November 2005

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

TELEVISION/BROADCASTING
MAP Files Two Petitions to Deny Licence Renewal in Chicago and Milwaukee
Religious Broadcasters Take Lead On Key Digital Television Issue
Ensign Amendment Would Cut Box Subsidy
Groups Demand Immediate Release of CPB IG Report
Study Says More Kids' Rooms Have TVs
Raycom To Sell 12 Stations

INTERNET/BROADBAND
Could Universal Broadband Add $500 Billion to the GDP?
All Your Broadband Are Belong To Us

QUICKLY -- Experts See Telecom Bill Rewrite In Distance -- And Feel That=92=
s=20
Good; Ma Bell, Remarried; Cable companies land Sprint Nextel deal; Another=
=20
cable sale; Alito's past rulings give hint of tech views; Sony Effort to=20
Reach Christians Is Disputed; Viacom and Sirius weigh Stern effect;=20
Campaign finance bill draws opposition; Legislation On Digital Copyright=20
Protection; Knight Ridder's Largest Shareholder Wants Sale

TELEVISION/BROADCASTING

MAP FILES TWO PETITIONS TO DENY LICENCE RENEWAL IN CHICAGO AND MILWAUKEE
The Media Access Project has filed two Petitions to Deny licence renewal to=
=20
all commercial broadcasters in the Chicago and Milwaukee markets. MAP=20
monitored all broadcast newscasts one month before the 2004 election to=20
examine coverage of state and local elections. The data was analyzed by a=
=20
nationally prominent researcher and showed that singly and together, the=20
television stations in Chicago and Milwaukee failed to cover non-federal=20
election issues. =93No coverage at all of local elections can not be=20
comported with [FCC] localism requirements,=94 said MAP President and CEO=
=20
Andrew Schwartzman.
http://www.mediaaccess.org/
* Chicago petition: http://www.mediaaccess.org/ChicagoPetitionToDenyFinal.p=
df
* Milwaukee petition: http://www.mediaaccess.org/MilwaukreeFinal.pdf
* Watchdog Challenges TV Licenses
http://www.broadcastingcable.com/article/CA6280351?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

RELIGIOUS BROADCASTERS TAKE LEAD ON KEY DIGITAL TELEVISION ISSUE
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
Broadcasters continue to press for a requirement that cable operators be=20
required to carry digital =93multicasts=94 =AD and an association of religi=
ous=20
broadcasters is playing a leading role. But the window of opportunity may=
=20
be closing, said National Religious Broadcasters chief Frank Wright, who is=
=20
leading a group of 18 socially conservative organizations in a last-ditch=
=20
effort to appeal to their core, largely Republican base. Meanwhile, Rep.=20
Edward Markey (D-MA) has drafted must-carry legislation -- conditioned upon=
=20
broadcasters' meeting specific "public interest" obligations -- but he did=
=20
not offer the bill during committee consideration of the bill last week.=20
Broadcasters have not endorsed Rep Markey's proposal, which would have=20
granted must-carry language only if companies offered six hours a day of=20
"enhanced community programming." The proposal would define such=20
programming as that which "supplies citizens in a local television market=
=20
with information of relevance to that local community, including local news=
=20
and public affairs programming," as well as children's shows.
http://www.njtelecomupdate.com/lenya/telco/live/tb-GFOR1130884092070.html

ENSIGN AMENDMENT WOULD CUT BOX SUBSIDY
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Sen. John Ensign (R-NV) and consumer groups appear to be on a collision=20
course after word circulated that the Senator plans an amendment to budget=
=20
legislation that would slash consumer subsidies for analog-to-digital=20
television converter boxes. Legislation approved by the Senate Commerce=20
Committee set aside $3 billion for such subsidies while a companion bill in=
=20
the House reserved just $830 million. Sen Ensign's amendment, apparently,=
=20
would set aside just one billion dollars. On Tuesday, AARP, the Consumer=20
Federation of America, the Consumers Union and United States Public=20
Interest Research Groups sent every U.S. senator a letter urging rejection=
=20
of efforts to reduce the $3 billion.
http://www.multichannel.com/article/CA6280308.html?display=3DBreaking+News
(requires subscription)

GROUPS DEMAND IMMEDIATE RELEASE OF CPB IG REPORT
[SOURCE: Free Press press release]
On Tuesday, Common Cause, the Center for Digital Democracy and Free Press=
=20
admonished the board of directors of the Corporation for Public=20
Broadcasting (CPB) to open a closed-door meeting on the results of an=20
investigation into wrongdoing by former Chairman Kenneth Tomlinson.=20
Inspector General Kenneth Konz is expected to present his findings -- which=
=20
reportedly included ethical and procedural violations as well as misuse of=
=20
funds -- today in a private meeting of the CPB board of directors, of which=
=20
Tomlinson remains a member. In a letter delivered to CPB Chairwoman Cheryl=
=20
Halpern and President Patricia de Stacy Harrison, the groups called for the=
=20
Inspector General's report to be made public immediately and criticized the=
=20
board for further compounding its problems with transparency and=20
accountability by reviewing the report in secret. (URL includes text of=20
letter.)
http://www.freepress.net/press/release.php?id=3D103

STUDY SAYS MORE KIDS' ROOMS HAVE TVs
[SOURCE: Broadcasting&Cable, AUTHOR: Anne Becker]
Sixty nine percent of kids 6-14 have TVs in their bedrooms, according to=20
the network=92s "U.S. Multicultural Kids Study 2005." That=92s compared to =
49%=20
who have videogame systems in their bedrooms, 46% who have VCRs, 37% who=20
have DVD players, 35% who have cable or satellite TV service, 24% who have=
=20
PCs and 18% who have Internet access. The high percentage of TVs in kids=20
bedrooms comes at a time when Nielsen is reporting the highest levels of TV=
=20
viewing among kids in more than 20 years. Through Oct. 9, 2005, kids 6-11=
=20
watched 23 hours and 3 minutes a week, according to Nielsen. That=92s=20
compared to 21 hours and 18 minutes in 1992.
http://www.broadcastingcable.com/article/CA6280123?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

RAYCOM TO SELL 12 STATIONS
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
Three months after cutting a deal to buy Liberty Corp.=92s 15 TV stations,=
=20
Raycom Media now plans to sell off 12 of its own network affiliates. The=20
privately-held company says it is parsing off select outlets to focus on=20
its holdings in the Midwest and Southeast. Raycom projects the sales could=
=20
fetch up to $600 million. The stations to be sold, Raycom says, are: WFXL,=
=20
Albany, Ga.; KASA, Albuquerque/Santa Fe, N.M.; KXRM/KXTU =AD Colorado=20
Springs, Colo.; WACH =AD Columbia, S.C.; KTVO =AD Ottumwa, Iowa/Kirksville,=
=20
Mo.; WLUC =AD Marquette, Mich.; WSTM/WSTQ =AD Syracuse, N.Y.; WNWO =AD Tole=
do,=20
Ohio; WPBN/WTOM =AD Traverse City/Cadillac, Mich.; KWWL =AD Waterloo/Cedar=
=20
Rapids/Iowa City/Dubuque, Iowa.
http://www.broadcastingcable.com/article/CA6280328?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

INTERNET/BROADBAND

COULD UNIVERSAL BROADBAND ADD $500 BILLION TO GDP?
[SOURCE: Fortune, AUTHOR: David Kirkpatrick]
The broadcast TV spectrum turns out to be just about the sweetest, most=20
desirable electronic real estate there is. That=92s why it was chosen in th=
e=20
1930s and 1940s for television. Its transmissions travel farther and=20
penetrate buildings better than almost any other usable portion of the=20
electromagnetic spectrum. If these bands were employed for wireless net=20
access, that could make the U.S. much more digitally competitive with the=
=20
rest of the world. Boosting true broadband access will help increase online=
=20
spending and make the economy grow faster. According to data compiled by=20
the Pew Internet & American Life Project, 59% of broadband users bank=20
online, compared to only 35% of those who use a dial-up telephone line to=
=20
access the Internet. Broadband users also consume more news, buy more=20
products, and play more games online. And they read more blogs and download=
=20
more music. Last week, a group called the High Tech DTV Coalition wrote a=
=20
letter to the ranking members of the Commerce Committee, urging a rapid=20
transition and estimating that universal broadband in the U.S. could create=
=20
1.2 million additional jobs and ultimately add $500 billion annually to the=
=20
GDP. It was signed by many of the tech industry=92s top leaders, including=
=20
Intel CEO Craig Barrett, Cisco CEO John Chambers, Microsoft Chairman Bill=
=20
Gates, and Dell CEO Kevin Rollins.
http://www.fortune.com/fortune/fastforward/0,15704,1121835,00.html?cnn=3...

ALL YOUR BROADBAND ARE BELONG TO US
[SOURCE: Digital Divide Network, AUTHOR: Timothy Karr]
[Commentary] Karr highlights a quote from SBC CEO Edward Whitacre: "How do=
=20
you think they=92re going to get to customers? Through a broadband pipe.=20
Cable companies have them. We have them. Now what they would like to do is=
=20
use my pipes free, but I ain't going to let them do that because we have=20
spent this capital and we have to have a return on it. So there=92s going t=
o=20
have to be some mechanism for these people who use these pipes to pay for=
=20
the portion they=92re using. Why should they be allowed to use my pipes? Th=
e=20
Internet can't be free in that sense, because we and the cable companies=20
have made an investment and for a Google or Yahoo! or Vonage or anybody to=
=20
expect to use these pipes [for] free is nuts!" Americans take for granted=
=20
the diversity of information and services they find at the click of a=20
mouse. Whitacre is working to change this. His company -- along with the=20
"duopoly" of cable and DSL providers that provide access to more than 90%=
=20
of Americans -- are working overtime to horde your access to high-speed=20
Internet.
http://www.digitaldivide.net/blog/TimKarr/view?PostID=3D7344

QUICKLY

EXPERTS SEE TELECOM REWRITE IN DISTANCE -- AND FEEL THAT'S GOOD
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
A major rewrite of the 1996 Telecommunications Act that would account for=
=20
Internet-based technologies is far from passage, according lobbyists. And=
=20
most of them felt that isn't a bad thing. There's a push for reform --=20
including deregulation of traditional telecom services, changes in the=20
universal service fund for guaranteeing telephone service, pre-emption of=
=20
state regulation of Internet telephony, and consideration of nationwide=20
video franchises -- but nothing will be passed this year.
http://www.njtelecomupdate.com/lenya/telco/live/tb-TCGO1130878838059.html

MA BELL, REMARRIED
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
[Commentary] SBC, the dominant telephone company in California and 12 other=
=20
states, is expected to soon finalize its $16-billion purchase of AT&T, the=
=20
erstwhile Ma Bell. And when it does, it will take more than just AT&T's=20
assets -- it will assume its name, which still inspires a lot of=20
confidence, especially among corporate customers. Still, the switch in=20
names is rich in irony. Until the early 1980s, AT&T controlled nearly all=
=20
of the local and long distance telephone market in the US. In 1984, a court=
=20
order that separated AT&T's long-distance business from its local phone=20
operations. The local phone lines were entrusted to Southwestern Bell=20
(later renamed SBC) and six other "Baby Bells." At the time, AT&T was=20
widely viewed as getting the better part of the deal. The long-distance=20
business was taking off, or so went the conventional wisdom, and the local=
=20
phone business had nowhere to go but down. Instead, competition turned=20
long-distance service into a commodity, while the Internet created new=20
opportunities in the local market. And AT&T, after having little success=20
leasing the Bells' networks to compete in the local phone business, pursued=
=20
a disastrous strategy of using cable TV systems to sell consumers a package=
=20
of phone, video and Internet services. It lost billions of dollars and was=
=20
forced to sell the cable systems to Comcast. Meanwhile, the Baby Bells=20
dominated local markets, while gobbling up chunks of the long-distance=20
business.
http://www.latimes.com/news/printedition/opinion/la-ed-att2nov02,1,58606...
story?coll=3Dla-news-comment
(requires registration)

CABLE COMPANIES LAND SPRINT NEXTEL DEAL
[SOURCE: Reuters, AUTHOR: Kenneth Li and Sinead Carew]
Comcast, Time Warner and Cox on Monday reached a deal to resell wireless=20
phone services with Sprint Nextel to compete against telephone operators=20
entering the video market. The deal could help speed the next generation of=
=20
media and communications services. It also gives cable companies a=20
so-called "quadruple-play" portfolio of products -- cable TV, digital=20
phone, high-speed Internet and wireless phone services -- to compete=20
against deep pocketed regional telephone companies Verizon and SBC.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2005-11-01T151307Z_01_WRI116639_RTRUKOC_0_US-SPRINT-CABLE.xml
* Cable Systems Plan Advanced Cellular Service
http://online.wsj.com/article/SB113090288493986076.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

CEBRIDGE BUYS 900K COX SUBS
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
As expected, Cebridge Connections has reached an agreement to purchase=20
900,000 subscribers from Cox Communications. The deal will make Cebridge=20
the eighth-largest MSO in the country, tripling its size from 400,000=20
subscribers to 1.3 million. Cebridge also expects to take on about 2,300=20
employees from the Cox systems, increasing its total employment from 1,300=
=20
to 3,600. The systems are located in secondary markets in Texas; North=20
Carolina; Humboldt County and Bakersfield, Calif.; Louisiana; Arkansas;=20
Oklahoma; Mississippi; and Missouri. Excluded from the sale are some=20
operations serving the northwest Arkansas and Lafayette, La., areas.
http://www.multichannel.com/article/CA6280290.html?display=3DBreaking+News
(requires subscription)

NOMINEE'S PAST RULINGS GIVE HINT OF TECH VIEWS
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
How might Supreme Court nominee Samuel Alito rule on technology issues? He=
=20
takes a limited view of copyright, which could bode well for tech=20
companies, as well as a permissive approach toward electronic surveillance=
=20
by police. Technology companies are likely to find Judge Alito an appealing=
=20
nominee because for the most part he's "business-friendly," said David=20
Bernstein, a law professor at George Mason University. "He's generally=20
skeptical of open-ended liability, and seems to be inclined to strictly=20
construe contracts, including contracts that dictate where and under what=
=20
law a dispute will be resolved."
http://news.com.com/Nominees+past+rulings+give+hint+of+tech+views/2100-1...
_3-5927003.html?tag=3Dnefd.top

SONY EFFORTS TO REACH CHRISTIANS IS DISPUTED
[SOURCE: New York Times, AUTHOR: Sharon Waxman]
How comfortable is Hollywood with wooing the Christian audience? The=20
question arose this week over Sony's release of its first high-profile DVD=
=20
aimed at believers, "Left Behind: World at War," the third in a series=20
about the biblical end of days but the first time a major studio has=20
significantly backed evangelical entertainment. The film, with a production=
=20
budget of close to $10 million, has an openly devout tone and a missionary=
=20
message, along with a missionary marketing plan: 3,200 churches showed the=
=20
film last month in exchange for a modest licensing fee of about $100 per=20
site. But the producer Peter Lalonde, a Christian who brought the movie=20
rights to Sony last year in the wake of the success of "The Passion of the=
=20
Christ," said the studio was continuing to underserve the religious market,=
=20
even with that grass-roots screening effort. "It has been a battle," said=
=20
Mr. Lalonde, who called Sony's $1.2 million marketing budget for the=20
picture inadequate. "It's been just a fascinating ride for us.=20
Enlightening. Everybody sees this marketplace, but there's a barrier to=20
entry, which is a cultural barrier."
http://www.nytimes.com/2005/11/02/movies/02behind.html
(requires registration)

VIACOM AND SIRIUS WEIGH STERN EFFECT
[SOURCE: USAToday, AUTHOR: David Lieberman and Laura Petrecca]
Radio star Howard accounts for 5% of Infinity's revenue -- about $100=20
million this year -- so there's some concern at parent Viacom that he's=20
leaving soon. But his replacements -- former Van Halen front man David Lee=
=20
Roth and comedian Adam Carolla -- will be much less expensive, too, points=
=20
out Viacom co-President Leslie Moonves: Profit "margins will probably=20
increase because of this, and in radio that's the name of the game,"=20
Moonves says.
http://www.usatoday.com/money/media/2005-11-01-viacom-usat_x.htm

CAMPAIGN FINANCE BILL DRAWS OPPOSITION
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache and Declan McCullagh]
After the U.S. House of Representatives scheduled a vote for Wednesday on a=
=20
proposal which would immunize bloggers and other online commentators from=
=20
election-law regulations, advocacy groups have mounted a last-minute=20
lobbying effort to derail the plan. "This bill is drafted far broader than=
=20
it needs to be, with the result that it is going to allow members of=20
Congress to use corrupt, unlimited soft money to pay for ads on the=20
Internet to support their campaigns," said Fred Wertheimer, president of=20
Democracy 21.
http://news.com.com/Campaign+finance+reform+plan+draws+opposition/2100-1...
_3-5927269.html?tag=3Dnefd.lede

HOUSE LEGISLATION FLOATED ON DIGITAL COPYRIGHT PROTECTION
The House Subcommittee on Courts, the Internet, and Intellectual Property=
=20
has circulated a new package of legislation that aims to establish detailed=
=20
usage rules for digital distribution of entertainment and music=20
programming. The three bills concern rules for copy-protection schemes=20
governing video entertainment, as well as for emerging digital radio=20
services. While some lobbyists declined to comment because they are still=
=20
examining the bills, legislation aimed at establishing mandatory technical=
=20
standards has faced fierce opposition from the technology industry in the=
=20
past.
[SOURCE: Technology Daily, AUTHOR: Sarah Lai Stirland]
http://www.njtelecomupdate.com/lenya/telco/live/tb-QLGD1130885325071.html

KNIGHT RIDDER'S LARGEST SHAREHOLDER WANTS SALE
[SOURCE: Editor&Publisher]
Private Capital Management LP, Knight Ridder's largest shareholder, called=
=20
for a sale of the newspaper publisher on Tuesday, citing management's=20
inability to boost profit and the company's share price.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1001393853
--------------------------------------------------------------
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.
--------------------------------------------------------------