October 2005

Viacom Said to Pull Plug on Pursuit of Dreamworks

[SOURCE: Los Angeles Times, AUTHOR: Claudia Eller]
Paramount Pictures' parent company, Viacom Inc., has nixed the idea of making a bid for DreamWorks SKG, according to three sources inside Viacom and Paramount. The sources said that Viacom Chairman Sumner Redstone, who controls the board, worried that shareholders and potential investors would balk at a major acquisition — DreamWorks is asking about $1 billion -- at a time when Viacom is poised to split into two publicly traded companies.

Musical ‘heart and soul' back on the air

[SOURCE: USAToday, AUTHOR: Bill Nichols]

NBC Wants Its Old Favorite Night Back

The significance of winning Thursday night is all about money. It is, by far, the biggest night for television advertising because many advertisers who need to do big weekend business - starting with movie companies, but also including car companies and fast food restaurants - will pay a premium to reach viewers on Thursday night, the last big night of television before the weekend starts. Leslie Moonves, the CBS chief executive, said last spring that taking control of Thursday would mean hundreds of millions of dollars in additional revenues for his network. Yesterday he said that strategy had paid off with CBS adding about $400 million more in revenues this year.

Women Under Represented in Media

[SOURCE: Ms Magazine]

Benton's Communications-related Headlines For Thursday October 20, 2005

The Public Technology Institute is hosting a discussion on municipal=20
broadband networks today. For this and other upcoming media policy events,=
=20
see http://www.benton.org

TELEVISION
Stevens Seeking Consensus on DTV Bill That Avoids 'Byrd Rule'
House, Senate Panels At Odds On Converter Box Subsidies
New Language Floated On Digital Audio Piracy
Sharing The Airwaves
Subcommittee Gets Earful on Video Competition
FCC Eyeing Local Franchises?
Who Do You Say That I Am?

INTERNET
Lawmakers urge US to Keep Control of Internet
Fed-Up Cities Seek to Provide Net Access
Big Brother Lurking in WiFi, Mobile Services
A Web on the Grid
As More Cellphones Link to Internet, Threat of Viruses Grows

JOURNALISM
Senators: Bloggers may not be true journalists
Westin: ABC Affected By DOJ Climate
Sinclair Sues Former D.C. Bureau Chief

OWNERSHIP
Phone Users May Get None of Merger Savings
Media Companies Go Too Far in Curbing Consumers' Activities
Publishers throw book at Google, again
Viacom Said to Pull Plug on Pursuit of Dreamworks

QUICKLY -- Musical =91heart and soul' back on the air; Women Under=20
Represented in Media; U.S. court orders music site to change its tune; The=
=20
Merger of Telecom and IT; NAB to Roll out the Barrel; The Importance of=20
Thursday Nights;

TELEVISION

STEVENS SEEKS CONSENSUS ON DTV BILL THAT AVOIDS 'BYRD RULE'
The Senate Commerce Committee is to consider today a bill that would set a=
=20
hard date (April 7, 2009) for the end of analog TV broadcasts in the US.=20
But, as senators are want to do, a number of Republicans are planning to=20
add amendments to a bill drafted by Committee Chairman Ted Stevens=20
(R-Alaska) His goal is to pass a bill as clean as possible of nonfunding=20
provisions. Whatever is passed is headed to a October 26 mark-up hearing by=
=20
the Senate Budget Committee and inclusion in budget reconciliation=20
legislation (its all about the money, you know.) Chairman Stevens would=20
like to save nonfunding provisions -- concerning multicasting,=20
downconversion of analog signals to digital for cable operators, etc -- for=
=20
a second digital television bill that could be attached to the budget=20
legislation when it reaches the Senate floor. The budget legislation would=
=20
set aside $3 billion to subsidize consumer digital-to-analog converter=20
boxes (see more on set-top subsidies below). The second digital television=
=20
bill would 1) spell out how that subsidy would work , 2) earmark $200=20
million for conversion of TV translator stations from analog to digital,=20
and 3) set aside $250 million for an emergency 911 services. The second=20
bill might also cover broadcasters public interest obligations.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)
* Full text of Sen Stevens' remarks
http://commerce.senate.gov/newsroom/printable.cfm?id=3D247425

HOUSE, SENATE PANELS AT ODDS ON CONVERTER BOX SUBSIDIES
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
The Senate and House Commerce Committees have come up with dramatically=20
different figures to cover the cost of providing consumers with set-top=20
converter boxes designed to allow viewers to receive digital television=20
broadcasts after analog broadcasting is cut off. The Senate Commerce=20
Committee =96 which takes up digital TV transition legislation this afterno=
on=20
-- anticipates spending $3 billion to subsidize up to 60 million converter=
=20
boxes at a cost of $50 or $60 apiece, Commerce Chairman Ted Stevens=20
(R-Alaska) said in a luncheon speech to the Free Enterprise Fund. Consumers=
=20
seeking to purchase the boxes would have a $10 "co-pay."
Meanwhile, House Energy and Commerce Committee leaders -- who may vote on=
=20
DTV transition legislation as early as next week -- continue to insist on=
=20
spending less than $1 billion to subsidize the converter boxes. Due to=20
pressures imposed by House leaders to increase the savings achieved during=
=20
the forthcoming budget reconciliation process, the House Commerce Committee=
=20
will have far less spending flexibility than its Senate counterpart.=20
Involved House members are also said to favor a $20 co-pay -- $10 higher=20
than the Senate -- and want to limit the number converter boxes per=20
household. Sen Stevens said his measure would not limit the number of boxes=
=20
per household.
http://www.njtelecomupdate.com/lenya/telco/live/tb-QHPG1129754438332.html
* $3B Proposed for TV Conversions
http://www.washingtonpost.com/wp-dyn/content/article/2005/10/19/AR200510...
2219.html

NEW LANGUAGE FLOATED ON DIGITAL AUDIO PIRACY
[SOURCE: Technology Daily, AUTHOR: Sarah Lai Stirland]
Public Knowledge circulated language that it said the recording industry=20
wants lawmakers to include in upcoming legislation on the transition to=20
digital television. The language, purportedly crafted by the Recording=20
Industry Association of America, would authorize the FCC to implement rules=
=20
specifying that digital audio broadcasters must encrypt their signals --=20
and that digital audio manufacturers must make devices capable of=20
decrypting the broadcasts. The language also would allow the FCC to=20
prohibit the use of software programs to snag segments of programming from=
=20
broadcasts. "We hear that the language...is a candidate for: a) the=20
so-called "policy" DTV bill, if one emerges; or b) a floor amendment when=
=20
the budget resolution goes to the floor," Public Knowledge Communications=
=20
Director Art Brodsky said. He was referring to the budget reconciliation=20
process, which Congress has begun to undertake this week. Both Public=20
Knowledge and the Consumer Electronics Association oppose including the=20
proposal in upcoming legislation.
http://www.njtelecomupdate.com/lenya/telco/live/tb-NMWR1129752672124.html

SHARING THE AIRWAVES
[SOURCE: TomPaine.com, AUTHOR: Dawn Holian, Common Cause]
[Commentary] Radio frequencies were jammed. Cell phone towers were wiped=
=20
out. Government officials had to resort to sending runners back and forth=
=20
in order to share information. These are just a few of the communication=20
failures that left police and first responders throughout the Gulf Coast=20
deaf, dumb and blind in those critical hours and days following Hurricane=
=20
Katrina. And the blame for the communication breakdowns rests squarely at=
=20
the feet of our legislators in Congress, who have capitulated to the=20
broadcast industry on spectrum issues for far too long. So what do=20
television broadcasters have to do with emergency communication? They both=
=20
use the airwaves=97also known as spectrum=97to operate. Those airwaves are=
=20
public property just like our national parks and forests. Congress=20
originally gave TV broadcasters licenses to use the best airwaves: what=20
former Federal Communications Chairman Reed Hundt called the =93beachfront=
=20
property on the Cyber Sea.=94 But technological advances now allow more=20
efficient use of the airwaves, and giving the =93beachfront property=94 to=
=20
television broadcasters no longer makes sense. So in 1996, Congress gave=
=20
each television station a second license in order to facilitate the=20
transition to digital broadcasting. The plan was that, within a short=20
time, they would switch over to digital broadcasting entirely and return=20
their =93beachfront property=94 so that those airwaves could be reallocated=
for=20
other purposes -- including public safety. Congress has an opportunity this=
=20
week to undo some of its previous damage when they once again take up=20
legislation dealing with the digital television transition. Insiders=20
expect that Congress will set a so-called hard deadline for the return of=
=20
the =93beachfront=94 airwaves -- but many questions remain about how those=
=20
airwaves will then be used. Clearly, one priority must be fulfilling the=
=20
promise made to our first responders nearly a decade ago to give them=20
increased access to the airwaves. Another priority should be to ensure that=
=20
some airwaves are set aside for public use.
http://www.tompaine.com/articles/20051019/sharing_the_airwaves.php

SUBCOMMITTEE GETS EARFUL ON VIDEO COMPETITION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Depending on whom you were listening to at a Senate Judiciary Hearing=20
yesterday, the proposed divvying up of Adelphia cable systems between=20
Comcast and Time Warner Cable is either a boon to the bankrupt company's 5=
=20
million subscribers, or another step toward cable's monopoly of video=20
distribution. The hearing had two parts: the Adelphia-Time Warner-Comcast=
=20
deal and the entry of telephone companies into the video delivery market.=
=20
Congress is preparing to update the 1996 Telecommunications Act in light of=
=20
market and technological changes, including media concentration and the=20
rise of alternative providers like satellite, telcos, wireless and the=20
Internet. Witness Mark Cooper of Consumer's Union argued that the=20
clustering of the divvied-up systems would lead to greater market power for=
=20
Comcast and Time Warner, including control over programming, which he said=
=20
they already exerted to favor their affiliated networks.
http://www.broadcastingcable.com/article/CA6276032?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* For links to testimony (eventually) see:
http://judiciary.senate.gov/hearing.cfm?id=3D1642

FCC EYEING LOCAL FRANCHISES?
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Cable=92s political war with local phone giants, so far played out at the=
=20
state and local levels, could be moving to higher ground: the Federal=20
Communications Commission. According to two high-ranking FCC officials,=20
Chairman Kevin Martin is ready to examine the scope of the agency=92s=20
authority to elbow aside local governments if they are hindering efforts by=
=20
SBC and Verizon to obtain permission to offer video service. Chairman=20
Martin is hoping to launch the effort formally at the agency=92s Nov. 3=20
public meeting. The officials did not say whether the FCC would begin with=
=20
a notice of inquiry, which is designed to collect information, or with a=20
notice of proposed rulemaking, which usually signals that it intends to=20
adopt rules. At Chairman Martin=92s request, FCC staff has been studying a=
=20
provision in the 1992 Cable Act that states that a city =93may not=20
unreasonably refuse to award an additional competitive franchise.=94 The=20
provision was added in conjunction with other language that ended the=20
practice of awarding exclusive franchises. Martin=92s interest in a federal=
=20
solution could relieve SBC and Verizon from having to go up against cable=
=20
lobbyists when trying to persuade friendly state governments to adopt the=
=20
Texas model.
http://www.multichannel.com/article/CA6276037.html?display=3DBreaking+News
(requires subscription)

WHO DO YOU SAY I AM?
[SOURCE: Riedel Communications, AUTHOR: Bunnie Riedel]
[Commentary] SBC is challenging the city of Walnut Creek's (CA) authority=
=20
to require a franchise agreement for their delivery of video services. A=20
company's attorney fired off a missive to City Council claiming they were=
=20
unlawfully interfering with their business plan and denying SBC their=20
rights. Not so says Paul Valle-Riestra, assistant city attorney, Walnut=20
Creek has every right under the Cable Act to require franchise agreements=
=20
for video services. While SBC, BellSouth and Verizon waste precious time=20
wrangling with every community east and west of the Mississippi, Wall=20
Street is looking askance at the viability of these companies=92 video plan=
s.=20
According to Reuters, concerns include: 1) competition for basic phone=20
service from the cable guys, 2) slow down of growth for wireless as it=20
reaches 70% penetration, 3) huge amounts of capital spending on network=20
upgrades, and 4) health care and pension costs for retirees. In other=20
words, as I have said until I am blue in the face, these guys embark on a=
=20
business plan that stinks from the get-go and is a decade behind, they=20
can't overcome the competition (Comcast, Time Warner), they can't project=
=20
their saturation point and they run around recklessly throwing money into=
=20
the ground like a gold miner at a cat-house, and yet=85and yet=85places lik=
e=20
Walnut Creek are supposed to give them a free ride and their own pensioners=
=20
will probably have to take one for the team.
http://www.riedelcommunications.blogspot.com/www.riedelcommunications.blo=
gspot.com=20

INTERNET

LAWMAKERS URGE US TO KEEP CONTROL OF INTERNET
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
Though no one country controls the Internet as a whole, the U.S. Commerce=
=20
Department maintains final authority over the domain-name system that=20
matches easy-to-remember names like "example.com" with the Internet=20
Protocol numbers that are assigned to each computer on the Internet. That=
=20
system is overseen by a California-based nonprofit group called the=20
Internet Corporation for Assigned Names and Numbers, or ICANN. If other=20
countries refuse to recognize ICANN's legitimacy, Internet users in=20
different parts of the globe could wind up at different Web sites when they=
=20
type www.example.com into their browsers. Minnesota Sen Norm Coleman has=20
introduced a resolution that calls for the Internet's core addressing=20
system to remain under US control as negotiators prepare for a United=20
Nations summit in Tunisia next month where the issue will loom large.=20
Countries like Brazil and Iran have argued in a series of meetings over the=
=20
past two years that the Internet is now a global resource that should be=20
overseen by the United Nations or some other international body. The=20
European Union withdrew its support of the current system last month.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-10-19T201740Z_01_FOR972980_RTRUKOC_0_US-CONGRESS-INTERNET.xml

FED-UP CITIES SEEK TO PROVIDE NET ACCESS
[SOURCE: Los Angeles Times, AUTHOR: Michael Hiltzik]
[Commentary] Of all the monopolies, oligopolies and other arrangements that=
=20
subvert progress merely to benefit the few, perhaps the most pernicious is=
=20
the conspiracy by telephone and cable companies to exercise control over=20
high-speed Internet access. It's unsurprising, therefore, that many local=
=20
communities have taken matters into their own hands by building or=20
contracting for their own municipal Internet systems. Generally these=20
blanket an area with transmitters based on Wi-Fi wireless technology to=20
bring Web access to residents and small businesses. These communities have=
=20
acted because they were fed up with the underachieving phone and cable=20
companies, which have always displayed the usual characteristics of=20
entrenched monopolies: They're slow to innovate, expensive and arrogant.=20
Their sluggish rollout of broadband, especially in poor communities, is a=
=20
national disgrace. Our Stone Age connection speeds are embarrassing =97 eve=
n=20
the heartiest DSL connection in the U.S. is less than a tenth as fast as=20
what's available to subscribers in Japan or France. The standard $40-$50=20
monthly cost of broadband in the U.S. is double or more what those users=20
pay too. Despite this sorry record, the Federal Communications Commission=
=20
has supported the incumbents' quest to emasculate all competition, chiefly=
=20
by allowing them to stonewall rival Internet providers seeking wholesale=20
access to their high-speed lines. In Congress, a bill forbidding localities=
=20
from offering such services in competition with private companies has been=
=20
introduced by Rep. Pete Sessions (R-Texas). Rep Sessions, a former employee=
=20
of SBC Communications, a leading DSL provider, is sitting on pants full of=
=20
SBC stock options worth more than $500,000, according to his 2004 financial=
=20
disclosure.
http://www.latimes.com/business/printedition/la-fi-golden20oct20,1,38198...
column?coll=3Dla-headlines-pe-business
(requires registration)

BIG BROTHER LURKING IN WIFI, MOBILE SERVICES
[SOURCE: San Jose Mercury News, AUTHOR:Mike Langberg mike( at )langberg.com]
[Commentary] Google's high-profile proposal to provide free wireless=20
Internet access throughout San Francisco is all about the three rules of=20
real estate: Location, location, location. Google wants to create a new=20
kind of online advertising where its network knows your precise location=20
and displays ads for businesses within just a few blocks of wherever you=20
are. That's OK with me. Letting Google tout a deli around the corner seems=
=20
like a fair trade for getting free WiFi service. But there's a Big Brother=
=20
risk in the emerging category of ``location-based services'' that isn't=20
getting enough attention. Municipal WiFi networks, such as the one Google=
=20
is proposing, could easily keep records on where users are connecting, and=
=20
it's easy to imagine ways that information could be misused. We, as a=20
society, need to set rules for the road. The debate needs to start now,=20
because location-based services will start flooding into our lives within=
=20
the next year. So it's up to all of us, as citizens and voters, to make=20
sure the good parts of location-based services move forward, and the bad=20
parts don't even get started.
http://www.mercurynews.com/mld/mercurynews/business/technology/12939855.htm

A WEB ON THE GRID
[SOURCE: New York Times, AUTHOR: Editorial Staff]
[Commentary] You don't have to dig very deep into the subject of high-speed=
=20
Internet access before you come across heated arguments over the virtues=20
and shortcomings of nearly every kind of linkage. The technology that=20
inspires the most heated argument at the moment may be broadband over power=
=20
line. It's a simple enough idea. Why not use the pervasive, national=20
network of power lines to provide broadband access? Nearly every residence=
=20
in the country draws power from the grid, and it is possible that nearly=20
every residence - no matter how isolated - could link to the Internet=20
through the grid as well, potentially with much faster connection speeds=20
than through cable. The obstacles to B.P.L. include technical complications=
=20
involving the power lines themselves, possible interference at some=20
frequencies and probable opposition from a few Internet providers. But new=
=20
research and investment - and the encouragement of the Federal=20
Communications Commission - may well remove those barriers quickly. This=20
new method of communication deserves a serious look. Once you get used to a=
=20
high-speed connection to the Internet, it's easy to believe that you've=20
already entered the future. But we may soon look back at the broadband=20
access we enjoy now and realize that it was slow, balky and geographically=
=20
limited.
http://www.nytimes.com/2005/10/20/opinion/20thur4.html
(requires registration)

AS MORE CELLPHONES LINK TO INTERNET, THREAT OF VIRUSES GROWS
[SOURCE: Wall Street Journal, AUTHOR: Cassell Bryan-Low=20
cassell.bryan-low( at )wsj.com]
The wireless industry initially shrugged off the theoretical threat of=20
cellphone viruses, in part because many cellphone-system operators have=20
limited the Internet access of traditional cellphones to their own Web=20
portals, where the company can tightly control what clients download. But=
=20
the industry has been taking it more seriously of late as the use of smart=
=20
phones spreads, enabling customers to surf the broader Web. The roughly 60=
=20
million smart phones in use today world-wide account for only about 3% of=
=20
all cellphones, according to Yankee Group. But the Boston consulting firm=
=20
predicts that number could grow to more than 300 million by 2009. Over the=
=20
past year or so, cellphone system operators have started experimenting with=
=20
two main approaches to protect their clients: screening their networks for=
=20
viruses, and offering subscribers downloadable antivirus software that=20
resides on the phones themselves. The latter approach is cheaper and easier=
=20
for operators to implement than the former, says John Pescatore, an analyst=
=20
at technology research firm Gartner. However, to prevent viruses from=20
becoming as big a scourge to cellphones as they have become to computers,=
=20
Mr. Pescatore says antivirus software should be built into both the network=
=20
and phones. Protecting phones is important because some viruses can bypass=
=20
the network via Bluetooth or by connecting directly to the Internet through=
=20
Wi-Fi technology, another wireless system that some phones offer. But many=
=20
cellphone subscribers may not be willing to pay to download and install=20
antivirus software or may not do it properly.
http://online.wsj.com/article/SB112977101067373962.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

JOURNALISM

SENATORS: BLOGGERS MAY NOT BE JOURNALISTS
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Politicians indicated on Wednesday that a proposed law offering journalists=
=20
special privileges might not be extended to Web loggers. "The relative=20
anonymity afforded to bloggers, coupled with a lack of accountability, as=
=20
they are not your typical brick-and-mortar reporters who answer to an=20
editor or publisher, also has the risk of creating a certain=20
irresponsibility when it comes to accurately reporting information," Sen.=
=20
John Cornyn (R-TX) said in a statement prepared for a Senate Judiciary=20
Committee hearing on reporters' privilege legislation. The hearing came as=
=20
politicians are weighing the Free Flow of Information Act. The current=20
wording of the measure, proposed in identical form in the U.S. House of=20
Representatives, offers protection of confidential sources for anyone who=
=20
"publishes a newspaper, book, magazine, or other periodical in print or=20
electronic word." The District of Columbia and every state except Wyoming=
=20
already have some form of protection on their books.
http://news.com.com/Senators+Bloggers+may+not+be+true+journalists/2100-1...
_3-5902539.html?tag=3Dnefd.top

WESTIN: ABC AFFECTED BY DOJ CLIMATE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
ABC News President David Westin said Wednesday that his news operation has=
=20
been chilled, or at least had to adjust the cost-benefit analysis of its=20
stories, by the Justice Department's pursuit of journalists as witnesses in=
=20
grand jury investigations. That testimony came in the Senate Judiciary=20
Committee's second hearing on bill S. 340, introduced by Indiana Republican=
=20
Sen. Richard Lugar, which would establish a protection for reporters from=
=20
federal subpoenas, with exceptions in the case of imminent threat to=20
national security. A similar bill is being spearheaded in the House by=20
another Indiana Republican, Rep. Mike Pence. Mr. Westin, an attorney and=20
former Supreme Court clerk, said that he was not there to attack the=20
Justice Department, but to argue that there needs to be a rule that says=20
prosecutors and others can have access only to the information they truly=
=20
need and can get in no other way. He said that it should be up to the=20
courts, not the unfettered desertion of DOJ, to assess that need for access.
http://www.broadcastingcable.com/article/CA6275784?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* Journalists Testify in Favor of Shield Law
http://www.nytimes.com/2005/10/20/national/20shield.html?pagewanted=3Dall

SINCLAIR SUES FORMER DC BUREAU CHIEF
[SOURCE: The Daily Record (MD), AUTHOR: Caryn Tamber]
Broadcasting giant Sinclair NewsCentral LLC is suing its former Washington=
=20
bureau chief, whom the company fired last year after he publicly criticized=
=20
Sinclair=92s decision to tell its stations to run an anti=96John Kerry=20
documentary as a news story. In a lawsuit filed late last week in Baltimore=
=20
County Circuit Court, Sinclair accuses Jonathan S. Leiberman of violating=
=20
the terms of his contract by speaking about the inner workings of the=20
company without permission and by working for other local news outlets=20
after he was fired. Before he was fired, Leiberman was considered a rising=
=20
star at Sinclair, and the Baltimore City Paper had named him best Baltimore=
=20
TV reporter. But according to media reports, after he left, Leiberman=20
criticized what he said were the company=92s conservative leanings, saying=
=20
that for months before his firing he had complained to his bosses of a=20
right-leaning slant at Sinclair.
http://www.mddailyrecord.com/pub/5_396_law/legalnews/172766-1.html

OWNERSHIP

PHONE USERS MAY GET NONE OF MERGER SAVINGS
[SOURCE: Los Angeles Times, AUTHOR: James S. Granelli]
California regulators Wednesday tentatively blessed two giant telephone=20
industry mergers, but customers won't see much of the billions of dollars=
=20
the companies expect to save. SBC Communications Inc.'s $16-billion=20
acquisition of AT&T Corp. and Verizon Communications Inc.'s $8.5-billion=20
purchase of MCI Inc. could reduce their expenses in the state by a combined=
=20
total of up to $2.7 billion, consumer advocates say. But draft decisions by=
=20
Public Utilities Commission members Susan P. Kennedy and Michael R. Peevey=
=20
would exempt the companies from that requirement, prompting outrage from=20
consumer advocates. "Consumers got hosed," said William R. Nusbaum, senior=
=20
telecom lawyer for the Utility Reform Network. "Under both mergers,=20
consumers are out at least a billion bucks, which is going into the pockets=
=20
of shareholders." Commissioners Kennedy and Peevey, both of whom usually=20
side with SBC and Verizon, argued that no rate reductions were necessary=20
because the sharing provisions of the law don't apply in these cases.=20
"Because the benefits of the merger will be passed through to California=20
consumers through competition and market forces, there are no policy=20
grounds for mandated sharing of those benefits," the two commissioners said=
=20
in the SBC draft decision. Another SBC draft decision, by Administrative=20
Law Judge Thomas R. Pulsifer, would force the new company to give $329.6=20
million to customers over six years. The commission is scheduled to make a=
=20
final decision on the mergers at its Nov. 18 meeting, among the final=20
hurdles before the deals can be concluded. State and federal regulators are=
=20
reviewing the deals. The Federal Communications Commission is expected to=
=20
discuss the mergers at its Oct. 28 meeting.
http://www.latimes.com/business/printedition/la-fi-sbc20oct20,1,3528875....
ry?coll=3Dla-headlines-pe-business
(requires registration)

MEDIA COMPANIES GO TOO FAR IN CURBING CONSUMERS' ACTIVITIES
[Commentary] In some quarters of the Internet, the three most hated letters=
=20
of the alphabet are DRM. They stand for Digital Rights Management, a set of=
=20
technologies for limiting how people can use the music and video files=20
they've purchased from legal downloading services. DRM is even being used=
=20
to limit what you can do with the music you buy on physical CDs, or the TV=
=20
shows you record with a TiVo or other digital video recorder. Once mainly=
=20
known inside the media industries and among activists who follow copyright=
=20
issues, DRM is gradually becoming familiar to average consumers, who are=20
increasingly bumping up against its limitations. For some activists, the=20
very idea of Digital Rights Management is anathema. They believe that once=
=20
a consumer legally buys a song or a video clip, the companies that sold=20
them have no right to limit how the consumer uses them, any more than a car=
=20
company should be able to limit what you can do with a car you've bought.=
=20
But DRM is seen as a lifesaver by the music, television and movie=20
industries. The companies believe they need DRM technology to block the=20
possibility that a song or video can be copied in large quantities and=20
distributed over the Internet, thus robbing them of legitimate sales. I=20
believe Congress should rewrite the copyright laws to carve out a broad=20
exemption for personal, noncommercial use by consumers, including sharing=
=20
small numbers of copies among families. Until then, I suggest that=20
consumers avoid stealing music and videos, but also boycott products like=
=20
copy-protected CDs that overly limit usage and treat everyone like a=20
criminal. That would send the industry a message to use DRM more judiciousl=
y.
[SOURCE: Wall Street Journal, AUTHOR: Walter Mossberg mossberg( at )wsj.com]
http://online.wsj.com/article/SB112975986718273657.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* See also story on Digital Audio Piracy above *

PUBLISHERS THROW BOOK AT GOOGLE, AGAIN
[SOURCE: Reuters, AUTHOR: Eric Auchard]
Five major publishers filed suit against Google Inc. in Manhattan's federal=
=20
court on Wednesday seeking to block plans to scan copyrighted works without=
=20
permission. The complaint lodged in the U.S. District Court for the=20
Southern District of New York against Google names as plaintiffs=20
McGraw-Hill Cos. Inc., Pearson Plc's Pearson Education and Penguin Group=20
(USA) units, Viacom Inc.'s Simon & Schuster and John Wiley & Sons Inc. The=
=20
suit seeks a declaration that the Web search leader commits infringement=20
when it scans entire books covered by copyright without permission of the=
=20
copyright owner. Legal experts say the spat between Google and the=20
publishing industry is shaping up as a new front in the battle over digital=
=20
duplication of media, including music, movies and now books.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2005-10-19T174413Z_01_ARM955894_RTRUKOC_0_US-MEDIA-GOOGLE-PUBLISHERS.xm=
l&archived=3DFalse
* Publishers Sue Google To Stop Scanning
http://www.washingtonpost.com/wp-dyn/content/article/2005/10/19/AR200510...
1463.html

VIACOM SAID TO PULL PLUG ON PURSUIT OF DREAMWORKS
[SOURCE: Los Angeles Times, AUTHOR: Claudia Eller]
Paramount Pictures' parent company, Viacom Inc., has nixed the idea of=20
making a bid for DreamWorks SKG, according to three sources inside Viacom=
=20
and Paramount. The sources said that Viacom Chairman Sumner Redstone, who=
=20
controls the board, worried that shareholders and potential investors would=
=20
balk at a major acquisition =97 DreamWorks is asking about $1 billion -- at=
a=20
time when Viacom is poised to split into two publicly traded companies.
http://www.latimes.com/business/printedition/la-fi-paramount20oct20,1,79...
57.story?coll=3Dla-headlines-pe-business
(requires registration)

QUICKLY

MUSICAL 'HEART AND SOUL' BACK ON AIR
[SOURCE: USAToday, AUTHOR: Bill Nichols]
WWOZ-FM, a tiny public radio station that serves as a voice of the=20
multihued New Orleans sound and a lifeline for area musicians devastated by=
=20
Hurricane Katrina, made it back on the air for its first full day since the=
=20
storm smashed its New Orleans studios. =93Oz,=94 as the station is known to=
=20
listeners, has become more than a radio station in the new world of New=20
Orleans, where any link to pre-Katrina life is cherished. The city's=20
musical community sees the station as its central nervous system, and the=
=20
news that it was back on the radio dial was cause for celebration. Like=20
most New Orleans institutions, WWOZ's future is unclear. Contributions=20
totaling more than $100,000 have poured in from around the globe since=20
Katrina hit, but manager David Freedman worries that his subscription base=
=20
could wither in a vastly smaller New Orleans. He vows that Oz will try to=
=20
do its part to heal this wounded city by showing the world that its=20
syncopated style has not been stilled. =93Communities aren't just buildings=
,=94=20
Freedman says. =93Our job is to try to be sure that we don't lose this spir=
it=20
that sets New Orleans apart.=94
http://www.usatoday.com/printedition/news/20051020/a_wwoz20.art.htm

NEW STUDY CONFIRMS CONTINUING UNDER REPRESENTATION OF WOMEN IN MEDIA
[SOURCE: Ms Magazine]
The White House Project has released an analysis of the continuing dearth=
=20
of female voices in mainstream media, focusing on Sunday morning talk=20
shows. According to the report, titled Who's Talking Now, women compose=20
only 14 percent of guests on these shows, up from the 11 percent=20
representation found in a 2001 report. The 2005 report notes that "the=20
absence of women on the Sunday shows matters=85It perpetuates the=20
invisibility of female leaders, it limits the scope of our national=20
political debates and it leaves women under-represented and undervalued as=
=20
citizens of our democracy."
http://www.msmagazine.com/news/uswirestory.asp?ID=3D9331

US COURT ORDERS MUSIC SITE TO CHANGE ITS TUNE
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
A U.S. court has ordered a Web site that bills itself as "Napster's Number=
=20
One Replacement Software" to stop promising customers that they won't face=
=20
copyright lawsuits when they download songs for free, the Federal Trade=20
Commission said on Wednesday.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2005-10-19T190940Z_01_ARM960217_RTRUKOC_0_US-MUSIC.xml&archived=3DFalse

THE MERGER OF TELECOM AND IT: US INNOVATION DRIVING ECONOMIC GROWTH
A speech delivered by Michael D. Gallagher, the Assistant Secretary for=20
Communications and Information at the National Telecommunications and=20
Information Administration in the Department of Commerce. Assit Secretary=
=20
Gallagher concludes: 1) President Bush has a vision for making advanced=20
technologies available to all Americans -- by creating the economic and=20
regulatory environment to enhance competition and promote innovation. 2)=
=20
The telecom sector is growing, and many new technologies -- particularly=20
wireless in nature -- are flourishing as new spectrum is freed up for=20
commercial uses. 3) IP services are having a very dramatic and positive=20
impact on the U.S. economy. 3) In a VoIP world, multiple goals such as=20
promoting investment and innovation, developing light-handed regulation,=20
and protecting the homeland, must be accomplished. The speech was delivered=
=20
to the 2005 Annual Meeting of the Association of Corporate Counsel.
[SOURCE: National Telecommunications and Information Administration]
http://www.ntia.doc.gov/ntiahome/speeches/2005/MGallagher_ACC_10182005_f...
s/frame.htm

SEARCH COMMITTEE PICKS FRITTS SUCCESSOR
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
No official announcement yet, but apparently the next president of the=20
National Association of Broadcasters will be... National Beer Wholesalers'=
=20
Association lobbyist David Rehr. Rehr is the kind of Republican, K-Street=
=20
connected lobbyist that GOP leadership had been pushing to fill association=
=20
vacancies, suggesting that the party's influence in the town was not=20
reflected in the leadership of the lobbies that needed to work with them.=
=20
He is also described as energetic, a good fund raiser and a bit of a hack=
=20
on the links.
http://www.broadcastingcable.com/article/CA6276019?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* Let's celebrate in song!
http://www.brave.com/bo/lyrics/beerbarr.htm

NBC WANTS ITS OLD FAVORITE NIGHT BACK
[SOURCE: New York Times, AUTHOR: Bill Carter]
The significance of winning Thursday night is all about money. It is, by=20
far, the biggest night for television advertising because many advertisers=
=20
who need to do big weekend business - starting with movie companies, but=20
also including car companies and fast food restaurants - will pay a premium=
=20
to reach viewers on Thursday night, the last big night of television before=
=20
the weekend starts. Leslie Moonves, the CBS chief executive, said last=20
spring that taking control of Thursday would mean hundreds of millions of=
=20
dollars in additional revenues for his network. Yesterday he said that=20
strategy had paid off with CBS adding about $400 million more in revenues=
=20
this year.
http://www.nytimes.com/2005/10/20/arts/television/20nbc.html
(requires registration)
--------------------------------------------------------------
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.
--------------------------------------------------------------

McCain Seeks Quicker DTV Transition

In remarks at a New America Foundation event on digital television and first responders, Sen John McCain (R-AZ) said he would offer an amendment, during Thursday's Senate Commerce Committee hearing, to strike the proposed 2009 date for ending analog TV broadcasts and replace it with April 7, 2007. He said he is not sure whether he has enough votes on the committee to secure passage. Senate Commerce Committee Chairman Ted Stevens (R-Alaska) on Friday proposed a cut-off date of April 7, 2009. The House Commerce Committee has recommended Dec. 31, 2008. That is within range of an emerging consensus, and one that broadcasters and telecommunications industry officials say they can accept. When the transition is complete, large swaths of analog spectrum will be available for other uses. Public-safety officials have been promised 24 megahertz to create communications systems that can work across jurisdictions, and many are eager to get started as soon as possible. Public-safety officials have said police and firefighters need two or more years to build interoperable systems. Sen Stevens and House Commerce Chairman Joe Barton (R-TX) want to earmark the other available 60 megahertz for auction by the FCC. The Congressional Budget Office has estimated that the agency will raise $10 billion, although technology companies seeking to bid on the spectrum say it is worth as much as $28 billion. A Stevens aide said Tuesday that the committee will only vote on the spectrum-related aspects of digital TV on Thursday. Non-budget items, such as whether cable operators "must carry" multicasts of broadcasters, would be delayed until committee members can review draft legislation to be released soon.
http://www.njtelecomupdate.com/lenya/telco/live/tb-DVPZ1129666380480.html
* US Sen. McCain pushes for digital TV move sooner
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&story...
* McCain Plans 2007 (or 2006) Amendment
http://www.broadcastingcable.com/article/CA6275429?display=Breaking+News...
(free access for Benton's Headlines subscribers)
* McCain Pushes Earlier Analog Cutoff
http://www.multichannel.com/article/CA6275465.html?display=Breaking+News
(requires subscription)
* Politico wants to move up DTV deadline
http://news.com.com/Politico+wants+to+move+up+DTV+deadline/2100-1033_3-5...
* Multicast Carriage Measure Pulled From Senate Panel Vote
http://www.tvweek.com/news.cms?newsId=8748
(requires free registration)

The Public Interest Demands a Dose of Reality on TV

[Commentary] The tragedy of Hurricane Katrina has taught us a number of painful lessons -- including, unexpectedly, the vital role television sometimes plays in our lives. As The Washington Post reported Sept. 1, the people most in need of information about the storm were the least likely to be able to see, hear or read about it. With electricity wiped out in the affected areas, receiving local broadcast or cable-TV signals was nearly impossible. This time, catastrophic infrastructure failure kept the public in the dark. But when the next natural disaster strikes, the result could be the same -- even if the lights stay on. Members of Congress are considering legislation this month that could make permanent the media blackout we witnessed in New Orleans. At stake in legislation concerning the transition to digital television is whether or not television-station owners continue to serve the public interest, convenience and necessity, as federal law now requires. Public-interest obligations play a critical role -- in fact, a life-saving role -- in the lives of Americans and the safety of our nation. In part because these obligations require broadcasters to serve local community needs, television today can provide timely and effective emergency warnings that save lives, reduce property losses and speed economic recovery during times of crisis. The FCC and Congress need to address how the transition to digital television will benefit citizens local, civic and electoral needs. They should define meaningful public-interest obligations. To achieve these goals, all of us -- parents, voters, community leaders, activists, and concerned citizens -- need to pick up the television policy remote control and change the tune coming from policymakers in Washington. Demand reality-based public-interest obligations that help make a difference in countless lives, before the next crisis strikes.

Hold Broadcasters Accountable, Urges U.S. Bishop

Broadcasters should be accountable to the public in exchange for their free use of "tens of billions of dollars worth" of publicly owned airwaves, says a U.S. bishop. Bishop Gerald Kicanas of Tucson, Arizona, chairman of the U.S. episcopal conference's Communications Committee, urged Congress to include public interest obligations for broadcasters in legislation set for debate this week. "Today, even as the broadcasting industry continues to benefit from its subsidized use of the public airwaves, broadcasters' observance of meaningful public interest obligations has declined," Bishop Kicanas said in a statement. "We ask that, in exchange for the use of tens of billions of dollars worth of new spectrum rights, broadcasters be required to put forth a substantial effort to provide programming that better serves the public," he said. Bishop Kicanas urged the codification of public interest obligations for broadcasters in a letter to U.S. Senate Commerce Committee Chairman Ted Stevens. The Commerce Committee was set to deliberate on several bills updating the nation's communications laws. Broadcasters are licensed by the Federal Communications Commission to use the airwaves, for free, in nominal exchange for serving the "public interest, convenience and necessity," according to current law. Bishop Kicanas noted that the U.S. bishops' conference has collected anecdotes from a significant number of dioceses which have found it increasingly difficult to place their programming on local stations.

Groups Urge Senate Commerce Committee to Expand the Availability of Unlicensed Spectrum

More than 20 public interest, civil rights and media reform groups on Tuesday delivered a letter to members of the Senate Commerce Committee urging the Committee to make the availability of spectrum for unlicensed use a major priority of any digital television (DTV) transition legislation. The Committee is expected to vote on a DTV bill on Thursday. Groups signing the letter include: Common Cause, Consumer Federation of America, Consumers Union, Free Press, the Media Access Project, National Hispanic Media Coalition, New America Foundation, and the U.S. Public Interest Research Group. The letter states that while the groups may have different priorities for the DTV transition overall, "on one crucial element of the bill, we speak with one voice: DTV legislation must expand availability of unlicensed spectrum to promote affordable broadband access." The groups urge Congress to both "set aside portions of the digital broadcast band for unlicensed use and direct the FCC to complete its stalled rulemaking to open unassigned TV channels in each market (TV band "white space") for unlicensed wireless broadband services." The letter notes that expanding access to unlicensed spectrum would confer benefits on consumers, small businesses and low-income families. It concludes by noting that "the DTV transition represents an historic opportunity to maximize efficient use of public resources to meet public needs."
http://www.commoncause.org/site/apps/nl/content2.asp?c=dkLNK1MQIwG&b=810...{3281DD38-957F-4F52-B4A1-9DA3E430C925}&notoc=1
* Read the full text of the letter:
http://www.commoncause.org/atf/cf/{FB3C17E2-CDD1-4DF6-92BE-BD4429893665}/DTVSPECTRUMCOALITIONLETTER_10-18-05.PDF

Congressional Report Slams E-Rate

[SOURCE: Technology Daily, AUTHOR: David Hatch]