b_microsoft12.art.htm

INVESTIGATIVE JOURNALISM PROVES LIFE-THREATENING IN MEXICO
Three journalists have been assaulted or gone missing this month, with at
least one of them slain, in a sign that investigating corruption remains a
dangerous trade in Mexico.
[SOURCE: Los Angeles Times, AUTHOR:Chris Kraul]
http://www.latimes.com/news/printedition/asection/la-fg-mexpress12apr12,...
(requires registration)

GIRLS WANT MEDIA TO SHAPE UP
[Commentary] Everywhere we look, we see the contradictions of a culture
obsessed with women and weight.
[SOURCE: Los Angeles Times, AUTHOR:Karen Stabiner, author of "My Girl:
Adventures With a Teen in Training"]
http://www.latimes.com/news/printedition/opinion/la-oe-stabiner12apr12,1...
(requires registration)

WHAT NEXT, OSCAR THE KINDLY?
[Commentary] Sesame Street will debut a new song today -- "A Cookie Is a
Sometimes Food." Will it ever replace "C is for Cookie"?
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
http://www.latimes.com/news/printedition/opinion/la-ed-cookie12apr12,1,4...
(requires registration)

EXCUSE ME, DEAR, THIS'LL ONLY TAKE A MINUTE
Fourteen percent of the world's cell phone users report that they have
stopped in the middle of a sex act to answer a ringing wireless device.
[SOURCE: AdAge, AUTHOR: Alice Z. Cuneo]
http://adage.com/news.cms?newsId=44753
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 4/11/05

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

TELEVISION
No Issue Is Too Obscure For a Political TV Ad Campaign
What's Next in Evening News? Stay Tuned
Support Wanes for 2006 Analog Cutoff
Fox: 'Married' Not Indecent
Indecency Alcatraz Could Afflict Cable
Cable Talks, Wall Street Listens
Time Warner, Comcast Snare Adelphia

INTERNET
Martin Needs Brand X Clarity
Rules Aimed at Digital Misdeeds Lack Bite
France Detects a Cultural Threat in Google

TELECOM
Save the Pay Phone -- a Suddenly Endangered Species
Verizon buys 13 percent stake in MCI
Battle for Italian Phone Unit Whittled Down to One Group

QUICKLY -- GM Pulls LA Times Ads; Rethinking the DMCA; Cox Out at CPB;=20
Senate Commerce Committee Agenda

TELEVISION

NO ISSUE IS TOO OBSCURE FOR A POLITICAL AD CAMPAIGN
Finally, people can turn to television to keep up with obscure policy=20
decisions facing the nation. Unfortunately, it is paid advertising and now=
=20
news coverage of those issues they will find. Washington's airwaves are=20
perpetually blanketed with messages for or against various tax bills and=20
telecommunications policies. But now such issue ads are getting wider=20
exposure, over greater geographic areas and with heftier price tags, as=20
both conservatives and liberals ratchet up their use of the tactic. The=20
increase in issue-specific political advertising is one consequence of the=
=20
hotly contested 2004 elections. Recent restrictions on donations to=20
political parties led many donors to allocate their money to less=20
well-known outside interest groups. In 2004, such groups raised $400=20
million, more than double the amount raised in 2002. Interest groups hope=20
TV ads will help them sustain interest in their causes until the next=20
presidential election, three years away.
[SOURCE: Wall Street Journal, AUTHOR: Yochi J. Dreazen=
yochi.dreazen( at )wsj.com]
http://online.wsj.com/article/0,,SB111318107529403096,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

WHAT'S NEXT IN EVENING NEWS? STAY TUNED
The Big Three broadcast TV networks have been losing audiences to 24-hour=20
cable news, Internet sites, and other sources of instant headlines. All=20
that competition, say many media analysts, will eventually force networks=20
to experiment with the content, style, and format of the evening news.=20
Minus the ads, the average newscast is just 19 minutes, according to Andrew=
=20
Tyndall, who analyzes the network news at The Tyndall Report. That lends=20
itself to summarizing the day's events rather than providing the added=20
value of in-depth reporting. So newscasts may face the same change that=20
newspapers have made -- emphasizing news analysis over news reporting. ABC=
=20
News announced that it will make its coverage available on a variety of=20
media platforms. In addition to ABC News Now, a 24-hour news digital=20
channel, it will provide broadband news and video on demand for cellphones=
=20
and computers.
[SOURCE: The Christian Science Monitor, AUTHOR:Stephen Humphries]
http://www.csmonitor.com/2005/0411/p11s01-ussc.html
See also:
Web Giants Go With Different Angles in Competition for News Audience
[SOURCE: Los Angeles Times, AUTHOR:Chris Gaither]
http://www.latimes.com/business/printedition/la-fi-news11apr11,1,6617164...
ry?coll=3Dla-headlines-pe-business
(requires registration)

SUPPORT WANES FOR 2006 ANALOG CUTOFF
House Energy and Commerce Committee Chairman Joe Barton (R-Texas) favors=20
Dec. 31, 2006 as the deadline for the transition to digital-only television=
=20
broadcasting in the US. But his target puts enormous pressure on Congress=20
to find a quick solution for 73 million analog TV sets that rely=20
exclusively on free, over-the-air TV and would go dark without a set-top=20
box or a connection to cable or satellite television. So apparently, the=20
new earliest date Congress will consider for a deadline is Dec 31, 2007.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA516226.html?display=3DPolicy&refer...
=3DSUPP
(free access for Benton's Headlines subscribers)

FOX: 'MARRIED' NOT INDECENT
The 169 stations carrying the Fox Television Network are expected to=20
challenge the Federal Communications Commission's indecency crackdown by=20
refusing to pay the proposed $1.18 million FCC fine for a raunchy Married=20
by America episode featuring strippers and whipped cream. The stations are=
=20
essentially daring the government to haul them into court. Under federal=20
law, stations are under no legal obligation to pay FCC indecency fines=20
unless the Justice Department takes them to court and wins a judge's order.=
=20
If Fox stations refused to pay a fine for Married by America, they would be=
=20
exercising a legal strategy communications lawyers often threaten but=20
rarely use. Lawyers say Justice is unlikely to sue any station that fails=20
to pay the standard fine. Despite the easy escape, however, nearly all=20
stations pay up because they don't want to annoy the FCC, which controls=20
license renewals, cable-carriage disputes and other regulatory actions=20
critical to a station's survival. But after a year of one record-breaking=20
fine after another, broadcasters are eager to fight the FCC over indecency.=
=20
Besides, lawyers for Fox Television's 35 stations and the network's 134=20
affiliates are gambling that the FCC's legal case is so weak that even the=
=20
lure of preserving the biggest indecency fine in history won't pull Justice=
=20
into court.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA516254.html?display=3DNews&re...
al=3DSUPP
(free access for Benton's Headlines subscribers)

INDECENCY ALCATRAZ COULD AFFLICT CABLE
Senate Commerce Committee Chairman Ted Stevens (R-Alaska) and House Energy=
=20
and Commerce Committee Chairman Joe Barton (R-Texas) would like to see=20
cable operators to create at least one programming tier devoid of sex and=20
profanity. But if cable doesn't accept their invitation, do these leaders=20
have the votes to pass legislation to expand indecency regulation to pay TV=
=20
and radio services? Apparently sentiment on Capitol Hill is now running=20
against cable. Indecency regulation, while designed to address content=20
concerns, could also undermine cable=92s expanded-basic tier =97 the vehicle=
=20
for delivering consumers the highest number of channels at the lowest=20
per-channel price.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA516417.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)
For more on indecency see:
A Man of Few Words
[Commentary] After hearing from FCC Chairman Kevin Martin in San Francisco,=
=20
the cable industry didn't know any more about where his leadership is=20
heading than the day he was appointed.
[SOURCE: Broadcasting&Cable, AUTHOR: J. Max Robins=
bcrobins( at )reedbusiness.com]
http://www.broadcastingcable.com/article/CA516399.html?display=3DNews&re...
al=3DSUPP
(free access for Benton's Headlines subscribers)

CABLE TALKS, WALL STREET LISTENS
A $95 billion upgrade has made cable systems into a giant computer network,=
=20
enabling a rich array of products -- from elaborate telephone services to=20
networked videogaming. Now Wall Street, being Wall Street, wants to know=20
how its helping cable's bottom line.
[SOURCE: Broadcasting&Cable, AUTHOR: John Higgins and Anne Becker]
http://www.broadcastingcable.com/article/CA516397?display=3DFeature&refe...
=3DSUPP
(free access for Benton's Headlines subscribers)
See also:
Cable sees tech as door to growth
[SOURCE: USAToday, AUTHOR:David Lieberman]
http://www.usatoday.com/printedition/money/20050411/tiers.art.htm

TIME WARNER, COMCAST SNARE ADELPHIA
After nearly one year of negotiations and a last-minute bid from=20
Cablevision Systems, Time Warner and Comcast have apparently emerged as the=
=20
winners of Adelphia's 5.3 million cable subscribers, striking a deal in=20
principal worth about $18 billion in cash and stock. In addition to $2=20
billion in cash, Comcast is contributing its 21% interest in Time Warner=20
Cable in return for about 2 million subscribers. It is not clear whether=20
those systems will come from Adelphia, Time Warner Cable or a mixture of=
both.
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
http://www.multichannel.com/article/CA516169.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

INTERNET

MARTIN NEEDS BRAND X CLARITY
New Federal Communications Commission Chairman Kevin Martin considers=20
broadband policy a top priority, but his agenda in this area will likely be=
=20
shaped by the Supreme Court decision in the Brand X Internet Services case.=
=20
In the Brand X case, the Supreme Court is expected to rule in a few months=
=20
whether the FCC properly classified cable-modem service as an unregulated=20
information service. If the court disagrees and rules that cable-modem=20
service is a regulated telecommunications service, the Martin FCC has to=20
decide whether to strip away common-carrier regulations from cable and=20
perhaps even from its broadband-access competitors. The agency has until=20
May 5 to act on a petition by SBC Communications asking it to forbear from=
=20
applying common-carrier rules to its =93IP [Internet-protocol] platform=20
services,=94 including the right to exclude competing Internet-service=20
providers. If the commission fails to deny the petition =97 a clear=20
possibility, because the FCC is split 2-2 between Republicans and Democrats=
=20
=97 the SBC petition is automatically deemed granted. The FCC will also be=
=20
looking to the Supreme Court for guidance on what to do next on media=20
ownership rules.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA516227.html?display=3DPolicy&refer...
=3DSUPP
(free access for Benton's Headlines subscribers)

RULES AIMED AT DIGITAL MISDEEDS LACK BITE
At least a dozen federal and state bills covering privacy protection,=20
phishing and spyware have been introduced on Capitol Hill and in state=20
capitals this year. The bills are designed to staunch consumer losses.=20
Identification theft cost consumers, banks and credit card companies $11.7=
=20
billion through the 12 months ended in April 2004, says researcher Gartner.=
=20
Phishing scams, fraudulent e-mails or websites that trick computer users=20
into surrendering personal information, burned U.S. consumers for $500=20
million in the 12-month period ended September 2004.Damages from spyware,=20
software that quietly monitors the activities of Internet users: More than=
=20
$200 million to U.S. consumers last year.
[SOURCE: USAToday, AUTHOR:Jon Swartz]
http://www.usatoday.com/printedition/money/20050411/netlawcover.art.htm
See also:
Bigger phishes ready to spawn
http://news.com.com/Bigger+phishes+ready+to+spawn/2100-7349_3-5656070.ht...
ag=3Dnefd.lede

FRANCE DETECTS A CULTURAL THREAT IN GOOGLE
Google planned to scan 15 million English-language books and make them=20
available as digital files on the Web. But Jean-No=EBl Jeanneney, president=
=20
of the French National Library, believes the move would further strengthen=
=20
American power to set a global cultural agenda. Europe, he said, should=20
counterattack by converting its own books into digital files and by=20
controlling the page rankings of responses to searches. His one-man=20
campaign bore fruit. At a meeting on March 16, President Jacques Chirac of=
=20
France asked Mr. Jeanneney and the culture minister, Renaud Donnedieu de=20
Vabres, to study how French and European library collections could be=20
rapidly made available on the Web.
[SOURCE: New York Times, AUTHOR: Alan Riding]
http://www.nytimes.com/2005/04/11/technology/11google.html
(requires registration)

TELECOM

SAVE THE PAY PHONE -- A SUDDENLY ENDANGERED SPECIES
According to the Federal Communications Commission, the number of pay=20
phones in the US dropped to 1.5 million in 2003, down from 2.1 million five=
=20
years earlier -- as the number of cellphone users surged. But state=20
legislatures around the country are considering legislation to preserve pay=
=20
phones especially where a lack of phone access poses a risk to residents'=20
safety, health, or welfare. 6.5% of American households have no telephone.=
=20
Many use pay phones as their primary means of communication. Supporters say=
=20
that resisting the demise of the pay phone -- even as cellphone coverage=20
continues to expand and costs go down -- is an attempt to close the gap=20
between the technological "haves" and "have nots."
[SOURCE: The Christian Science Monitor, AUTHOR: Sara B. Miller]
http://www.csmonitor.com/2005/0411/p01s02-uspo.html

VERIZON BUYS 13 PERCENT STAKE IN MCI
Verizon Communications said Saturday it agreed to buy the 13.7% stake in=20
MCI held by its largest shareholder, Mexican telecommunications magnate=20
Carlos Slim Helu, for $1.1 billion in cash. Although the move may anger=20
other MCI shareholders receiving a lower price for their shares, Verizon is=
=20
trying to strengthen its bid to purchase MCI by removing a potential critic=
=20
of the merger.
[SOURCE: Reuters]
http://news.com.com/Verizon+buys+13+percent+stake+in+MCI/2100-1036_3-566...
.html?tag=3Dnefd.top

BATTLE FOR ITALIAN PHONE UNIT WHITTLED DOWN TO ONE GROUP
Naguib Sawiris, an Egyptian telecommunications magnate with ambitious=20
growth plans, got the green light over the weekend to attempt a 12.1=20
billion euro ($15.65 billion) buyout of the Wind telecommunications=20
business of Italy. If completed, the deal would be Europe's largest-ever=20
leveraged buyout. Mr. Sawiris, the chairman and chief executive of Orascom=
=20
Telecom Holdings, Egypt's largest phone company, edged out a group of=20
investors led by the private equity firm Blackstone Group, whose offer was=
=20
valued at about 11.9 billion euros. Wind is Italy's third-largest mobile=20
phone company, with 28 million customers, but the potential transaction's=20
importance would stretch far beyond the company's presence in Italy.
[SOURCE: New York Times, AUTHOR: Heather Timmons]
http://www.nytimes.com/2005/04/11/business/worldbusiness/11wind.html
(requires registration)

QUICKLY

ADVERTISER REGISTERS OBJECTION
Marketers have been turning on media outlets for offenses real and=20
perceived, for almost as long as there has been advertising space and=20
commercial time to buy. Although marketers and media companies do business=
=20
together, they are not in the same business, a distinction that manifests=20
itself in fractious disputes caused by the tension between the media's=20
right to say what they please and marketers' right to advertise where they=
=20
please. The uneasy relationship between advertiser and advertisee made news=
=20
again when General Motors said last week that it would stop running its=20
advertising in The Los Angeles Times until further notice. The decision,=20
generated by what a G.M. spokeswoman, Ryndee Carney, described as=20
inaccurate coverage, has put a significant amount of ad revenue for the=20
newspaper in jeopardy. Lauren Rich Fine, the analyst who follows media and=
=20
advertising stocks for Merrill Lynch, wrote in a research note Friday,=20
"There is obviously no positive to this story, unless you are a journalist=
=20
believing in standing up to an advertiser." By one estimate, from The Wall=
=20
Street Journal, G.M. spends more than $10 million a year to advertise in=20
The Times, owned by the Tribune Company. G.M. is the nation's biggest=20
automaker and its second biggest advertiser, behind Procter & Gamble. The=20
Times is the biggest newspaper in the state that is the nation's biggest=20
buyer of cars, trucks, minivans and other vehicles.
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
http://www.nytimes.com/2005/04/11/business/media/11adcol.html
(requires registration)

RETHINKING DCMA
[Commentary] Time and again since its 1998 passage, the Digital Millennium=
=20
Copyright Act has proved to be one of the worst-ever pieces of technology=20
legislation.
[SOURCE: C-Net|News.com, AUTHOR: Charles Cooper]
http://news.com.com/Rethinking+the+DMCA/2010-1030_3-5659364.html?tag=3Dn...
ac

KATHLEEN COX OUT AT CPB
The Corporation for Public Broadcasting announced Friday evening it will=20
replace President Kathleen Cox, its president for 10 months. CPB had just=20
hired an executive as Cox=92s second in command who will serve as acting=20
president: Ken Ferree, former chief of the FCC=92s powerful Media Bureau.
[SOURCE: Current]
http://www.current.org/cpb/cpb0507cox.shtml
See Current's coverage of Ferree's March hiring:
http://www.current.org/cpb/cpb0506ferree.shtml
CPB Press Release: http://www.cpb.org/programs/pr.php?prn=3D402

SENATE COMMERCE COMMITTEE AGENDA
Monday: Hearing on S. 241, Universal Service Fund Exemption From=20
Anti-deficiency Act
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1443
Wednesday: S. 714, The Junk Fax Prevention Act of 2005
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1457
Thursday: Full Committee Mark-up (includes: S. 714, The Junk Fax Prevention=
=20
Act of 2005 and S. 432, The Minority Serving Institution Digital & Wireless=
=20
Technology Opportunity Act of 2005)
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1458
[SOURCE: US Senate]
http://commerce.senate.gov/
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for April Fool's Day

favorite holiday)

*** We're taking a break next week -- no fooling -- and will be back=20
Monday, April 11 ***

MEDIA & SOCIETY
A PBS We Deserve
White House's ONDCP Nixes VNRs
Can Justice Scalia Solve the Riddles Of the Internet?

TELECOM
Options Expand Despite Telecom Mergers
Consumer Groups Oppose Sprint-Nextel Merger
For Second Time, Qwest Raises Bid To Win MCI
European Telecom Deals Resume

QUICKLY -- 2005 Broadcaster of the Year Defends Local TV; Viacom: Retrans=20
Consent Working Well; Ads that Pay You; New Domain Name System Report;=20
Sex.com; Moore's Law & the Well; Happy April 1

MEDIA & SOCIETY

A PBS WE DESERVE
[Commentary] The American right and the American left are bashing PBS. This=
=20
has become such a regular sport that there are some who may have simply=20
stopped taking the threat to PBS seriously. Others, particularly those in=20
the public broadcasting community, may take this as a sign that public=20
broadcasting in the U.S. is on the right path; that is, if the right and=20
the left are unhappy, PBS must be in the sensible middle. Both of these=20
views are wishful thinking. The value of public broadcasting to our society=
=20
is important enough for us to understand these problems and work to solve=20
them. Why is public broadcasting valuable? The interests of private=20
corporations dominate communications in the United States. No matter how=20
much we might hope they will act in the public interest, commercial=20
broadcasters are not in business to inform the public, they are in business=
=20
to sell space to advertisers and make a profit. And no matter how much we=20
might hope they will be socially responsible, we do not reward them for=20
being socially responsible. U.S. consumers and investors tend to prefer=20
companies focused on the bottom line. But we need something more in a=20
democracy. We must be willing to pay for it.
[SOURCE: Center for American Progress, AUTHOR: Mark Lloyd]
http://www.zwire.com/site/news.cfm?newsid=3D14253003&BRD=3D2318&PAG=3D46...
pt_id=3D484045&rfi=3D6

WHITE HOUSE'S ONDCP NIXES VNRs
The White House's Office of National Drug Control Policy (ONDCP) says it=20
will no longer use video news releases to promote its anti-drug messages.=20
In a letter to the Government Accountability Office, ONDCP Director John=20
Walters said that GAO's Feb. 17, 2005, guidance on VNR's made their further=
=20
use by his office" impracticable." "The ONDCP Media Campaign has not=20
produced a VNR since well before the GAO [2004] ruling on the HHS VNRs May=
=20
19 [that they constituted covert propaganda because the source was not=20
identified]," Walters said in a letter to GAO. "Further, ONDCP believes=20
that the GAO guidance on "prepackaged news stories" issued to federal=20
agencies on Feb. 17, 2005, sets forth a requirement for viewer notification=
=20
which is inherently incompatible with contemporary newsgathering methods,=20
thus rendering VNR's impracticable. In any event, ONDCP has no plans to=20
produce any further VNRs." It was unclear whether ONDCP was saying it was=20
not practical for it to label the VNR's, or to count on broadcasters not to=
=20
edit out the disclosure if it did.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA514236?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
BUSH'S MEDIA CO-CONSPIRATORS
The latest revelation is that various agencies under President Bush are=20
sending out hundreds of government-made "news videos" to local television=20
stations.
[SOURCE: AlterNet, AUTHOR: Jim Hightower, jimhightower.com]
http://www.alternet.org/columnists/story/21636/
Also see second item at this URL:
In a Fox News interview, Laurence Moskowitz, the CEO and President of=20
Medialink Worldwide, defended video news releases (VNRs). "If the=20
government doesn't use VNR as a tool, I believe they would be negligent,"=20
he said. Medialink is the largest global producer of VNRs. Moskowitz=20
estimated that some 4,000 VNRs are produced by corporate and government=20
sources each year. Bob Priddy, the chair of the Radio-Television News=20
Directors Association, said airing VNRs without the sponsor being=20
identified breaks the Association's code of ethics. "If people take canned=
=20
material, whether it's from a government agency or anywhere else, and they=
=20
don't tell their audience who or where it is coming from, they are lying to=
=20
their consumer," he told Fox.
http://www.prwatch.org/spin/
* Fake News? We Told You So, Ten Years Ago
http://www.prwatch.org/node/3518

CAN JUSTICE SCALIA SOLVE THE RIDDLES OF THE INTERNET?
[Commentary] Has the Internet, the most powerful information pump the world=
=20
has ever known, drowned the incentive to create in words or images? Has the=
=20
Internet effectively displaced the antique notion of the profit-motive with=
=20
a newer, unstoppable reality that everything on the Internet is, if it=20
wants to be, "free"? How is it that millions of Americans who wouldn't=20
cross the street against a red light will sleep like lambs after=20
downloading onto their computers a Library of Alexandria's worth of music=20
or movies -- for free? Peter, It may seem quaintly old school to suggest=20
that people should stop downloading culture without paying simply because=20
it's the right thing to do. But that may be the best option available. For=
=20
starters, if "the people" don't solve this problem themselves, Congress=20
will, and you won't like the solution. No matter what the Supreme Court=20
decides about Grokster's 15 minutes of fame, this is a philosophical issue=
=20
for the long run. The Web isn't just a technology; it's become an ideology.=
=20
The Web's birth as a "free" medium and the downloading ethic have=20
engendered the belief that culture -- songs, movies, fiction, journalism,=20
photography -- should be clickable into the public domain, for "everyone."=
=20
What a weird ethic. Some who will spend hundreds of dollars for iPods and=20
home theater systems won't pay one thin dime for a song or movie. So Steve=
=20
Jobs and the Silicon Valley geeks get richer while the new-music artists=20
sweating through three sets in dim clubs get to live on Red Bull. Where's=20
the justice in that?
[SOURCE: Wall Street Journal, AUTHOR: Daniel Henninger]
http://online.wsj.com/article/0,,SB111232125427395146,00.html?mod=3Dtoda...
s_opinion
(requires subscription)

TELECOM

OPTIONS EXPAND DESPITE TELECOM MERGERS
Sure mergers are turning back the clock so the telecommunications industry=
=20
looks more like the Ma Bell era, but don't you worry... if you'll just fork=
=20
up the bucks for broadband, you can have cheap telephone service. "If these=
=20
mergers are allowed to occur, we're forcing consumers to pay a lot of money=
=20
to get the same level of competition they were getting under the 1996=20
Telecom Act," Kenneth DeGraff, a policy advocate for the Consumers Union,=20
puts it much better than I can. Consumer groups argue that the four Bells=20
still control the majority of the residential telephone market. Three Bells=
=20
are also top wireless players: SBC and BellSouth co-own top cell provider=20
Cingular, and Verizon Communications owns a stake in No. 2 mobile operator=
=20
Verizon Wireless. And broadband and VoIP options? Consumer groups say those=
=20
aren't a realistic alternative, because broadband connections still are not=
=20
available in every community.
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon, Ben Charny and Jim Hu]
http://news.com.com/Options+expand+despite+telecom+mergers/2100-1037_3-5...
97.html?tag=3Dnefd.lede

CONSUMER GROUPS OPPOSE SPRINT-NEXTEL MERGER
Consumer Federation of America (CFA) and Consumers Union (CU) urged the FCC=
=20
to deny a proposed merger of Sprint and Nextel. =93FCC approval of this
transaction will harm consumers by allowing one entity to control an=20
excessive amount of mobile broadband communications spectrum in many=20
markets throughout the country. The public and consumer interest... could=20
be affected by the anti-competitive harms" of the merger they said in filed=
=20
comments. Alternatively, the groups said, the FCC should require=20
=93substantial divestitures of spectrum to repair harm to actual and=20
potential competition.=94
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

FOR A SECOND TIME, QWEST RAISES BID TO WIN MCI
Third time is a charm, right? Qwest Communications International yesterday=
=20
pressed ahead in its efforts to win MCI , adding $1.1 billion in cash to=20
its previous bid for a total offer of $8.9 billion. MCI's board of=20
directors had said that it rejected Qwest's previous bid of $8.45 billion,=
=20
although it was higher than Verizon's, because the company is not as=20
financially strong.
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/articles/A17518-2005Mar31.html
(requires registration)
WSJ:=20
http://online.wsj.com/article/0,,SB111229432521194494,00.html?mod=3Dtoda...
s_page_one
NYT: http://www.nytimes.com/2005/04/01/business/01phone.html
* If the Old Merger Was a Disaster, Why Not Try Another One?
http://www.nytimes.com/2005/04/01/business/01norris.html
USAToday:=20
http://www.usatoday.com/printedition/money/20050401/1b_qwest01.art.htm
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-qwest1apr01,1,564916....
y?coll=3Dla-headlines-pe-business

EUROPEAN TELECOM DEALS RESUME
They weathered the storm, but did they learn the lesson? Some of Europe's=20
largest telephone companies are empire building again. Telefonica SA, of=20
Madrid; Stockholm-based TeliaSonera AB; Telecom Italia SpA, of Rome, and=20
Vodafone Group PLC, of Newbury, England, recently have struck, or are=20
completing, deals to fill out their international operations. This burst of=
=20
activity underlines how the European telecommunications industry is=20
earmarking some of the =8055 billion ($71.2 billion) in cash it generates=20
annually for expansion after several years of retrenchment and paying down=
=20
debt. This time, European telecos are generally pursuing operations with=20
leading positions in their home markets. Telephone-service providers with=20
large subscriber bases in one country tend to be far more profitable than=20
their smaller rivals because of the high fixed costs involved in running=20
national networks.
[SOURCE: Wall Street Journal, AUTHOR: David Pringle david.pringle( at )wsj.com]
http://online.wsj.com/article/0,,SB111230678922094748,00.html?mod=3Dtoda...
s_stock_market_quarterly_review
(requires subscription)
Related story --
* Cellular Service in Turkey Gets Another Bidder
http://www.nytimes.com/2005/04/01/business/worldbusiness/01tele.html

QUICKLY

FRANK STANDS UP FOR LOCAL TV
Receiving Broadcasting&Cable's 2005 "Broadcaster of the Year" award,=20
Post-Newsweek Stations CEO Alan Frank said that local broadcasters are=20
ahead of the technology curve: =93We change, but we are always local.=94
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
http://www.broadcastingcable.com/article/CA514277?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

VIACOM: RETRANS CONSENT WORKING WELL
At the request of Congress, the FCC is studying the impact of=20
retransmission consent -- or the right of TV stations to seek compensation=
=20
for carriage -- on the pay-TV market. Responding to claims by cable and=20
satellite operators that retransmission fees are driving up pay TV rates,=20
Viacom told the FCC that pay TV rate increases have "far outstripped=20
programmers=92 license fee increases." Cable giant Time Warner, on the other=
=20
hand, said retransmission consent has developed into an =93onerous=94 burden=
=20
and urged the FCC to ask Congress to =93re-evaluate=94 the scheme.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA514278.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

PAY PER VIEW COMES FULL CIRCLE IN TEST
Advertisers love to remind ad-weary viewers that commercials keep broadcast=
=20
television free. Now, facing heavy pressure to prove that their marketing=20
investments are working, some advertisers are going a step further: They're=
=20
paying people to watch. Selected consumers will get as much as $100 in=20
cash, along with coupons and prizes, in return for watching TV spots and=20
offering up information on their viewing habits, in a test of a new=20
technology designed to help marketers better gauge the reach and=20
effectiveness of their ads. "People get paid for plasma and blood, too, but=
=20
the quality of their blood or plasma may not be worth the expense," warns=20
one media-buying executive.
[SOURCE: Wall Street Journal, AUTHOR: Suzanne Vranica=20
suzanne.vranica( at )wsj.com]
http://online.wsj.com/article/0,,SB111232062219695130,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

SIGNPOSTS IN CYBERSPACE
Signposts in Cyberspace: the Domain Name System and Internet Navigation=20
examines the performance and prospects of the Domain Name System from=20
technical and institutional perspectives, and also looks at how navigation=
=20
technologies and institutions facilitate finding and accessing Internet=20
resources.
[SOURCE: Computer Science and Telecommunications Board]
http://www7.nationalacademies.org/cstb/pub_dns.html
See also:
http://www7.nationalacademies.org/cstb/project_dns.html
Feds Complete Internet Traffic Report
The US Department of Commerce just finished a report on Internet traffic=20
that Congress requested seven years ago. Lawmakers had demanded the $1=20
million study, ultimately called "Signposts in Cyberspace," under a 1998=
law.
[SOURCE: San Jose Mercury News, AUTHOR:Ted Bridis, Associated Press]
http://www.mercurynews.com/mld/mercurynews/business/technology/11280598.htm

APPEALS COURT UPHOLDS SEX.COM RULING
A federal appeals court last week may have written the final chapter to a=20
sordid legal saga that helped establish Internet domain names as property.=
=20
The 9th U.S. Circuit Court of Appeals rejected Stephen Cohen's appeal of a=
=20
2001 federal court ruling that he pay businessman Gary Kremen $65 million=20
for stealing the domain name Sex.com in 1995 and building it into a=20
multimillion-dollar business.
[SOURCE: USAToday, AUTHOR: Jon Swartz]
http://www.usatoday.com/printedition/money/20050401/sexdotcom.art.htm

Happy Birthday wishes to....
* Moore's Law (40):=20
http://news.com.com/FAQ+Forty+years+of+Moores+Law/2100-1006_3-5647824.ht...
ag=3Dnefd.lede
* The Well=20
(20):=20
http://news.com.com/The+Well+celebrates+20th+birthday/2100-1025_3-564944...
ml?tag=3Dnefd.lede
[SOURCE: C-Net|News.com]

APRIL MEDIA FOOLS
This is disturbing -- As fake news and media scams continue to proliferate,=
=20
Rory O'Connor celebrates some longstanding activists who are also merry=20
media pranksters.
[SOURCE: MediaChannel.org, AUTHOR: Rory O'Connor]
http://www.mediachannel.org/views/dissector/affalert345.shtml
Also --
* Don't Read This. It Could Be a Trick.
http://www.nytimes.com/2005/04/01/nyregion/01fools.html
* Lesson No. 1: Remember what day it is
http://www.csmonitor.com/2005/0401/p18s02-hfes.html
--------------------------------------------------------------
...and we are outta here. Please don't say pina colada if you don't mean=20
it. See you again April 11.
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 4/01/05

POLICYMAKERS
Telecos Agree on Telecom Rewrite
Martin Breaks Silence, Resigns
NAB, NCTA Bad Blood Spills into Conventions

OWNERSHIP
Battle for MCI Changes Course -- Again
XM, Sirius to Merge

PUBLIC BROADCASTING
Listeners Ask Pubradio for Pledge
Arthur's Turn in Hot Seat

POLICYMAKERS

TELECOS AGREE ON TELECOM REWRITE
With Congress ending a two-week break, large telephone companies have had
time to work through the details of telecommunications reform they hope to
pass by the end of the year. The Telecommunications Consumer Empowerment
Act of 2005 will be circulated to key Congressional leaders next week. It
includes provisions that: 1) ensure telephone companies will only have to
provide service where they can maximize profit; 2) set "voluntary goals"
instead of mandates for emergency 911 service quality; 3) codify early
termination penalties; 4) minimize the role of states in the areas of
consumer protection, economic regulation of dominant carriers and
developing competition; 5) grant telecos the primary authority over the
retail relationship between the customer and the customer's
telecommunications provider; 6) remove regulation of service quality; 7)
guarantee that telecos' privacy related to their telecommunications
services is maintained; 8) highlight that the First Amendment applies to
all telecommunications marketing and billing which will no longer be
regulated; 9) sets a hard date -- January 1, 2009 -- for a sunset of all
federal telecommunications regulation; and 10) create an independent
consumer advocate nominated by large phone companies for purposes of
representing consumer interests in telecommunications matters before the
Federal Communications Commission. The bill currently has 300 co-sponsors
in the House and 65 in the Senate.
[SOURCE: HillWatch, AUTHOR: Cliff Bruff]
(http://www.hillswatch.com/2005/04/01/0987111.html)
(requires registration)

MARTIN BREAKS SILENCE, RESIGNS
The Federal Communications Commissions faces an agenda clogged with a
number of hot-button issues: transitioning broadcast TV to digital signals
and rewriting media-concentration rules; shoring up the Universal Service
Fund; overhauling the haphazard system phone companies use to compensate
each other for completing calls; and deciding what rules should apply to
Internet phone services. But after a two week review of this pending
business, new chairman Kevin Martin surprised Washington by announcing his
resignation. "Although I have been a Commissioner since 2001," Martin said
in a released statement, "I did not fully comprehend the utter mess we've
made of US communications policy. This job is too big for this mere mortal.
Unfortunately, this decision will have the most adverse impact on small,
independent, religious, family-friendly and minority broadcasters." Perhaps
the most surprising part of Martin's announcement is that his resignation
is immediate, leaving the Commission with a Democratic majority until
President Bush names nominees for seats perviously held by Martin and
departed former-Chairman Michael Powell.
[SOURCE: Communiscriptions Day, AUTHOR: Abbie Lane]
(Not available online)

NAB, NCTA BAD BLOOD SPILLS INTO CONVENTIONS
With policy stakes continually increasing and policy making turning into an
"always on" campaign, the national conventions of two bitter rivals
apparently will become new battle grounds for the future of television.
Thousands of cable executives -- most from giants Comcast and Time Warner
-- fly West today to San Francisco for the 54th Annual Convention &
International Exposition of the National Cable & Telecommunications
Association (NCTA). With the unexpected departure of FCC Chairman Kevin
Martin (see story above), these executives will turn a keen ear to remarks
by Michael D. Gallagher, Director of the National Telecommunications and
Information Administration and possible Martin replacement. But according
to a strategy memo obtained by the Washingtown Post, broadcasters are
planning to crash the NCTA party, protesting cable's "iron-fisted control
of television programming." The television station owners are arming
themselves with bullhorns and press passes distributed to their news teams
for some old fashion gorilla-style media activism. They've even hired a
plane to fly over the convention site with a sign reading: "No cord, no
cable can forcibly hold so fast, as the love of free TV and rabbit ears."
Cable spokesperson Liam Ditz replied to the planned protest saying, "Let
them try this and we'll see if we can make a connection between
'broadcasters' and 'broad arses' in Vegas," referring to the National
Association of Broadcasters annual meeting later in the month.
[SOURCE: Washingtown Post, AUTHOR: Alice Camen]
(http://www.washingtownpost.com/inloop/20050401.htm)
(requires registration)

OWNERSHIP

BATTLE FOR MCI CHANGES COURSE -- AGAIN
Fresh off the news that MCI, the nation's second-largest long distance
company, had accepted a $7.6 billion bid from Verizon, Qwest has officially
withdrawn its $8.45 billion bid. But Verizon will now, in turn, purchase
Qwest for $7 billion and create the nation's largest phone company with
market dominance in both the Northeast and Northwest. "There's no question
that the Verizon-Qwest-MCI combination will be a more competitive company
than an independent Verizon," said Iwan B. Slenderberg who will become
chairman and CEO of the new company, tentatively called Veqwem (pronounced
wigwam). Analysts were somewhat started, but suggested it will be the only
way for Qwest and MCI to survive in the consolidating marketplace and for
Verizon to effectively compete with the proposed SBC-AT&T-BellSouth
combination. "The benefits to the public are obvious," said Wall Street
analyst and former FCC Commissioner Drew Barnett. "The deal will face some
obligatory regulatory scrutiny, but should win approval without much
graft." Asked about possible state regulatory review, a company
representative said there was little expected problems from the "regulatory
underbrush."
[SOURCE: Will Street Journal, AUTHOR: Les Jucker]
(http://willsj.com/current/update/merger/050401.html)
(requires subscription)

XM, SIRIUS TO MERGE
With an unanticipatedly quick technological breakthrough allowing
interoperablity for Sirius and XM receivers, the two companies will
announce later today that they are merging to form Your Satellite Radio
(YSR). "They were the technology leaders," Mel Karmazin, Sirius's chief
executive, said of XM. "We were the content leader. Combined, we'll be the
market leader in a matter of years." YSR's integrated technology will
offer, potentially, thousands of audio channels for subscribers. The new
radios will be installed on all new GM, BMW, DaimlerChrysler AG and Ford
cars sold in the US beginning with 2006 models. XM's Hugh Panero will be
the new company's CEO, but Karmazin will get the corner office in the new
company's headquarters. "It is the only one big enough to hold his, um,
belongings," a spokesperson said.
[SOURCE: Rooters, AUTHOR: Drew O'Sullivan]
(http://www.rooters.com/newsChannel.jhtml?type=technologyNews)

PUBLIC BROADCASTING

LISTENERS ASK PUBRADIO FOR PLEDGE
Around the country this week and next, public radio stations are asking
listeners to become members and pledge in large round figures. But
listeners seem to have their own ideas this year. Using
www.putthePinNPR.net as an organizing tool, listeners are withholding their
pledges and renewals in hopes of gaining more than another free tote bag.
Apparently, they want members to have a more active role in governing
public radio stations. According to the web site, new and existing members
will not make pledges until 1) the stations' boards of directors are
elected by and from the ranks of the membership, 2) these boards are given
power to hire/fire top executives and 3) free parking at live tapings. (OK,
#3 is a joke -- they really want a say in "establishing overall policies
which give direction to the Executive Director and the professional staff
for the day-to-day operations of the station.") The website keeps a running
tab on total pledges being withheld -- and the total per station.
[SOURCE: Currents, AUTHOR: Stephen Brens]
http://www.currents.org/ch/ch0505pledgetime.shtml
Also see:
http://www.current.org/current/cursteve.html

ARTHUR'S TURN IN HOT SEAT
First Sponge Bob, then Buster the Bunny, now Arthur the Aardvark is the
focus criticism. The plots of Arthur stories usually revolve around simple
events that children can identify with, such as taking a family vacation,
getting glasses, adjusting to a new baby in the family, or writing a story
for a homework assignment. A program scheduled for May 1, however, had
Arthur visiting an Eastern Orthodox church to celebrate Easter. In a letter
to author/illustrator Marc Brown, a Department of Education faith-based
initiative official wrote, "There's seems to be some misunderstanding about
our funding priorities as outlined by President Bush and detailed in our
educational television RFP. Obviously, many parents may find it disturbing
to have their children realize that Arthur's family has not shed its old
world ways and assimilated into American Christianity. We suggest you
rewrite the script for 'A Day at St Andrew's' so that Arthur visits a
normal, protestant Church." WTTW, the Chicago public television station
that produced the show, apparently will go ahead with plans to air the
program, but the show's sponsor Brach's Confections has pulled its
underwriting announcement which included plugs for its popular Bridge
Mix(R) and Peanut Butter Meltaways(R). The program will be made available
for distribution, but not by beleaguered PBS which is urging stations to
air it in the evening so parents can review its controversial content.
[SOURCE: Broadcast&Cable, AUTHOR: Sean Jeggerton]
http://www.broadcastcable.com/article/CA513929.html?display=Breaking+New...
(subsidized access for Benton's Headlines subscribers)
--------------------------------------------------------------

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