July 2005

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

THE BROADBAND CONSUMER CHOICE ACT OF 2005 -- The big telecom policy news=20
item of the day is the introduction of a reform bill by Sen John Ensign=20
(R-NV). There's a good deal of coverage and reaction to the bill. We open=
=20
with a quick summary of the bill and links to it and some reaction from Sen=
=20
John Kerry (D-MA). More reaction than you can shake a stick at (unless, of=
=20
course, you are a professional stick shaker) follows at the bottom of this=
=20
email.

Senator Unveils Bill that Aids Phone Carriers
Sen. Kerry Lauds Push To Bring More Competition In Video Services
Kerry Urges Return of Analog Spectrum

BROADCASTING
Activists Push CPB Transparency
Sacramento Pubcaster Criticized over Show Sponsors
Hill Hears Emergency Alert Update
Payola or No, Edge Still to the Big
New Latin American Television Network Telesur Officially Launched

MERGERS
Cable Merger Dissent Grows
NARUC Urges Careful Review of Mega-Mergers
DreamWorks SKG May Go to Universal
France Telecom Agrees To Buy 80% Stake In Spain's Amena

POLICYMAKERS
Margie Leaving FCC
Education Tech Chief is Stepping Down

QUICKLY -- An Online Artist Challenges Obscenity Law; Content Ratings=20
System Runs Adrift; Burns May Re-Assess (Nielsen) Ratings Bill; NAB, CEA=20
Assume Position on Tuners; Entravision Fined For Program Guide Snafu;=20
Standards for Digital Films; E-mail is for Older People; Elderly Lose=20
Millions to Internet Scams; 'Reality' TV Changes Reality;

REACTION TO ENSIGN BILL
Telecom Act Rewrite -- I've Always Depended on the Kindness of Monopolies
New Legislation Could Cost Consumers, Warns CU
CompTel Comments on "Broadband Investment and Consumer Choice Act"
Industries Laud Ensign Bill As Recognition Of New Reality
Wireless Industry Commends Deregulatory Approach
ITI Welcomes Ensign Telecom Reform Bill
NCTA Responds to Ensign Bill
NTCA Reacts to Introduction of Telecom Legislation by Senator Ensign
An Historic Communications Reform Landmark
USTelecom Applauds Proposed Senate Legislation Updating U.S. Telecom Laws

THE BROADBAND CONSUMER CHOICE ACT OF 2005

SENATOR UNVEILS BILL THAT AIDS PHONE CARRIERS
Legislation aiding telephone companies in their efforts to provide video=20
and other high-speed data services was proposed on Wednesday by Sen. John=
=20
Ensign (R-NV), who said his goal is to boost competition. Sen Ensign,=20
Chairman of the Senate Commerce subcommittee on Technology, called his=20
72-page bill a starting point as Congress considers overhauling the 1996=20
Telecommunications Act, which aimed to promote competition in voice=20
services. Under the bill companies that want to offer video services would=
=20
no longer have to get permission from local or state officials, a boon to=
=20
companies like Verizon Communications and SBC Communications, which are=20
rolling out video services. The measure, co-sponsored by former Senate=20
Commerce Chairman John McCain (R-AZ), would also 1) eliminate in 2011=20
requirements that the four big local telephone companies, known as the Baby=
=20
Bells and including Verizon and SBC, resell their phone service to other=20
competitors at regulated rates or make parts of their existing copper=20
networks available to competitors; 2) prevent companies from limiting where=
=20
consumers surf on the Internet as well as ensure Internet phone service=20
cannot be blocked by broadband providers; and 3) allow local and state=20
authorities to collect up to 5% of gross revenue from pay television=20
services and local governments could continue managing rights of ways.=20
Under the bill, local governments wishing to provide broadband service to=
=20
residents must allow an "open bidding process" in which private companies=
=20
may participate. The bill says that neither state regulators nor the=20
Federal Communications Commission may set rates and prices for=20
communications service; direct-to-home satellite service would also be=20
immune from price regulation.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-07-27T204427Z_01_N27284288_RTRIDST_0_NET-TELECOMS-CONGRESS-DC.XML
* Bill launched to overhaul broadband rules
http://news.com.com/Bill+launched+to+overhaul+broadband+rules/2100-1036_...
807278.html?tag=3Dnefd.top
* Ensign Files Bill To Deregulate Both Phone And Cable Markets
http://www.njtelecomupdate.com/lenya/telco/live/tb-TMZF1122495372234.html
* Ensign Intros Franchise-Buster Bill
http://www.broadcastingcable.com/article/CA630147?display=3DBreaking+News=
=20
&referral=3DSUPP
(free access for Benton's Headlines subscribers)

Press release from Sen Ensign: http://ensign.senate.gov/record.cfm?id=3D241=
592&
Text of bill: http://www.baller.com/pdfs/Ensign_bill_7-27-05.pdf
Sen Ensign's Floor Statement: http://www.baller.com/pdfs/Ensign_Remarks.pdf
Summary from Baller Herbst Law Group:=20
http://www.baller.com/pdfs/Ensign_Summary.pdf

SEN KERRY LAUDS PUSH TO BRING MORE COMPETITION IN VIDEO SERVICE
Bell telephone companies angling to offer television services to compete=20
with the cable industry won a strong endorsement Wednesday from one of the=
=20
nation's most prominent Democrats: Sen. John Kerry of Massachusetts. The=20
lawmaker, who is said to be considering another run for the presidency in=
=20
2008, praised the efforts of SBC Communications and Verizon Communications=
=20
during a speech on telecommunications reform at an event sponsored by The=
=20
New Republic magazine. "This decision [to offer service] provides a promise=
=20
of enhanced competition in the video market," he said, without mentioning=
=20
either company by name. "We should encourage the development and seek=20
balance between competing interests." Nevertheless, Kerry told reporters=20
that he shares the concerns of a fellow Massachusetts Democrat, Rep. Edward=
=20
Markey, that both firms are bypassing lower-income and minority=20
neighborhoods in their initial rollouts of video service.
[SOURCE: Technology Daily, AUTHOR: David Hatch]
http://www.njtelecomupdate.com/lenya/telco/live/tb-BTFE1122501106395.html
* Kerry Urges Return of Analog Spectrum
Additional items covered in Sen Kerry's speech: he advocated getting the=20
DTV switch done so broadband could get on with revolutionizing: "Congress=
=20
must complete the DTV transition, free up the 700 MegaHertz band, and allow=
=20
competition to flourish," he said. "We can free spectrum as part of the DTV=
=20
transition to unleash new wireless technologies," he said. "Why not let the=
=20
established firms, municipalities, entrepreneurs and innovators take that=
=20
analog spectrum to develop advanced wireless technologies? Allowing a=20
piece of that spectrum to operate without license should be explored.".
[SOURCE: Broadcasting&Cable, AUTHOR: ]
http://www.broadcastingcable.com/article/CA630047?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

BROADCASTING

ACTIVISTS PUSH CPB TRANSPARENCY
In a letter to Corporation for Public Broadcasting Chairman Ken Tomlinson=
=20
and the board Wednesday, leading media reformers asked the board to support=
=20
a number of resolutions at its Sept. 19-20 board meeting. They include: 1)=
=20
Not letting the chairman approve any outside contract without the board's=
=20
knowledge and approval (directed at Tomlinson's now-controversial hiring of=
=20
a consultant to gauge bias in noncom shows); 2) Not hiring somebody to=20
gauge the bias in noncom shows on public broadcasting without first=20
informing public broadcasting you're doing it; 3) Streaming, televising or=
=20
otherwise making its board meetings available in real time to the public,=
=20
and then archived for later perusal; 4) Making time for public comment at=
=20
open meetings and providing sufficient notice; and 5) Making any board=20
member conflict of interest statements available online. The letter's=20
signatories included Jeff Chester (Center for Digital Democracy), Chellie=
=20
Pingree (Common Cause), Josh Silver (Free Press), Mark Cooper (Consumer=20
Federation of America), Jonathan Rintels (Center for Creative Voices in=20
Media), and Alex Nogales (National Hispanic Media Coalition).
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA630096?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)
* See Free Press press release & text of letter
http://www.freepress.net/press/release.php?id=3D84
* CPB chairman Tomlinson failed to refute NY Times' "false" charges against=
him
http://mediamatters.org/items/200507270004

KVIE SHOW CRITICIZED OVER ITS SPONSORS
A 40-member coalition of food safety groups, environmentalists and=20
anti-biotech organizations is demanding that a Sacramento public television=
=20
station withdraw its national weekly TV series on U.S. food production=20
scheduled to debut in September. The groups claim that sponsorship of=20
"America's Heartland" by agricultural biotechnology giant Monsanto Co., the=
=20
American Farm Bureau Federation and other national farm organizations will=
=20
present viewers "biased" programming favoring genetically engineered crops=
=20
and other conventional farming methods.
[SOURCE: Sacramento Bee, AUTHOR: Jim Wasserman]
http://www.sacbee.com/content/business/story/13299668p-14141953c.html

HILL HEARS EMERGENCY ALERT UPDATE
Federal officials told lawmakers Wednesday that they plan to have the=20
transmission =93backbone=94 in place by fall 2006 for upgrading the emergen=
cy=20
alert system for the digital age. The traditional backbone has been=20
broadcasters, but the new aim is to create a system capable of transmitting=
=20
weather, terrorism, or other emergency alerts to cell phones, PDAs, and=20
personal computers in addition to the TVs and radios that get them today.=
=20
FEMA National Security Coordinator Reynold Hoover said that the system is=
=20
still being designed and that he didn't anticipate a long delay between=20
when the system architecture is fully mapped out and when it can be=20
implemented. He noted that design of the system, dubbed IPAWS for=20
Integrated Public Alert Warning System, is moving on a parallel track as an=
=20
FCC rulemaking examining possible telecom rule changes necessary to=20
implement it. The FCC is trying to determine to what extent participation=
=20
in the new system should be mandatory. Currently, broadcast stations must=
=20
be equipped to retransmit emergency message from the President but=20
inclusion of additional alerts is voluntary.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA630071?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

PAYOLA OR NO, EDGE STILL TO THE BIG
Even within tighter payola restrictions, the major labels simply have more=
=20
money and manpower to wheedle programmers into adding their music to=20
broadcast play lists. The big players, far more so than their independent=
=20
rivals, also have the wherewithal to build demand for their acts by=20
subsidizing their tours and record-store advertising, producing music=20
videos and landing them on television shows. This imbalance in resources=20
accounts, in part, for the disparity between sales and airplay in the music=
=20
business. The independent sector, which includes hundreds of labels that=20
may specialize in genres from polka music to speed metal, and that sell=20
music directly or through one of the bigger companies' distribution arms,=
=20
accounted for an estimated 18 percent of new album sales in the United=20
States so far this year, according to Nielsen SoundScan. Their combined=20
share of the industry, as measured by these sales, is larger than that of=
=20
two of the four big companies, Warner Music Group and EMI Group. The=20
independents, however, command a far smaller share of the limited slots on=
=20
play lists in major radio formats, as the Top 40 chart illustrates. In=20
addition, music executives say, even without reforms, radio programmers are=
=20
likely to rely heavily on listener research (usually built around telephone=
=20
polling, a method many label executives believe is flawed) in determining=
=20
their play lists.
[SOURCE: New York Times, AUTHOR: Jeff Leeds]
http://www.nytimes.com/2005/07/28/arts/music/28musi.html
(requires registration)

NEW LATIN AMERICAN TELEVISION NETWORK TELESUR OFFICIALLY LAUNCHED
Some are calling it Latin America's al Jazeera. This weekend, a coalition=
=20
of leftist governments, media outlets and movements, led by Venezuela,=20
officially launched Telesur - a new Latin America-wide satellite TV=20
network. Just after noon on Sunday, Telesur began broadcasting a pilot=20
service from studios in Caracas with a team of 25 journalists in nine=20
regional bureaus presenting news "from a Latin American perspective." The=
=20
channel's first news program began with a critical report on the failure of=
=20
the humanitarian mission in Haiti followed by a story on the plight of=20
refugees in Colombia. The station is being launched with help from other=20
Latin American governments including Argentina, Cuba and Uruguay. The=20
driving force has been Venezuelan President Hugo Chavez, whose government=
=20
has contributed 70 percent of Telesur's financing and owns 51 percent of=20
the channel. The channel's board members include a group of international=
=20
supporters including the actor Danny Glover, the writer Tariq Ali and Nobel=
=20
Peace Prize winner Adolfo Perez Esquivel. But even before its launch,=20
Telesur was being attacked in Washington. Last week the House passed an=20
amendment calling for the U.S. to begin broadcasting its own channel into=
=20
the region to counter Telesur. Chavez responded by saying, "we will take=20
measures to neutralize the attempt, and what we will have is a kind of=20
electronic warfare."
[SOURCE: Democracy Now!]
http://www.democracynow.org/article.pl?sid=3D05/07/26/1419255
* Danny Glover: Latin station won't demonize U.S.
http://edition.cnn.com/2005/WORLD/americas/07/26/venezuela.channel.ap/

MERGERS

CABLE MERGER DISSENT GROWS
The public outcry over media consolidation may be picking up steam, judging=
=20
from a flood of comments that poured into the Federal Communications=20
Commission this week. The agency received some 10,000 e-mails Wednesday=20
objecting to the acquisition of Adelphia Communications by the nation's two=
=20
leading cable TV providers -- Time Warner and Comcast. FCC officials say=20
the outpouring of disapproval was unusual for a media merger and was more=
=20
commonly associated with issues such as media ownership. Free Press, the=20
Northhampton, Mass.-based advocacy group that organized this week's e-mail=
=20
campaign, maintains that the deal would lead to "higher consumer rates and=
=20
lower quality service," according to a form letter it encouraged its=20
members to send the FCC. Since passage of the Telecommunications Act of=20
1996, when cable was deregulated, "consumers have seen their rates jump an=
=20
average of 59%," the letter stated. Free Press, whose mission is to involve=
=20
the public in media policymaking, sent e-mails this week urging its 210,000=
=20
members to object both to the Adelphia transaction and to any further=20
easing of cable ownership rules, spokesman Craig Aaron said. As of late=20
Wednesday, the FCC had received more than 14,000 comments from the public=
=20
objecting to further deregulation of the cable industry, which the=20
commission will soon consider.
[SOURCE: Los Angeles Times, AUTHOR: Sallie Hofmeister]
http://www.latimes.com/business/printedition/la-fi-adelphia28jul28,1,688...
7.story?coll=3Dla-headlines-pe-business
(requires registration)
* Here's the link to the FP online tool for filing comments:
http://www.freepress.net/fcc/comment.php?d=3D92-264

NARUC URGES CAREFUL REVIEW OF MEGA-MERGERS
Meeting is Austin this week, the National Association of Regulatory=20
Utilities Commissioners (NARUC) adopted resolutions Wednesday that call for=
=20
careful federal review of pending telecom mega-mergers, and suggest a=20
general extension or carrier-specific waivers of a year-end FCC deadline=20
for full implementation of handset-based wireless E-911. However, because=
=20
of a technicality they voted against a proposal that would have urged=20
states and the FCC to consider naked DSL as a pro-competition tool when=20
reviewing mergers or generally making regulations. The measures, approved=
=20
by NARUC committees earlier this week, were approved by NARUC=92s board as=
=20
official NARUC policy.The merger resolution asks the FCC and Justice Dept.=
=20
to scrutinize the SBC-AT&T and Verizon-MCI mergers due to their great=20
potential impact on the telecom industry and consumers, and to consider=20
remedial conditions for any anti-competitive effects found. The resolution=
=20
urged federal authorities to give the states a =93meaningful participatory=
=20
role=94 in enforcing merger conditions they may impose. The resolution pass=
ed=20
only after being amended to remove language several commissioners=20
interpreted as a negative prejudgement of the mergers. The deleted language=
=20
would have expressed states=92 concern that the mergers could have adverse=
=20
consequences in wholesale and retail markets by removing significant=20
competitive providers, and would have suggested divestiture of overlapping=
=20
in-region assets and wholesale-contract =93fresh looks=94 as remedies to gu=
ard=20
the interests of competitors and customers.
[SOURCE: Communications Daily, AUTHOR: ]
(Not available online)

DREAMWORKS SKG MAY GO TO UNIVERSAL
General Electric's Universal Studios has held exploratory talks to acquire=
=20
DreamWorks SKG, the closely held movie studio, for as much as $1 billion or=
=20
more. Such a deal would give Universal control of the live-action film=20
studio created in 1994 by Steven Spielberg, David Geffen and Jeffrey=20
Katzenberg. DreamWorks Animation SKG, the animation studio that was split=
=20
off in an initial public offering last year, is not a part of the=20
discussions. Acquiring DreamWorks would give Universal the opportunity to=
=20
expand its profitable DVD operation by acquiring a library that includes=20
titles like "American Beauty" and "Gladiator." Because DreamWorks SKG has a=
=20
long-term agreement to distribute DreamWorks Animation's popular family=20
movies, Universal would also wind up distributing future cartoon titles=20
from the company that created "Shrek." Another possible incentive for=20
Universal, according to the people familiar with the matter: the ability to=
=20
produce movies made by Mr. Spielberg.
[SOURCE: Wall Street Journal, AUTHOR: Kate Kelly kate.kelly( at )wsj.com and=20
Merissa Marr merissa.marr( at )wsj.com]
http://online.wsj.com/article/0,,SB112250622617298058,00.html?mod=3Dtoda...
us_marketplace
(requires subscription)
* NBC Universal Said to Be in Talks for DreamWorks Unit
http://www.nytimes.com/2005/07/28/business/media/28movie.html

FRANCE TELECOM AGREES TO BUY 80% STAKE IN SPAIN'S AMENA
France Telecom will pay $7.7 billion to acquire an 80% share of Spanish=20
wireless operator Amena. The deal will put France T=E9l=E9com in head-to-he=
ad=20
competition with Spain's dominant operator, Telef=F3nica SA. France T=E9l=
=E9com's=20
move into Spain ratchets up the pressure on Telef=F3nica M=F3viles SA,=20
Telefonica's wireless arm, to expand its European footprint. Telefonica=20
Moviles is Spain's largest wireless operator but is losing market share to=
=20
No. 3 Amena and No. 2 Vodafone Group. By buying Amena, which has a 24%=20
market share in Spain, France T=E9l=E9com will round out its portfolio of=
=20
services in a country in which it already offers fixed-line telephone=20
service and Internet access. In the face of declining market share in its=
=20
traditional fixed-line business, France T=E9l=E9com is pushing a strategy o=
f=20
bundled services in core markets such as France, the United Kingdom and now=
=20
Spain.
[SOURCE: Wall Street Journal, AUTHOR: Cassell Bryan-Low=20
cassell.bryan-low( at )wsj.com]
http://online.wsj.com/article/0,,SB112244409519097158,00.html?mod=3Dtoda...
us_money_and_investing
(requires subscription)

POLICYMAKERS

MARGIE LEAVING FCC
FCC Commissioner Michael J. Copps announced that Paul Margie, his Spectrum=
=20
and International Legal Advisor, will be leaving the Commission to serve as=
=20
Senior Director for Technology Partnerships at the United Nations=20
Foundation. Margie will manage a $30 million fund created by the U.N.=20
Foundation and the Vodafone Group Foundation to promote international=20
development goals with the U.N. using wireless and other technologies.Copps=
=20
stated: "In my mind, Paul personifies public service at its best. His=20
creative intelligence, practical good judgment and never-wavering=20
commitment to the public interest have contributed immeasurably to good=20
public policy outcomes. I am grateful for his work and for his always=20
cooperative and engaging demeanor. Paul turns now from bringing the wonders=
=20
of modern telecommunications to citizens of our country to bringing these=
=20
essential tools to people around the world. All of us in the Copps office=
=20
wish him well in this profoundly important work, and we look forward to our=
=20
continuing warm friendship with this remarkable young man."
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260274A1.doc

ED's TECH CHIEF IS STEPPING DOWN
In a surprise move, Susan Patrick, head of the U.S. Department of=20
Education's Office of Educational Technology, announced July 26 that she=20
will leave the Bush administration in August to assume control of the=20
Virginia-based North American Council for Online Learning (NACOL). At=20
NACOL, Patrick plans to use her knowledge of the ed-tech landscape to=20
promote the continued adoption of online learning in schools. Though=20
schools are beginning to realize the value of online learning as a tool for=
=20
reform, Patrick says, the majority of institutions still are not using=20
these technological resources to their full potential.
[SOURCE: eSchool News, AUTHOR: Corey Murray]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D5793

QUICKLY

AN ONLINE ARTIST CHALLENGES OBSCENITY LAW
In a landmark 1973 case, the United States Supreme Court defined obscenity=
=20
in part as anything that "the average person, applying contemporary=20
community standards" would find appealing only to prurient interests. But=
=20
with the growth of the Internet, a difficult question has arisen: Which=20
community's standards apply in cyberspace? On Monday in a case brought=20
against the government by a New York photographer, a panel of federal=20
judges in Manhattan declined to answer that question, but the lawsuit could=
=20
end up providing the Supreme Court with a chance to address the issue. The=
=20
case, filed in 2001 by Barbara Nitke, whose Web site includes pictures of=
=20
sadomasochism and bondage, argues that the Communications Decency Act of=20
1996, which prohibits obscene material from being distributed on the=20
Internet, is overly broad and violates the First Amendment. Ms. Nitke=20
contends that the law has a chilling effect on artists, educators and=20
alternative-sex advocates because the explicit material they present on the=
=20
Web could be deemed obscene in parts of the country, even if it is=20
acceptable under community standards in other parts.
[SOURCE: New York Times, AUTHOR: Randy Kennedy]
http://www.nytimes.com/2005/07/28/arts/design/28obsc.html
(requires registration)

RATINGS SYSTEM RUNS ADRIFT
Even though TV programs, movies, music and video games all carry labels=20
denoting age-appropriateness, parents groups and politicians say the=20
systems aren't working. The complaints: Ratings are too confusing because=
=20
they vary by medium. Ratings are too lenient and inconsistent in the level=
=20
of violence and sexuality they allow. The entertainment industry isn't=20
doing enough to police itself because that could cut into profits. One=20
suggested solution: a universal ratings system. To help fill the void,=20
outside ratings sources have cropped up. Various non-profit parent=20
organizations offer reviews.
[SOURCE: USAToday, AUTHOR: Ann Oldenburg]
http://www.usatoday.com/printedition/life/20050728/d_cover28.art.htm

BURNS MAY RE-ASSESS RATINGS BILL
Sen. Conrad Burns (R-Mont.) Wednesday said he remains committed to=20
legislation aimed at settling TV industry disputes over ratings, but told=
=20
reporters he might back away from a provision that would require Nielsen or=
=20
others to obtain accreditation from the Media Ratings Council before=20
rolling out or changing new product. Sen Burn=92s reassessment came after=
=20
Nielsen CEO Susan Whiting and MRC Executive Director George Ivie both=20
indicated that agreement on a voluntary code could be reached, requiring=20
audits for potential problems, which Nielsen has agreed to permit before=20
rolling out new products.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA630338?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)
* Nielsen Backs New MRC Code
http://www.broadcastingcable.com/article/CA630142?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

NAB, CEA ASSUME POSITION ON TUNERS
In comments filed at the FCC, the National Association of Broadcasters=20
supported and the Consumer Electronics Association opposed, as expected,=20
the Commission's proposal to advance the date for TV's to include DTV=20
tuners by six months, from July 1, 2007 to Dec. 31, 2006. It also proposed=
=20
extending that mandate to TV's less than 13 inches in screen size.
[SOURCE: Broadcasting&Cable]
http://www.broadcastingcable.com/article/CA630336?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

ENTRAVISION FINED FOR PROGRAM GUIDE SNAFU
Entravision=92s 15 TV stations Monday were fined $3,000 each by the FCC for=
=20
failing to transmit data in their digital broadcasts necessary to activate=
=20
electronic program guides. All stations were required to begin transmitting=
=20
the data Feb. 1. Entravision is the first TV station owner to be fined for=
=20
failing to transmit the data, known as PSIP, for Program System and=20
Information Protocol.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA630098.html?display=3DBreakin...
ews&referral=3DSUPP
(free access for Benton's Headlines subscribers)

TOP HOLLYWOOD STUDIOS AGREE ON STANDARDS FOR DIGITAL FILMS
Digital cinema, the long-awaited technology to make movies in the theater=
=20
more vivid and versatile, took a big step from fantasy to reality=20
Wednesday. All of Hollywood's top studios endorsed a set of technical=20
specifications defining how sharp digital films must be and creating=20
mechanisms to fight piracy. They vowed to begin using them to offer digital=
=20
versions of their new productions to theater owners as early as this year=
=20
in some cases. Unlike celluloid, movies in digital form won't scratch or=20
smudge. They can include multiple soundtracks in different languages, and=
=20
can easily project 3-D images. The deal nearly clears the way for studios,=
=20
theater owners and equipment makers to begin the $3 billion transition from=
=20
analog. The remaining hurdle is ongoing negotiation between theater owners=
=20
and the studios about who pays how much. Digital movies -- which can be=20
transmitted via satellite or high-speed lines, or shipped on a hard drive=
=20
-- will slash much of the $1.2 billion a year studios spend making and=20
shipping celluloid prints.
[SOURCE: USAToday, AUTHOR: David Lieberman]
http://www.usatoday.com/printedition/money/20050728/2b_digital_28.art.htm

E-MAIL IS FOR OLDER PEOPLE, TEENS SAY IN SURVEY
E-mail is for grown-ups and U.S. teenagers now prefer instant messaging to=
=20
communicate with each other online, according to a survey released on=20
Wednesday by the Pew Internet and American Life Project. Nearly nine out of=
=20
10 teenagers say they use the Internet, up from 74 percent in 2000. Those=
=20
are who still not online are likely to be so poor that they have limited=20
access to technology, the survey found, and are disproportionately black.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2005-07-27T231617Z_01_N27287870_RTRIDST_0_TECH-TECH-TEENS-DC.XML
* Teens and Technology: Youth are Leading the Transition to a Fully Wired=
=20
and Mobile Nation
http://www.pewinternet.org/PPF/r/162/report_display.asp

ELDERLY AMERICANS LOSE MILLIONS TO INTERNET SCAMS
Scams involving Internet auctions, as well as identity theft, lotteries,=20
prizes and sweepstakes, top the list of fraud complaints by older=20
Americans, who lost $152 million to con artists last year, Federal Trade=20
Commission officials told a Senate panel on Wednesday.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-07-27T231114Z_01_N27713657_RTRIDST_0_NET-USA-CONGRESS-SCAMS-DC.XML

ON HOW 'REALITY' TV CHANGES REALITY
[SOURCE: The Christian Science Monitor, AUTHOR: Jeremy Dauber]
http://www.csmonitor.com/2005/0728/p25s01-altv.html

REACTION TO ENSIGN BILL

TELECOM ACT REWRITE -- I'VE ALWAYS DEPENDED ON THE KINDNESS OF MONOPOLIES
[Commentary] I've just read through the =93Broadband Investment and Consume=
r=20
Choice Act=94 introduced by Senator Ensign (R-NV) (and co-sponsored by=20
Senator McCain, to my intense disappointment). In the name of deployment of=
=20
broadband, consumer choice, free markets, yaddah yaddah yaddah, the bill=20
strips the states and local governments of any consume protection function=
=20
and free your local monopoly providers to serve you! Oh, and without the=20
danger that your local government might decide to supply a pesky=20
competitor. After all, we wouldn't want you, the local citizen, to decide=
=20
to foolishly waste your own tax dollars! We, the federal government, know=
=20
best! Ain't federalism grand? Except, of course, when it isn't . . .
[SOURCE: Tales of the Sausage Factory, AUTHOR: Harold Feld]
http://www.wetmachine.com/totsf/item/326

NEW LEGISLATION COULD COST CONSUMERS, WARNS CU
Consumers Union cautioned that legislation introduced today by Senator John=
=20
Ensign (R-NV) could end up costing consumers more for phone, cable and=20
Internet services. =93Consumers better hold on to their wallets if this bil=
l=20
becomes law,=94 said Jeannine Kenney, senior policy analyst at Consumers=20
Union. =93They can look forward to soaring cable and phone bills and even=
=20
fewer choices for broadband as dominant cable and phone companies tighten=
=20
their stranglehold on the limited competition in these markets. Despite=20
platitudes toward consumer choice and protection, this bill does the exact=
=20
opposite.=94 Consumers Union warns the legislation will have negative impac=
ts=20
on consumers, including: 1)Eliminating the ability of states and=20
communities to prevent phone and cable price gouging and other consumer=20
rip-offs. 2) Allowing cable and phone monopolies to undermine competition=
=20
by offering unfavorable terms and prices for use of their wires, while=20
favoring their own services. While providing lip service to the access=20
dominant phone companies must provide to competitors, it allows them to act=
=20
as gatekeepers, eliminating requirements on the quality and cost of access.=
=20
3) Would-be competitors would be powerless in reaching consumers. 4)=20
Increasing the likelihood that, to get the services they do want, consumers=
=20
will be forced to buy a costly package of others they don't want or need.=
=20
5) Stripping states and localities of the power to ensure that minority and=
=20
low- and moderate-income communities have access to the same service and=20
quality as high-income neighborhoods. 6) Hindering the ability of local=20
government to expand competition and drive down broadband prices by=20
limiting their ability to offer the services themselves.
[SOURCE: Consumers Union/HearUsNow]
http://www.hearusnow.org/other/newsroom/broadbandconsumerchoiceactof2005/

COMPTEL COMMENTS ON "BROADBAND INVESTMENT AND CONSUMER CHOICE ACT"
"CompTel's members are disappointed with this legislation, and we look=20
forward to working with Senator Ensign to rewrite it. Overall, the bill is=
=20
a gigantic step backward. It would remonopolize communications networks=20
resulting in fewer choices, less innovation and higher prices for=20
consumers. The American economy would suffer as a result. Nascent=20
technologies, such as VoIP, would be killed in the cradle under this regime=
=20
because entrepreneurs would be denied the nondiscriminatory access to=20
infrastructure they need to deliver their cutting-edge products and=20
services." In Technology Daily, there's this: "The best thing you can say=
=20
is that this is a Bell bill dressed up in sheep's clothing," said Earl=20
Comstock. "It demonstrates a complete lack of understanding of the way in=
=20
which networks operate and the way in which they are headed."
[SOURCE: CompTel Press Release]
http://www.comptelascent.org/news/recent-news/072705.html

INDUSTRIES LAUD ENSIGN BILL AS RECOGNITION OF NEW REALITY
Thank you, sir, may I have another? Telecom companies are lining up to sing=
=20
the praises of Sen Ensign's "Broadband Investment and Consumer Choice Act."=
=20
"This bill recognizes that the world has changed and consumer-driven=20
markets work better than those managed by the government," said Peter=20
Davidson, senior vice president of Verizon Communications. "The Ensign bill=
=20
puts consumers first." "The Ensign proposal would bring telecommunications=
=20
law up to date," said Herschel Abbott, BellSouth's vice president of=20
government affairs. He added that the company will work with Sen Ensign and=
=20
Senate Commerce Chairman Ted Stevens, R-Alaska, "to ensure its speedy=20
passage." "Senator Ensign's bill ... would apply market-driven competitive=
=20
principles to all communications markets" and provide clarity to SBC=20
Communications' anticipated investment in video services, said Tim McKone,=
=20
SBC's senior vice president of federal relations.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-QOFW1122495593721.html
* Links to more reaction below.

WIRELESS INDUSTRY COMMENDS DEREGULATORY APPROACH BY SENATOR ENSIGN
"We appreciate Senator Ensign=92s thoughtful legislation and his important=
=20
first step in the anticipated Congressional review of our nation=92s=20
telecommunications laws. We agree with the Senator that a competitive=20
marketplace, such as the one in which the wireless industry serves=20
consumers every day, is a much more effective means for providing consumer=
=20
benefit than unnecessary and excessive government regulation. We look=20
forward to working with Congress to ensure a legislative landscape that=20
allows the highly competitive wireless industry to continue delivering its=
=20
uniquely innovative products and services to consumers."
[SOURCE: CTIA -- The Wireless Industry]
http://www.ctia.org/news_media/press/body.cfm?record_id=3D1537

ITI WELCOMES ENSIGN TELECOM REFORM BILL
=93Senator Ensign has long been at the forefront of high-tech policy, and=
=20
this bill once again demonstrates his leadership,=94 Dawson said. =93We sha=
re=20
his goals of removing barriers to innovation, promoting competition, and=20
sparking growth in the tech and services sector. Dawson added that, =93as t=
he=20
telecom rewrite moves forward, we look forward to working with Chairman=20
Stevens, Senator Ensign and the House and Senate to develop bipartisan=20
legislation that promotes a vibrant tech and telecom sector.=94
[SOURCE: Information Technology Industry Council]
http://www.itic.org/2005prs/072705.htm

NCTA RESPONDS TO ENSIGN BILL
"We commend Sen. Ensign for crafting legislation that seeks to promote=20
competition and innovation and treats like services alike. Consumers=20
benefit when market forces are allowed to work and all providers,=20
regardless of technology, can compete in the marketplace without government=
=20
policies that pick winners and losers. While there are specific provisions=
=20
we would want to work on with Senator Ensign, this is an important and=20
constructive step forward."
[SOURCE: National Cable & Telecommunications Association]
http://www.ncta.com/press/press.cfm?PRid=3D615&showArticles=3Dok

NTCA REACTS TO INTRODUCTION OF TELECOM LEGISLATION BY SENATOR ENSIGN
=93As leaders in deploying broadband and advanced telecommunications servic=
es=20
throughout rural America, NTCA and its member companies support any=20
legislation that truly would improve consumer access to such services. The=
=20
introduction of Senator Ensign=92s bill represents a first step toward=20
ensuring all segments of the telecommunications industry make the same=20
commitment to serving their rural markets that NTCA members have made for=
=20
decades. NTCA appreciates the senator's contribution to the discussion of=
=20
ways to encourage all industry players to deploy infrastructure that will=
=20
ensure all Americans receive access to affordable emerging voice, video and=
=20
data technologies that enable them to meet commerce, national security and=
=20
public health and safety goals. NTCA looks forward to evaluating the=20
senator=92s bill and working with him and the entire Congress to ensure the=
=20
laws governing our industry benefit rural America and the entire nation."
[SOURCE: National Telecommunications Cooperative Association]
http://www.ntca.org/ka/ka-3.cfm?content_item_id=3D3546&folder_id=3D522

AN HISTORIC COMMUNICATIONS REFORM LANDMARK
Senator Ensign's proposed "Broadband Investment and Consumer Choice Act" is=
=20
the most deregulatory, market-oriented bill ever introduced in Congress,=20
and commendably so. The bill is based on the underlying premise that now,=
=20
as we move full-steam ahead into the digital age, the traditional economic=
=20
regulation of most communications services that was appropriate in a=20
monopolistic environment is no longer necessary. A foundational premise of=
=20
the stand-alone bill is that when marketplace competition exists, it can=20
protect consumers better than public-utility style regulation.
[SOURCE: Progress & Freedom Foundation]
http://www.pff.org

USTELECOM'S MCCORMICK APPLAUDS PROPOSED SENATE LEGISLATION UPDATING US=20
TELECOM LAWS
"We applaud Senator Ensign for his leadership on this issue of critical=20
importance to American consumers and to the nation=92s economy. As wireless=
,=20
landline, cable and satellite technologies converge, it is time for=20
government-managed competition to be replaced with market-based=20
competition, where consumers can get the products and services they want=20
from the companies they choose. Of course, there are additional items we=20
would like to see included in any final legislation that reaches the=20
President=92s desk. We especially look forward to working with Chairman=20
Stevens to advance a stable future for universal service, and its vital=20
work connecting the country and linking our schools and libraries to the=20
Internet. Thanks to Senator Ensign=92s effort, the legislative process is o=
ff=20
to a very strong start today. We thank Senator Ensign for delivering real=
=20
leadership, vision and momentum to this important effort. We look forward=
=20
to working with Senator Ensign, his cosponsor, Senator McCain, as well as=
=20
Chairman Stevens and all members of Congress to advance comprehensive,=20
even-handed reform that can restore U.S. information leadership and enhance=
=20
so many aspects of our quality of life.=94
[SOURCE: United States Telecom Association]
http://www.ustelecom.org/news_releases.php?urh=3Dhome.news.nr2005_0727
--------------------------------------------------------------
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.
--------------------------------------------------------------

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

BROADCASTING
Sony Settles Payola Investigation
Nielsen Objects to Bill that would Require Oversight of
Local TV ratings

TELECOM
NARUC Moves VoIP E-911, Lifeline Resolutions
Fee Structure For USF Sparks Debate
BPL Advocates Working To Plug Into Hill
Tech Firms Warm To Local Networks
Texas Telco Bill Worries Advocates
FCC establishes Net telephony E911 task force

OPPOSITION TO ADELPHIA-COMCAST-TIME WARNER DEAL
Links to opposition from Media Access Project, the Center
for Digital Democracy, and the Communications Workers of America

POLICYMAKERS
Potential FCC Nominees
Kennedy Discusses Telecom Rewrite
Ex-AT&T exec Eric Stark Joins NTIA

QUICKLY -- Republican Attacks on PBS Program Bias Gets Results; Phone Fees
Called Into Question; Calif. AG Backs SBC-AT&T Deal; Teletruth Questions
FCC's Data on Broadband; Big Broadband Bill of Rights; Violations of
Universal Service Fund; Illinois video game law challenged in court

BROADCASTING

SONY SETTLES PAYOLA INVESTIGATION
Attorney General Eliot Spitzer announced Monday an agreement to halt
pervasive "pay-for-play" in the music industry. Under the agreement, Sony
BMG Music Entertainment, one of the world's leading record companies and
owner of a number of major record labels, has agreed to stop making
payments and providing expensive gifts to radio stations and their
employees in return for "airplay" for the company's songs. Such payoffs
violate state and federal law. "Our investigation shows that, contrary to
listener expectations that songs are selected for airplay based on artistic
merit and popularity, air time is often determined by undisclosed payoffs
to radio stations and their employees," Spitzer said. "This agreement is a
model for breaking the pervasive influence of bribes in the
industry." After receiving tips from industry insiders, Spitzer's office
conducted a year-long investigation and determined that Sony BMG and its
record labels had offered a series of inducements to radio stations and
their employees to obtain airplay for the recordings by the company's
artists. The inducements for airplay, also known as "payola," took several
forms: 1) Outright bribes to radio programmers, including expensive
vacation packages, electronics and other valuable items; 2) Contest
giveaways for stations' listening audiences; 3) Payments to radio stations
to cover operational expenses; 4) Retention of middlemen, known as
independent promoters, as conduits for illegal payments to radio stations;
and Payments for "spin programs," airplay under the guise of advertising.
[SOURCE: New York State Attorney General Eliot Spitzer Press Release]
http://www.oag.state.ny.us/press/2005/jul/jul25a_05.html
* Radio Payoffs Are Described As Sony Settles
http://www.nytimes.com/2005/07/26/business/26music.html
* Sony Settles Radio Payola Probe
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/25/AR200507...
* Commissioner Adelstein Calls for FCC Investigation Based on Spitzer
Payola Settlement
"We've seen a lot of smoke around payola for a while, but now we know it's
coming from a real fire. It's time to dump a bucket of cold water on it.
It's unfair to listeners if they hear songs on the radio because someone
was paid off, not because it's good music. We need an immediate
investigation to determine whether these practices violate federal payola
laws. I've asked Mr. Spitzer to share all of the evidence that he has
uncovered with the FCC."
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260158A1.doc
* Radio Concentration Bill Could Resurface
Senator Russ Feingold (D-WI) used the news of a settlement between Sony and
the state of New York to suggest it was time to re-address, on a national
level, the issues of payola "combined with increasing concentration and
vertical integration in the radio industry." That would likely mean a
renewed push for legislation. "I have introduced legislation in the past to
promote competition in the radio and concert industries," he said, "and,
while this settlement is a step in the right direction, it provides even
more evidence that it is time for Congress to address these issues at a
national level."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA629255?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Sony Settles Over Payola; FCC Could Investigate
http://www.broadcastingcable.com/article/CA629069?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

NIELSEN OBJECTS TO BILL THAT WOULD REQUIRE OVERSIGHT OF LOCAL TV RATINGS
Nielsen Media Research is blasting proposed legislation that it says would
extend government oversight of TV ratings and could force it to shut down
its rating service in markets across the USA. But broadcasters say Nielsen
is overstating the impact of the bill, which would place the company under
fresh scrutiny in the wake of charges that its new ratings system
undercounts minorities. A Senate Commerce Committee hearing Wednesday will
spotlight the controversy and examine the bill, introduced this month by
Sen. Conrad Burns (R-MT), a former broadcaster.
[SOURCE: USAToday, AUTHOR: Paul Davidson]
http://www.usatoday.com/printedition/money/20050726/2b_nielsen_26.art.htm
* Rainbow PUSHes Against Ratings Bill
In a letter to the co-chairmen of the Senate Commerce Committee,
representatives from Rainbow/PUSH, the National Council of Negro Women and
other groups oppose legislation that would increase Media Ratings Council
and government oversight of TV ratings, saying such a bill could "harm
audiences of color."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA629111?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Jackson-Led Group Opposes MRC Bill
http://www.multichannel.com/article/CA629112.html?display=Breaking+News
(requires subscription)

TELECOM

NARUC MOVES VOIP E-911, LIFELINE RESOLUTIONS
Meeting in Austin (TX), the National Association of Regulatory
Commissioners are considering a number of telecom-related resolutions. The
NARUC Consumer Affairs Committee passed a resolution commending FCC and
Congressional efforts to ensure that Internet telephone service (VoIP)
providers offer the same level of E-911 service as all other local telecom
providers. The resolution hailed the FCC for setting a Nov. 28 deadline for
VoIP E-911 implementation, and saluted the House introduction of
legislation to establish seamless national E-911 service. Another
resolution from the same committee supports more federal and state efforts
to up Lifeline and Link Up enrollment. Meanwhile, the telecom staff
subcommittee advanced four resolutions that will be taken up today by the
full Telecom Committee, including: 1) A call for establishment of a
federal-state joint conference on high-cost support reform that will get a
year to develop recommendations, 2) A call to Congress to ensure that any
Telecom Act replacement or rewrite includes a meaningful role for the
states in dispute resolution and protection of consumer interests, areas
where states have particular expertise, 3) A suggestion that the FCC
suspend, or allow waivers from, a Dec. 31 deadline by which wireless
carriers opting for handset-based means for E-911 compliance must achieve
95% penetration of E-911-compatible digital wireless telephones, and 4) A
call to the FCC and Justice Dept. for careful review of the two pending
mega-mergers (SBC-AT&T and Verizon-MCI) because of potential
anticompetitive effects, and consideration of conditions such as
divestiture of overlapping assets to remedy any actual anticompetitive effects.
[SOURCE: Communications Daily, AUTHOR: Herb Kirchhoff]
(Not available online)

FEE STRUCTURE FOR USF SPARKS DEBATE
An obscure debate about the types of fees that will be levied to raise
money for the Universal Service Fund has risen in importance as the
telecommunications industry anticipates a potential change from FCC
Chairman Kevin Martin. The debate is about whether contributions should be
made based on per-minute fees or on monthly charges for each telephone
number. Contributions into USF -- which is designed to ensure universal
telephone connectivity -- currently are based on a percentage of revenues
from long-distance and international phone calls. Instead of paying a 10.2
percent fee on their long-distance revenues, under the alternative approach
consumers likely would pay between $1 and $1.20 per month for each phone
number or connection. Ironically, the key constituency for the
numbers-based approach would be the long-distance carriers AT&T and MCI,
both of which are being acquired by Bell telecom companies.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-BVSY1122327520050.html

BPL ADVOCATES WORKING TO PLUG INTO HILL
In some ways, the broadband over power line industry may be in a position
similar to where the broader Internet sector was during the drafting of the
1996 Telecommunications Act: It is a nascent, but promising sector, with
little money to spend on lobbying, and is being overshadowed by the policy
fights of deep pocketed telecommunications, media and cable companies.
While House Energy and Commerce Committee aides are taking pains to make
sure no technology is excluded as they draft legislation to reform portions
of the 1996 Telecom Act, there are some in the broadband over power line
(BPL) sector that worry their development could be hindered if they don't
do more to communicate with Capitol Hill. BPL involves technology that
enables high-speed data services to be sent over existing power lines in
the signal range left unused by electric utilities.
[SOURCE: National Journal's Insider Update, AUTHOR: Bara Vaida]
http://www.njtelecomupdate.com/lenya/telco/live/tb-WKNU1115070261210.html

TECH FIRMS WARM TO LOCAL NETWORKS
While cities that run their own communications networks appear to have some
support from the technology community, those attempting to create parity
among dominant providers and newcomers to the video-services market are
finding fewer allies in their quest to preserve local franchising authority
and revenue streams. Last month, the National League of Cities sent a
letter to House and Senate leaders asking them to oppose legislation that
would eliminate the requirement that telecommunications companies obtain
local franchises before offering pay television. That option "would limit
the benefits of head-to-head video competition to a chosen few and would
cause chaos in our streets across the country," the letter said.
[SOURCE: Technology Daily, AUTHOR: Chloe Albanesius]
http://www.njtelecomupdate.com/lenya/telco/live/tb-TASE1122326845799.html

TEXAS TELCO BILL WORRIES ADVOCATES
Consumer advocates on Monday slammed pending Texas legislation as harmful
to customers and a giveaway to major telecommunications companies.
Legislation that would further deregulate the Texas telecom market "will be
a veritable treasure trove for telecom giants and ... it's very likely to
result in higher prices, more discrimination and less local control for the
majority of Texas families," Kenneth Wang of the Texas Public Interest
Research Group said. Wang expressed concern that a statewide system "does
not account for the distribution of elderly, low-income or immigrant
population that is unique to each town." Towns will "no longer have the
authority to ensure that these groups are not being taken advantage of by
exploiting these variations." "Rate deregulation works when competition is
strong enough to hold prices down and push service quality up," said Tim
Morstad, a policy analyst with Consumers Union's Southwest office. "There
is virtually no competition in Texas for the most affordable rate package."
[SOURCE: Technology Daily, AUTHOR: Chloe Albanesius]
http://www.njtelecomupdate.com/lenya/telco/live/tb-XXJU1122327964985.html

FCC ESTABLISHES NET TELEPHONY E911 TASK FORCE
The Federal Communications Commission announced Monday the creation of a
task force made up of federal and state officials that will help enforce
911 service requirements for Internet telephony providers. The task force
is expected to develop educational materials to ensure that consumers
understand their rights and the requirements of the FCC's VoIP E911 Order,
which was issued back in May. It will also come up with rules to help
providers expedite compliance, and it will compile data and share best
practice information.
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
http://news.com.com/FCC+establishes+Net+telephony+E911+task+force/2100-7...
* FCC Press Release
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260150A1.doc

OPPOSITION TO ADELPHIA-COMCAST-TIME WARNER DEAL

* MAP Files Two Petitions to Deny in Opposition to Cable Industry Mergers
"Anti-Redlining" Petition to Deny: Demands Comcast and Time Warner carry
programming that addresses minority needs, conditions guaranteeing
deployment of broadband services on a timely basis to all neighborhoods,
and increased employment of Hispanics in decision-making positions.
http://www.mediaaccess.org/NHMCFinal.pdf
"Citizen" Petition to Deny: Argues that concentration of power over media
and residential broadband endangers free speech, diverse viewpoints, and
the rights of subscribers generally.
http://www.mediaaccess.org/AdelphiaPetitionToDeny.pdf

* One Reason Why The FCC and FTC Should Reject the Takeover of Adelphia by
Comcast and Time Warner: the Interactive Television "Tipping Point"
http://www.democraticmedia.org/news/Adelphiastatement.html

* CWA, IBEW Oppose Bid for Adelphia Assets
http://www.cwa-union.org/news/WhatsNew.asp?ID=685

POLICYMAKERS

POTENTIAL FCC NOMINEES
National Journal's Insider Update is reporting who's rumored to be
nominated for two open FCC seats: 1) Mike Meece, deputy director of the
office of the public liaison at the White House, 2) Richard Russell,
associate director for technology at the White House Office of Science and
Technology Policy and 3) Howard Waltzman, the top telecommunications aide
to House Energy and Commerce Chairman Joe Barton (R-TX).
http://www.njtelecomupdate.com/lenya/telco/live/tb-WKNU1115070261210.html
(2nd item)

KENNEDY DISCUSSES TELECOM REWRITE
An interview with California Public Utility Commissioner Susan Kennedy. She
served as cabinet secretary in the administration of former California Gov.
Gray Davis. He appointed her to the state's six-member public utility
commission before he was recalled by the voters in favor of Arnold
Schwarzenegger. But the Republican governor and the former executive
director of the California Democratic Party have been aligned in opposition
to the California Public Utility Commission's May 2004 approval of the
"bill of rights" governing the practices of wireless carriers. With the
support of the cellular telecommunications industry, Kennedy ignited a
backlash to the rules, calling them overbearing. The commission rescinded
the rules in January.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-NKNL1121703230273.html

ERIC R. STARK JOINS NTIA
Eric R. Stark of San Mateo, California, has joined the U.S. Commerce
Department's National Telecommunications and Information Administration
(NTIA) as Associate Administrator for the Office of Policy Analysis and
Development. In this capacity he directs the department that conducts
research and analysis and prepares policy recommendations for Assistant
Secretary of Commerce for Communications and Information Michael D.
Gallagher. Stark began his career with AT&T in Los Angeles in 1990 in a
sales operations role and then moved up through the ranks holding several
positions of increasing responsibility in sales and sales management. In
2002, he was named global account director in AT&T's San Francisco office,
responsible for leading a worldwide sales team for one of AT&T's largest
accounts. Stark received his Bachelor of Arts degree in economics and
business from Westmont College in Santa Barbara, California in 1990 and a
Master of Business Administration degree from the University of Southern
California in 1996. He and his wife Sabrina were married in 1993 and have
two children.
[SOURCE: National Telecommunications and Information Administration]
http://www.ntia.doc.gov/ntiahome/press/2005/stark_07252005.htm

QUICKLY

REPUBLICAN ATTACKS ON PBS PROGRAMS BIAS GETS RESULTS
[Commentary] This latest storm over funding cuts and alleged "liberal bias"
on PBS repeats a long standing pattern. PBS has a long history of
capitulating to pressure from conservative Republican politicians egged on
by right wing advocacy groups.
[SOURCE: MediaChannel.org, AUTHOR: Dr. Jerry Starr, Citizens for
Independent Public]
http://mediachannel.org/blog/node/287

PHONE FEES CALLED INTO QUESTION
What's with all the fees on your phone bill?
[SOURCE: Washington Post, AUTHOR: Don Oldenburg]
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/25/AR200507...
(requires registration)
See also --
The Telecommunications Research and Action Center Web site at
http://www.trac.org offers a free weekly e-newsletter, TRACNotes, plus
telephone-rate and fee news and information on how to choose the best phone
service for your needs.
For information on the campaign to stop taxes on wireless phone service,
visit http://www.Mywireless.org

LOCKYER BACKS SBC-AT&T DEAL
California Atty. Gen. Bill Lockyer said SBC Communications Inc.'s proposed
$16-billion purchase of AT&T Corp. was unlikely to harm competition for
most products.
[SOURCE: Los Angeles Times, AUTHOR: Bloomberg News]
http://www.latimes.com/business/printedition/la-fi-sbc26jul26,1,7788732....
(requires registration)

TELETRUTH FILES AGAINST FCC'S DATA
Today, Teletruth will file a Data Quality Act Complaint against the FCC's
statistics, claiming that the FCC is politically driven to inflate the
number of broadband connections in the United States, as well as presenting
a distorted picture of broadband in the US. The Data Quality Act requires
agencies to present data that is "objective", "reliable" and "accurate",
not politically biased. TeleTruth is a national, independent, customer
alliance dedicated to fixing the problems in telecommunications -- from
customer overcharging and harm to competitors, to the customer issues
surrounding Broadband deployment and competition.
[SOURCE: TeleTruth]
http://www.newnetworks.com/TeletruthBroadbandDQAmartin.htm

BIG BROADBAND BILL OF RIGHTS
FirstMile.US released its Big Broadband Bill of Rights as part of its
overall strategy to help drive the demand for big broadband everywhere. "We
believe that this Bill of Rights will begin to set the stage for clear,
intelligent discussion about the links, the applications and the devices
that are needed to ensure that every member of the American public has
access to big broadband," said Susan Estrada, FirstMile.US president. "We
hope that individuals and community groups will use it to start talking
locally about how to get big broadband deployed in their
community." Individuals and organizations are invited to become "signers"
of the Bill of Rights and show their support for the principles it embodies.
[SOURCE: FirstMile Press Release]
http://www.firstmile.us/

VIOLATIONS OF UNIVERSAL SERVICE FUND
The Federal Communications Commission issued Notices of Apparent Liability
("NALs") against three telecommunications carriers for apparently violating
Universal Service Fund ("USF") and other regulatory program laws, including
those for the Telecommunications Relay Service ("TRS"), the North American
Numbering Plan Administration ("NANPA"), and regulatory fees.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260156A1.doc

ILLINOIS VIDEO GAME LAW CHALLENGED
A new Illinois law restricting the sale of violent video games to minors is
unconstitutional, software makers and resellers asserted in a lawsuit filed
on Monday. Their court documents follow traditional First Amendment themes,
arguing that video games are protected by the same constitutional
principles that shield books and newspapers from intrusive government
regulation.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Illinois+video+game+law+challenged+in+court/2100-104...
--------------------------------------------------------------
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.
--------------------------------------------------------------

Hey, don't be sneaking off on vacation yet... we've got a week+ of Congress
left, the agenda for the August FCC meeting to be released Thursday, and
the FCC will be discussing Increasing Telecommunications Services in Indian
Country, too. For upcoming media policy events, see
http://www.benton.org/calendar.htm

LEGISLATION
NAB Supports Ratings Oversight Bill
Verizon-Backed Bill in Texas Has 30 More Days
Video News Release Bill Set for Markup
Senators Want Telecom Fund To Include Broadband Access
Inflight Turbulence for the Net
Congress to take up VoIP 911 rules in September
Internet Challenges Regulatory Jurisdictions

CABLE/SATELLITE
Groups Ask FCC to Block Adelphia Sale
XM Could Localize Mobile Multimedia with New
WCS Spectrum; NAB Not Pleased

QUICKLY -- TWU sets up picket lines; Media Companies Can't Rely on DVD
Sales; DVR, VOD Households Double; New Radio Ratings Method Might Boost Ad
Sales; AT&T-Backed Report Gauges Effects Of Telecom Taxes; 103 Million
Chinese Use Internet

RECENT FCC ORDERS RELEASED

LEGISLATION

NAB SUPPORTS RATINGS OVERSIGHT BILL
The NAB has come out in support of a bill that would increase government
oversight of TV ratings. "As a matter of principle, NAB generally prefers
voluntary inter-industry cooperation to additional government involvement
as a solution to these issues," NAB President Eddie Fritts wrote Senator
Conrad Burns (R-MT). "But, as a matter of practise, we drop all pretense of
principle at the drop of a dollar bill," whispered a bitter Headlines
writer. Fritts actually completed his thought writing, "However, in the
absence of voluntary resolution, we wish to voice our support for S. 1272."
The bill would require Nielsen or any other TV ratings system to get
accreditation by the Media Ratings Council (MRC) for its system or any
changes to its system. The bill would also mandate accuracy in "all the
aspects of audience viewing behavior that it is intended, or is
represented, to convey, using accurate statistical methods and social
sciences data," a mandate that would appear somewhat problematic in its
enforcement, though clients could sue for inaccuracy. The MRC would also be
required to report annually to the Federal Trade Commission, the FCC and
Congress.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA628302?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Comcast Spotlight Opposes MRC Bill
Comcast Spotlight, the ad-sales arm of Comcast, has joined in the
opposition to S. 1272. "While there has been a persistent effort by certain
broadcasting companies -- and organizations they have funded -- to portray
this debate as affecting the public interest, the simple fact is that those
companies are trying to hold back technological progress because it
threatens their bottom line," writes Comcast Spotlight president Charles
Thurston.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA628347.html?display=Breaking+News
(requires subscription)

VERIZON-BACKED BILL HAS 30 MORE DAYS
Let's go to double-overtime in Texas! The special session of the Texas
legislature -- which is considering a statewide franchise bill supported by
Verizon Communications -- timed out Wednesday at midnight, but not before
Gov. Rick Perry called another 30-day special session to allow the
government to complete its business. Now the question remains whether the
legislature can resolve its most difficult issues -- education and
property-tax reform -- so it can move onto other issues before it,
including the bill that will authorize broadband over power lines, in
addition to easing the transition of telephone companies into cable.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA628349.html?display=Breaking+News
(requires subscription)
* Telecom Debate Restarts In Texas
http://www.njtelecomupdate.com/lenya/telco/live/tb-JHRG1121979089364.html

VIDEO NEWS RELEASE BILL SET UP FOR MARKUP
Senate Commerce Committee Chairman Ted Stevens (R-Alaska) agreed to mark up
a bill mandating disclaimers on government.-produced video news releases
(VNRs) during a reportedly combative markup session of an Federal Trade
Commission reauthorization bill, Senate sources said. Sen. John Kerry
(D-MA), backing the VNR bill with Sen. Lautenberg (D-NJ), said he's been
trying to move it forward for two months but couldn't get Stevens'
commitment to a hearing. issues. Sen Kerry's bill would require VNRs
prepared by the government to contain clearly labeled disclaimers alerting
viewers to the source. It also would put the FCC in charge of designing the
disclaimers and drafting the language.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)

SENATORS WANT TELECOM FUND TO INCLUDE BROADBAND ACCESS
Sens. Gordon Smith (R-OR) and Byron Dorgan (D-ND) are in the early stages
of drafting legislation that would expand the program designed to provide
ubiquitous telephone coverage to include high-speed Internet access. The
bill would make money in the Universal Service Fund available so
telecommunications providers could build out broadband facilities. Rep. Lee
Terry (R-NE) is also working on a USF bill that would extend funding to
broadband.
[SOURCE: Technology Daily , AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-CBBU1121978900437.html

INFLIGHT TURBULENCE FOR THE NET
[Commentary] The FBI, along with the Departments of Justice and Homeland
Security, wants to be able to read or block online communications to and
from airplanes. They have applied to the Federal Communications Commission
for this authority and would use it only after obtaining a court order for
each case. But why make the request of the FCC? Congress is considering
renewal of the Patriot Act. Certainly compromising Internet privacy rights
inflight, and the potential for the same technology to find a landing pad
on overall Internet use on the ground, should be debated and decided by
legislators accountable to the citizens rather than by administrators
appointed by the President. Public confidence in the security of airplanes
is likely to trump private electronic communications every time. It would
be best if the decision of privacy rights were part of a democratic process
rather than a bureaucratic ruling.
[SOURCE: The Christian Science Monitor, AUTHOR: Editorial Staff]
http://www.csmonitor.com/2005/0722/p08s03-comv.html

CONGRESS TO TAKE UP VOIP 911 RULES IN SEPTEMBER
Congress expects to begin hearings on its proposed 911 service requirements
for Internet telephone service (VoIP) providers in September. On June 29,
new FCC rules on emergency services over VoIP went into place, but Congress
will consider legislation introduced in May in both houses. Congress under
the proposed legislation would give the FCC the power to set requirements
for VoIP providers, though "only to the extent that the Commission
determines such regulations are technologically and operationally
feasible," according to the text of the bill. The bill would also require
that IP-enabled services receive "nondiscriminatory" access to the
emergency services infrastructure, while holding VoIP providers responsible
for designing functional systems to grant that access and for notifying
their customers before the access becomes available. It would protect VoIP
providers from getting sued, as it does for wireless and wireline
companies, once the 911 access is in place. Jim Kohlenberger, executive
director of the Voice On the Net Coalition, a VoIP advocacy organization,
said that meeting the FCC's 120-day requirements is a "very big challenge."
But the proposed legislation "is providing some progress," he added, by
giving the liability relief and facilitating access to the 911 networks.
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
http://news.com.com/Congress+to+take+up+VoIP+911+rules+in+September/2100...

INTERNET CHALLENGES REGULATORY JURISDICTIONS
The awkwardly constructed Telecom Act of 1996 has led to unnecessary
tension among federal, state and local regulators, but the digital
revolution has paved the way for a new framework. So concludes the
Federal-State Framework Working Group of The Progress & Freedom
Foundation's Digital Age Communications Act (DACA). In a working draft
paper and model legislation, the Working Group proposes a new charter for
federal, state and local cooperation that seeks to maximize the expertise
and advantages of each regulatory level while recognizing the inherent
interstate, and international, nature of the Internet. The paper is being
released for public feedback, and will be presented next week at the
National Association of Regulatory Utilities Commissioners (NARUC) summer
meeting.
[SOURCE: Progress and Freedom Foundation Press Release]
http://www.pff.org/news/news/2005/072105fed-state-paper.html

CABLE/SATELLITE

GROUPS ASK FCC TO BLOCK ADELPHIA SALE
Public interest groups, rival satellite companies and cable programmers
Thursday filed papers asking federal regulators to block or impose
conditions on the acquisition of Adelphia Communications by the nation's
two largest cable TV providers. Some critics said the deal would give the
two buyers, Time Warner and Comcast, monopolistic powers that could deprive
competitors of programming. Others objected to how the sale would make Time
Warner the dominant pay-television provider in Los Angeles, the nation's
second-largest market. Despite their complaints, however, analysts say the
Federal Communications Commission is unlikely to block the $17.6- billion
deal, which was struck in April pending approval of regulators and the U.S.
Bankruptcy Court. Adelphia filed for bankruptcy protection three years ago
amid an accounting scandal.
[SOURCE: Los Angeles Times, AUTHOR:Sallie Hofmeister]
http://www.latimes.com/business/printedition/la-fi-adelphia22jul22,1,413...
(requires registration)
* DirecTV Tackles Adelphia Merger
DirecTV wants guaranteed access to regional sports networks before the
federal government approves the takeover of Adelphia Communications by
Comcast and Time Warner.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA628523.html?display=Breaking+News
(requires subscription)

XM COULD LOCALIZE MOBILE MULTIMEDIA WITH NEW WCS SPECTRUM; NAB NOT PLEASED
XM's acquisition of WCS Wireless last week for $200 million in a stock
transaction added new bandwidth to old arguments between satellite radio
and the NAB. XM wants to use its new spectrum to get in on what other major
communications companies like Cingular, Verizon, Sprint and Qualcomm are
pursuing -- mobile media, including video clips, local weather, music,
sports and other data services. With the WCS Wireless purchase, XM gained
10 MHz of spectrum covering over 1/2 the U.S. population that could be used
to do that. The move had analysts speculating on how XM could use the
spectrum to "localize" its content with audio tailored for specific
markets, noting that broadcasters are likely to fight the idea. In a July
15 letter to Congress, the NAB argued satellite radio is trying to get
around the terms of its national-only licenses. XM's WCS Wireless
acquisition "is part of a long standing pattern of deception by the
satellite radio industry," said the NAB: "When the FCC licensed satellite
radio, it intended a national radio service that would supplement, not
detract from, the important services of free, local radio. [The WCS
Wireless] announcement is further proof that the satellite industry has no
intention of abiding by the terms of their licensure."
[SOURCE: Communications Daily, AUTHOR: Adrianne Kroepsch]
(Not available online)
Press Release on XM/WCS Wireless Deal:
http://www.xmradio.com/newsroom/screen/pr_2005_07_13.html
Text of NAB letter:
http://www.nab.org/newsroom/pressrel/statements/071405_XM_WCS_House_Lett...

QUICKLY

TWU SETS UP PICKET LINES TO PROTECT MEMBERS
The Telecommunications Workers Union announced early Thursday that it is
setting up picket lines across Alberta and British Columbia effective 6:00
a.m., local time. This is 18 hours in advance of the Friday deadline when
Telus intends to impose its contract on employees.
[SOURCE: Telecommunications Workers Union Press Release]
http://www.twu-canada.ca/cgi-bin/news/fullnews.cgi?newsid1121929200,1775,

MEDIA COMPANIES CAN'T RELY ON DVD SALES
DVD players are one of the most popular consumer devices in history,
reaching more than 70% of television households in just eight years. And
DVD-owning households were buying as many as 20 DVDs a year as recently as
2004, according to the Motion Picture Association of America. But as new,
typically lower-income, households buy DVD players, they are likely to
purchase fewer DVDs. According to Fox Home Entertainment, recent adopters
are buying only seven titles a year. Now the question is how quickly the
sales will degenerate. The industry believes it can counter the domestic
slowdown by tapping the less mature international market and pushing sales
of a new generation of disc designed for high-definition TV. However, right
now the studios are wasting time squabbling over two rival high-definition
formats.
[SOURCE: Wall Street Journal, AUTHOR: Julia Angwin julia.angwin( at )wsj.com and
Merissa Marr merissa.marr( at )wsj.com]
http://online.wsj.com/article/0,,SB112199755082193001,00.html?mod=todays...
(requires subscription)

STUDY: DVR, VOD HOUSEHOLDS DOUBLE
The numbers of U.S. households with digital-video recorders and access to
video-on-demand have both doubled in the past year, according to a report
released Thursday by Leichtman Research Group. About 8% of U.S. households
have DVRs, while 23% of cable subscribers said they have accessed VOD
content from local operators, LRG said.
[SOURCE: Multichannel News, AUTHOR: Steve Donohue]
http://www.multichannel.com/article/CA628351.html?display=Breaking+News
(requires subscription)
* DVRs On the Rise
http://www.broadcastingcable.com/article/CA628453?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

NEW RADIO RATINGS METHOD MIGHT BOOST AD SALES
A new way to electronically track listening trends in radio could spur
advertisers to spend an additional $400 million a year, according to data
released on Wednesday, but industry analysts said more needs to be done to
boost the sluggish medium. The new study, conducted by Forrester Research
and commissioned by the Radio Advertising Bureau, explored how Arbitron's
Portable People Meter electronic ratings service, now being tested in
Houston, would affect the $20 billion radio industry as it struggles
against increased competition from satellite radio, iPods and other devices.
[SOURCE: Reuters, AUTHOR: Sue Zeidler]
http://today.reuters.com/news/newsArticle.aspx?type=industryNews&storyID...

AT&T-BACKED REPORT GAUGES EFFECTS OF TELECOM TAXES
A new report by Ernst & Young and commissioned by AT&T finds that the
telecommunications industry is taxed at a higher rate than other types of
businesses. In fiscal 2004, the telecom industry paid $16.5 billion in
state and local taxes. Thirty-two percent of the taxes came from gross
receipts and excise taxes, while 28 percent came from property taxes. Such
taxation has negative consequences for consumers, the report contended. The
gross-receipt levels and property taxes have resulted in an effective tax
rate of 11.8 percent on telecom, the report said. That effective tax rate
represents the estimated state and local taxes paid by each industry,
divided by the U.S. value added for each industry. Value added represents
economic activity and incomes attributable to all of the labor and capital
used in the industry. The utility industry was the only one to rank above
telecom, with an 18 percent effective tax rate.
[SOURCE: Technology Daily, AUTHOR: Fresia Rodriguez Cadavid]
http://www.njtelecomupdate.com/lenya/telco/live/tb-UONV1121979451937.html

CHINA INTERNET USERS GROW 18% TO HIT 103 MILLION
The number of Web users in China, the world's second largest Internet
market, grew by 9 million people in the first half of this year to hit 103
million, the China Daily said on Friday. The growth represented an increase
of 18.4 percent over the same period last year.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID...

RECENT FCC ORDERS RELEASED (for your summer reading enjoyment)

* FCC Launches Review of Closed Captioning Rules
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-142A1.doc

* ALLTEL Corporation Acquisition of Western Wireless Corporation
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-138A1.doc

* New Rules Adopted to Improve Video Relay Service
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-140A1.doc

* Two-line Captioned Telephone Service is Eligible for Compensation from
the Interstate TRS Fund
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-141A1.doc

* ASL-Spanish Translation Video Relay Service Eligible for Compensation
from Interstate TRS Fund
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-139A1.doc
--------------------------------------------------------------
...and we are outta here. Have a great, safe, summer weekend. See ya Monday
(assuming Eddie Fritts doesn't call for my resignation).
--------------------------------------------------------------
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.
--------------------------------------------------------------

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

TELEVISION
Lawmakers Push Set Aside For =91Public Broadband=92
Cable Faces Multicasting Battle, Seeks Downconversion
S.F. TV Station Opposes Ratings Bill

MEDIA POLICY REFORM
Abernathy Says FCC to Look Broadly at Media Ownership Issues
Creative Artists on Media Reform
Speculation abounds about whether Martin plans to revamp FCC

CONTENT CONTROLS
Media Unite On Parental Control
Banzhaf Targets TV's Over 'Redskin'

QUICKLY -- Phone Rules Address Hearing Aids; Bells Utilize Advocacy Groups=
=20
On Video Franchising Issue; Time for lawmakers to act on Grokster?; Kids=20
and the Internet; Amassing a Treasury of Photography; XM Going Global;=20
Union/Telus dispute Update; Union Occupies a Newspaper in Mexico; Billion=
=20
Cellphone Sales per Year by 2009; Super Speed Cable Internet in 2006;=20
Plugging Into The Hottest Fad Since Blogging; Job opening: APC Information=
=20
Coordinator

TELEVISION

LAWMAKERS PUSH SET ASIDE FOR 'PUBLIC BROADBAND'
The transition to digital television creates a golden opportunity for the=
=20
federal government to set aside spectrum that citizens could use for=20
affordable wireless broadband, lawmakers and consumer advocates said=20
Tuesday. Speaking at an event sponsored by the Future of America Caucus,=20
Rep. Maurice Hinchey (D-NY) chairman of the group, said it would be "an=20
enormous mistake" for the government to auction portions of the analog TV=
=20
airwaves to the highest bidders without setting aside some of the=20
frequencies for "public broadband." Jim Snider, a senior research fellow=20
with the New America Foundation, noted that the United States is now=20
sixteenth in the world in broadband penetration. "Wireless is the way to=20
deliver broadband to rural America and broadcasters have the best spectrum=
=20
for that purpose," he said. Jim Goodmon, president of Capitol Broadcasting=
=20
Corp., based in Raleigh (NC), drew applause when he said that digital=20
broadcasters should accept a multitude of public interest obligations --=20
such as offering two to three hours a week of locally produced public=20
affairs shows and candidate-centered programs within 45 to 60 days of an=20
election. Goodmon has long supported strong public interest obligations,=20
sometimes putting him at odds with other TV stations. "As broadcasters, we=
=20
need to step up to the plate and accept our responsibilities," he said.
[SOURCE: National Journal's Insider Update, AUTHOR: David Hatch]
http://www.njtelecomupdate.com/lenya/telco/live/tb-WTLR1121814002454.html

CABLE FACES MULTICASTING BATTLE, SEEKS DOWNCONVERSION
The National Association of Broadcasters is making a strong push to get=20
Congress to approve "must carry" rights for all of a digital television=20
station's signals -- called multicast must carry -- and has 60 local TV=20
representatives in Washington this week to =93educate members of Congress o=
n=20
the importance of the issue to our future business,=94 a spokesman said. Th=
e=20
group also has taken out ads in local Hill publications warning consumers=
=20
-- who read these publications all the time -- that =93cable monopolies=94 =
are=20
trying to block local programming on terrestrial digital TV. But pushing=20
back on the NAB is the National Cable & Telecommunications Association,=20
headed by Kyle McSlarrow. The NCTA is trying to convince Congress to allow=
=20
cable operators to "down-convert" digital TV signals into analog ones.=20
McSlarrow predicts that any digital TV bill that passes through Congress=20
this year will include a down-conversion provision. He also says compromise=
=20
between broadcast and cable interests is possible. One solution is for=20
cable operators to voluntarily sign deals to carry broadcasters=92 digital=
=20
and analog signals during the DTV transition. In any case, lawmakers are=20
trying to craft a bill that will have a minimum of controversy because it=
=20
will be part of a larger budget bill.
[SOURCE: Communications Daily, AUTHOR: Jonathan Make, Anne Veigle]
(Not available online)

SF TV STATION OPPOSES RATINGS BILL
Nielsen's Local People Meters have been criticized for undercounting=20
minority viewers, but at least one TV station serving a minority population=
=20
is standing up for Nielsen and against legislation to toughen the=20
government-created Media Ratings Council. KTSF San Francisco, which just=20
signed on with Nielsen at the beginning of the year, has written the=20
co-chairmen of the Senate Commerce Committee to argue that a bill creating=
=20
mandatory MRC accreditation of TV ratings would "diminish entrepreneurial=
=20
opportunities by creating unnecessary and contentious procedures for=20
determining ratings."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA626829?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

MEDIA POLICY REFORM

ABERNATHY SAYS FCC TO LOOK BROADLY AT MEDIA OWNERSHIP ISSUES
The FCC's media ownership rulemaking will include discussions on "virtually=
=20
every issue," FCC. Commissioner Abernathy told a Minority Media & Telecom=
=20
Council (MMTC) conference Tuesday, Abernathy including the rules' impact on=
=20
indecency, children's programming, violent programming and on minority and=
=20
women=92s ownership. Commissioner Abernathy's comments on media ownership=
=20
came days before comments are due on Time Warner and Comcast's pending $17=
=20
billion acquisition of Adelphia cable systems. Comments to the FCC, due=20
Thursday, are expected to be more aggressive than usual due to uncertainty=
=20
over the media ownership rules, said Media Access Project President Andrew=
=20
Schwartzman. How FCC Chairman Kevin Martin responds to the deal will be a=
=20
sign of how the Commission could decide media ownership rules, Schwartzman=
=20
said.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)
Also see --
Measuring Media Ownership 'Meaningless'
Any attempt to measure media ownership concentration is a "meaningless=20
exercise in the abstract," argues Bruce Owen in a paper published by The=20
Progress & Freedom Foundation. "Confusing Success with Access: 'Correctly'=
=20
Measuring Concentration of Ownership and Control in Mass Media and Online=
=20
Services" is available at http://www.pff.org/issues-pubs/pops/pop12.11owen.=
pdf
[SOURCE: Progress&Freedom Foundation]
http://www.pff.org/news/news/2005/071805owenpop.html

CREATIVE ARTISTS ON MEDIA REFORM
Representatives for musicians, screenwriters, actors and producers on=20
Monday offered different views about the way they are adversely impacted by=
=20
the national's telecommunications laws and potential changes to them. Each=
=20
of four panelists at a forum hosted by two congressional caucuses focused=
=20
on a different problem: consolidation in the radio business, the cable=20
industry's control over programming, laws against "indecency" on=20
television, and television networks' ownership of film production=20
companies. But they all agreed that because "the media is the town square,"=
=20
in the words of Jonathan Rintels of the Center for Creative Voices in=20
Media, it was important to find "the way around the choke-points that the=
=20
conglomerates" seek to control.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.drewclark.com/2005/07/from-national-journals-technology_19.shtml

SPECULATION ABOUNDS ABOUT WHETHER MARTIN PLANS TO REVAMP FCC
Just a rumor? FCC Chairman Kevin Martin may be reorganizing the Federal=20
Communication Commission, a move that could disband the FCC's Wireless=20
Telecommunications Bureau, moving its functions to various other bureaus=20
including a new Homeland Security Bureau. Speculation is that the=20
reorganization would create a Homeland-Security Bureau with the functions=
=20
performed by the public-safety and critical-infrastructure division of the=
=20
wireless bureau and other homeland-security functions scattered about in=20
the agency in the Office of Planning and Policy and the Consumer &=20
Governmental Affairs Bureau. A new Spectrum Bureau would be created with=20
the functions of the wireless bureau licensing division and the FCC's=20
Office of Engineering & Technology. The wireless bureau's policy functions=
=20
would largely move to the FCC's Wireline Competition Bureau.
[SOURCE: RCR Wireless News, AUTHOR: Heather Forsgren Weaver]
http://rcrnews.com/news.cms?newsId=3D23458

CONTENT CONTROLS

MEDIA UNITE ON PARENTAL CONTROL
Veteran media critics Senators Rick Santorum (R-PA) and Joe Liberman (D-CT)=
=20
are lending their support to a new, broad-based coalition that has formed=
=20
to push for parental control of TV and other entertainment content. The=20
Pause Parent Play (PPP) initiative=20
(http://www.PauseParentPlay.orgwww.PauseParentPlay.org) will launch July=
=20
20 on Capitol Hill with a display of parental control tools and=20
technologies for TV, movies, music, and video games. The new coalition=20
includes the same three network corporate parents, NBC Universal, News=20
Corp,. and Viacom, behind the TV Watch online effort promoting the TV=20
ratings and V-chip. But PPP also includes other corporate and industry=20
partners like Time Warner, Comcast, YMCA, Wal-Mart, Microsoft, the Girl=20
Scouts, MPAA, RIAA, ESRB, ESA, Tyco, NCTA, and Interstate Batteries.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA626661?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)
See also:
* PTC, CWA Push A La Carte
Even as the cable industry announces its participation in a push for=20
parental regulation of content, the Parent's Television Council Wednesday=
=20
will launch a counter-offensive.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA626779?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)
* V-Chip-Setting Contest Planned
The industry-backed group TV Watch is holding a V-chip setting contest on=
=20
Capitol Hill today. The "parental control challenge," which will invited=20
participants to race to set the v-chip device in their TV, is part of an=20
effort to convince legislators that parents have a workable device to block=
=20
unwanted content. See http://www.televisionwatch.org for more info
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA626593?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

BANZHAF TARGETS TV STATIONS OVER 'REDSKIN'
Washington attorney John Banzhaf, who helped sue tobacco ads off the=20
airwaves in the late 1960's, is renewing his campaign to remove "Redskin"=
=20
from the nation's broadcast vernacular, or at least limit its use, by=20
threatening to go after station licenses. He has sent registered letters to=
=20
the four biggest stations in Washington, DC advising them of a Friday=20
Federal Appeals Court decision that he says puts the Washington Redskin=20
trademarks in jeopardy by "restoring the unanimous finding by the Trademark=
=20
Trial and Appeal Board that the word 'Redskins' was so racially derogatory=
=20
and offensive that the Washington Redskins=92 trademarks should be invalida=
ted."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA626604?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

QUICKLY

PHONE RULES ADDRESS HEARING AIDS
A problem long designed out of wired phones, electronic interference is a=
=20
common if unevenly experienced problem for the six million Americans with=
=20
hearing aids who use cellphones. But determining which cellphones and=20
hearing aids are most susceptible to the problem has so far been a=20
trial-and-error process. Selecting interference-free mobile phones should=
=20
be easier come Sept. 16, when Federal Communications Commission labeling=20
rules take effect. The rules require the wireless-phone industry to provide=
=20
phones compatible with most kinds of hearing aids. Companies will then rate=
=20
those phones most and least likely to experience interference with certain=
=20
hearing aids. Phones labeled M3 or M4 will cause the least interference for=
=20
hearing-aid users. Under the FCC's new rules, the big five U.S. wireless=20
carriers must offer either four phones or 25% of their total handsets by=20
network technology that are hearing-aid compatible. That is a big=20
improvement: T-Mobile now sells four such phones and Nextel sells one.=20
Sprint PCS, Cingular and Verizon Wireless say they are conducting tests on=
=20
their phones and should meet the September deadline. In 2008, half of=20
carriers' and manufacturers' product lines are expected to be certified to=
=20
work interference-free with hearing aids. Certification won't be required=
=20
of small carriers.
[SOURCE: Wall Street Journal, AUTHOR: Zachary A. Goldfarb=20
zachary.goldfarb( at )wsj.com]
http://online.wsj.com/article/0,,SB112182015644690249,00.html?mod=3Dtoda...
us_personal_journal
(requires subscription)

BELLS UTILIZE ADVOCACY GROUPS ON VIDEO FRANCHISING ISSUE
SBC Communications and Verizon Communications are seeking to bolster their=
=20
bids for nationwide video franchises by funding self-described advocacy=20
groups willing to back their positions on Capitol Hill. The practice is=20
completely legal as well as common in Washington -- but critics charge that=
=20
it is misleading. "Of course they're front groups and it's terribly=20
deceptive," said John Dunbar, a telecommunications and media specialist=20
with the nonprofit Center for Public Integrity. =93It=92s sort of a stealth=
=20
public lobbying campaign."
[SOURCE: Technology Daily, AUTHOR: David Hatch]
http://www.njtelecomupdate.com/lenya/telco/live/tb-WXAL1121812324045.html

TIME FOR LAWMAKERS TO ACT ON GROKSTER?
Does Congress need to lay down new laws after last month's landmark Supreme=
=20
Court decision on file swapping? Companies that actively promote their=20
products' copyright infringement capabilities (in legal terms, "active=20
inducement") can now be held liable for their users' illicit activities.=20
Justice Stephen Breyer in his concurring opinion on the MGM v. Grokster=20
case noted that "the legislative option remains available." But so far,=20
members of Congress have applauded the court's unanimous opinion and=20
indicated they plan to leave rule-making to the lower courts for now.
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
http://news.com.com/Time+for+lawmakers+to+act+on+Grokster/2100-1028_3-57...
14.html?tag=3Dnefd.top

KIDS AND THE INTERNET -- IT'S A GOOD THING
[Commentary] We read a lot of alarmist commentary about the dangers of the=
=20
Internet for youngsters. Yet, from what I've seen, the educational benefits=
=20
of online access are worth it. Yes, parents have to be vigilant. But the=20
opportunities for communication and self-expression the Internet provides=
=20
are bringing benefits to everyone -- especially children.
[SOURCE: The Christian Science Monitor, AUTHOR: Laura Matthews]
http://www.csmonitor.com/2005/0720/p09s02-coop.html

AMASSING A TREASURY OF PHOTOGRAPHY
The George Eastman House in Rochester and the International Center of=20
Photography in New York City are at work on an ambitious project to create=
=20
one of the largest freely accessible databases of masterwork photography=20
anywhere on the Web, a venture that will bring their collections to much=20
greater public notice and provide an immense resource for photography=20
aficionados, both scholars and amateurs. The Web site - Photomuse.org, now=
=20
active only as a test site, with a smattering of images - is expected to=20
include almost 200,000 photographs when it is completed in the fall of=20
2006, and as both institutions work out agreements with estates and living=
=20
photographers, the intention is to add tens of thousands more pictures.=20
While there are now dozens of growing digital databases of photography on=
=20
the Web, many - like Corbis and Getty Images - are commercial sites that do=
=20
not allow the public unfettered access to their collections. The Photomuse=
=20
site will join others, like the digital collections of the Library of=20
Congress, the Metropolitan Museum of Art and the National Museum of=20
Photography, Film and Television in Bradford, England, that are beginning=
=20
to create what amounts to a huge, free, virtual photography museum on the=
=20
Web. The project, financed in part by a grant from the Institute of Museum=
=20
and Library Services in Washington, is expected to cost $800,000 initially=
=20
and more later as additional images and documentary information are added=
=20
to the site.
[SOURCE: New York Times, AUTHOR: ]
http://www.nytimes.com/2005/07/20/arts/design/20east.html
(requires registration)

XM INVESTS $25 MILLION IN RIVAL WORLDSPACE
XM Satellite Radio Holdings Inc. yesterday said it has invested $25 million=
=20
in WorldSpace Corp., a privately held District-based satellite radio=20
provider in West Africa, the Middle East and India that has said it intends=
=20
to go public. The move could broaden XM's reach, and help turn satellite=20
radio into a global service similar to satellite television, said analysts.=
=20
As part of the deal, the two companies agreed to work together to develop=
=20
products, such as receivers, and to strengthen relationships with=20
distributors such as automakers and sources of programming. WorldSpace,=20
whose initial backers included prominent Saudi investors, programs four=20
channels for XM.
[SOURCE: Washington Post, AUTHOR: Annys Shin]
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/19/AR200507...
1768.html
(requires registration)

UNION CALLS EIGHT WALKOUTS IN TELUS DISPUTE
The showdown between Canadian wireless phone company Telus and the=20
Telecommunications Workers Union over the company's intention to impose the=
=20
terms of its last contract offer escalated Monday with the union calling=20
temporary walkouts in eight locations. TWU president Bruce Bell promised=20
further job action in the coming days before a Friday deadline when Telus=
=20
plans to impose the work terms on its employees.
[SOURCE: Vancouver Sun, AUTHOR: Derrick Penner]
http://www.canada.com/vancouver/vancouversun/news/business/story.html?id=
=3Da8257440-35e7-4035-99b3-ec2f531326dbhttp://www.canada.com/vancouver/van=
couversun/news/business/story.html?id=3Da8257440-35e7-4035-99b3-ec2f531326db

UNION OCCUPIES A NEWSPAPER IN MEXICO
Union members wearing masks and carrying clubs broke into the offices of a=
=20
newspaper in Oaxaca where editors and reporters have been besieged for a=20
month, causing the journalists to flee and trying to shut down the=20
publication. About 31 newspaper employees had been holed up in the offices=
=20
for four weeks while an umbrella union with close ties to the Institutional=
=20
Revolutionary Party, or PRI, which controls the state, staged a strike=20
outside, demanding higher wages and more vacation. Many newspaper employees=
=20
have said the union does not represent their interests and have tried to=20
form a new bargaining unit. The publisher, Ericel G=F3mez Nucamendi,=20
meanwhile, has accused the state governor, Ulises Ruiz, of using the strike=
=20
to silence a publication that has been critical of his administration and=
=20
has supported opposition candidates. Union leaders, who admit that most of=
=20
their members belong to the PRI, have denied they are acting at the behest=
=20
of the governor.
[SOURCE: New York Times, AUTHOR: James McKinley Jr & Antonio Betancourt]
http://www.nytimes.com/2005/07/20/international/americas/20mexico.html
(requires registration)

CELLPHONE SALES SEEN AT OVER 1 BILLION PER YEAR BY 2009
Mobile phone sales will exceed one billion handsets a year by 2009 as they=
=20
become the most common consumer electronics device with 2.6 billion people=
=20
using one by then, according to a survey published on Wednesday by research=
=20
group Gartner.
[SOURCE: Reuters, AUTHOR: Lucas van Grinsven]
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2005-07-20T070910Z_01_L19716137_RTRIDST_0_TECH-HANDSETS-GLOBAL-DC.XML

SUPER SPEED BROADBAND SEEN OVER CABLE TV IN 2006
Teleste, whose rivals include big U.S. firms Scientific Atlanta and Cisco=
=20
Systems Inc., said it would early next year bring to the market its=20
"Ethernet to the Home" product which will give consumers access to 100Mb/s=
=20
speed.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-07-20T103445Z_01_L20582343_RTRIDST_0_NET-TECH-BROADBAND-TELESTE-DC.=
XML

PLUGGING INTO THE HOTTEST FAD SINCE BLOGGING
Apple's iPod rewrote the rules for digital music. It saved the recording=20
industry from itself -- and from Internet piracy -- by spoon-feeding the=20
way to commercial viability on the Internet. Now, Apple is doing the=20
opposite for radio broadcasting.
[SOURCE: Wired in Washington, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-XMFW1113937467518.html

JOB OPENING: APC INFORMATION COORDINATOR
The Association for Progressive Communications has an opening for an=20
information coordinator to manage its Spanish and English newsletters and=
=20
websites and establish a new APC site and newsletter in French. Excellent=
=20
English writing and editing skills and good writing skills in Spanish and=
=20
French are required. A keen eye for quality control is essential.=20
Application deadline: 24 July
http://www.apc.org/english/news/index.shtml?x=3D192619
--------------------------------------------------------------
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.
--------------------------------------------------------------