September 2005

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

PUBLIC MEDIA
Halpern Elected CPB Chair
Dept of Commerce Grants Help Public Broadcasting
Access for the Masses

BROADCASTING
Networks: Kids' Show Rules would Hurt Football
'Broadcast Flag=92 May Be Attached To Digital Television Legislation

EMERGENCY COMMUNICATIONS
Katrina Takes a Toll on Truth, News Accuracy
FCC Eases Regs In Rita's Wake

INTERNET/BROADBAND
Jury Still Out On Universal Broadband
FCC Releases Orders On Broadband
Feds to Enforce VoIP Cutoffs?

NEW RESEARCH
Strength in numbers? Public participation in the media ownership
proceeding at the FCC
Towards an Economic Framework for Network Neutrality Regulation
** Find much more research at the Telecommunications Policy
Research Conference http://www.tprc.org/

QUICKLY -- More rights are wrong for webcasters; Carlos Gutierrez; Warring=
=20
DVD Formats; BitTorrent raises cash; Video games actually can be good for=
=20
you; Big Brother in Beijing; Purported al Qaeda Newscast Debuts on=20
Internet; Supremes Could Become TV Stars

PUBLIC MEDIA

HALPERN ELECTED CPB CHAIR
The Corporation for Public Broadcasting voted Monday to elect Cheryl=20
Halpern to succeed Ken Tomlinson as chairman of the board and Gay Hart=20
Gaines as vice chair replacing Democrat Frank Cruz. Both Halpern and Gaines=
=20
are veteran Republican party activists and fundraisers. The vote Monday=20
came at a public meeting that also hosted critics of Tomlinson's effort,=20
for which he does not apologize, to add conservative programming to balance=
=20
what he sees as noncom broadcasting's leftward tilt. A number of speakers=
=20
at the meeting called for more accountability and transparency in board=20
decisions. Jeff Chester of the Center for Digital Democracy was one of=20
those calling for a change in direction. "Ms. Halpern is likely to continue=
=20
the board's campaign to force public broadcasting to produce programming=20
more acceptable to conservatives," Chester said of Halpern's election.=20
"[It] does a disservice to those who care about the quality of PBS, NPR and=
=20
other public media outlets." Of the election of Gaines, he said: "It is a=
=20
sweep for Tomlinson and the Republican majority." "It's time for CPB board=
=20
reform," Chester told the board after the vote. "No activist from either=20
political party should be nominated to the board. Nor should anyone be=20
permitted to serve simultaneously on another government-funded entity."=20
Tomlinson sits on the boards of both CPB and the Broadcasting Board of=20
Governors (he is BBG Chairman). The BBG oversees VOA and other=20
international government broadcast services. Halpern is a former BBG board=
=20
member. The current leadership at CPB also includes former Republican=20
National Committee co-chair Patricia Harrison and Ken Ferree, who helped=20
the then FCC Chairman Michael Powell craft the deregulatory ownership rules=
=20
opposed by the American public and the courts.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6260689?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* Public Broadcasting Meets the New Boss
http://www.latimes.com/news/printedition/asection/la-na-cpb27sep27,1,164...
.story?coll=3Dla-news-a_section
* CPB Taps Two GOP Conservatives for Top Posts
http://www.washingtonpost.com/wp-dyn/content/article/2005/09/26/AR200509...
1598.html
* Read Mr. Chester's Testimony before the CPB Board:
http://www.democraticmedia.org/news/JCCPBtestimony.html
* See CDD's statement on the election of Cheryl Halpern:
http://www.democraticmedia.org/news/JCHalpernstatement.html
* UCC's Gloria Tristani addresses CPB Board on issues of media transparency=
=20
and public accountability:
http://www.ucc.org/ocinc/news/092605.htm
* Josh Silver, executive director of Free Press, made the following stateme=
nt:
=93The appointment of Cheryl Halpern as chairwoman of the Corporation for=
=20
Public Broadcasting is unfortunate if not unexpected. Like Ken Tomlinson=20
and Patricia Harrison before her, Halpern is a veteran political operative=
=20
and GOP mega-fundraiser. Her appointment further politicizes public=20
broadcasting and damages an institution that is treasured by the vast=20
majority of Americans. Journalism challenging the official line is not by=
=20
definition 'liberal advocacy.' Instead of continuing Tomlinson=92s ill-fate=
d=20
crusade against his imagined political enemies, we hope Halpern will=20
rededicate the CPB to the real priorities of public broadcasting:=20
investigative journalism, local programming, and public service. The CPB=20
board had an opportunity to make a bipartisan statement by electing Beth=20
Courtney as vice chairman. Instead, they chose Gay Hart Gaines, another=20
partisan operative with longstanding ties to GOP officials committed to=20
eliminating federal funding for public broadcasting. Public broadcasting=20
faces an uncertain future. Now more than ever, we need competent, judicious=
=20
and nonpartisan leadership at the CPB. The public will be watching the new=
=20
chairwoman very closely.=94
http://www.freepress.net/

DEPT OF COMMERCE GRANTS HELP PUBLIC BROADCASTING
For over 40 years, Public Telecommunications Facilities Program (PTFP) has=
=20
played a major role in the development of public broadcasting throughout=20
the United States. With the programs assistance, a public television signal=
=20
now reaches about 95% of our nation's population and public radio reaches=
=20
approximately 90% of the population. The program has also funded radio=20
reading services and descriptive video services for the disabled and=20
numerous distance learning facilities that provide instructional=20
programming for students and professionals. For Fiscal Year 2005, $21.4=20
million in federal PTFP grants will assist public radio, public television=
=20
and nonbroadcast (distance learning) projects across the country. $11.7=20
million will go to 33 grantees to assist in the digital conversion of=20
public television facilities; $7.4 million will fund 73 radio grants;=20
$383,000 is for five television equipment replacement grants; $1.5 million=
=20
is for 11 distance learning grants; and one grant was made to the=20
University of Hawaii for $499,415 for the PEACESAT (Pan Pacific Educational=
=20
and Cultural Experiments by Satellite) project. The total amount awarded by=
=20
PTFP in FY 2005 is $21.4 million for 123 grants.
[SOURCE: National Telecommunications and Information Administration]
http://www.ntia.doc.gov/otiahome/ptfp/Projects/2005/ptfpfactsheet_2005.htm

ACCESS FOR THE MASSES
Public-access television, whose future may hinge on a bill before Congress,=
=20
is TV's public square -- a community outlet for the civic minded,=20
musicians, and even bonsai lovers. For many viewers, local-access channels=
=20
are mere speed bumps on the dial between ABC and HBO. But for the people=20
running these channels around the country these outlets, available to all=
=20
for a nominal fee, have become what Anthony Riddle, executive director of=
=20
the Alliance for Community Media in Washington, calls "the public square in=
=20
the electronic age."
[SOURCE: The Christian Science Monitor, AUTHOR: Teresa M=E9ndez]
http://www.csmonitor.com/2005/0923/p11s01-altv.html
Learn more about the Alliance for Community Media and public access TV at:
http://www.alliancecm.org/

BROADCASTING

NETWORKS: KIDS' SHOW RULES WOULD HURT FOOTBALL
The nation's broadcasters have issued a blunt message: Tough new=20
requirements to air children's programming might mean sports fans won't get=
=20
to watch some college football games on free TV. The broadcasters are=20
fighting new FCC rules that will take effect Jan. 1, saying the rules would=
=20
stifle the development of new channels and hobble existing ones. They say=
=20
they'd have to either move Saturday morning kids' shows to another time or=
=20
shift that day's college football lineup to cable TV. But public-interest=
=20
advocates complain that broadcasters are seeking the relief even while=20
asking Congress to force cable systems to carry their new digital channels.=
=20
=93They're just being very greedy here,=94 says Angela Campbell of the=20
Children's Media Policy Coalition. [Somewhere, Peggy Charren is shaking her=
=20
head. http://www.museum.tv/archives/etv/A/htmlA/actionforch/actionforch.htm]
[SOURCE: USAToday, AUTHOR: Paul Davidson]
http://www.usatoday.com/printedition/money/20050927/2b_tv27.art.htm
* Networks Ask FCC to Delay Rules on Kids' TV
http://www.latimes.com/business/printedition/la-fi-kidvid27sep27,1,19147...
story?coll=3Dla-headlines-pe-business

'BROADCAST FLAG' MAY BE ATTACHED TO DIGITAL TELEVISION LEGISLATION
Trade associations representing movie and recording industries are trying=
=20
to persuade Senate Commerce Chairman Ted Stevens (R-Alaska) to give the FCC=
=20
the authority to mandate copy-protection technology for movies and music.=
=20
RIAA and other artist and music groups are worried that consumers will be=
=20
able to use software to record and create libraries of high-quality music=
=20
via digital radio. Some artists worry the practice could undermine revenue=
=20
they could earn through digital downloads. Movie studios, meanwhile, want=
=20
the FCC to have regulatory authority over television equipment in order to=
=20
prevent the mass, online redistribution of high-definition entertainment.
[SOURCE: Technology Daily, AUTHOR: Sarah Lai Stirland]
http://www.njtelecomupdate.com/lenya/telco/live/tb-QOIV1127765599074.html

EMERGENCY COMMUNICATIONS

KATRINA TAKES A TOLL ON TRUTH, NEWS ACCURACY
National Guard spokesman Maj. Ed Bush believes that newspapers and=20
television exaggerated criminal behavior in the wake of Hurricane Katrina,=
=20
particularly at the overcrowded Superdome and Convention Center. The New=20
Orleans Times-Picayune on Monday described inflated body counts, unverified=
=20
"rapes," and unconfirmed sniper attacks as among examples of "scores of=20
myths about the dome and Convention Center treated as fact by evacuees, the=
=20
media and even some of New Orleans' top officials." Journalists and=20
officials who have reviewed the Katrina disaster blamed the inaccurate=20
reporting in large measure on the breakdown of telephone service, which=20
prevented dissemination of accurate reports to those most in need of the=20
information. Race may have also played a factor.
[SOURCE: Los Angeles Times, AUTHOR: Susannah Rosenblatt and James Rainey]
http://www.latimes.com/news/printedition/asection/la-na-rumors27sep27,1,...
3337.story?coll=3Dla-news-a_section
(requires registration)

FCC EASES REGS IN RITA'S WAKE
Apparently, Hurricane Rita has done a lot less damage than Katrina, but,=20
all the same, on Saturday the FCC cleared away some regulations to help=20
telephone companies, broadcast stations and cable systems affected by the=
=20
storm, much as it did in the wake of Katrina. The FCC has been working=20
weekends since Katrina to help coordinate communications recovery efforts,=
=20
for which it has been getting high marks from Congress and the industry.=20
See links to FCC releases below.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6260495?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* For Wireless telecom:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2520A1.doc
http://hraunfoss.fcc.gov/edocs_public/a=
ttachmatch/DA-05-2521A1.doc
* For cable operators and broadcast stations:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261252A1.doc
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2518A1.doc
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261254A1.doc
* For SBC: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2510A1.d=
oc

INTERNET/BROADBAND

EX-FCC AIDE: JURY STILL OUT ON UNIVERSAL BROADBAND
Speaking at the conference of the National Association of=20
Telecommunications Officers and Advisors last week, former FCC Chief of=20
Staff Blair Levin said the future of high-speed Internet is so unclear that=
=20
Congress should not foreclose the possibility of Bell telecommunications=20
firms, cable companies or municipal governments becoming full providers.=20
Levin said the core dispute between telecom and cable companies is how to=
=20
get universal broadband. "How do we get broadband everywhere is the=20
fundamentally difficult public policy issue, and the most important one,"=
=20
said Levin, who worked for the Clinton administration=92s first FCC chief,=
=20
Reed Hundt. He added, "We still have somewhere between 20 and 30 percent of=
=20
this country that has no Internet connectivity," and more with only=20
"narrowband" Internet connections. Levin referred to a presentation by=20
another Bell company, SBC Communications, in which it said it would provide=
=20
fiber optic wires to serve 90 percent of "high-value," 70 percent of=20
"mid-value" and 5 percent of "low-value" consumers. He defended SBC,=20
saying: "It only makes sense for them to build to 52 percent of their=20
customers. That is not SBC's problem; it is the government's problem and=20
your problem." However Congress and municipalities choose to encourage=20
universal broadband, Levin observed, =93When you require companies to do=20
things not in their economic interest, it is very problematic."
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-OFGO1127766681671.html
* Verizon Wins Franchise in Virginia
http://www.washingtonpost.com/wp-dyn/content/article/2005/09/26/AR200509...
1758.html

FCC RELEASES ORDERS ON BROADBAND
The FCC released rules for the newly "deregulated" providers of high-speed=
=20
Internet service over digital subscriber lines and mandated that they and=
=20
Internet telephone companies design their networks to facilitate=20
surveillance by law enforcement. The agency issued two separate orders. One=
=20
declared that broadband over DSL provided by telecommunications companies=
=20
is now an unregulated "information service." The other imposed requires all=
=20
broadband and companies capable of being linked to the public-switched=20
telephone network to help law enforcers implement wiretaps. The FCC=20
unanimously approved both moves Aug. 5. The obligation to comply with the=
=20
Communications Assistance for Law Enforcement Act was seen as necessary,=20
simultaneous action because without it, DSL providers would have been=20
exempt from the wiretapping law. Two of the agency's four commissioners=20
questioned the legality of the FCC's action with regard to CALEA. And at=20
least two groups -- the Center for Democracy and Technology, and the=20
Electronic Frontier Foundation -- said they are likely to sue because=20
Internet services were specifically exempted from the 1994 CALEA.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-DKMN1127769747926.html
* Wiretap rules for VoIP, broadband coming in 2007
http://news.com.com/Wiretap+rules+for+VoIP%2C+broadband+coming+in+2007/2...
-7352_3-5883032.html?tag=3Dnefd.lede
* VoIP Order:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-153A1.doc
* Broadband sharing requirements: http://www.fcc.gov/FCC-05-150A1.pdf

FEDS TO ENFORCE VOIP CUTOFFS
The Federal Communications Commission is scheduled on Wednesday to begin=20
enforcing its requirement that VoIP (voice over Internet Protocol)=20
providers that use the public telephone network make sure that 100 percent=
=20
of their customers know whether they can access 911 services. Those=20
customers who haven't acknowledged that they can or cannot access the=20
emergency network are to be restricted from regular VoIP usage. According=
=20
to industry groups and the latest FCC filings by VoIP providers, as many as=
=20
50,000 Net phone users--about half the estimate floated last month--could=
=20
be disconnected or see their service curtailed this week.
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
http://news.com.com/Feds+to+enforce+VoIP+cut-offs/2100-7352_3-5883269.ht...
tag=3Dnefd.top

NEW RESEARCH

STRENGTH IN NUMBERS? PUBLIC PARTICIPATION IN THE MEDIA OWNERSHIP PROCEEDING=
=20
AT THE FCC
This study examines the role of new information and communication=20
technologies (ICTs) in public participation in administrative agency=20
rulemaking. It focuses on the 2003 media ownership rulemaking proceeding=20
before the Federal Communications Commission. The proceeding generated=20
substantial public interest and included extensive use of ICTs by the=20
Commission, public interest groups, and many individuals. This research=20
examines the extent to which the potential of ICTs to facilitate effective=
=20
public participation in administrative rulemaking was actually realized in=
=20
this proceeding.
[SOURCE: Telecommunications Policy Research Conference, AUTHOR: JoAnne Holm=
an]
http://web.si.umich.edu/tprc/archive-search-results.cfm

TOWARDS AN ECONOMIC FRAMEWORK FOR NETWORK NEUTRALITY REGULATION
This paper aims at assessing the economic merits of network neutrality=20
regulation. To this aim, the paper applies insights from game theory,=20
industrial organization, antitrust, evolutionary economics and management=
=20
strategy to analyze network operators=92 incentives to discriminate, the=20
impact of potential discriminatory behavior on innovation and social=20
welfare, and the costs of regulation. The results of the paper advance the=
=20
debate over network neutrality in a number of ways: Economic theory=20
predicts that a network operator that has a monopoly in the market for=20
Internet services does not generally have an incentive to discriminate=20
against independent applications. There are known exceptions to this rule,=
=20
but there is considerable debate over whether these apply in the Internet=
=20
context. The paper shows that some of these exceptions may indeed apply in=
=20
the context of the Internet. More importantly, it identifies exceptions=20
that have not been previously thought of. Thus, there are more cases in=20
which a network provider may have an incentive to discriminate than is=20
commonly assumed.
[SOURCE: Telecommunications Policy Research Conference, AUTHOR: Barbara van=
=20
Schewick]
http://web.si.umich.edu/tprc/archive-search-abstract.cfm?PaperID=3D483

** Find much more research at the Telecommunications Policy Research=20
Conference **
http://www.tprc.org/

QUICKLY

MORE RIGHTS ARE WRONGS FOR WEBCASTERS
[Commentary] We're not doing a good job of writing intellectual property=20
law. First and most lamentably, intellectual property laws are created=20
without any empirical evidence that they are necessary or that they will=20
help rather than hurt. Second, the policymaking process has failed to keep=
=20
track of the increasing importance of intellectual property rights to=20
everything from freedom of expression and communications policy to economic=
=20
development or access to educational materials. We still make law as though=
=20
it were just a deal brokered between industry groups =96 balancing the=20
interests of content companies with those of broadcasters, for example. The=
=20
public interest in competition, access, free speech and vigorous=20
technological markets takes a back seat. What matters is making the big=20
boys happy. Finally, communications networks are increasingly built around=
=20
intellectual property rules, as law regulates technology more and more=20
directly; not always to good effect.
[SOURCE: Financial Times, AUTHOR: James Boyle, Duke Law School]
http://news.ft.com/cms/s/441306be-2eb6-11da-9aed-00000e2511c8.html
(requires subscription)

CARLOS GUTIERREZ: THE PITCH MAN
A look at Secretary of Commerce Carlos Gutierrez, baseball and Cuba.
[SOURCE: Washington Post, AUTHOR: Laura Blumenfeld]
http://www.washingtonpost.com/wp-dyn/content/article/2005/09/26/AR200509...
1397.html
(requires registration)

BIG GUNS CHOOSE SIDES ON DVD FORMATS
Software giant Microsoft Corp. will team with computer chipmaker Intel=20
Corp. to back one of two competing high-definition DVD formats, setting up=
=20
a potential war with other major players in the industry. Sony Corp., Apple=
=20
Computer Inc. and Dell Inc. all support a different format. The split could=
=20
kindle a redux of the Betamax-VHS video recorder debate two decades ago=20
that held up the widespread distribution of VCRs and caused consumer=20
confusion about the new product. Sony was a player in that format war, as=
=20
well, manufacturing the smaller Betamax, which lost out to the larger VHS=
=20
tape. VHS eventually became the standard, appearing in 90 percent of U.S.=
=20
homes, while Betamax players have become an eBay curiosity.
[SOURCE: Washington Post, AUTHOR: Frank Ahrens]
http://www.washingtonpost.com/wp-dyn/content/article/2005/09/26/AR200509...
1540.html
(requires registration)

BITTORRENT GETS 8.75 MILLION FROM VENTURE-CAPITAL FIRM
BitTorrent, developer of one of the most popular software programs for=20
acquiring free video and other large files on the Internet, has raised=20
$8.75 million from a venture-capital firm. BitTorrent says it will use the=
=20
funds from DCM-Doll Capital Management to improve its infrastructure and=20
make it more appealing to Hollywood. The investment comes as file-sharing=
=20
companies are scrambling to legitimize. In June, the Supreme Court ruled=20
that file-sharing service Grokster and StreamCast Networks, which operates=
=20
the Morpheus service, could be held liable for their users' actions.
[SOURCE: USAToday, AUTHOR: Jefferson Graham]
http://www.usatoday.com/printedition/money/20050927/bittorrent27.art.htm

VIDEO GAMES ACTUALLY CAN BE GOOD FOR YOU
Games for Health is an offshoot of The Serious Games Initiative=20
(www.seriousgames.org), which seeks to push the evolution of games=20
technology to aid in problem solving, public policy and social issues. Some=
=20
of the highlighted projects and potential benefits: 1) Patient treatment.=
=20
The U.S. Navy is testing Sony's Eye Toy, a camera that connects to the PS2=
=20
and transfers the person's image onto a TV screen, along with the=20
interactive dance mats used for the game Dance Dance Revolution, says the=
=20
project's principal investigator, Mark Wiederhold of the Virtual Reality=20
Medical Center in San Diego. The idea is to create programs to help=20
rehabilitate soldiers injured in Iraq and Afghanistan. 2) Training.=20
U.K.-based Blitz Games is developing Interactive Trauma Trainer, a PC=20
game-style simulation program to help prepare battlefield surgeons for=20
decision-making and treatment in combat. Another program being tested, New=
=20
Dawn Estates, a role-playing simulation developed by pullUin Software of=20
Vermillion, S.D., helps certified nursing assistants learn nursing-home=20
treatment protocols. 3) Prevention and education. The Federation of=20
American Scientists and Brown University have created Immune Attack, a 3-D=
=20
game about the immune system to help high school and college students=20
better understand the complex subject.
[SOURCE: USAToday, AUTHOR:Mike Snider]
http://www.usatoday.com/printedition/life/20050927/bl_cover27.art.htm

BIG BROTHER IN BEIJING
[Commentary] It remains to be seen whether Big Brother in Beijing is a=20
match for the power of the Internet. With 100 million cybernauts, China has=
=20
the world's second-largest Internet population, after the U.S. with 135=20
million. The ability of Chinese surfers to communicate with each other on a=
=20
massive scale has already made a mockery of state censorship of information.
[SOURCE: Wall Street Journal, AUTHOR: Editorial Staff]
http://online.wsj.com/article/0,,SB112778220016152847,00.html?mod=3Dtoda...
us_opinion
(requires subscription)

PURPORTED AL QAEDA NEWSCAST DEBUTS ON INTERNET
An Internet video newscast called the Voice of the Caliphate was broadcast=
=20
for the first time on Monday, purporting to be a production of al Qaeda and=
=20
featuring an anchorman who wore a black ski mask and an ammunition belt.=20
The anchorman, who said the report would appear once a week, presented news=
=20
about the Gaza Strip and Iraq and expressed happiness about recent=20
hurricanes in the United States. A copy of the Koran, the Muslim holy book,=
=20
was placed by his right hand and a rifle affixed to a tripod was pointed at=
=20
the camera.
[SOURCE: Washington Post, AUTHOR: Daniel Williams]
http://www.washingtonpost.com/wp-dyn/content/article/2005/09/26/AR200509...
1613.html
(requires registration)

SUPREMES COULD BE TV STARS
Senator Arlen Specter (R-PA) has introduced a bill to permit TV cameras in=
=20
open Supreme Court sessions, unless the majority in a particular case=20
decides it would violate due process.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6260781?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=
=20
Friday, this service provides updates on important industry developments,=
=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------