October 2005

Phone, Cable Firms Rein In Consumers' Internet Use

[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant@wsj.com and Jesse Drucker jesse.drucker@wsj.com]

DACA Revises Federal-State Framework

[SOURCE: Progress & Freedom Foundation press release]

Rehr Selected President and CEO of NAB

[SOURCE: National Association of Broadcasters press release]

Lobbyist Spending: The Bells Are Ringing

[SOURCE: National Journal's Insider Update, AUTHOR: Bara Vaida]

Cable Industry: Telcos Apparently Got What They Paid For

Consumers for Cable Choice (www.consumers4choice.org) Executive Director Jim Conran says that Verizon gave a $75,000 startup grant to the group, which was created last June, when telcos were fighting in such states as Texas for video franchise rights. CCC has become known for demanding that “outdated” video franchise requirements be reformed. Billing itself as a national alliance of consumer advocacy groups, private citizens and “others,” it says the “cable monopoly” has increased rates 86 percent in the past decade.

Benton's Communications-related Headlines For Friday(!) October 21, 2005

For upcoming media policy events -- including next week's FCC meeting --=20
see http://www.benton.org

NEWS FROM CONGRESS
Senate Commerce Approves the Digital Transition and
Public Safety Act of 2005
Senate Commerce Approves WARN Act
Senate Commerce Approves "Prepackaged News
Story Announcement Act"
Congress Reports on eRate Abuse

TELECOM
Two Telecom Mergers, One Digital Divide
Voice phone calls to be free within years: eBay CEO
Phone, Cable Firms Rein In Consumers' Internet Use
DACA Revises Federal-State Framework

LOBBYING
Rehr Selected President and CEO of NAB
Lobbyist Spending: The Bells Are Ringing
Cable Industry: Telcos Apparently Got What They Paid For

QUICKLY (Ha!) -- Adelstein at 3G Technology Briefing; FCC Staff Changes;=20
Cox, Nexstar Settle Retrans Spat; Belo's Hurricane Damage Claim; NAF: The=
=20
Economic Case for Unlicensed Spectrum; Bloggers Will Interpret News -- for=
=20
a Fee; Coming to a Church Near You

TELECOM OPINION DAY ON THE HILL -- The Hill published a number of=20
telecom-related op-eds from Members of Congress yesterday; we summarize=20
them below.)

ADDITIONAL DTV TRANSITION COVERAGE

NEWS FROM CONGRESS (Did I mention there would be a reading assignment after=
=20
yesterday's virtual field trip?)

SENATE COMMERCE COMMITTEE APPROVES THE DIGITAL TRANSITION AND PUBLIC SAFETY=
ACT
[SOURCE: Senate Commerce Commission press release]
The U.S. Senate Committee on Commerce, Science, and Transportation on=20
Thursday approved by a vote 19-3 the Committee=92s Reconciliation Bill=20
submission called the Digital Transition and Public Safety Act of 2005. The=
=20
original Committee bill offered by Commerce Committee Chairman Ted Stevens=
=20
(R-Alaska) and Co-Chairman Daniel Inouye (D-Hawaii) provides two specific=
=20
dates that will strengthen public safety communications and help advance=20
the DTV transition and. First, the Act sets a hard date for the digital=20
transition of April 7, 2009. This hard date establishes a date certain by=
=20
which public safety personnel will be able to use an additional 24 MHz of=
=20
spectrum recovered from the digital transition. Second, the legislation=20
begins the auction of recovered spectrum on January 28, 2008. Under its=20
budget reconciliation instruction, the Commerce Committee is required to=20
raise $4.8 billion in revenue in the next five years, and the spectrum=20
auctions are considered to be the most viable method within the Commerce=20
Committee=92s jurisdiction to recover this revenue. The Congressional Budge=
t=20
Office (CBO) estimates that auctions will raise a total of $10 billion.=20
After the required revenue is transferred to the U.S. Treasury, the=20
remaining funds raised from spectrum auctions will be allocated as follows:=
=20
1) $3 billion for a converter box subsidy program, 2) $200 million for a=20
program to transition Low Power TV stations and TV translators to digital,=
=20
3) $1 billion for state and local interoperability grants, 4) $250 million=
=20
to fund programs in the WARN Act, which establishes national alert and=20
tsunami warning systems, 5) $250 million in funding to improve E-911=20
communications under the Enhance 911 legislation sponsored by Senator=20
Conrad Burns (R-Mont.) passed last year, and 6) $200 million for assistance=
=20
to coastal States affected by hurricanes and other natural disasters. In=20
addition, the Digital Transition and Public Safety Act requires the Federal=
=20
Communications Commission to raise $10 million in additional regulatory=20
fees in Fiscal Year 2006 to meet the Budget Committee=92s reconciliation=20
instructions to the Commerce Committee. Adopted by unanimous consent with=
=20
the bill was a Manager=92s Amendment offered by Senators Stevens and Inouye=
.=20
The Amendment: 1) provided that any auction proceeds in excess of $10=20
billion be deposited in the Treasury to reduce the deficit. This could be a=
=20
significant sum if the auction brings in over $20 billion as some industry=
=20
groups have suggested; 2) set specific amounts for the program payments; 3)=
=20
increased the amount to go to the Treasury from $4.8 billion to $5 billion=
=20
to help reduce the deficit; 4) designated $50 million of $250 million for=
=20
the national alert system to fund tsunami warning and coastal vulnerability=
=20
programs; and 5) allocated any remaining funds from the converter box=20
program and translator conversion be transferred to the emergency=20
communications program. Senator Burns also offered an amendment that was=20
accepted by unanimous consent. The Burns amendment made $75 million from=20
the spectrum auction available over a five-year period for the Essential=20
Air Service program.
http://commerce.senate.gov/newsroom/printable.cfm?id=3D247497
* Text of bill:
http://commerce.senate.gov/pdf/reconcil10.pdf
** Commerce Sets 2009 Hard Date
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Democrats John Kerry, Barbara Boxer and Jay Rockefeller voted against the=
=20
digital transition bill. An amendment by Sen John McCain (R-AZ) would have=
=20
made the transition end date April 2007, but it was voted down 17-5.=20
Commerce Committee Chairman Ted Stevens argued that the McCain 2007 date=20
would strip funding from first responders because according to CBO=20
estimates, the auctions would not raise enough money and it would then have=
=20
to all go to the general treasury fund to meet the committee's $4.8 billion=
=20
obligation. The votes were seen as a win for television broadcasters. The=
=20
National Association of Broadcaster's next big challenge will be a second=
=20
DTV bill necessitated by the Senate parliamentarian. Thursday's bill was=20
stripped of all but the provisions relating to the reclamation of spectrum=
=20
to square with Senate rules banning extraneous legislation on=20
appropriations bills. As a result, other DTV issues, including the big one=
=20
for NAB and the cable industry -- mandatory cable carriage of broadcasters=
=20
multicast signals -- were pruned and will be replanted in a second bill the=
=20
committee will begin discussions on next week. Other issues will include=20
setting aside unlicensed spectrum, the broadcast flag copy protection for=
=20
DTV broadcasts, and whether cable will be allowed to downconvert the DTV=20
signal to its analog customers after the switch.
http://www.broadcastingcable.com/article/CA6276546?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
*** There's a great deal of coverage of this bill; we provide links at the=
=20
end of this e-mail. **

SENATE COMMERCE COMMITTEE APPROVES WARN ACT
[SOURCE: Senate Commerce Commission press release]
The U.S. Senate Committee on Commerce, Science, and Transportation on=20
Thursday reported by unanimous consent S. 1753, the Warning, Alert, and=20
Response Network (WARN) Act of 2005. As reported, the WARN Act will=20
establish a network for the transmission of alerts across a broad variety=
=20
of communication technologies, including wireless communication devices=20
such as cell phones and Blackberries, the Internet, digital, analog, cable,=
=20
satellite television, and satellite and terrestrial radio, as well as=20
non-traditional media such as sirens and =93radios-on-a-stick.=94 The=20
legislation would require that alerts provide individuals with instructions=
=20
about what to do in response to the threat. The National Alert System,=20
created under the WARN Act, will ensure that regardless of where an=20
individual is or what kind of communication technologies they are using,=20
they will receive a life-saving alert. Alerts would be transmitted in=20
response to all threats to public safety, including natural disasters,=20
man-made accidents and terrorist incidents. Alerts would only be allowed=20
for hazards that pose a grave risk to public health and safety. The WARN=20
Act also would establish a grant program to help remote communities install=
=20
sirens and other devices, particularly in areas where telecommunications=20
infrastructure is insufficient. Amendments to the bill were passed to 1)=20
ensure that tribal governments are included in the national alert system;=
=20
2) include the needs of older Americans in the system; 3) provide for the=
=20
utilization of the non-commercial sustaining announcement program to=20
publicize the national alert system; 4) provide greater integration of the=
=20
National Alert Office and the research and development and testing=20
programs; and 5) better integrate communications infrastructure needs into=
=20
the disaster planning process.
http://commerce.senate.gov/newsroom/printable.cfm?id=3D247498
* Text of bill:
http://commerce.senate.gov/pdf/s1753asrptd.pdf

SENATE COMMERCE COMMITTEE APPROVES "PREPACKAGED NEWS STORY ANNOUNCEMENT ACT"
The U.S. Senate Committee on Commerce, Science, and Transportation on=20
Thursday reported by unanimous consent S. 967, the =93Prepackaged News Stor=
y=20
Announcement Act of 2005,=94 introduced by Senators Frank Lautenberg (D-N.J=
.)=20
and John Kerry (D-Mass.). The legislation requires that all prepackaged,=20
government-produced news stories - which are designed to be=20
indistinguishable from those created by independent news organizations -=20
include disclaimers notifying the audience that the government produced or=
=20
funded the news segment. The Committee unanimously approved a substitute=20
amendment, negotiated by Senators Lautenberg, Kerry and Committee Chairman=
=20
Ted Stevens, that includes the following provisions: 1) Establishes that=20
prepackaged news stories produced by the government must include a clear=20
notification to the audience that the United States Government prepared or=
=20
funded the segment. 2) Defines =93prepackaged news story=94 as a complete,=
=20
ready-to-use audio or video news segment designed to be indistinguishable=
=20
from those produced by an independent news organization. 3) Instructs the=
=20
FCC to determine the circumstances under which the disclaimer may be=20
removed or modified. 4) Clarifies that the bill=92s provisions do not apply=
=20
to the government=92s authorized, legal intelligence activities. The bill n=
ow=20
moves to the full Senate for its consideration.
[SOURCE: Senate Commerce Commission press release]
http://commerce.senate.gov/newsroom/printable.cfm?id=3D247487
* Text of bill:
http://commerce.senate.gov/pdf/s967asrptd.pdf
* VNR Labeling Bill Amended
The Senate Commerce Committee has unanimously passed a bill that would=20
require the government to clearly identify any packaged video news releases=
=20
it issues, but not require that the ID air throughout the entirety of the=
=20
piece. The original bill had been tougher. Proposed by Senators Frank=20
Lautenberg (D-N.J.) and John Kerry (D-Mass.), it would have mandated that=
=20
the government put a label, "Produced By the U.S. Government" (the FCC=20
could tweak the language and format as it saw fit) on all packaged video=20
news releases, and that the label air during the entirety of the VNR.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6276566?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

CONGRESS REPORTS ON ERATE ABUSE
A new Congressional report on eRate oversight reaffirms what eRate watchers=
=20
already know: that the program, while valuable to schools, "is extremely=20
vulnerable to waste, fraud, and abuse, is poorly managed by the FCC, and=20
completely lacks tangible measures of either effectiveness or impact." The=
=20
conclusions reached by Congress are nearly identical to those asserted by=
=20
the General Accountability Office (GAO) in a separate report issued in=20
March. As part of that report, the GAO, which is responsible for monitoring=
=20
how the government spends taxpayer dollars, criticized the FCC for taking a=
=20
largely hands-off approach to the eRate and said that its lack of oversight=
=20
makes it nearly impossible to determine "the scope of any waste, fraud, and=
=20
abuse within the program." The GAO report went on to make several=20
recommendations for the FCC to consider as it overhauls the program,=20
including promoting a clearer understanding of federal requirements,=20
outlining a set of performance measures to assess the program's=20
effectiveness in schools, and taking steps to reduce the massive backlog of=
=20
funding requests currently clogging the appeals system. Congress, with the=
=20
release of findings from its own investigation, provides further momentum=
=20
for such reforms. But change isn't likely to happen overnight. "The FCC has=
=20
been working on these issues for a long time," said Peter Kaplan, director=
=20
of regulatory affairs for Funds for Learning, a national eRate consulting=
=20
firm. "The agency will continue to streamline and reform these issues as=20
best it can." If the FCC doesn't show progress soon, he said, Congress=20
could force the agency's hand. Either way, one thing is clear: the eRate=20
isn't going anywhere. Despite the criticisms, "no one is talking about=20
killing or abolishing the eRate," explained Kaplan. Instead, he said, the=
=20
focus is on "much-needed reform."
[SOURCE: eSchool News]
http://www.eschoolnews.com/news/showStory.cfm?ArticleID=3D5919

TELECOM

TWO TELECOM MERGERS, ONE DIGITAL DIVIDE
[SOURCE: Ohio Community Computing Network press release]
Community activists in Ohio are fighting there to make sure there's a=20
public benefit to two large telecommunications mergers. The Ohio Community=
=20
Computing Network (OCCN www.ohioccn.org) is leading the fight to minimize=
=20
the current broadband divide and keep a new divide based on advanced=20
networks from developing. The arena? Regulatory proceedings within the=20
Public Utilities Commission of Ohio (PUCO www.puc.state.oh.us). There is a=
=20
lot of talk lately of advanced networks, their immense Internet speed and=
=20
additional services but if only a portion of society can participate in yet=
=20
another technological evolution, Ohio will again be left struggling.OCCN=20
has suggested seven conditions for approval of the mergers; OCCN says the=
=20
merged companies should: 1) should make stand alone DSL available to=20
consumers without also purchasing wireline voice service, 2) not=20
participate in efforts to restrict Ohio municipalities from investing in=20
broad band networks, 3) universally deploy broadband capabilities within=20
three years with guarantees that low income urban and rural communities=20
will have access to such networks at the same time that wealthier=20
communities have such access, 4) extend the concept of Lifeline telephone=
=20
service to include a DSL option (Lifeline-eligible households should be=20
able to maintain integrated telephone and DSL service for no more than $25=
=20
per month, and 5) establish a substantial ongoing program of financial and=
=20
technical support for nonprofit community efforts to share advance network=
=20
services among multiple low income residences including but not limited to=
=20
wireless community networks.. In addition, the should 6) make small=20
non-profit organizations (e.g. less than 5 employees) and microenterprises=
=20
eligible for substantial discounts for broadband options such as single=20
line modem with dynamic IP for their business locations and 7) direct a=20
percentage of the cost savings from the merger synergies be devoted to=20
overcoming the digital divide by funding new and existing Community=20
Technology Centers in the Telecommunications Company=92s service territory.
http://www.ohioccn.org/Press%20Release.htm
For additional information, see www.puc.state.oh.us and search for=20
testimony from the Edgemont Neighborhood Coalition and APAC
* SBC/ATT merger (Case No. 05-269-TP-ACO)
* MCI/Verizon merger case (Case No 05-0497-TP-ACO)

VOICE PHONE CALLS TO BE FREE WITHIN YEARS: EBAY CEO
Executives at SBC, Verizon, BellSouth and elsewhere are feelin' a bit=20
queasy; Meg Whitman, eBay's chief executive, predicted Wednesday that in a=
=20
few short years, consumers can expect to make telephone calls for free,=20
with no per-minute charges, as part of a package of services through which=
=20
carriers make money on advertising or transaction fees. Perhaps not=20
coincidentally, Whitman was defending eBay's purchase of Skype which allows=
=20
high-speed Internet users to make free phone calls. The company is betting=
=20
that by combining electronic markets, online payment systems and Web-based=
=20
communications, eBay can emerge as a leader in all three businesses.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2005-10-20T194855Z_01_SCH009971_RTRUKOC_0_US-TELECOMS-EBAY-SKYPE.xml&ar=
chived=3DFalse
* OK, I was kidding about SBC... SBC sees little challenge to its=20
traditional telephone business from services such as Skype that offer free=
=20
phone calls over the Internet, SBC's chief financial officer said on=20
Thursday. "I don't see it as a significant threat," SBC CFO Rick Lindner=20
said in an interview with Reuters. "The fears of what may happen there are=
=20
overblown."
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-10-20T204510Z_01_BAU074680_RTRUKOC_0_US-TELECOMS-SBC-SKYPE.xml

PHONE, CABLE FIRMS REIN IN CONSUMERS' INTERNET USE
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com and=
=20
Jesse Drucker jesse.drucker( at )wsj.com]
Several large telephone and cable companies are starting to make it harder=
=20
for consumers to use the Internet for phone calls or swapping video files.=
=20
Some of the companies say the users are hogging bandwidth, taking up too=20
much space on networks and slowing down service for all customers that tap=
=20
the Internet for email, video, music, phone and other services. Wireless=20
phone companies like Verizon Wireless and Vodafone stipulate in their=20
subscription contracts that customers can't use the company's high-speed=20
Web-access networks for Internet calling -- or may prohibit usage in the=20
future. Several cable companies are using technology to cap the speed at=20
which some of their customers can swap videos. A number of equipment=20
companies are selling software and other products designed to block and=20
monitor Internet applications such as phone calls, video and photo=20
downloads. Many telephone and cable companies have begun to closely monitor=
=20
the uses of their network with an eye toward controlling activity by users=
=20
who are swapping movies, TV programs, pornography and other video files.=20
Operators say file sharing is growing so quickly, it threatens to sharply=
=20
slow down other uses. Critics say the big operators are using their=20
concerns about heavy network traffic to fight competition from smaller=20
rivals that are using the phone and cable companies' networks, like=20
Internet calling companies Skype or Vonage. Others say that telecom=20
companies may use their control over the networks to charge users more=20
money if they want higher quality. "They claim it's a network-management=20
issue when it's really a revenue-maximization issue," says Mark Cooper,=20
research director for the Consumer Federation of America. FCC Chairman=20
Kevin Martin has said that market forces would prevent operators from=20
curtailing applications that run on their networks, but he also says the=20
FCC is looking into guidelines to protect consumers on this issue. Earlier=
=20
this year, telecom provider Madison River Communications stopped blocking=
=20
Vonage's service after the FCC intervened. While there aren't yet specific=
=20
laws to enforce so-called net neutrality, a FCC spokesman said the=20
commission relied on its broad authority "to ensure an efficient=20
communications network at reasonable charges" in its action on Madison=20
River earlier this year.
http://online.wsj.com/article/SB112985651806475197.html?mod=3Dtodays_us_...
e_one
(requires subscription)

DACA REVISES FEDERAL-STATE FRAMEWORK
[SOURCE: Progress & Freedom Foundation press release]
Responding to a wide array of input following the release of a draft=20
proposal on a framework for federal and state regulation of communications,=
=20
members of the Digital Age Communications Act (DACA) Federal-State=20
Framework Working Group have released a second draft for review and=20
comment. This latest iteration clarifies the role of states in rate=20
regulation, provides two avenues for competition policy, and sets limits on=
=20
the role of states in regulating social obligations. It also includes=20
details on the appropriate role of local officials, specifically involving=
=20
rights-of-way, franchising issues, municipal entry into telecom, and the=20
imposition of taxes. DACA is an ongoing project in which The Progress &=20
Freedom Foundation is working with other think tanks, members of academia=
=20
and former officials from the last five Presidential administrations to=20
craft a new communications regulation model for the digital age.
http://www.pff.org/news/news/2005/102005daca-fed-state-report3.htm

LOBBYING

DAVID REHR SELECTED PRESIDENT AND CEO OF NAB
[SOURCE: National Association of Broadcasters press release]
National Beer Wholesalers Association President David K. Rehr has been=20
selected the new president and chief executive officer of the National=20
Association of Broadcasters. Rehr, 46, was signed to a multi-year agreement=
=20
and will assume the NAB leadership post on December 5. His selection comes=
=20
after a high-level executive search process was launched in February after=
=20
current NAB President and CEO Eddie Fritts announced plans to step down.=20
Fritts will remain a consultant to NAB through April 2008. During his=20
tenure at NBWA, Rehr became one of the most recognized advocates for his=20
industry and small businesses in the United States. With more than 20 years=
=20
of experience on Capitol Hill and in the lobbying community, Rehr has been=
=20
an outspoken advocate for entrepreneurs and small business before the=20
federal government. Under Rehr's leadership, NBWA won many legislative=20
battles on behalf of small business enterprises and climbed into the top=20
ten of Fortune Magazine's Power Rankings of the 25 most influential=20
lobbying groups in Washington, DC. The NBWA Political Action Committee=20
(NBWA PAC) has grown from a PAC that raised and spent a little more than=20
$400,000 each election cycle, to nearly $3 million - catapulting it into=20
the top ten disbursing PACs since 2003. Rehr, who has a doctorate in=20
economics from George Mason University, has been named a "Top Association=
=20
Lobbyist" by The Hill multiple times, and has been featured in Beachum's=20
Guide to Key Lobbyists. Rehr has also been featured in numerous major U.S.=
=20
media outlets, including the Boston Globe, Wall Street Journal, USA Today,=
=20
Washington Post, Washington Times, New York Times and ABC World News=20
Tonight. URL below includes a nice wallet size photo of Rehr; print it out=
=20
and circulate at your White Sox party tomorrow.
http://www.nab.org/Newsroom/PressRel/Releases/102005_Rehr.htm
See also:
* Broadcasters Group Taps Beer Lobbyist As New CEO
[SOURCE: National Journal's Insider Update, AUTHOR: David Hatch]
Sure, we sang yesterday morning, but it wasn't official until later in the=
=20
day... National Association of Broadcasters selected David Rehr as its new=
=20
president and chief executive officer. He replaces longtime NAB chief=20
Edward Fritts as the broadcasting industry's top lobbyist. Rehr, now=20
president of the National Beer Wholesalers Association, will need a running=
=20
start when he takes over Dec. 5 -- as congressional action looms next year=
=20
on a possible revision of the 1996 Telecommunications Act. Meanwhile,=20
broadcasters are currently waging an all-out lobbying war with cable firms=
=20
over carriage of digital television signals. A host of other issues are at=
=20
stake, including regulation of indecency over the airwaves, a date to cut=
=20
off analog television broadcasts and a subsidy program for digital=20
converter boxes. Legislation dealing with the latter two issues cleared the=
=20
Senate Commerce Committee Thursday. The learning curve might be steep for=
=20
Rehr, 46, who does not have a broadcasting background and has been focused=
=20
on alcohol beverage issues since 2000. But Rehr has much going for him,=20
lobbying sources said, including close ties to the Bush administration. He=
=20
was a "pioneer" during the 2004 presidential election, gathering $100,000=
=20
in contributions for the Bush-Cheney ticket.
http://www.njtelecomupdate.com/lenya/telco/live/tb-YBUI1129846267361.html
* NAB Names Veteran Lobbyist As New Leader
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
9126

LOBBYIST SPENDING: THE BELLS ARE RINGING
[SOURCE: National Journal's Insider Update, AUTHOR: Bara Vaida]
As the USTelecom Association this week unveiled a new round of television=
=20
advertisements to maintain their push for an overhaul of the 1996=20
Telecommunications Act, recently filed documents show just how much the=20
deep-pocketed group spent lobbying Capitol Hill during the first half of=20
2005. Between Jan. 1 and June 30, the group -- which primarily represents=
=20
the interests of local phone carriers such as former =93Baby Bells=94 Veriz=
on=20
Communications and SBC Communications -- spent $11.44 million lobbying,=20
according to Lobbying Disclosure Act documents provided by the=20
organization. For all of 2004, the USTelecom Association spent $14.78=20
million in lobby fees, according to the organization=92s Website.=20
USTelecomm=92s increase in spending occurred in tandem with the lobbying pu=
sh=20
that has been made by BellSouth, Verizon and SBC over the past year to=20
advocate for dramatic regulatory changes in the 1996 Telecommunications=20
Act. The spending paid off on Sept. 15 -- when the House Energy and=20
Commerce Committee released a draft version of a Telecom Act update.
http://www.njtelecomupdate.com/lenya/telco/live/tb-WKNU1115070261210.html

CABLE INDUSTRY: TELECOS GET WHAT THEY PAY FOR
[SOURCE: TelecomWeb]
Consumers for Cable Choice (www.consumers4choice.org) Executive Director=20
Jim Conran says that Verizon gave a $75,000 startup grant to the group,=20
which was created last June, when telcos were fighting in such states as=20
Texas for video franchise rights. CCC has become known for demanding that=
=20
=93outdated=94 video franchise requirements be reformed. Billing itself as =
a=20
national alliance of consumer advocacy groups, private citizens and=20
=93others,=94 it says the =93cable monopoly=94 has increased rates 86 perce=
nt in=20
the past decade. Despite the cash influx from the telcos, Conran insists=20
his group is independent in its positions (anyone can give him money, he=20
says). However, most of news stories on CCC's Web site focus on telco entry=
=20
into the marketplace. =93We aren=B9t against cable companies. We see cable=
=20
franchises as the last of the great monopolies in the United States,=94=20
Conran maintains.
http://www.telecomweb.com/news/1129655220.htm

QUICKLY (Ha!)

REMARKS OF FCC COMMISSIONER ADELSTEIN AT 3G TECHNOLOGY BRIEFING
[SOURCE: Federal Communications Commission]
Addressing a wireless industry event, Commissioner Adelstein spoke about=20
tower siting issues, the industry's reaction to Hurricane Katrina, and the=
=20
need for more spectrum to offer so called "3G" wireless services. He=20
concluded: "It is been an interesting few months for the mobile wireless=20
industry. As your industry continues to rightly look to the future and the=
=20
challenges and opportunities of wireless broadband, events like Hurricanes=
=20
Katrina and Rita highlight our nation's increasing reliance on "plain old"=
=20
wireless voice service. And in the midst of all this, we realize once=20
again how critical the deployment of new towers is to both expanding=20
existing services and launching new ones. I look forward to working with=20
groups like 3G Americas as we continue our collective efforts to get the=20
latest wireless services deployed to all corners of the country. From AWS=
=20
auctions to wireless broadband to 3G, I know the GSM industry will be right=
=20
there in the middle of the action."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261700A1.doc

FCC STAFF CHANGES
[SOURCE: Federal Communications Commission]
Federal Communications Commission Chairman Kevin J. Martin announced that=
=20
he has named Catherine Bohigian acting Chief of the Office of Strategic=20
Planning and Policy Analysis. He also announced that Heather Dixon will=20
serve his office as Legal Advisor for Media Issues. 1) Catherine Bohigian=
=20
most recently served as the Chairman's Senior Legal Advisor. She joined=
=20
then-Commissioner Martin's staff as a Legal Advisor for media issues in=20
2001. Before joining the Commission, Ms. Bohigian was an attorney in=20
private practice focusing on communications matters. Ms. Bohigian earned=
=20
her B.A. in Public Policy Studies, summa cum laude, from Duke University=20
and her law degree, cum laude, from Harvard Law School. 2) Heather Dixon=20
most recently served as an Attorney Advisor in the Media Bureau. Before=20
joining the Commission, Ms. Dixon was an attorney in the communications=20
practice at the law firm of Wiley, Rein and Fielding, where she focused on=
=20
broadcast, cable, and satellite issues. Ms. Dixon earned her B.S., magna=
=20
cum laude, from Virginia Tech. She earned her law degree from the=20
University of Virginia School of Law.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261704A1.doc

COX, NEXSTAR SETTLE RETRANS SPAT
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano and John M. Higgins]
Small-market TV station group Nexstar Broadcasting and cable operator Cox=
=20
Communications have settled a 10-month-long retransmission consent fight.=
=20
Nexstar has taken a hard line in negotiations with cable operators,=20
demanding that systems pay cash for the right to retransmit their broadcast=
=20
stations. Because Cox balked, Nexstar stripped its stations off Cox systems=
=20
in Texas, Arkansas, Kansas, Louisiana and Missouri. The new long-term deal,=
=20
which applies to 12 Nexstar stations and 9 Mission Broadcasting-owned=20
outlets, provides carriage of the TV stations' analog and digital signals,=
=20
including some digital broadcast channels that the stations could launch in=
=20
the future.
http://www.broadcastingcable.com/article/CA6276548?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

BELO CLAIMS $7.1M IN HURRICANE DAMAGES
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
Belo Corp. says the damage of Hurricanes Katrina and Rita will cost the=20
company $7.1 million and delay its acquisition of New Orleans UPN station=
=20
WUPL from Viacom. In New Orleans, CBS affiliate WWL, one of Belo=92s top=20
stations, was hard hit by Katrina. Several weeks later, its Houston CBS=20
affiliate, KHOU, was impacted to a lesser extent by Rita. Belo says the=20
storms cost the company $3 million in revenue and $4.1 million in expenses.
http://www.broadcastingcable.com/article/CA6276563?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

THE ECONOMIC CASE FOR RE-ALLOCATING TO UNLICENSED SERVICE THE UNUSED=20
SPECTRUM BETWEEN TV CHANNELS 2 AND 51
[SOURCE: New America Foundation, AUTHOR: J.H. Snider]
The broadcast TV band is famously underutilized largely because of the=20
large number of vacant guard band TV channels that have historically served=
=20
as an interference buffer between local TV stations. But just as air=20
conditioning technology made the Southwest into prime real estate, digital=
=20
technology is transforming the TV guard band spectrum into prime spectrum=
=20
real estate. Indeed, one of the major debates of the digital TV (DTV)=20
transition concerns how this so-called TV band =93white space=94 will be=20
divvied up. It=92s in the TV broadcast industry=92s interest to keep others=
out=20
of the white space and gradually win free access to it for itself. This=20
Working Paper argues that it=92s in the public=92s interest for the white s=
pace=20
to be reallocated in accord with what we now know to be the most productive=
=20
economic use of this band: unlicensed wireless broadband service.
http://www.newamerica.net/Download_Docs/pdfs/Doc_File_2630_1.pdf

BLOGGERS WILL INTERPRET NEWS -- FOR A FEE
[SOURCE: Associated Press, AUTHOR: Frank Bajak]
Techdirt, a 12-person corporate intelligence outfit, is offering a new=20
customized service dubbed InfoAdvisor that delivers tailored Web feeds from=
=20
news outlets and blogs pertinent to a customer's interest. InfoAdvisor's=20
journalists and analysts edit those feeds and provide commentary.
http://news.yahoo.com/s/ap/20051020/ap_on_hi_te/blogging_for_fee_1

COMING TO A CHURCH NEAR YOU
[SOURCE: Washington Post, AUTHOR: Alan Cooperman]
"Left Behind: World at War," the third movie based on the Left Behind=20
series of novels about Armageddon and the Second Coming of Jesus, will open=
=20
tonight on 3,200 screens across the country. But it will not be shown in a=
=20
single commercial theater. Although more than 70 million copies of the=20
novels by Tim LaHaye and Jerry B. Jenkins have been sold, the previous two=
=20
movies flopped at the box office. So, this time, Sony Pictures=20
Entertainment is leaving the multiplexes behind. "World at War" will break=
=20
out exclusively in churches.
http://www.washingtonpost.com/wp-dyn/content/article/2005/10/20/AR200510...
2186.html
(requires registration)

TELECOM OPINION DAY ON THE HILL

* First responders need better communication
[SOURCE: The Hill 10/20, AUTHOR: Sen. Ted Stevens (R-Alaska)]
[Commentary] Emergency personnel and first responders must be able to=20
communicate with one another during natural disasters and other crises.=20
Significant progress has been made since the attacks on Sept. 11 revealed=
=20
problems in our public safety communications infrastructure, but as=20
Hurricanes Katrina and Rita demonstrated we have more work to do. Many=20
first responders still cannot talk with one another because their radios=20
and communications networks are not compatible. The public-safety community=
=20
operates on 60,000 individual systems and has 3 million public-safety=20
operators. Coordinating these systems and users is a great challenge.=20
Achieving true interoperability will require several things, among them=20
coordination, planning, training, expert equipment, proper standards and=20
funding. One initiative that will improve this situation is the DTV bill=20
our committee is working on, which will be considered later this month.=20
This bill will set a specific date by which broadcasters will be required=
=20
to turn over 24 megahertz of analog spectrum in the 700-megahertz band. A=
=20
portion of this spectrum will be exclusively dedicated to interoperability.=
=20
Our committee is dedicated to achieving true communications=20
interoperability, and we are doing our part to ensure those first to the=20
scene in a crisis have the resources they need. In the reconciliation bill,=
=20
we will propose to set aside $1 billion to provide the money needed to=20
acquire interoperable equipment. The bill will be marked up this week in=20
committee and considered by the Budget Committee on Oct. 25. Providing both=
=20
the spectrum and the money needed to buy the radios to utilize the spectrum=
=20
will be major steps forward in achieving the interoperability our first=20
responders need.
http://thehill.com/thehill/export/TheHill/News/Frontpage/102005/sssteven...
tml

* Digital-TV Debate should Focus on Consumers, First Responders
[SOURCE: The Hill 10/20, AUTHOR: Rep. John Dingell (D-MI)]
[Commentary] One of the critical issues facing Congress this fall is how to=
=20
complete the transition from analog to digital television broadcasting. If=
=20
done properly, this transition will produce significant benefits for the=20
public, first responders and wireless innovators. But all will pay if it is=
=20
not done right. The good news is that there are many areas of agreement.=20
Most agree that establishing a hard date is necessary to end the=20
transition. There is also general agreement that 2009 is an appropriate=20
timeframe. And, although draft legislation put forward by my Republican=20
colleagues offered no transition assistance for consumers, there now=20
appears to be a growing appreciation of the need to assist consumers in=20
this government-induced change. The bad news is that House Republicans, to=
=20
protect their tax cuts, appear intent on limiting this assistance, forcing=
=20
Americans to reach into their wallets to purchase equipment to keep their=
=20
television sets working. Although the government will likely reap at least=
=20
$10 billion in revenue from auctioning the returned broadcast spectrum,=20
some in Congress want to curtail artificially the amount used to cover=20
transition expenses imposed on ordinary people. That could force millions=
=20
of consumers to pay a television tax of $20 or more per set just to keep=20
their sets working. Why should ordinary people pay for a government=20
decision that makes their television sets obsolete? Moreover, nearly 21=20
million U.S. television households, which are disproportionately low-income=
=20
and minority, rely exclusively on over-the-air reception. If Congress=20
chooses to accelerate the return of analog broadcast spectrum, why should=
=20
consumers who rely on this spectrum for their local news, weather and=20
emergency alerts be taxed to pay for it? The digital-television transition=
=20
should not force billions of dollars of transition costs on the=20
unsuspecting American people and should not leave first responders without=
=20
the resources they need.
http://thehill.com/thehill/export/TheHill/News/Frontpage/102005/ssdingel...
tml

* Transition to digital must protect interests of American public
[SOURCE: The Hill 10/20, AUTHOR: Rep. Diane Watson (D-CA)]
[Commentary] The U.S. broadcast television industry is on the brink of a=20
historic shift from the old analog world to the brave new world of digital=
=20
technology. The new technology could potentially open the door to a richer=
=20
and broader variety of telecommunications services for all Americans. When=
=20
the transition to digital television (DTV) is completed, each station will=
=20
be able to split its signal into a maximum of six separate broadcast=20
channels. In 1996, the federal government granted broadcasters a free=20
license to use the enormously increased digital broadcast capacity in=20
exchange for their obligation to serve =93the public interest, convenience=
=20
and necessity.=94 Unfortunately, broadcasters have failed to uphold their e=
nd=20
of the bargain. A report, =93Broken Promises: How Digital Broadcasters are=
=20
Failing to Serve the Public Interest,=94 has documented broadcasters=92 fai=
lure=20
to air an acceptable amount of public-interest and local programming. It=20
examined more than 20,000 hours of programming offered by 91 digital=20
commercial broadcasters in 16 media markets. The report found a meager 0.3=
=20
percent of digital programming focused on local public affairs and little=
=20
evidence that broadcasters are using their multicasting capabilities to=20
provide enhanced local public-interest programming. Requiring television=20
stations to live up to their public-interest obligations is a small=20
financial cost for the industry to bear. It will ensure that local matters=
=20
receive adequate coverage via the public airwaves and that a diversity of=
=20
opinions is given a voice in the marketplace of ideas. The result will only=
=20
strengthen the free exchange of information that is essential to our democr=
acy.
http://thehill.com/thehill/export/TheHill/News/Frontpage/102005/sswatson...
ml

* Addressing the need for media ownership reform
[SOURCE: The Hill 10/20, AUTHOR: Rep. Maurice Hinchey (D-NY)]
[Commentary] While much of our nation=92s attention has understandably turn=
ed=20
to recovery efforts in the Gulf Coast, the war in Iraq, homeland security=
=20
and other timely issues, a topic at the heart of these matters, media=20
ownership, has largely gone ignored. How and from where Americans receive=
=20
their news on these and other issues are of critical importance. Yet this=
=20
country=92s media ownership rules have limited our sources of information,=
=20
resulting in inadequate and biased news reporting -- the opposite of what=
=20
our public needs. It is essential that Congress act to reassess our=20
telecommunications policies and regulations to uphold fairness and=20
democracy in our society. The American public is largely unaware that the=
=20
information it receives from the media almost always originates from the=20
same few sources. This phenomenon shrinks the marketplace of ideas and=20
prevents new and independent voices from entering the mainstream. A handful=
=20
of companies are permitted to decide what the American public can or cannot=
=20
see and hear in media and are under little obligation to meet demands for=
=20
informative, quality programming. Our government must dedicate great=20
attention and consideration to the improvement of America=92s malfunctionin=
g=20
news-distribution system. In an age when possibilities for national and=20
global communication are virtually endless, we must not allow a small=20
number of corporations to control the flow of information. Rather, Congress=
=20
must ensure that our citizens are provided access to diverse and=20
educational programming from a variety of sources and presented with ways=
=20
to express their opinions regarding media policy decisions. The survival of=
=20
our democratic republic depends on it.
http://thehill.com/thehill/export/TheHill/News/Frontpage/102005/sshinche...
tml

* Communications Innovation Needs to be Set Free Now
[SOURCE: The Hill 10/20, AUTHOR: Sen. John Ensign (R-NV)]
[Commentary] As Congress sets about the important work of updating the=20
nation=92s nearly-decade-old telecom policy, lawmakers need to empower=20
consumers to choose the best products at the best prices. A 21st-century=20
communications policy should strive for elegant simplicity, embracing the=
=20
market- based principles espoused by our forefathers that have made our=20
economy the strongest in the world. Specifically, the four pillars of a=20
21st-century communications framework are: 1) Let consumers pick winners=20
and losers, 2) Eliminate the patchwork quilt of regulations, 3) Focus on=20
services, not technologies and 4) Ensure fair government competition with=
=20
private industry. Comprehensive telecom reform will be a tall order in=20
Washington, but one we can't afford to shy away from as our nation shifts=
=20
from an industrial to an information economy. Unfortunately, opponents of=
=20
such reform may still prefer the past to the future. They continue to=20
insist on the monolithic notion that only cable companies can compete with=
=20
other cable companies for video customers and the same in the wireless and=
=20
landline worlds, despite well-rounded competition across today=92s technolo=
gy=20
landscape. At the other end of the spectrum are those who would have the=20
government only protect new technologies, leaving legacy networks upon=20
which many depend on mired in regulations that stifle investment to the=20
detriment of consumers. The choices emerging today across the=20
communications landscape were not granted by government fiat but by=20
American ingenuity. They are choices the government should not make for=20
consumers, but rather encourage across the board with a light federal=20
regulatory touch and the tacit acknowledgement that sometimes the best=20
leadership is the least intrusive.
http://thehill.com/thehill/export/TheHill/News/Frontpage/102005/ssensign...
ml

* Providing Broadband and Choice to People all Across America
[SOURCE: The Hill 10/20, AUTHOR: Sen. Jay Rockefeller (D-WV)]
[Commentary] Ten years ago, as we debated and shaped the 1996=20
Telecommunications Act, it was important that any new laws advanced three=
=20
core principles: competition, broadband deployment and universal service.=
=20
Now, with the vast technology and industry changes over the past decade, we=
=20
find ourselves on the verge of another telecommunications rewrite. And as=
=20
we work on these efforts we must remember that while the technology may=20
have changed these timeless principles should still govern our debate and=
=20
be a part of the laws we ultimately pass. One way to advance competition=20
and broadband deployment is to pass the Video Choice Act of 2005, which=20
Sen. Gordon Smith (R-Ore.) and I introduced. This bill would be beneficial=
=20
for consumers because it would spur competition and deliver broadband=20
deployment by encouraging traditional telephone companies to offer the=20
bundle of Internet, video and telephone services consumers are demanding.=
=20
Sen. Smith and I have crafted a narrowly tailored bill that will promote=20
the entry of new competitors into the video marketplace and foster an=20
exponential growth in advanced broadband networks. This competition will=20
translate into lower prices and better technology for American consumers.=
=20
These are principles that we should live by.
http://thehill.com/thehill/export/TheHill/News/Frontpage/102005/ssrockef...
er.html

* Connecting America's rural areas to broadband
[SOURCE: The Hill 10/20, AUTHOR: Rep. Mark Udall (D-CO)]
[Commentary] In 1930, nearly 90 percent of urban areas -- but only 10=20
percent of rural areas -- had electricity. In 1936, the United States=20
launched a massive campaign to bring electricity to rural America. By 1939,=
=20
rural households with electricity had risen to 25 percent, and by the early=
=20
1970s about 98 percent of all farms in the United States had electricity.=
=20
This very successful program introduced a new quality of life to rural=20
areas. As Congress begins the process of overhauling the 1996=20
telecommunications law, we must address the need for the United States to=
=20
embark on a similarly large-scale effort to bring new technologies to rural=
=20
America. Today, with high-speed Internet readily available in urban areas,=
=20
many rural communities still lack service or must pay extremely high rates.=
=20
History has shown us that improvements in information sharing have resulted=
=20
in increased productivity, a better-educated society and the growth of=20
technology. The development and mainstream use of the Internet has changed=
=20
how we conduct business and provide community services and has=20
revolutionized information sharing throughout the world. Yet in a ranking=
=20
of developed nations, the U.S. is now 13th in the world in broadband=20
penetration. We must do better. Universal access to broadband services is=
=20
an ambitious but achievable goal. It will help the telecommunications=20
industry by expanding broadband subscribers and strengthen our overall=20
economy by contributing to the increase of commerce in rural areas. But=20
access to high-speed Internet has more than just economic implications =97 =
it=20
enhances our quality of life and provides Americans with new opportunities.=
=20
Like the rural electrification program of the 1930s, it is time for us to=
=20
bring high-speed Internet to our rural communities to ensure that the=20
information revolution of the 21st century leaves no American behind.
http://thehill.com/thehill/export/TheHill/News/Frontpage/102005/ssudall....

* Deregulate Now
[SOURCE: The Hill 10/20, AUTHOR: Sen. John Sununu (R-NH)]
For all the speeches, declarations, opening statements, meetings and=20
interest, Congress has made little progress in passing a forward-looking=20
telecommunications bill that reflects the current and future marketplace.=
=20
Meanwhile, we have preserved the broken, outdated models and provisions of=
=20
the Communications Act of 1934 as if the status quo provided stability,=20
certainty or comfort. It provides none of this. In the coming months,=20
several reform proposals will be put forward for Congress=92s consideration=
.=20
Let=92s hope that these efforts do not contain pages upon pages of new=20
legislative text preserving portions of current law under the guise of=20
deregulation. I offer a simple solution for the faint-hearted: Go talk to=
=20
an eighth-grader (any eighth-grader). They will reassure you clearly and=20
unequivocally that these rules make no sense. Go ahead and get rid of them.=
=20
=85 It will be all right.
http://thehill.com/thehill/export/TheHill/News/Frontpage/102005/sssununu...
ml

* Are you aware of spyware on your home computer?
[SOURCE: The Hill 10/20, AUTHOR: Rep. Mary Bono (R-CA)]
[Commentary] Imagine leaving the door to your home open, allowing intruders=
=20
to enter secretly and record your personal information, such as your bank=
=20
account and Social Security number, and then sell that information to a=20
stranger. Certainly most people lock their doors to prevent this from=20
taking place; however, virtually anyone who has logged on to the Internet=
=20
is unknowingly allowing this intrusion to take place on their computer.
http://thehill.com/thehill/export/TheHill/News/Frontpage/102005/ssbono.html

ADDITIONAL DTV TRANSITION COVERAGE

* DTV Subsidy Covers All Analog-Only Sets
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Come over here, Joe Consumer and I'll let tell ya how your ol'Uncle Sam is=
=20
gonna take care of you. See we are about to make your old TV set obsolete,=
=20
but its OK, we're gonna give you $40 so it only costs you $10 to fix it.=20
Stop scratching you head, my boy, it makes perfect sense based on 9/11.=20
Senate Commerce Committee Chairman Ted Stevens (R-Alaska) said Wednesday=20
that the DTV transition bill being marked up Thursday would set aside $3=20
billion for a digital-to-analog set-top subsidy to cover all analog-only TV=
=20
sets that need one after the DTV transition. The idea is to have a $10=20
co-pay per set for boxes costing roughly $50 dollars. The converters will=
=20
be necessary for analog-only sets when broadcasters pull the plug on=20
analog, a move scheduled for April 7, 2009. There had been debate over=20
whether to have a means test or to cover all sets.
http://www.broadcastingcable.com/article/CA6276041?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

* Consumers Union Applauds $3 Billion Commitment to Help Ensure Televisions=
=20
Will Keep Working After Digital TV Transition
[SOURCE: Consumers Union press release]
By committing $3 billion from the auction of public airwaves, the Senate=20
committee should be able to develop a meaningful program that will help=20
ensure consumers=92 perfectly good television sets will keep working after=
=20
the digital transition. With four in ten households and up to 80 million=20
otherwise fully functional sets adversely affected by the=20
government-mandated transition, this funding level will likely help offset=
=20
the significant costs of the transition on many households. However, many=
=20
important details regarding the transition to digital television must still=
=20
be worked out. For instance, Congress must still describe how consumers=20
will be compensated, and outline the level of compensation that will be=20
provided. Importantly, Congress should also ensure that part of the=20
airwaves be made available for open, public use to foster affordable=20
wireless broadband services. We applaud the Committee for its efforts=20
today, and look forward to continuing to work with members of the Senate=20
and House to ensure that the digital transition benefits all Americans."
http://www.consumersunion.org/pub/core_telecom_and_utilities/002778.html...
re
* AARP =95 Consumer Federation of America =95 Consumers Union =95 U.S. PIRG=
=20
letter to Senate Commerce Committee on DTV subsidies
http://www.consumersunion.org/pub/core_telecom_and_utilities/002774.html...
re
* Your Guide to Consumer Compensation and DTV (from HearUsNow.org)
http://www.hearusnow.org/tvradiocable/14/

* A Bill Advancing Digital TV Is Approved by Senate Panel
The legislation adopted on Thursday was silent on one of the most=20
contentious issues posed by the switch to digital programs - whether cable=
=20
companies would be required to carry all the new digital programs=20
transmitted by broadcasters. The new technology enables the broadcasters to=
=20
transmit up to six programs simultaneously in the same space where they now=
=20
transmit one. They have insisted on legislation that imposes digital "must=
=20
carry" provisions because, they say, it is essential to the economics of=20
the industry. But the cable companies have balked, arguing that such a=20
requirement would be too costly. The broadcasters and the cable companies=
=20
have produced competing studies, with cable providers complaining that the=
=20
costs involved in must carry provisions could be billions of dollars,=20
although some independent analysts have taken issue with the studies. A=20
recent report on the matter by analysts at Legg Mason said, "We view these=
=20
statements as normal political hyperbole and would note that the worst-case=
=20
scenarios are unlikely to play out as argued in the context of lobbying."=
=20
Another behind-the-scenes fight has been brewing over how the government=20
should allocate the so-called "white space" on the spectrum, which viewers=
=20
now see on those channels that do not carry programs, like Channel 3 in New=
=20
York. Some technology and Internet service providers, along with consumer=
=20
groups, have petitioned the Federal Communications Commission to approve a=
=20
new generation of unlicensed wireless devices to make use of the white=20
space. Their efforts are opposed by the broadcasters, who say that those=20
devices would interfere with broadcasting transmission. The transition has=
=20
also prompted lobbying by the equipment makers, including Cisco Systems and=
=20
Intel, and by software companies like Microsoft, which has urged lawmakers=
=20
to preserve a significant amount of the spectrum for free or unlicensed=20
use. Several lobbyists said this week they had heard from lawmakers that in=
=20
recent months Bill Gates, Microsoft's co-founder, had pressed the issue=20
with members of Congress.
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2005/10/21/politics/21digital.html?pagewanted=3Dall
(requires registration)

* Senate Panel OKs =9109 Deadline For Digital TV Transition
[SOURCE: Congress Daily, AUTHOR: Drew Clark]
In a statement after the vote, Sen John Kerry (D-MA) charged: =93We've talk=
ed=20
for years about the importance of getting new spectrum in the hands of our=
=20
first responders. But today that priority was a casualty of the clout that=
=20
powerful interests wield in Congress and a process driven by gimmicks aimed=
=20
at making a fiscally irresponsible budget more palatable."
http://www.njtelecomupdate.com/lenya/telco/live/tb-DDPS1129850712651.html

* Senate Panel Votes 2009 Digital Transition Date
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
9068

* Senate Panel Sets a 2009 Date For Transition to All-Digital TV
http://online.wsj.com/article/SB112985500074975139.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

* Bill seeks $3B to convert analog
http://www.usatoday.com/printedition/money/20051021/digitaltv21.art.htm

* Senate panel sets end to analog TV broadcasts
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2005-10-20T213211Z_01_KRA071635_RTRUKOC_0_US-CONGRESS-DIGITALTV.xml
--------------------------------------------------------------
I've got the Sox in 6 -- any other opinions?
--------------------------------------------------------------
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.
--------------------------------------------------------------

First Responders need Better Communication

[Commentary] Emergency personnel and first responders must be able to communicate with one another during natural disasters and other crises. Significant progress has been made since the attacks on Sept. 11 revealed problems in our public safety communications infrastructure, but as Hurricanes Katrina and Rita demonstrated we have more work to do. Many first responders still cannot talk with one another because their radios and communications networks are not compatible. The public-safety community operates on 60,000 individual systems and has 3 million public-safety operators. Coordinating these systems and users is a great challenge. Achieving true interoperability will require several things, among them coordination, planning, training, expert equipment, proper standards and funding. One initiative that will improve this situation is the DTV bill our committee is working on, which will be considered later this month. This bill will set a specific date by which broadcasters will be required to turn over 24 megahertz of analog spectrum in the 700-megahertz band. A portion of this spectrum will be exclusively dedicated to interoperability. Our committee is dedicated to achieving true communications interoperability, and we are doing our part to ensure those first to the scene in a crisis have the resources they need. In the reconciliation bill, we will propose to set aside $1 billion to provide the money needed to acquire interoperable equipment. The bill will be marked up this week in committee and considered by the Budget Committee on Oct. 25. Providing both the spectrum and the money needed to buy the radios to utilize the spectrum will be major steps forward in achieving the interoperability our first responders need.

Digital-TV Debate should Focus on Consumers, First Responders

[Commentary] One of the critical issues facing Congress this fall is how to complete the transition from analog to digital television broadcasting. If done properly, this transition will produce significant benefits for the public, first responders and wireless innovators. But all will pay if it is not done right. The good news is that there are many areas of agreement. Most agree that establishing a hard date is necessary to end the transition. There is also general agreement that 2009 is an appropriate timeframe. And, although draft legislation put forward by my Republican colleagues offered no transition assistance for consumers, there now appears to be a growing appreciation of the need to assist consumers in this government-induced change. The bad news is that House Republicans, to protect their tax cuts, appear intent on limiting this assistance, forcing Americans to reach into their wallets to purchase equipment to keep their television sets working. Although the government will likely reap at least $10 billion in revenue from auctioning the returned broadcast spectrum, some in Congress want to curtail artificially the amount used to cover transition expenses imposed on ordinary people. That could force millions of consumers to pay a television tax of $20 or more per set just to keep their sets working. Why should ordinary people pay for a government decision that makes their television sets obsolete? Moreover, nearly 21 million U.S. television households, which are disproportionately low-income and minority, rely exclusively on over-the-air reception. If Congress chooses to accelerate the return of analog broadcast spectrum, why should consumers who rely on this spectrum for their local news, weather and emergency alerts be taxed to pay for it? The digital-television transition should not force billions of dollars of transition costs on the unsuspecting American people and should not leave first responders without the resources they need.

Transition to Digital must Protect interests of American Public

[Commentary] The U.S. broadcast television industry is on the brink of a historic shift from the old analog world to the brave new world of digital technology. The new technology could potentially open the door to a richer and broader variety of telecommunications services for all Americans. When the transition to digital television (DTV) is completed, each station will be able to split its signal into a maximum of six separate broadcast channels. In 1996, the federal government granted broadcasters a free license to use the enormously increased digital broadcast capacity in exchange for their obligation to serve “the public interest, convenience and necessity.” Unfortunately, broadcasters have failed to uphold their end of the bargain. A report, “Broken Promises: How Digital Broadcasters are Failing to Serve the Public Interest,” has documented broadcasters’ failure to air an acceptable amount of public-interest and local programming. It examined more than 20,000 hours of programming offered by 91 digital commercial broadcasters in 16 media markets. The report found a meager 0.3 percent of digital programming focused on local public affairs and little evidence that broadcasters are using their multicasting capabilities to provide enhanced local public-interest programming. Requiring television stations to live up to their public-interest obligations is a small financial cost for the industry to bear. It will ensure that local matters receive adequate coverage via the public airwaves and that a diversity of opinions is given a voice in the marketplace of ideas. The result will only strengthen the free exchange of information that is essential to our democracy.

Addressing the Need for Media Ownership Reform

[Commentary] While much of our nation's attention has understandably turned to recovery efforts in the Gulf Coast, the war in Iraq, homeland security and other timely issues, a topic at the heart of these matters, media ownership, has largely gone ignored. How and from where Americans receive their news on these and other issues are of critical importance. Yet this country's media ownership rules have limited our sources of information, resulting in inadequate and biased news reporting -- the opposite of what our public needs. It is essential that Congress act to reassess our telecommunications policies and regulations to uphold fairness and democracy in our society. The American public is largely unaware that the information it receives from the media almost always originates from the same few sources. This phenomenon shrinks the marketplace of ideas and prevents new and independent voices from entering the mainstream. A handful of companies are permitted to decide what the American public can or cannot see and hear in media and are under little obligation to meet demands for informative, quality programming. Our government must dedicate great attention and consideration to the improvement of America's malfunctioning news-distribution system. In an age when possibilities for national and global communication are virtually endless, we must not allow a small number of corporations to control the flow of information. Rather, Congress must ensure that our citizens are provided access to diverse and educational programming from a variety of sources and presented with ways to express their opinions regarding media policy decisions. The survival of our democratic republic depends on it.