October 2005

Big Mess for Big Media

The stock prices of the four major media and entertainment firms – Walt Disney, Viacom, News Corp and Time Warner -- are down an average of 11.2 percent through the first three quarters of 2005. The S&P 500, by way of comparison, is up 1.3 percent. There are several reasons why all four stocks have been weak this year, such as concerns about a sluggish advertising market for many traditional forms of media, the Hollywood box office slump and slowing sales of DVDs.

Just Another Toaster

[Commentary] Television is "just another appliance -- it's a toaster with pictures." Those are the memorable words of Mark Fowler, who chaired the FCC during the Reagan administration. The image of a toaster with pictures neatly deflates the notion that broadcast television is somehow special. That attitude of "specialness" is so out of kilter with the contemporary digital video landscape that it is causing repeated policy crashes in Congress -- on indecency, media ownership, and cable must carry mandates. Public interest groups have a history of backing broadcasters push to force cable operators to carry their signals. But that's not the case in the digital TV era. Some groups no longer believe the promises to air local, educational or civic programming. That's why they've ditched the quest for "public interest" obligations, and argue against must carry rules. But it hasn't been without disagreement. Philanthropist Charles Benton says that notwithstanding "the cynicism on the part of many people in the public interest community, we are reaching out to the NAB." His foundation played a key role in orchestrating a 1998 report -- by the so-called Gore Commission -- on broadcasters' public interest obligations for digital television.

All Is Not Well on Sesame Street

[Commentary] Despite the Republican congressional leadership's best efforts to the contrary, funding has been restored for public broadcasting. But there is still much damage to undo and ill winds to deflect from our national debate on the future of public media. First and foremost, the public must understand that Republican attacks on PBS (Public Broadcasting System) and NPR (National Public Radio) have been two-pronged: one on funding, the other on governance, and both potentially devastating.

Viacom, UCC Take Kids Rules To Court

The battle over new DTV kids rules has wound up in court, where many had expected it to go. Both the United Church of Christ Office of Communications and Viacom have withdrawn their FCC petitions for review of the rules, instead asking separate federal courts to throw them out or remand them as arbitrary and capricious.

Pace Of DTV Transition Varies Around The Globe

As Congress prepares to vote this month on a measure to speed the transition to digital television, international movement on that front is mixed. Britain plans a region-by-region transition starting in 2008 and ending in 2012. Japan, meanwhile, has been promoting DTV services since 1993 and began offering them in 2003. Today, 13.71 million households, or 10.8 percent, subscribe to satellite DTV, according to the Ministry of International and Communications. By the end of this year, the ministry expects coverage to reach 27 million households. Japan's digital transition is set to end by 2011. And South Korea boasts the world's highest per capita penetration for high-speed Internet access, and also ranks high in DTV adoption. As many as 80 percent of households have access to DTV, and the government has mandated broadcasters to run 25 hours of DTV programming per week, with the full transition set for 2010. The South Korean government introduced a digital transition plan in 1999, and established its legal and regulatory framework in 2004, according to the Korean Broadcasting Commission.
* DTV Channel Elections
The FCC Media Bureau designated tentative digital channels for 1,713 TV stations, more than 95% of the broadcast stations nationwide. Included were 1,554 channel designations previously announced and those for stations participating in approved negotiated channel arrangements.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2649A1.doc

FCC Majority Backs Packaging Indecency Complaints at Commission Level

An apparent majority of FCC commissioners believes packaging indecency complaints before the full Commission, rather than having the Enforcement Bureau handling individual complaints, would help eliminate the backlog of complaints and provide clarity. Ruling case by case could create confusion as to how the FCC rules are applied, the source said. “Chairman Powell has left a mess on unresolved indecency complaints,” an FCC source said. After writing a record-setting number of fines last year, the FCC hasn't written a single notice of apparent liability this year.

Abernathy Talks Change and Choice

Outgoing FCC Commissioner Kathleen Abernathy said Thursday that the FCC she leaves behind needs to make some changes. In a speech to The Media Institute in Washington, she said she had been wrong to endorse a rulemaking approach that featured open-ended questions rather than getting a better handle on what the Commission wanted to do, a byproduct in part of the 1996 Telecom Act rewrite, she said, which set some "aggressive deadlines" for FCC action.

Benton's Communications-related Headlines For Wednesday October 5, 2005

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

EMERGENCY COMMUNICATIONS
News of Pandemonium May Have Slowed Aid
Stevens Supports E-911 Bill for VoIP Providers
Wireless Text is Logical Basis for an Emergency info System
Geek Cavalries Turn Post-Katrina Landscape into Wireless Lab

INTERNET/BROADBAND
Earthlink to Build Philadelphia's Wireless Net

MEDIA
Media, Media Everywhere, And No Time Left to Think?
Big Mess for Big Media

BROADCASTING/TELEVISION
Just Another Toaster
All Is Not Well on Sesame Street
Viacom, UCC Take Kids Rules To Court
Pace Of DTV Transition Varies Around The Globe

NEWS FROM FCC
FCC Majority Backs Packaging Indecency Complaints at Commission Le=
vel
Abernathy Talks Change and Choice

QUICKLY -- Media reformers Fired Up About =93Fake News=94; New Advocate for=
CA=20
Consumers; Sprint Nextel Files Patent Lawsuit Against Vonage; Wireless=20
Industry Poised For Growth; MCI Shareholders to vote on Verizon Bid;=20
Call-In Show Is Must-Hear Radio for Inmates Cut Off From Family; Debate=20
Flares Anew Over Violence in Video Games; E-voting report could push audit=
=20
trails

EMERGENCY COMMUNICATIONS

NEWS OF PANDEMONIUM MAY HAVE SLOWED AID
Behold the power of the media. Five weeks after Hurricane Katrina laid=20
waste to New Orleans, some local, state and federal officials have come to=
=20
believe that exaggerations of mayhem by officials and rumors repeated=20
uncritically in the news media helped slow the response to the disaster and=
=20
tarnish the image of many of its victims. With nearly all communications=20
systems with people on the ground crippled, live television became a=20
primary information source. "The television stations were reporting that=20
people were literally stepping over bodies and violence was out of=20
control," said Louisiana Gov. Kathleen Babineaux Blanco's press secretary=
=20
Denise Bottcher, who was at the governor's side. "But the National=20
Guardsmen were saying that what we were seeing on CNN was contradictory to=
=20
what they were seeing. It didn't match up." "Rumor control was a beast for=
=20
us," said Maj. Ed Bush of the Louisiana National Guard, who was stationed=
=20
at the Superdome. "People would hear something on the radio and come and=20
say that people were getting raped in the bathroom or someone had been=20
murdered. I would say, 'Ma'am, where?' I would tell them if there were=20
bodies, my guys would find it. Everybody heard, nobody saw. Logic was out=
=20
the window because the situation was illogical."
[SOURCE: Washington Post, AUTHOR: Robert E. Pierre and Ann Gerhart]
http://www.washingtonpost.com/wp-dyn/content/article/2005/10/04/AR200510...
1525.html
(requires registration)

STEVENS SUPPORTS E-911 BILL FOR VOIP PROVIDERS
Senate Commerce Committee Chairman Ted Stevens (R-Alaska) plans to mark up=
=20
a bipartisan E-911 bill (S-1063) under which VoIP providers would have to=
=20
give customers access to E-911 services, a panel spokeswoman said. The=20
bill, introduced in May by Sens. Nelson (D-Fla), Burns (R-Mont) and Clinton=
=20
(D-NY), has a companion House version (HR-2418) sponsored by Reps. Gordon=
=20
(D-TN), Shimkus (R-II) and Eshoo (D-CA). The Senate bill might be part of a=
=20
budget reconciliation package set for Oct. 19 markup, or be considered with=
=20
emergency communications measures that target hurricane relief. But the=20
bill may get a chilly reception in the House, where Commerce Committee=20
Chairman Joe Barton (R-TX) is said to want to address the issue in his=20
overall telecom bill rather than separately.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)

WIRELESS TEXT IS LOGICAL BASIS FOR EMERGENCY INFO SYSTEM
[Commentary] Despite 9/11, the wreckage of Katrina and the messy evacuation=
=20
of Houston, this nation still has no way to use the most effective=20
communication system in history to get information during disasters to the=
=20
people who need it. Wireless networks saturate just about every populated=
=20
area of the country. The signals reach nearly 200 million cellphones and=20
wireless e-mail gadgets. Even when the networks become jammed and can't=20
handle voice calls after use spikes during a catastrophe, the relatively=20
few bytes of data in text messages usually get through. It's a no-brainer:=
=20
Wireless text should be the basis for an emergency information system.=20
Oddly enough, on the very day that cars sat for 15 hours on snarled=20
highways leading out of Houston, two members of the U.S. Senate -- Jim=20
DeMint, R-S.C., and Ben Nelson, D-Neb. -- introduced a bill called The=20
Warning, Alerts and Response Network Act, or WARN Act. It proposes to=20
=93establish a network for the transmission of alerts across a broad variet=
y=20
of media.=94 That includes cellphones, BlackBerrys and -- for towns with no=
=20
cell coverage -- sirens. Missed the news of that bill? Don't feel bad. It=
=20
got less publicity than that day's shooting of a black bear in a carport=20
near Juneau, Alaska. Which, unfortunately, may reflect the bill's chances=
=20
of passage. A somewhat similar bill introduced in 2003 never got anywhere.=
=20
If this one fizzles, too, political leaders should be ashamed.
[SOURCE: USAToday, AUTHOR: ?]
http://www.usatoday.com/printedition/money/20051005/maney05.art.htm
See also:
* Text Hackers Could Jam Cellphones, a Paper Says
Malicious hackers could take down cellular networks in large cities by=20
inundating their popular text-messaging services with the equivalent of=20
spam, said computer security researchers, who will announce the findings of=
=20
their research today.
[SOURCE: New York Times, AUTHOR: John Schwartz]
http://www.nytimes.com/2005/10/05/technology/05phone.html
(requires registration)

GEEK CAVALRIES TURN POST-KATRINA LANDSCAPE INTO WIRELESS LAB
In Louisiana and Mississippi, Katrina initially knocked out 2.8 million=20
phone lines, more than 1,600 cell phone towers and more than 420,000 cable=
=20
TV connections that also can serve as Internet links, the Federal=20
Communications Commission said. Just as Katrina proved the vulnerability of=
=20
traditional telephone and cellular networks, it also showed how=20
Internet-based technologies could be used to speedily re-establish links=20
with the outside world. Teams from large companies, private groups and the=
=20
military converged on the Gulf Coast in ad hoc fashion to set up wireless=
=20
networks, all the while battling bureaucracies that didn't seem to=20
understand the agility and flexibility of the technologies being marshaled.=
=20
The spontaneous wireless projects by groups that simply wanted to help --=
=20
government mandate or not -- is spurring interest in how to deploy the=20
latest in communications technology and expertise in a more organized=20
fashion after future disasters.
[SOURCE: Associated Press, AUTHOR: Matthew Fordahl]
http://www.duluthsuperior.com/mld/duluthsuperior/business/technology/128...
04.htm?template=3DcontentModules/printstory.jsp

INTERNET/BROADBAND

EARTHLINK TO BUILD PHILADELPHIA'S WIRELESS NET
Philadelphia's plan to become one giant wireless hotspot inched closer to=
=20
reality Monday when Wireless Philadelphia tapped Atlanta-based Internet=20
service provider Earthlink to build the network. Even better, Earthlink has=
=20
agreed to pay for the construction and maintain the network, said the=20
city's chief information officer, Dianah Neff. That's expected to save=20
Wireless Philadelphia about $10 million to $15 million, Neff said. Part of=
=20
the project's goals is to get 10,000 computers into homes that currently=20
don't have them. From the Washington Post: "Increasingly, city officials=20
view broadband in the 21st century the same way they viewed electricity 100=
=20
years ago and telephone service 50 years ago. It's falling into the=20
category of a necessary and essential social service," said Ben Scott,=20
policy director of Free Press, a nonprofit group that favors the=20
development of municipal wireless. "Cities see this as a way to spur=20
economic growth: on the one hand to put tools in the hands of the=20
underprivileged and give them a leg up, and on the other to provide=20
incentives to small businesses to locate in these cities and to expand=20
their operations," Scott said. According to Free Press, about 300=20
municipalities around the country are undertaking broadband experiments,=20
but only a few dozen are doing full-scale networks like Philadelphia's.
[SOURCE: Philadelphia Daily News, AUTHOR: Michael Hinkelman=20
hinkelm( at )phillynews.com]
http://www.philly.com/mld/dailynews/news/local/12811701.htm
* Philadelphia to Be City Of Wireless Web
http://www.washingtonpost.com/wp-dyn/content/article/2005/10/04/AR200510...
1738.html
* Debate swirls over city Wi-Fi networks
Cable, phone firms say cities' vendors get unfair advantage
http://www.usatoday.com/printedition/money/20051005/1b_wifi05.art.htm

MEDIA

MEDIA, MEDIA EVERYWHERE, AND NO TIME LEFT TO THINK?
The average American is a ravenous media junkie, consuming up to nine hours=
=20
a day of television, web time or cellphone minutes, according to new=20
research which raises fresh questions about how technology is=20
revolutionizing society. Some experts question whether as consumers are=20
swamped by information, they lose the ability to decipher fact from rumor,=
=20
or find it hard to think through what they hear. Among the most interesting=
=20
conclusions was that 30 percent of 'media time' is spent on one or more=20
device, as people perhaps have on eye on the latest reality show on TV=20
while shuffling through their email. Another surprising find is that 18 to=
=20
24-year-olds spend less time online than any other age group except for the=
=20
over 65s.
[SOURCE: Yahoo News]
http://news.yahoo.com/s/afp/20051004/tc_afp/afplifestylemediausinternet;...
t=3DAuozkzXDSQ6Ctwptz_t4vWQjtBAF;_ylu=3DX3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl
See also:
* Study Gauges TV, Computer Usage by Ethnicity
A new study by Knowledge Networks shows that television plays "a more=20
important social role" among both black and Hispanic households than it=20
does among white households. And the data shows that white households own=
=20
more personal computers and more pay for high-speed Internet connectivity=
=20
than do black or Hispanic households.
[SOURCE: MediaWeek, AUTHOR: John Consoli]
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
1597

BIG MESS FOR BIG MEDIA
The stock prices of the four major media and entertainment firms =96 Walt=
=20
Disney, Viacom, News Corp and Time Warner -- are down an average of 11.2=20
percent through the first three quarters of 2005. The S&P 500, by way of=20
comparison, is up 1.3 percent. There are several reasons why all four=20
stocks have been weak this year, such as concerns about a sluggish=20
advertising market for many traditional forms of media, the Hollywood box=
=20
office slump and slowing sales of DVDs. What's more, many investors appear=
=20
to be more attracted to the supercharged growth prospects of pure play=20
Internet media companies like Google and Yahoo!.
[SOURCE: CNNMoney, AUTHOR: Paul R. La Monica]
http://money.cnn.com/2005/10/03/news/fortune500/media/index.htm

BROADCASTING/TELEVISION

JUST ANOTHER TOASTER
[Commentary] Television is "just another appliance -- it's a toaster with=
=20
pictures." Those are the memorable words of Mark Fowler, who chaired the=20
FCC during the Reagan administration. The image of a toaster with pictures=
=20
neatly deflates the notion that broadcast television is somehow special.=20
That attitude of "specialness" is so out of kilter with the contemporary=20
digital video landscape that it is causing repeated policy crashes in=20
Congress -- on indecency, media ownership, and cable must carry mandates.=
=20
Public interest groups have a history of backing broadcasters push to force=
=20
cable operators to carry their signals. But that's not the case in the=20
digital TV era. Some groups no longer believe the promises to air local,=
=20
educational or civic programming. That's why they've ditched the quest for=
=20
"public interest" obligations, and argue against must carry rules. But it=
=20
hasn't been without disagreement. Philanthropist Charles Benton says that=
=20
notwithstanding "the cynicism on the part of many people in the public=20
interest community, we are reaching out to the NAB." His foundation played=
=20
a key role in orchestrating a 1998 report -- by the so-called Gore=20
Commission -- on broadcasters' public interest obligations for digital=20
television.
[SOURCE: Wired in Washington/Congress Daily, AUTHOR: Drew Clark]
http://nationaljournal.com/about/congressdaily/columns/clark.htm

ALL IS NOT WELL ON SESAME STREET
[Commentary] Despite the Republican congressional leadership's best efforts=
=20
to the contrary, funding has been restored for public broadcasting. But=20
there is still much damage to undo and ill winds to deflect from our=20
national debate on the future of public media. First and foremost, the=20
public must understand that Republican attacks on PBS (Public Broadcasting=
=20
System) and NPR (National Public Radio) have been two-pronged: one on=20
funding, the other on governance, and both potentially devastating. But it=
=20
is the governance issue that persists and, in the long term, could be the=
=20
most ruinous for our public media.
[SOURCE: HuffingtonPost.com, AUTHOR: Rep Diane Watson (D-CA)]
http://www.huffingtonpost.com/rep-diane-watson/all-is-not-well-on-sesame...
8286.html

VIACOM, UCC TAKE KIDS RULES TO COURT
The battle over new DTV kids rules has wound up in court, where many had=20
expected it to go. Both the United Church of Christ Office of=20
Communications and Viacom have withdrawn their FCC petitions for review of=
=20
the rules, instead asking separate federal courts to throw them out or=20
remand them as arbitrary and capricious. Viacom argues that the rules=20
should be vacated entirely because they exceed the commission's authority,=
=20
are unconstitutional, violate administrative procedures, are "otherwise=20
contrary to law" and use "really poor grammar." The company seeks review=20
from the deregulatory-minded D. C. circuit. By contrast, the United Church=
=20
of Christ took the rules to court because they did not go far enough,=20
including the lack of a total ban on interactive advertising and issues=20
with the preemptions of kids programming the rules allow. Children's TV=20
activists had expressed concerns in the past few weeks that the networks=20
would follow through on threats to go to court and try to strike down all=
=20
the rules. The church sought review in the sixth circuit, whose=20
jurisdiction includes Ohio, where the church has its headquarters.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6263353?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* Viacom Requests Court Review of FCC's Kids TV Rules
http://www.tvweek.com/news.cms?newsId=3D8665
* Viacom's Nickelodeon to Feds: Don't Stop Us from Targeting Kids with=20
Interactive Junkfood Ads
So-called "Trusted" Brands Nick and Disney Seek to Thwart Safeguards
http://www.democraticmedia.org/news/washingtonwatch/NickFCC.html

PACE OF DTV TRANSITION VARIES AROUND THE GLOBE
As Congress prepares to vote this month on a measure to speed the=20
transition to digital television, international movement on that front is=
=20
mixed. Britain plans a region-by-region transition starting in 2008 and=20
ending in 2012. Japan, meanwhile, has been promoting DTV services since=20
1993 and began offering them in 2003. Today, 13.71 million households, or=
=20
10.8 percent, subscribe to satellite DTV, according to the Ministry of=20
International and Communications. By the end of this year, the ministry=20
expects coverage to reach 27 million households. Japan's digital transition=
=20
is set to end by 2011. And South Korea boasts the world's highest per=20
capita penetration for high-speed Internet access, and also ranks high in=
=20
DTV adoption. As many as 80 percent of households have access to DTV, and=
=20
the government has mandated broadcasters to run 25 hours of DTV programming=
=20
per week, with the full transition set for 2010. The South Korean=20
government introduced a digital transition plan in 1999, and established=20
its legal and regulatory framework in 2004, according to the Korean=20
Broadcasting Commission.
[SOURCE: Technology Daily, AUTHOR: Danielle Belopotosky]
http://www.njtelecomupdate.com/lenya/telco/live/tb-GRSK1128458815221.html
See also:
* DTV Channel Elections
The FCC Media Bureau designated tentative digital channels for 1,713 TV=20
stations, more than 95% of the broadcast stations nationwide. Included were=
=20
1,554 channel designations previously announced and those for stations=20
participating in approved negotiated channel arrangements.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2649A1.doc

NEWS FROM FCC

FCC MAJORITY BACKS PACKAGING INDECENCY COMPLAINTS AT COMMISSION LEVEL
An apparent majority of FCC commissioners believes packaging indecency=20
complaints before the full Commission, rather than having the Enforcement=
=20
Bureau handling individual complaints, would help eliminate the backlog of=
=20
complaints and provide clarity. Ruling case by case could create confusion=
=20
as to how the FCC rules are applied, the source said. =93Chairman Powell ha=
s=20
left a mess on unresolved indecency complaints,=94 an FCC source said. Afte=
r=20
writing a record-setting number of fines last year, the FCC hasn't written=
=20
a single notice of apparent liability this year. Clearing up the complaints=
=20
would make it easier for responding stations to buy other stations and help=
=20
move stalled license renewals, sources said. A complaint against a station=
=20
will tie up those transactions until the complaint is resolved.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

ABERNATHY TALKS CHANGE AND CHOICE
Outgoing FCC Commissioner Kathleen Abernathy said Thursday that the FCC she=
=20
leaves behind needs to make some changes. In a speech to The Media=20
Institute in Washington, she said she had been wrong to endorse a=20
rulemaking approach that featured open-ended questions rather than getting=
=20
a better handle on what the Commission wanted to do, a byproduct in part of=
=20
the 1996 Telecom Act rewrite, she said, which set some "aggressive=20
deadlines" for FCC action. Instead, she said, the FCC needs to deal with=20
specifics sooner in the process through more staff papers that will sharpen=
=20
the Commission's thinking before it proposes rulemakings. That may make the=
=20
process of getting to the rulemaking proposal a little longer, she said,=20
but could help expose holes in their reasoning earlier in the process and=
=20
would probably not unduly lengthen the time to actual enforcement of a=20
regulation. She used the media ownership proceeding as an example of the=20
failure of the open-ended approach.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6263117?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

QUICKLY

MEDIA REFORMERS PRESSURE CONGRESS AND THE JUSTICE DEPT TO ENFORCE LAWS=20
AGAINST "FAKE NEWS"
A Sept. 30 report by the Government Accountability Office found the White=
=20
House violated federal law by buying favorable news coverage in advance of=
=20
the 2004 elections. This is the fourth time the GAO has uncovered the White=
=20
House's illegal use of taxpayer money to produce "covert propaganda." These=
=20
violations may just form the tip of the iceberg. The administration has=20
more than doubled its public relations budget, tapping a quarter billion in=
=20
taxpayer dollars since Bush came into office. And while the report is=20
damning, the GAO doesn't have enforcement powers to reveal the full extent=
=20
of the abuse. In a letter to supporters, Free Press President Robert McChes=
ney
is requesting the public to demand that Congress and the Justice Department=
=20
fully prosecute those responsible.
[SOURCE: Free Press]
http://www.freepress.net/action/archive.php?id=3D42http://www.freepress.n=
et/action/archive.php?id=3D42=20

NEW ADVOCATE FOR CA CONSUMERS
California Governor Arnold Schwarzenegger (R) signed a telecom consumer=20
bill to clarify and strengthen the Public Utility Commission's Office of=
=20
Ratepayer Advocate=92s (ORA=92s) role in representing consumer interests in=
=20
telecom and energy cases. ORA has been renamed the Division of Ratepayer=20
Advocates (DRA) and it now has separate
budget and spending authority that will not be lumped into the general=20
utility regulation allocation in the overall PUC budget. The law=20
authorizes the DRA director to appoint a lead attorney to represent the=20
unit, and directs the PUC to provide legal support sufficient to ensure=20
consumer interests are adequately represented.
[SOURCE: Communications Daily]
(Not available online)

SPRINT NEXTEL FILES PATENT LAWSUIT AGAINST VONAGE
Sprint Nextel said it filed a patent-infringement lawsuit against=20
Internet-calling company Vonage Holdings Corp., alleging it infringed on=20
seven of its patents for sending phone calls over data networks. The suit,=
=20
which also names Internet-calling start-up Theglobe.com and its Voiceglo=20
Holdings unit, comes a few months after Sprint Nextel and Vonage scuttled=
=20
preliminary merger discussions. The suit seeks an injunction to prevent the=
=20
companies from further use of the technology, as well as unspecified=20
monetary damages. Sprint Nextel said its patents protect certain=20
technologies that help deliver voice and data communications, including=20
some of the voice over Internet protocol, or VOIP, technology used by=20
Vonage and Voiceglo.
[SOURCE: Wall Street Journal, AUTHOR: Shawn Young shawn.young( at )wsj.com]
http://online.wsj.com/article/SB112846272922659932.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

REPORT FINDS WIRELESS INDUSTRY POISED FOR SIGNIFICANT GROWTH
The wireless industry is a significant U.S. economic driver and is poised=
=20
to create up to 3 million jobs and save $600 billion over 10 years,=20
according to a new report from Ovum, a London-based telecommunications=20
consultant. About 2.5 percent of all jobs in the United States now depend=
=20
on the wireless industry, according to the report -- which was commissioned=
=20
by the cellular telecom industry group CTIA. In 2004, the sector=20
contributed $63 billion to U.S. governments in fees and taxes, the report=
=20
said.
[SOURCE: Technology Daily, AUTHOR: Chloe Albanesius]
http://www.njtelecomupdate.com/lenya/telco/live/tb-NOKW1128459578833.html

SHAREHOLDERS IN MCI TO VOTE ON VERIZON BID
MCI=92s shareholders will vote on Thursday on whether to accept Verizon=20
Communications=92 controversial $7.4 billion takeover bid in the face of=20
continuing opposition from some large investors who believe the company=20
should have accepted a higher $9.85 billion offer from Qwest Communications.
[SOURCE: Financial Times, AUTHOR: Paul Taylor]
http://news.ft.com/cms/s/af4c2422-34ee-11da-9e12-00000e2511c8.html

CALL-IN SHOW IS MUST-HEAR RADIO FOR INMATES CUT OFF FROM FAMILY
Prisoners at Abu Ghraib in Iraq drop everything to listen for messages from=
=20
friends and relatives. To many, the program, called "Send Your Regards," is=
=20
a lifeline. The daily 90-minute call-in show, broadcast by a Sunni Arab=20
political organization and tolerated by U.S. prison officials, allows=20
friends and family of detainees to send one-way messages of love, support=
=20
and concern to those inside Abu Ghraib's walls.
[SOURCE: Los Angeles Times, AUTHOR: Edmund Sanders]
http://www.latimes.com/news/printedition/asection/la-fg-radioabu5oct05,1...
24935.story?coll=3Dla-news-a_section
(requires registration)

DEBATE FLARES ANEW OVER VIOLENCE IN VIDEO GAMES
As the video game industry gears up to release a new generation of consoles=
=20
that allow even sharper graphics and more realistic action, lawmakers=20
nationwide are considering bans on the sale or rental of violent titles to=
=20
minors. In California, for instance, Gov. Arnold Schwarzenegger has until=
=20
midnight Thursday to act on a bill that would ban the sale to minors of=20
games that "depict serious injury to human beings in a manner that is=20
especially heinous, atrocious or cruel." That worries the $25-billion=20
global game industry, which fears that its wares would be the only form of=
=20
entertainment other than pornography subject to such heavy regulation.
[SOURCE: Los Angeles Times, AUTHOR: Alex Pham]
http://www.latimes.com/business/printedition/la-fi-violence5oct05,1,7319...
.story?coll=3Dla-headlines-pe-business
(requires registration)

E-VOTING REPORT COULD PUSH PAPER AUDIT TRAILS
An election commission headed by former President Jimmy Carter and former=
=20
secretary of state James A. Baker III drew attention last month by=20
proposing that voters be outfitted with national identification cards. But=
=20
a less-noticed recommendation could accelerate reform efforts in state=20
legislatures: Improving the security of electronic voting machines by=20
outfitting them with a voter-verifiable paper audit trail.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://beta.news.com.com/E-voting+report+could+push+audit+trails/2100-10...
3-5888926.html?tag=3Dnefd.top
--------------------------------------------------------------
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.
--------------------------------------------------------------

SF Mayor sees Wireless Service as Basic Right

San Francisco Mayor Gavin Newsom said on Monday he considered wireless Internet access a fundamental right of all citizens. Mayor Newsom told a news conference that he was bracing for a battle with telephone and cable interests, along with state and U.S. regulators, whom he said were looking to derail a campaign by cities to offer free or low-cost municipal Wi-Fi services. Local officials are mulling plans to blanket every nook and cranny of this hilly city of 750,000 residents with Wi-Fi access.

Baby Bell Lawsuit Is Allowed to Proceed

A federal appeals court Monday said an antitrust lawsuit against several of the nation's largest telecommunication providers over whether they conspired to exclude competitors from their geographic markets should be allowed to go forward. In an opinion issued Monday, a three-judge panel of the Second Circuit Court of Appeals overturned a prior lower court ruling that dismissed the lawsuit against a group of Baby Bells, including Verizon Communications, BellSouth, Qwest Communications and SBC Communications.