October 2005

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

DIGITAL TV TRANSITION
House Commerce Approves DTV Bill
Consumers Get Stuck with More of Cost to Keep Their TVs Working
Under House Digital TV Bill
Barton On Digital TV Transition Bill
NY DTVs Could Get $30 Million
Border Stations Don't Get DTV Waiver
HDTV arrives in Europe

CHILDREN'S TELEVISION
FCC Defends Kids Rules
OC, Inc. Calls on FCC to Renew Support for CTA
More Children's TV Violations

TELECOM/CABLE
Action On Telecom Mergers Said To Be Imminent
FCC Chairman Martin Seeking To Revamp Universal Service Fund
FCC Chief Draws Senate Criticism over New Plans
Martin To Take Up Telco Franchise Issues
Shut Up And Eat Your Kibble!

QUICKLY -- Ensuring Operability During Catastrophic Events; The Future of=
=20
Network TV News; Rules may hurt pay-TV growth in Asia; Position Available:=
=20
Field Organizer

DIGITAL TV TRANSITION

HOUSE COMMERCE APPROVES DTV BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
By a 33-17 vote, the House Commerce Committee passed digital television=20
transition bill Wednesday. The biggest fight of the day -- and, yes, it was=
=20
a day long mark-up -- was over the size of a subsidy for analog-to-digital=
=20
converter boxes. As passed, the bill allows for a total subsidy of just=20
less than a billion dollars, providing up to two $40 coupons towards the=20
purchase of converter boxes for the first 10.3 million US households that=
=20
apply for them. The Committee considered a slew of amendments, the=20
following of which passed: 1) a Telecommunications Subcommittee Chairman=20
Fred Upton (R-MI)-sponsored provision to set aside $500 million for first=
=20
responder communications (passed unanimously), 2) a $30 million set aside=
=20
for New York City broadcasters (see story below), and 3) a directive to the=
=20
FCC to complete its "white spaces" proceeding on whether to provide=20
unlicensed spectrum to advanced wireless devices in the spaces between=20
licensed allocations. The bill now moves to the House Committee on the=20
Budget which will combine it with other spending recommendations and mark=
=20
up that bill next week, with a floor vote the following week. The Senate=20
budget bill, with its DTV component, was expected to be marked up in that=
=20
budget committee Wednesday and should get a floor vote in the next couple=
=20
of weeks. After that the differences in those two huge bills must be=20
reconciled in conference.
http://www.broadcastingcable.com/article/CA6277864?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* Committee Sets Date for Digital Television Transition
[SOURCE: House Commerce Committee press release]
http://energycommerce.house.gov/108/News/10262005_1698.htm
* House Panel Clears Measure For Digital-TV Switch in 2009
http://online.wsj.com/article/SB113037620419780797.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* Panel Rejects Democratic Bid To Alter DTV Deadline, Subsidy
http://www.njtelecomupdate.com/lenya/telco/live/tb-ICHE1130358121164.html

CONSUMERS GET STUCK WITH MORE OF COST TO KEEP THEIR TVs WORKING UNDER HOUSE=
=20
DIGITAL TV BILL
[SOURCE: Consumers Union press release]
=93The House Republican bill forces millions of consumers to shell out mone=
y=20
to keep their perfectly good television sets working due to a government=20
policy,=94 said Jeannine Kenney, senior policy analyst for Consumers Union.=
=20
=93Considering the government will be getting at least $10 billion from the=
=20
sale of public airwaves because of the transition, why are some members of=
=20
Congress sticking consumers with most of the cost?=94 Kenney added. The Hou=
se=20
bill provides only $830 million to help consumers cover the cost of buying=
=20
converter boxes to keep their TVs working after the digital transition.=20
That amount would cover only about 10.5 million of the estimated 42 million=
=20
households with analog sets. House Democrats offered amendments today that=
=20
would have covered all of the 42 million households that still have analog=
=20
TV sets and need a converter box. But the amendments were rejected on party=
=20
line vote. Last week, the Senate passed its version of the bill, setting=20
aside $3 billion from the $10 billion raised by the auction of public=20
airwaves =96 an amount which will cover most of the affected households. Th=
e=20
House measure would provide a $40 voucher toward the cost of a converter=20
box, with a limit of two per household. However, the vouchers would be=20
offered on a first-come, first-served basis and the bill provides no=20
ceiling on the price of basic converter boxes, which are expected to cost=
=20
at least $60 each or more. As a result, many consumers will be vulnerable=
=20
to excessive out-of-pocket costs. No consumer should be stuck with the=20
costs of this government-mandated digital TV transition, particularly=20
giving the ample funding raised by the public airwave auction,=94 Kenney sa=
id.
http://www.consumersunion.org/pub/core_telecom_and_utilities/002797.html...
re

CHAIRMAN BARTON'S OPENING STATEMENT ON DIGITAL TV TRANSITION BILL
[SOURCE: House Commerce Committee press release]
On Wednesday "we will mark up legislation effectively setting Thursday=20
January 1, 2009, as the day America goes all digital. The analog television=
=20
signals that have come into our homes over the air since the birth of TV=20
will end the night before, and a great technical revolution that has been=
=20
in the making for years will finally be complete. In June 2004, at my first=
=20
DTV hearing since becoming chairman, I announced that expediting the DTV=20
transition would be a top priority. I also noted that the 85-percent=20
loophole in current law is delaying the consumer benefits of digital=20
television and preventing the clearing of broadcast spectrum for critical=
=20
public safety and wireless broadband uses. Since June 2004, we have held=20
four more hearings on DTV, including one in May of this year on a staff=20
draft of the legislation. We have heard from government, consumer groups,=
=20
and many sectors of the communications industry. I believe the legislation=
=20
before us tomorrow strikes the right balance on the concerns raised by=20
those witnesses and the Members of this committee. The DTV legislation=20
brings needed certainty to allow consumers, broadcasters, cable and=20
satellite operators, manufacturers, retailers, and government to prepare=20
for the end of the transition. It includes a strong consumer education=20
measure. And it helps ensure that all consumers have continued access to=20
broadcast programming, regardless of whether they use analog or digital=20
televisions, or whether they watch television signals broadcast by a local=
=20
station or subscribe to pay-TV. Enactment of this legislation by December=
=20
would give us three years to prepare for the transition. That is more than=
=20
enough time for manufacturers and retailers to move low-cost digital=20
televisions and converter-boxes into the market, for the FCC to complete=20
the channel allocation process, for broadcasters to finalize their digital=
=20
facilities, and for government and industry to prepare consumers for the=20
transition. I look forward to the renaissance of television in America that=
=20
this important legislation will bring, and I urge my colleagues to support=
=20
its adoption."
http://energycommerce.house.gov/108/News/10252005_1695.htm

NY DTVs COULD GET $30 MILLION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
With the support of House Commerce Committee Chairman Joe Barton (R-TX) and=
=20
Telecommunications Subcommittee Chairman Rep. Fred Upton (R-MI) the House=
=20
Commerce Committee has approved an amendment, introduced by Rep Eliot Engel=
=20
(D-NY) and two other New York representatives, to give New York City TV=20
stations $30 million to make the 2009 hard date of converting to digital.=
=20
The funds will be used for a series of transmitters to carry the station's=
=20
signals. Rep Engel pointed out that those stations' transmitters were wiped=
=20
out on 9/11, and that the move to the Empire State Building had already=20
cost $50 million. The Metropolitan Television Alliance, essentially a=20
collective of New York broadcasters, have decided to move to the new=20
Freedom Tower, but that won't be ready until 2010, while the transition=20
deadline is the beginning of 2009.
http://www.broadcastingcable.com/article/CA6277949?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

BORDER STATIONS DON'T GET DTV WAIVER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Rep. Charles Gonzalez (R-TX) withdrew an amendment Wednesday that would=20
have given U.S. TV stations within 50 miles of the Mexican border until=20
2015 to make the transition from analog to digital--the national hard date=
=20
is expected to be in 2009. Rep Gonzalez said that with so many Mexican=20
stations reaching into the U.S., the largely Spanish-speaking U.S. border=
=20
population will tend to tune to those stations rather than make the switch=
=20
to digital. That, he said, would put U.S. stations at a large competitive=
=20
disadvantage, as well as put those Spanish-speaking U.S. viewers outside=20
the U.S. emergency alert system.
http://www.broadcastingcable.com/article/CA6277960?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

HDTV ARRIVES IN EUROPE
[SOURCE: Reuters, AUTHOR: Georgina Prodhan and Jeffrey Goldfarb]
ProSiebenSat.1 launched high-definition television in Germany on Wednesday,=
=20
becoming Europe's first major broadcaster to transmit using the=20
high-resolution format that is considered TV's future. HDTV launched in the=
=20
United States in 1998, although consumers were at first reluctant to pay=20
for the expensive sets needed to see the clearer picture. In recent years,=
=20
demand has grown as prices have moderated and the range of HD channels=20
offered by broadcast, cable and satellite providers has increased. By last=
=20
year, HDTVs comprised 21 percent of overall U.S. TV sales and they are=20
expected to be in 63 percent of U.S. TV households by 2010, according to=20
JupiterResearch.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2005-10-26T161119Z_01_RID657998_RTRUKOC_0_US-HDTV-EUROPE.xml&archived=
=3DFalse

CHILDREN'S TELEVISION

FCC DEFENDS KIDS RULES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC answered a court order asking why it has not yet addressed the=20
concerns of some broadcasters who have asked for reconsideration of new=20
rules on children's educational television. The FCC says it has only had=20
seven months to review the complicated arguments made by broadcasters, "far=
=20
short of the 'unjustifiable' delay" the court has held might warrant=20
mandamus relief." The Commission also defended its rules which implement=20
the Children's Television Act saying they are narrowly tailored to further=
=20
the "well established interest in promoting and protecting the well-being=
=20
of children." Disney, which has pushed this court case, now has until=20
November 1 to respond to the FCC's filing.
http://www.broadcastingcable.com/article/CA6277761?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

OC INC MANAGING DIRECTOR CALLS ON FCC TO RENEW SUPPORT FOR CHILDREN'S=20
TELEVISION ACT
[SOURCE: Office of Communication of the United Church of Christ press relea=
se]
Former FCC Commissioner Gloria Tristani on Tuesday joined with other=20
members of the Children's Media Policy Coalition to call on the FCC to=20
implement new Children's Television Act rules for digital television on=20
Jan. 1, 2006, as scheduled. Speaking at a Capitol Hill press conference to=
=20
celebrate the 15th Anniversary of the Children's Television Act, Tristani,=
=20
now managing director of the Office of Communication of the United Church=
=20
of Christ, Inc. (OC, Inc.), said that while she applauded "the=20
legislation's original sponsors and their vision," today "many in the high=
=20
reaches of the media industry have fired their guns at the FCC's children's=
=20
educational rules." "The industry's recent battery of lawsuits and filings=
=20
before the FCC and the federal courts seeking to dismantle the children's=
=20
educational rules, and even the Children's Television Act, signal an=20
abandonment of their obligation to serve the special needs of children,"=20
said Tristani. "It also signals industry's plans and desire to have a free=
=20
hand in how and how much they advertise to children over the digital=20
spectrum." Tristani listed a number of objectives that must be enacted to=
=20
protect children, including: a ban on interactive advertising; better=20
monitoring and enforcement of children's educational television rules; and=
=20
stepped up efforts to assure that Spanish-language programming meets the=20
needs of an increasing number of Latino children TV viewers in the United=
=20
States.
http://www.ucc.org/ocinc/news/102505.htm

MORE CHILDREN'S TV VIOLATIONS
[SOURCE: Federal Communications Commission]
Two more television stations owned by the Libco Inc face FCC fines. WALB=20
(TV) in Albany (GA) has been fined $10,000 for failure to place in the=20
station's public inspection file TV issues/programs lists and records, etc.=
=20
(DA No. 05-2747). KAIT (TV) in Jonesboro (AK) has been fined $4,000 for=20
failure to place in the station's public inspection file the Children's=20
Television Programming Reports and Records
WALB (TV) in Albany (GA) :=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2747A1.doc
KAIT (TV) in Jonesboro (AK) :=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2751A1.doc

TELECOM/CABLE

ACTION ON TELECOM MERGERS SAID TO BE IMMINENT
[SOURCE: National Journal's Insider Update, AUTHOR: David Hatch]
Action by the Justice Department on the pending mergers of SBC=20
Communications with AT&T and Verizon Communications with MCI could come=20
today. The Justice Department is expected to require the companies to make=
=20
hundreds of high capacity special access lines used by business customers=
=20
accessible to competing telecom providers. But other sources predicted that=
=20
the DoJ would require the companies to divest overlapping special access=20
lines. Either way, the requirements to be imposed by the department=92s=20
Antitrust Division would not be substantial. FCC Commissioners are=20
scheduled to vote on the mergers Friday. The FCC's review of the deals=20
centers on protecting the public interest, while the Justice Department is=
=20
focused on competitive issues. The FCC is expected to impose several=20
conditions on the merger partners -- including the sale of stand-alone=20
high-speed Internet service, reduced special access pricing and protections=
=20
against discriminatory practices by the merged companies that might harm=20
competitors.
http://www.njtelecomupdate.com/lenya/telco/live/tb-DICT1130365793774.html

FCC CHAIRMAN MARTIN SEEKING TO REVAMP UNIVERSAL SERVICE FUND
[SOURCE: CongressDaily, AUTHOR: Drew Clark]
FCC Chairman Kevin Martin said that his agency soon would require Internet=
=20
telephone providers and cable companies to pay into the universal service=
=20
fund =96 which is designed to provide all Americans with modern=20
telecommunications services. Chairman Martin said, "The Commission needs to=
=20
revise the way in which it collects the universal service fund. The current=
=20
interstate revenue base method is outdated. It simply does not reflect the=
=20
competitive and dynamic communications market that exists today." Because=
=20
of the changing nature of communications technology, the revenue base=20
supporting the USF has been shrinking in recent years. Shoring up the fund=
=20
is also expected to be a major focus when Congress -- likely next year --=
=20
takes up legislation to overhaul the Telecom Act. Currently, the nearly $7=
=20
billion annual fund is primarily collected from an approximately 10 percent=
=20
surcharge on the revenues of interstate long-distance services. Cable=20
companies' modems and Internet telephone services currently are exempt from=
=20
paying into the pot. Revenue from telecommunications companies' high-speed=
=20
digital subscriber lines are accessed, although that will end in May.=20
Chairman Martin wants to change the way the program raises money by=20
imposing a fee based upon each telephone number. Through this formula,=20
cable and Internet companies offering telephone services would have to=20
contribute to the USF as well. Martin said the current system "doesn't=20
account for the increase in bundled service offerings, the increasing=20
migration to wireless and voice-over-[Internet protocol] services, or the=
=20
shrinking long distance market." Although he did not insist that a=20
number-only approach be deployed, he said he strongly preferred that=20
option. "I do believe that we can't wait that much longer," he said.=20
"Whatever we do to ensure the sufficiency and sustainability of the USF, it=
=20
is critical that people in rural- and high-cost areas continue to receive=
=20
at affordable rates."
http://www.njtelecomupdate.com/lenya/telco/live/tb-HUMF1130368592515.html
* Chairman Martin's Remarks to USTA:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261868A1.doc

FCC CHIEF DRAWS SENATE CRITICISM OVER NEW PLANS
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
Sens. Richard Shelby of Alabama and Barbara Mikulski of Maryland, the top=
=20
Republican and Democrat, respectively, of the Senate Appropriations=20
subcommittee that oversees the FCC's budget, said they were "surprised" by=
=20
FCC Chairman Kevin Martin's announcements , after Hurricane Katrina, that=
=20
he wanted to target about $211 million in aid to restore communications and=
=20
Internet services at schools, as well as help victims reconnect telephone=
=20
service. He also said he would propose a Public Safety/Homeland Security=20
bureau to coordinate public safety, national security and disaster=20
management actions at the FCC. In a September 22 letter to Chairman Martin,=
=20
the senators reminded him that the law requires at least 15 days advance=20
notice for reprogramming federal funds and reorganizations. The law is to=
=20
"ensure that proposals which are not fully vetted during the annual=20
appropriations process will not have unintended consequences and to=20
preserve Congress' constitutional right to appropriate spending for=20
government activities," they said. Sen Shelby and Mikulski expected "to=20
receive detailed information about the FCC's proposals and any future=20
initiatives" and enclosed a copy of the law with the letter.
http://today.reuters.com/news/newsArticleSearch.aspx?storyID=3D16639+26-...
-2005+RTRS&srch=3DFCC+CHIEF+DRAWS+SENATE+CRITICISM+OVER+NEW+PLANS

MARTIN TO TAKE UP TELCO FRANCHISE ISSUES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Saying the FCC had received increasing complaints that local franchising=20
authorities "may" be making it harder for telcos to get video franchises,=
=20
FCC Chairman Kevin Martin told the United States Telecom Association=20
Meeting in Las Vegas that he would try to take up the issue at the=20
Commission's November meeting next week. The FCC has already issued a=20
notice of proposed rulemaking into what the Commission should do, if=20
anything, "to fulfill Congress=92s directive that franchising authorities n=
ot=20
grant exclusive franchises or unreasonably refuse to award additional=20
competitive franchises."
http://www.broadcastingcable.com/article/CA6277988.html?display=3DBreaki...
News&referral=3DSUPP
(free access for Benton's Headlines subscribers)
* Chairman Martin's Remarks to USTA:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261868A1.doc

SHUT UP AND EAT YOUR KIBBLE!
[SOURCE: Riedel Communications , AUTHOR: Bunnie Riedel]
[Commentary] Sen Ensign claimed that his S. 1504 that would eliminate local=
=20
franchising for video services would cause cable companies to slash their=
=20
rates in the face of this new competition by the phone companies. He cited=
=20
a small town near Ft. Worth Texas, Keller, as the perfect example of this.=
=20
He said Charter cut its rates 50% when Verizon began offering its video=20
service a few months ago. Let=92s take a moment to parse these assertions. =
1)=20
Verizon has just entered that market -- after first obtaining a local=20
franchise from the City of Keller. 2) Charter did not cut its rates because=
=20
of fear of Verizon -- it was already feeling competitive pressure from=20
satellite TV service. It could be that Sen Ensign believes his own hype. It=
=20
is my speculation that he is just howling at the moon and chasing his own=
=20
tail. The Bell Boys have him fetching the ball and jumping through hoops.=
=20
They probably tossed him a bone. It=92s quite clear that he is covered with=
=20
fleas. But it is sad to see him frothing at the mouth. I could go on and on=
=20
about his incessant barking, but more than anything else I really do hope=
=20
somebody puts a leash on him and soon.
http://www.riedelcommunications.blogspot.com/

QUICKLY

ENSURING OPERABILITY DURING CATASTROPHIC EVENTS
[SOURCE: Federal Communications Commission]
The House Homeland Security Committee's Subcommittee on Emergency=20
Preparedness, Science and Technology met on Wednesday to examine what the=
=20
Federal government has done to ensure communications operability during=20
catastrophic incidents. While many have focused on the critical problem of=
=20
interoperable communications during disasters, interoperability presumes=20
the existence of an operable communications network. Witnesses included=20
representatives from the U.S. Department of Agriculture, Department of=20
Homeland Security and Federal Communications Commission. Ken Moran, the=20
Director of the Federal Communications Commission=92s Office of Homeland=20
Security, testified. He describe some of the damage wrought by Hurricanes=
=20
Katrina and Rita to the communications industry and the Commission=92s=20
efforts to assist consumers, the industries the agency regulates, and other=
=20
Federal agencies during this crisis. He also addressed the Commission=92s=
=20
efforts to ensure public safety operability during catastrophic events such=
=20
as the recent hurricanes.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261857A1.pdf

AFTER CBS' DECISION, NETWORKS FACE MANY MORE
[SOURCE: New York Times, AUTHOR: Bill Carter]
An article on what broadcast network TV news will look like over the next=
=20
few years as executives ponder how to keep news programming on the networks=
=20
competitive in a world of ever-expanding choices for news consumers. The=20
days of network news executives as emblems of conscience in journalism are=
=20
long gone. The job now requires skills more as a manager of talent and=20
budget. Direction remains the most pressing issue for all the network=20
divisions. Nobody is entirely sure which way to go. To upset the=20
traditional news format - with an anchor reading a news script and leading=
=20
into reports from correspondents - risks alienating the aging but still=20
substantial audiences that the networks control. But to stay with that=20
traditional format risks losing relevance with each passing day to the=20
immediacy of the Internet and the all-the-time availability of electronic=
=20
devices like cellphones, which will soon be news outlets as well.
http://www.nytimes.com/2005/10/27/business/media/27news.html
(requires registration)

RULES MAY HURT PAY-TV GROWTH
[SOURCE: Wall Street Journal, AUTHOR: Cris Prystay cris.prystay( at )wsj.com]
Tight regulation in many Asian countries is impeding growth of the=20
pay-television industry by deterring foreign investment as well as=20
controlling fees and programming, according to a new report by the Cable &=
=20
Satellite Broadcasting Association of Asia. Asia's cable- and satellite-TV=
=20
industry, which generated $15 billion in revenue last year, is constrained=
=20
in many countries by laws that limit or bar foreign investment, restrict=20
the rates cable operators and broadcasters can charge, or control=20
programming and content. The highly regulated cable industries in China,=20
Thailand and South Korea, for example, have drawn a fraction of the=20
investment -- and generated a fraction of the revenue -- of those in Hong=
=20
Kong and Japan, which have deregulated their pay-TV industries.
http://online.wsj.com/article/SB113024677220478737.html?mod=3Dtodays_us_...
e_one
(requires subscription)

POSITION AVAILABLE: FIELD ORGANIZER
[SOURCE: Free Press]
Free Press has an immediate opening for a Field Organizer to develop and=20
implement strategies to encourage public participation in media policymakin=
g.
http://www.freepress.net/content/opportunities
--------------------------------------------------------------
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.
--------------------------------------------------------------