February 2006

This week's agenda includes Senate Commerce=20
Committee hearings 1) State and Local Issues and=20
Municipal Networks (Tuesday), 2) Video=20
Franchising (Wednesday). In addition, the Center=20
for Social Media is convening a meeting on=20
accountability in public media. And, of course,=20
pitchers and catchers report Wednesday, warming=20
hearts everywhere. For the and other upcoming=20
media policy events, see http://www.benton.org

REPORT FROM KELLER, TEXAS
Competitors Making Inroads Against Cable
FCC Comes to Keller to Weigh Texas' Cable Model
FCC: Cable's Regulatory Threshold Unclear

TELEVISION
Verizon=92s Captain Charts Slow, Steady Course
CDD Files Comments with FCC on Video Franchising Inquiry
The Digital Protestants
Mobile TV: A dagger in the heart of America's video franchising and
must-carry laws?
VoD Viewers Don't Erode Live TV Audience

MEDIA OWNERSHIP
Big Media Can Serve, Not Kill Public-Interest Needs
Radio Station Sale Raises Static
Moreno to Acquire Largest Spanish Language AM Radio Station
Outsiders Find West Texas, and Public Radio Follows

PRIVACY/TELECOM
Attention in N.S.A. Debate Turns to Telecom Industry
FCC starts review of telephone record security
Challenges to Improving Telecommunications For Native Americans

INTERNET/BROADBAND
Define: "Net Neutrality"
Latest Commentary on Net Neutrality
Yahoo to Outline Stance on Privacy And Free Speech
Bill would keep servers out of China

CHILDREN AND MEDIA
Billion-Dollar Babies
Youngsters Enjoy Beer Ads, Arousing Industry's Critics
Web Sites Fight Proof-of-Age Rules For Porn Performers
Social websites scrutinized
How best to protect kids from online porn
Michigan floats online learning requirement

QUICKLY -- Spectrum license distribution=20
scrutinized; A Nose for News, Tweaked By the No's=20
for News; Payola Hearing Unlikely; FCC Tech Chief=20
Joins MSTV; FCC License Renewals; So Much for the=20
Honeymoon; Wireless to organize lives; New Grant=20
System Excludes Mac Users; E-waste rules are a start; What do you communica=
te?

REPORT FROM KELLER, TEXAS

COMPETITORS MAKING INROADS AGAINST CABLE
[SOURCE: Washington Post, AUTHOR: Steven Levingston]
Federal Communications Commission Chairman Kevin=20
J. Martin said Friday that the agency should make=20
it easier for new companies to compete with cable=20
providers in bringing video services to=20
consumers. Speaking at an FCC meeting held=20
symbolically in Keller, Tex. -- the community=20
where telephone giant Verizon rolled out its=20
first fiber-optic TV service last year --=20
Chairman Martin said in prepared remarks that the=20
commission should "facilitate" such efforts and=20
"seek to eliminate unreasonable barriers to=20
entry." He did not mention specifics, but phone=20
companies have been seeking relief in recent=20
months from having to win TV franchise awards=20
one-by-one in thousands of localities around the=20
country. Martin's remarks came as the commission=20
released a report finding that direct satellite=20
TV providers nibbled away at the dominance of=20
cable operators over the past year, but also that=20
further steps are needed to improve competition.=20
In addition, fostering the spread of new service=20
providers "promotes the deployment of the=20
broadband networks over which the video services=20
are provided," Chairman Martin said. The report=20
found that the video industry has made advances=20
in picture quality, technological innovation and=20
consumer choice. But Commissioner Jonathan S.=20
Adelstein echoed Martin's concerns about=20
competition, noting that the top four video=20
providers served 63 percent of the audience last=20
year, up 5 percent between June 2004 and June=20
2005, the period covered by the report. The=20
report found that cable's share of the market=20
slipped to 69.4 percent in June 2005 from 71.6=20
percent in June 2004. Satellite providers boosted=20
their share to 27.7 percent from 25.1 percent over the same period.
http://www.washingtonpost.com/wp-dyn/content/article/2006/02/10/AR200602...
1983.html
(requires registration)
* FCC Issues 12th Annual report to Congress on Video Competition
[SOURCE: Federal Communications Commission press=20
release] (Includes key findings)
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-263763A1.doc
* Statement from Chairman Martin:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-263763A2.doc
* Statement from Commissioner Copps:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-263763A3.doc
* Statement from Adelstein:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-263763A4.doc
Additional coverage --
* Cable cost increases, but customer base shrinks
[SOURCE: Associated Press, AUTHOR: David Koenig]
http://www.dispatch.com/business-story.php?story=3Ddispatch/2006/02/11/2...
0211-C8-01.html
* 1 million switch off cable TV service
http://www.detnews.com/apps/pbcs.dll/article?AID=3D/20060212/BIZ/6021203...
1001

SHOULD THE US FOLLOW US?: FCC COMES TO KELLER TO WEIGH TEXAS' CABLE MODEL
[SOURCE: Fort Worth Star-Telegram, AUTHOR: Aman=20
Batheja abatheja( at )star-telegram.com]
The FCC convened a hearing in Keller (TX) on=20
Friday to try and get a clear picture of the=20
dynamics of the cable industry. Instead,=20
commissioners received widely conflicting=20
descriptions of the marketplace, with phone=20
companies saying there are unreasonable barriers=20
to entering the TV business and cable companies=20
saying that competition for customers is alive=20
and well. "We're hearing completely different=20
messages on this panel," Jonathan Adelstein, one=20
of the commissioners, said at the end of the=20
two-hour hearing. Fort Worth Mayor Mike Moncrief=20
told the commissioners that the statewide=20
franchise could become a model for nationwide=20
video franchise legislation. He said Congress=20
should hold to the key provisions of the Texas=20
law, including the ways in which municipalities=20
retain franchising fees. Texas would hate to see=20
a national law that was less friendly to cities=20
than Texas' legislation, he said. Sharon King,=20
president and CEO of Dallas Community Television,=20
said she supported increased competition as long=20
as video providers are required to provide=20
support for local public-access channels. The=20
statewide franchise rules in Texas had=20
jeopardized the Dallas public-access channel's=20
local franchise dollars, which represent half of its funding, she said.
http://www.redorbit.com/news/technology/386551/should_the_us_follow_us_f...
comes_to_keller_to/index.html?source=3Dr_technology
See also --
* Push for =91a la carte' cable picks up steam
http://www.usatoday.com/printedition/money/20060213/martin13.art.htm

FCC: CABLE'S REGULATORY THRESHOLD UNCLEAR
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
As part of its annual report on the state of=20
video competition, the FCC has found that cable=20
systems with at least 36 channels are available=20
to at least 70% of U.S. households. What isn't=20
clear is whether at least 70% of that household=20
figure subscribe. Once both those tests are=20
passed, the FCC is directed by Congress to do=20
whatever it needs to to promote video competition=20
in the marketplace. The FCC says it is has=20
received data that varies from a 60% subscriber=20
rate to 77%. Given that disparity and commenters=20
disagreement on the figure, the FCC said Friday,=20
it is seeking further comment on the best way to=20
measure that 70% subscriber rate, as well as what=20
regulatory steps it may need to take when it=20
determines that benchmark has been met.
http://www.broadcastingcable.com/article/CA6306556?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* FCC Checks Its Authority
http://www.multichannel.com/article/CA6306759.html?display=3DBreaking+News
(requires subscription)

TELEVISION

VERIZON CAPTAIN CHART'S SLOW, STEADY COURSE
[SOURCE: Telecommunications Online 2/9, AUTHOR: Jim Barthold]
Verizon Communications will transcend voice,=20
entertainment and wireless and become a =93rich=20
communications company=94 by leveraging its=20
disparate components, Chairman-CEO Ivan=20
Seidenberg said last week. Building a fiber optic=20
network and acquiring content, Seidenberg said,=20
are only two challenges the carrier is facing in=20
its battle to become an alternative to cable.=20
Regulation =AD proposed and real and fueled by the=20
incumbent cable operators =AD will =93be solved and=20
we'll move on =85 in two years or less than that.=20
It costs money but it=92s the cost to get into the=20
market.=94 The bigger problem, he said, is the=20
=93bizarre=94 behavior of municipalities who demand=20
amenities from Verizon in exchange for being=20
allowed to do business in their towns. The=20
carrier is flexing its government muscles seeking=20
regulatory help to thwart those sorts of local=20
efforts, often initiated by the incumbent=20
competition. Verizon, he said, is not awed by=20
incumbent providers. =93We=92re bigger than them=20
anyway, so I don't care,=94 he said.
http://www.telecommagazine.com/archives/article.asp?HH_ID=3DAR_1713

CDD FILES COMMENTS WITH FCC ON VIDEO FRANCHISING INQUIRY
[SOURCE: Center for Digital Democracy press release]
The Center for Digital Democracy (CDD) today=20
filed comments with the FCC on the commission's=20
recent Notice of Proposed Rulemaking (NPRM) that=20
"=85seeks input on what can be done to ensure that=20
local franchising authorities (LFAs) do not=20
unreasonably refuse to award cable franchises to=20
competitive entrants." In its comments, CDD=20
expressed the importance of addressing a full=20
range of issues connected with multi-channel=20
video franchises: local authority,=20
localism,broadband deployment, network=20
neutrality, and community media, all of which=20
must be included, we are convinced, within the=20
scope of the commission's present inquiry. In=20
light of the very real threat to communities'=20
longstanding right to negotiate video franchises=20
that reflect the needs and interests of their=20
residents, CDD's filing underscored the=20
importance of preserving this vital aspect of=20
local democracy: "Cable franchise agreements,=20
clearly, are unique social pacts. More than=20
merely a license for companies to dispense=20
multi-channel video and other services, these=20
documents are crafted with specific community=20
needs and interests in mind. As such, these=20
agreements also contain the building blocks for a=20
genuine community media movement, one that places=20
the power of broadcast and digital technologies=20
in the hands of individuals and nonprofit=20
organizations normally excluded from the=20
market-driven mainstream media. Failure to ensure=20
meaningful local governance in multi-channel=20
broadband networks will seriously deprive the=20
public of the ability to benefit from advanced=20
communications. It will set back the=20
commission's own goal of promoting localism,=20
reduce diverse sources of programming, and remove=20
one of the last democratically oriented=20
principles of electronic media governance."
http://www.democraticmedia.org/news/washingtonwatch/FCCfiling.html

THE DIGITAL PROTESTANTS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Religious Voices in Broadcasting, a sort of=20
splinter group of the National Religious=20
Broadcasters, has sent a letter to the Senate=20
Commerce Committee demanding that digital=20
multicast must-carry be part of any upcoming=20
digital TV legislation. The group, which includes=20
TBN, the Christian Television Network and more=20
than a dozen other stations and groups, says that=20
their current carriage on cable systems is viable=20
only thanks to the 1992 Must Carry Act, which=20
mandated cable carriage of analog TV stations.=20
Calling the digital conversion an unfunded=20
mandate for expensive dual analog/digital=20
carriage that has =93disproportionately affected=20
religious broadcasters,=94 the group says that=20
mandated digital carriage of broadcast stations=20
is the =93fair and reasonable solution for=20
maintaining a level playing field for small,=20
independent and religious broadcasters in digital television.=94
http://www.broadcastingcable.com/article/CA6306807?display=3DSpecial+Rep...
&referral=3DSUPP
(free access for Benton's Headlines subscribers)

MOBILE TV: A DAGGER IN THE HEART OF AMERICA'S=20
VIDEO FRANCHISING AND MUST-CARRY LAWS?
[SOURCE: Truth, Justice & Telecom Policy, AUTHOR: J.H. Snider]
[Commentary] If cable, satellite, and wired=20
telephone companies are subject to must-carry and=20
video franchising regulations, why aren't mobile=20
TV operators? In the current debate over the=20
rewrite of the Telecommunications Act of 1996,=20
these questions aren't being asked, just like the=20
significance of the Internet wasn't considered a=20
factor when the Telecommunications Act of 1996=20
was being written. But Snider suggests that from=20
here on out any discussion of broadcast TV policy=20
that doesn't include mobile TV is missing the 800=20
pound gorilla in the room. We can dispute whether=20
the gorilla is 100 pounds or 800 pounds, but we=20
cannot dispute that there is a gorilla in the room.
jhsnider.net/telecompolicy

VOD VIEWERS DON'T ERODE LIVE TV AUDIENCE
[SOURCE: AdAge, AUTHOR: Claire Atkinson]
A new joint survey from Nielsen Media Research=20
and Comcast found that TV viewing isn't affected=20
by the use of digital video-on-demand services.=20
According to the study, 75% of sample households=20
with access to VOD used it at least once. And the=20
VOD households sampled watched 9% more minutes of=20
TV than all digital-cable households and 38% more=20
than all cable households, for an average of 723=20
minutes. The good news for advertisers was that=20
among the most sampled content were shorter=20
videos available for free, like music videos. The=20
not-so-positive news: the most watched programs,=20
that is, those shows that viewers spent the most=20
time with, hailed from advertising-free subscription services such as HBO.
http://adage.com/news.cms?newsId=3D47853
* How to Value Ratings With DVR Delay?
http://www.nytimes.com/2006/02/13/business/media/13adcol.html
(requires registration)

MEDIA OWNERSHIP

BIG MEDIA CAN SERVE, NOT KILL PUBLIC-INTEREST NEEDS
[SOURCE: Broadcasting&Cable, AUTHOR: Richard T.=20
Kaplar and Patrick D. Maines, The Media Institute]
[Commentary] Is consolidation (or=20
"concentration") really bad, or merely a rational=20
and necessary development in today's transformed=20
media environment? In an economy where virtually=20
every major industry has seen a trend toward=20
fewer but larger companies, it is hard to fathom=20
why the media industry should be any different.=20
Might not consolidation actually be helpful in=20
creating a stronger (and, paradoxically, more=20
diverse) industry that could ultimately serve the=20
public better? If Congress and the FCC are truly=20
concerned about the media they regulate, they=20
must be concerned first and foremost with the=20
economic viability and competitive strength of=20
those media. Policymakers who fail to grasp this=20
essential truth, and who continue to impose=20
burdensome and even ruinous regulations on this=20
one sector of the communications industry, may be=20
remembered for having turned our old media into relics of a bygone era.
http://www.broadcastingcable.com/article/CA6306803?display=3DOpinion&ref...
al=3DSUPP
(free access for Benton's Headlines subscribers)

RADIO STATION SALE RAISES STATIC
[SOURCE: Weymouth News, AUTHOR: Ed Baker]
In Weymouth (MA), the town council is concerned=20
about the recent sale of a AM radio station to an=20
out-of-state company. Principle Broadcasting=20
purchased WJDA and WESX for approximately $4.5=20
million from local resident Jay Aster and his=20
sister Joan. The sale was financed by Mercury=20
Capital Partners III L.P., a private equity fund,=20
based in Amherst, MA. Principal Broadcast=20
President Otto Miller said both stations will be=20
consolidated into a central location in Chelsea.=20
The town council has responded by asking=20
Principal Broadcasting to provide regular news=20
coverage. "I can't say for sure that we won't be=20
able to give local news coverage," Miller said.=20
"We will be involved in local community events=20
and what is happening there. It won't be regular=20
newscasts. That is not the way we are set up.=20
Part of the operation of our station is to tie=20
into the local community. When you have a medium=20
station like ours, it's important for us to be=20
tied into the community." Principal Broadcasting=20
plans to air religious programs and=20
multi-cultural theme broadcasts when it takes to=20
the airwaves in late June or early July. "It's=20
been labeled Christian because a lot of churches=20
are involved with the broadcast network," Miller=20
said. "But we will have health experts and real=20
estate people on the air giving information. We=20
will be helping to address matters of the body,=20
mind and spirit. With respect to ethnicity, we=20
will be reaching out to Spanish speaking people,=20
because of the influx of Spanish people into the=20
country. We will have shows to teach them about=20
the culture of this country. That is the mission of our network."
http://www2.townonline.com/weymouth/localRegional/view.bg?articleid=3D42...

MORENO TO ACQUIRE LARGEST SPANISH LANGUAGE AM RADIO STATION
[SOURCE: Hispanic Business]
A partnership led by Arte Moreno, owner of the=20
Los Angeles Angels, has agreed to purchase and=20
assume the operations of Radio 830 KMXE, the=20
nation's largest Spanish language AM radio=20
station, from Radiovisa. Radio 830 KMXE currently=20
produces and syndicates 24-hour programming,=20
including Spanish language news, talk and sports.=20
The station is also home to live coverage of=20
University of Southern California football,=20
NASCAR and The Los Angeles Galaxy and Chivas USA=20
soccer. Under the new ownership, Radio 830 KMXE=20
will serve as the flagship Hispanic radio=20
broadcast outlet for Angels Baseball, staring=20
with the 2006 season. In addition, the new=20
ownership plans to convert to a bilingual format=20
and expand the station's sports broadcast=20
line-up. "The acquisition of Radio 830 KMXE=20
provides a new opportunity to bring play-by-play=20
commentary and Angels game coverage to a large=20
audience of Hispanic Major League Baseball fans,"=20
said Dennis Kuhl, a partner in the Radio 830 KMXE=20
acquisition. "Once the transaction is complete=20
the station's sports broadcast line-up will be=20
expanded to a bilingual format, providing=20
Hispanic sports enthusiasts with access to=20
exciting regional, national and international=20
sporting events. It will also provide an=20
opportunity for advertisers to reach an audience=20
with a buying power of more than $105 billion."
http://www.hispanicbusiness.com/news/newsbyid.asp?id=3D27921

OUTSIDERS FIND WEST TEXAS, AND PUBLIC RADIO FOLLOWS
[SOURCE: New York Times, AUTHOR: Barabara Novovitch]
This afternoon, Marfa Public Radio will be the=20
first radio station offering national and world=20
news to far West Texas, with a potential 50,000=20
listeners, counting travelers and residents. The=20
station's signal will reach from Van Horn in the=20
west to beyond Marathon, about 150 miles to the=20
east, and from beyond Presidio, at the Mexican=20
border, to Balmorhea, about 120 miles to the=20
north. The schedule will include NPR's signature=20
programming =97 "Morning Edition," "Weekend=20
Edition" and "All Things Considered" =97 and=20
programs from Public Radio International and=20
American Public Media. Marfa may seem an unlikely=20
home for public radio. The town is the county=20
seat of Presidio County, which has a median=20
household income under $20,000, less than half=20
the national average. More than one-third of=20
residents live in poverty, and more than half are=20
Hispanic. But this vast, sparsely populated=20
region in recent years has attracted urban=20
refugees who live or vacation here. Local=20
residents had tried for decades to bring public=20
radio to the area, but it was the influx of=20
outsiders that helped them finally start a station.
http://www.nytimes.com/2006/02/12/national/12radio.html
(requires registration)

PRIVACY/TELECOM

ATTENTION IN NSA DEBATE TURNS TO TELECOM INDUSTRY
[SOURCE: New York Times 2/11, AUTHOR: Scott Shane]
Though much of official Washington has been=20
caught up in the debate over the National=20
Security Agency's domestic surveillance program,=20
one set of major players has kept a discreet=20
silence: the telecommunications corporations.=20
Some companies are said by current and former=20
government officials to have provided the=20
eavesdropping agency access to streams of=20
telephone and Internet traffic entering and=20
leaving the United States. The N.S.A. has used=20
its powerful computers to search the masses of=20
data for clues to terrorist plots and, without=20
court warrants, zeroed in on some Americans for=20
eavesdropping, those officials say. Now the=20
companies are in an awkward position, with=20
members of Congress questioning them about their=20
role in the eavesdropping. On Thursday two=20
Democratic senators, Edward M. Kennedy of=20
Massachusetts and Russell D. Feingold of=20
Wisconsin, wrote to the chief executives of AT&T,=20
Sprint Nextel and Verizon, asking them to confirm=20
or deny a report in USA Today on Monday that said=20
telecommunications executives had identified=20
AT&T, Sprint and MCI (now part of Verizon) as=20
partners of the agency. The two senators demand=20
information that, if it exists, would be highly=20
classified: details of secret N.S.A. requests for=20
help and the number of people whose communications were intercepted.
http://www.nytimes.com/2006/02/11/politics/11nexus.html
(requires registration)

FCC STARTS REVIEW OF TELEPHONE RECORD SECURITY
[SOURCE: Reuters]
The Federal Communications Commission voted on=20
Friday to examine the security measures that=20
telephone carriers have in place and "what kind=20
of security measures may be warranted to better=20
protect consumers' privacy." The move comes at=20
the request of a privacy watchdog group amid=20
pressure to clamp down on online data brokers=20
that offer to obtain and sell telephone=20
subscriber information. Some Internet sites have=20
since stopped offering the service.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-02-11T002631Z_01_N1039712_RTRUKOC_0_US-TELECOMS-FCC-PRIVACY.xml&arc=
hived=3DFalse
* FCC Press Release
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-263765A1.doc

TELECOMMUNICATIONS: CHALLENGES TO ASSESSING AND=20
IMPROVING TELECOMMUNICATIONS FOR NATIVE AMERICANS ON TRIBAL LANDS
[SOURCE: Government Accountability Office] GAO-06-189
This report discusses 1) the status of=20
telecommunications subscribership for Native=20
Americans living on tribal lands; 2) federal=20
programs available for improving=20
telecommunications on these lands; 3) barriers to=20
improvements; and 4) how some tribes are=20
addressing these barriers. In a draft of this=20
report provided for agency comment, GAO=20
recommended that FCC determine what data is=20
needed to assess progress toward the goal of=20
providing access to telecommunications services=20
to Native Americans living on tribal lands and=20
how this data should be collected, and report to=20
Congress on its findings. FCC agreed more data is=20
needed but maintained that it is not the=20
organization best positioned to determine what=20
that data should be. Given FCC=92s response,=20
Congress should consider directing FCC to carry=20
out our recommended action. In addition, Congress=20
should consider amending the Communications Act=20
to facilitate and clarify tribal libraries=92=20
eligibility for universal service funds.
http://www.gao.gov/cgi-bin/getrpt?GAO-06-189
Highlights - http://www.gao.gov/highlights/d06189high.pdf

INTERNET/BROADBAND

DEFINE: "NET NEUTRALITY"
[SOURCE: Washington Post]
Is it: A) In telecommunications policy, a=20
regulation preventing Internet service providers=20
from favoring their own content or applications=20
over those of competitors. B) A rule that would=20
prevent phone and cable companies from charging,=20
or limiting access, to Google, Yahoo, Internet=20
phone companies, or companies offering music and=20
video to customers over their networks. C)=20
According to phone and cable companies, a=20
framework that will discourage investment in new=20
network capacity and provide content providers=20
with a "free lunch." D) According to content=20
providers, a framework that insures the continued=20
openness of the Internet by preventing network=20
providers from deciding which Internet services=20
and content their customers can receive. E)=20
Currently, the most hotly lobbied telecom issue.=20
F) An expected source for tens of millions of=20
dollars in industry campaign contributions during=20
this election cycle. Or G) All of the above.
http://www.washingtonpost.com/wp-dyn/content/article/2006/02/11/AR200602...
0242_pf.html
(requires registration)

LATEST COMMENTARY ON NET NEUTRALITY
* Telcos Playing with Fire
http://www.ofb.biz/modules.php?name=3DNews&file=3Darticle&sid=3D396
* Beware the Double Definitions of 'Network Neutrality'
http://www.pacificresearch.org/press/opd/2006/opd%5f06-01-20sa.html
* Congress Thinks It Can Force Technical Changes=20
on the Internet, but Congress Is Wrong
http://www.pbs.org/cringely/pulpit/pulpit20060209.html
* Network Neutrality: The "Value Added" Myth
http://garywiz.typepad.com/trial_by_fire/2006/02/network_neutral_1.html
* Net neutrality and the regulation debate
http://www.isportal.com/blog/_archives/2006/2/10/1753787.html
* Why the net should stay neutral
http://news.bbc.co.uk/2/hi/technology/4700430.stm

YAHOO TO OUTLINE STANCE ON PRIVACY AND FREE SPEECH
[SOURCE: Wall Street Journal, AUTHOR: Kevin J. Delaney kevin.delaney( at )wsj.co=
m]
Yahoo said it will call for U.S. businesses and=20
government to tackle issues arising from=20
operating in countries with lax privacy and=20
free-speech protections, while acknowledging that=20
its own compliance with Chinese law has led to=20
"serious and distressing" consequences. Today,=20
the company is expected to issue a statement of=20
beliefs and commitments on the issue, with the=20
goal of taking a lead role in industry and=20
political discussions. Yahoo is among the=20
technology companies scheduled to testify=20
Wednesday about dealings in China before the U.S.=20
House International Relations subcommittee on=20
global human rights. Yahoo's planned statement is=20
short on specifics. The company says it will=20
"strive to achieve maximum transparency to the=20
user" in cases where governments require it to=20
censor Web search results, but didn't say exactly how it might do that.
http://online.wsj.com/article/SB113980056487172171.html?mod=3Dtodays_us_...
e_one
(requires subscription)
See also --
* Chinese Censors Of Internet Face 'Hacktivists' in U.S.
[SOURCE: Wall Street Journal, AUTHOR: Geoffrey A.=20
Fowler geoffrey.fowler( at )wsj.com]
Freegate is a software program that thwarts the=20
Chinese government's vast system to limit what=20
its citizens see on the Internet. Freegate -- by=20
connecting computers inside of China to servers=20
in the U.S. -- enables people in China to keep=20
reading and writing to Wikipedia and countless other Web sites.
http://online.wsj.com/article/SB113979965346572150.html?mod=3Dtodays_us_...
e_one
(requires subscription)

BILL WOULD KEEP SERVERS OUT OF CHINA
[SOURCE: USAToday, AUTHOR: Jim Hopkins]
Rep. Chris Smith (R-NJ) is drafting a bill that=20
would force Internet companies including Google,=20
Yahoo and Microsoft to keep vital computer=20
servers out of China and other nations the State=20
Department deems repressive to human rights.=20
Moving servers would keep personal data they=20
house from government reach. But that also could=20
weaken the firms' crucial Internet search=20
engines. Rep Smith's bill -- still being written=20
-- has already drawn interest from another=20
lawmaker, Rep. Dana Rohrabacher (R-CA), with=20
long-held concerns about U.S. business cozying up=20
to the Chinese government. Rep Smith has=20
scheduled a Wednesday hearing on the issue, which=20
Google, Microsoft, Yahoo and Cisco Systems will=20
attend. He is unmoved by their stance that=20
conducting business in China in limited ways will=20
better nurture human rights than abandoning the=20
nation of 1.3 billion altogether.
http://www.usatoday.com/printedition/money/20060213/chinanet.art.htm
* Principles needed on China's Net censorship
http://www.mercurynews.com/mld/mercurynews/business/technology/13843385.htm

CHILDREN AND MEDIA

BILLION-DOLLAR BABIES
[SOURCE: Broadcasting&Cable, AUTHOR: Anne Becker]
Disney Channel=92s Little Einsteins is one of the=20
hottest preschool shows on TV. Disney=92s bet on=20
Little Einsteins reflects one of kids=20
programmers=92 highest hopes these days: Hook =92em=20
early and keep them loyal as they grow. The TV=20
series is the second act of the country=92s most=20
popular line of infant DVDs, Baby Einstein.=20
Today, two out of every three mothers in the U.S.=20
own a Baby Einstein product, and Disney=20
executives project that the brand and its=20
extensions will bring in $1 billion annually by=20
2010. Each of the Baby Einstein videos and DVDs=20
is set to soft classical music, designed to=20
=93expose little ones=94 up to 2 years old to music,=20
art and language through puppetry and film of=20
real kids. With titles including Baby Mozart=20
Musical Festival and Baby Van Gogh World of=20
Colors, Einstein gained popularity with parents=20
enchanted that their infants were mesmerized by=20
symphonies. After spinning off Baby Einstein into=20
some 500 consumer products from bath puppets to=20
dessert plates, Disney is now putting its=20
corporate muscle into making Little Einsteins a=20
bankable phenomenon on television, using the same=20
type of classical music and art to reach 2- to=20
5-year-olds and convince moms that TV can be good=20
for kids. Disney has tripled the number of Baby=20
Einstein video and DVD titles to 21 and sold more=20
than 20 million units. To date, the Baby Einstein=20
brand, stamped on books and products in 30=20
countries, has brought in more than $500 million.=20
Disney hopes that Little Einsteins will command a=20
chunk of the estimated $20 billion in annual=20
worldwide retail sales of licensed products for preschoolers.
http://www.broadcastingcable.com/article/CA6306790?display=3DFeature&ref...
al=3DSUPP
(free access for Benton's Headlines subscribers)

YOUNGSTERS ENJOY BEER ADS, AROUSING INDUSTRY'S CRITICS
[SOURCE: New York Times, AUTHOR: Andrew Adam Newman]
Beer companies pledge not to aim their message at=20
underage drinkers, but on Super Bowl Sunday, they=20
hit the target anyway. The yearly Adbowl poll, in=20
which participants rate Super Bowl ads online=20
during the game, breaks down voting by age and=20
other demographic measures. In the category of=20
voters under the age of 17, Bud Light ads ranked=20
first, second and fourth in popularity. A=20
Budweiser ad won third. Critics of the alcohol=20
industry are not so sanguine. Amon Rappaport, a=20
spokesman for the Marin Institute, an industry=20
watchdog based in California, objected to an=20
Anheuser-Busch Super Bowl ad in which a young=20
Clydesdale pulls its first wooden beer cart.=20
"Using a baby Clydesdale to sell beer to kids is=20
just like using Joe Camel to sell cigarettes,"=20
Mr. Rappaport said. In a written response,=20
Francine I. Katz, a vice president of=20
Anheuser-Busch, which brews Budweiser, Michelob=20
and other brands, cited Nielsen Media Research=20
indicating that 89 percent of Super Bowl viewers=20
were 21 or older, while the median viewer age was=20
43. "Based on those numbers, it's simply=20
ridiculous to suggest that underage people are=20
the intended audience for these ads," Ms. Katz said.
http://www.nytimes.com/2006/02/13/business/media/13super.html
(requires registration)

WEB SITES FIGHT PROOF-OF-AGE RULES FOR PORN PERFORMERS
[SOURCE: Wall Street Journal, AUTHOR: David Kesmodel david.kesmodel( at )wsj.com]
The adult-entertainment industry is embroiled in=20
a legal battle with the federal government over=20
new regulations that many online purveyors fear=20
could put them out of business. At issue are=20
rules established last year requiring any Web=20
site carrying sexually explicit videos or=20
photographs to maintain records proving that the=20
performers are at least 18 years old. The rules=20
apply whether the Web site owner produced the=20
content or merely republished it. And they were=20
made retroactive, so site operators must maintain=20
records for all content filmed or photographed in=20
the past 10 years. First-time violators face=20
prison sentences of up to five years. The Justice=20
Department issued the regulations after Congress=20
instructed it to update a 1988 child-protection=20
law applying to filmmakers and magazine=20
photographers. The new concern, the government=20
has said in court filings, is the proliferation=20
of Internet sites promoting content featuring=20
"teens" and "young-looking performers." Critics=20
say the record-keeping rules are overly=20
burdensome and part of a widening assault by the=20
Bush administration against legal forms of=20
sexually explicit material. "This has nothing to=20
do with protecting children," Lawrence G.=20
Walters, a Florida lawyer who represents several=20
porn sites, said of the new regulations. "They're=20
trying to shut down the adult-entertainment industry with overregulation."
http://online.wsj.com/article/SB113979639540872097.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

SOCIAL WEBSITES SCRUTINIZED
[SOURCE: USAToday, AUTHOR: Janet Kornblum]
Police across the country are examining social=20
websites, including 55-million-member MySpace, in=20
investigations of crimes ranging from statutory=20
rape and molestation to murder. Their concern:=20
Teens who have been warned all their lives to=20
beware of strangers online are now regularly=20
posting their cellphone numbers, school names and=20
other personal information, as well as sexy=20
pictures of themselves, on these sites. Whether=20
crimes against children connected with the=20
Internet are actually increasing is unknown,=20
because no organization or agency keeps=20
comprehensive statistics. But officials are=20
concerned that teens who use public websites to=20
socialize and plan activities are oblivious to the presence of predators.
http://www.usatoday.com/printedition/life/20060213/d_myspace13.art.htm

HOW BEST TO PROTECT KIDS FROM ONLINE PORN
[SOURCE: San Francisco Chronicle, AUTHOR: Kim Zetter]
This year, the subject of protective censorship=20
is likely to get a lot of attention when the=20
Justice Department and American Civil Liberties=20
Union battle over the 1998 Child Online=20
Protection Act in court. Under the act,=20
commercial sites that offer material deemed=20
harmful to minors would have to verify that users=20
are 18 or older through registration with a=20
credit card or some other means of=20
identification. The law has never been enforced,=20
however, because of an injunction.
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/c/a/2006/02/12/MNGD0H7...
1.DTL&type=3Dtech

MICHIGAN FLOATS ONLINE LEARNING REQUIREMENT
[SOURCE: eSchool News]
Michigan could become the first state in the=20
nation to require students to experience some=20
kind of online instruction before graduating, if=20
the state legislature approves a proposal now=20
before it. The plan is part of a larger effort to=20
ratchet up high school graduation requirements in=20
the state, and its supporters say it's a bold=20
idea that will help prepare students for the=20
challenges of an increasingly global economy.
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D6107

QUICKLY

SPECTRUM LICENSE DISTRIBUTION SCRUTINIZED
[SOURCE: USAToday, AUTHOR: Paul Davidson]
FCC auction rules aim to set aside some spectrum=20
just for small businesses. The idea: to keep the=20
licenses affordable by barring big wireless=20
carriers from participating. Why? Because small=20
and minority entrepreneurs tend to serve=20
lower-income, rural and other markets often=20
neglected by the big carriers. But a chorus of=20
entrepreneurs and officials are complaining of=20
abuse in the federal initiative, accusing some=20
small businesses of being =93fronts=94 for larger=20
investors, many of which are national cellphone=20
companies that don't need the handouts. Criticism=20
of the small-business initiative has raged since=20
the FCC started auctioning airwaves in the=20
mid-1990s. But with a nationwide auction in June=20
scheduled to raise about $15 billion, the FCC=20
might be poised to act. The commission this month=20
tentatively proposed prohibiting small=20
entrepreneurs backed by big wireless partners=20
from receiving bidding discounts.
http://www.usatoday.com/printedition/money/20060213/spectrum13.art.htm

A NOSE FOR THE NEWS, TWEAKED BY THE NO'S FOR NEWS
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
[Commentary] An information war is breaking out=20
on multiple fronts, with journalists caught in=20
the crossfire. Federal investigators are looking=20
into several national security leaks to the=20
press. Government agencies are trying to muzzle=20
staffers who don't toe the official line.=20
Cartoonists are the latest to find their work=20
denounced, with violent results in the Middle=20
East. And it doesn't stop there. Politicians are=20
even trying to creatively edit what's said about=20
them online. All these pressure tactics are being=20
employed in the name of influencing public=20
opinion, which increasingly means manipulating=20
information and controlling how -- and whether --=20
it is made public. Journalists, who are=20
genetically disposed toward greater openness, are=20
having a harder time fighting these battles=20
because of declining public faith in their=20
profession. With everyone scrambling for every=20
conceivable advantage, it's important that=20
journalists remain honest brokers of information.=20
But in a world where they are being shot at,=20
prosecuted, sued and stonewalled, that's increasingly hard to do.
http://www.washingtonpost.com/wp-dyn/content/article/2006/02/12/AR200602...
1251.html
(requires registration)

PAYOLA HEARING UNLIKELY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Don't hold your breath for a Senate Commerce=20
Committee hearing on payola. A committee=20
statement reads, "Currently 164 bills have been=20
referred to the Commerce Committee, with 92 of=20
those introduced by Committee Members.=20
Unfortunately due to the prolific number of bills=20
referred to the Committee, we can not schedule a=20
hearing for each bill, and we give priority to=20
Committee Members' legislation. In addition, the=20
Commerce Committee already has a series of=20
telecom hearings scheduled through mid-March at=20
the request of various Committee Members. It is=20
the Committee's intention to concentrate on those=20
10 upcoming telecom hearings (six have already=20
been conducted in 2006) as the Committee prepares=20
to address telecom reform legislation." Sen Russ=20
Feingold (D-WI) has requested a payola hearing=20
because he has introduced legislation to=20
crackdown on it. He's not a member of the Commerce Committee, however.
http://www.broadcastingcable.com/article/CA6306756?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

FCC TECH CHIEF JOINS MSTV
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Bruce Franca, chief of the Federal=20
Communication's Commission's Office of=20
Engineering and Technology, is joining the=20
Association For Maximum Service Television=20
(MSTV), the spectrum policy watchdog group for the broadcast industry.
http://www.broadcastingcable.com/article/CA6306745?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

FCC RENEWS LICENSES OF WBTV, KCWE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC has proposed fining KCWE-TV Kansas City=20
$8,000 for not having the requisite TV program=20
and issues listings in its public inspection=20
files, but has renewed its license anyway, saying=20
the infraction was not part of a pattern and=20
concluding that the station served the public interest.
http://www.broadcastingcable.com/article/CA6306625?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

SO MUCH FOR THE HONEYMOON
[SOURCE: Broadcasting&Cable, AUTHOR: J. Max Robins]
It=92s been three weeks since the wedding of The WB=20
and UPN, and the hard work of making the marriage work has begun in earnest.
http://www.broadcastingcable.com/article/CA6306837?display=3DNews&referral=
=3DSUPP
(free access for Benton's Headlines subscribers)

WIRELESS TO ORGANIZE -- AND MAYBE SAVE -- LIVES
[SOURCE: Reuters, AUTHOR: Sinead Carew]
Forget mobile music and video. Wireless may end=20
up running your life -- down to when to wash your=20
underwear. This may sound far-fetched, but=20
laboratories around the world are exploring such=20
scenarios as wireless networks become more robust=20
and amid moves to miniaturize electronic chips to=20
the point where they can be discreetly placed into any product.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-02-11T162510Z_01_N10363928_RTRUKOC_0_US-COLUMN-PLUGGEDIN.xml

NEW GRANT SYSTEM EXCLUDES MAC USERS
[SOURCE: Washington Post, AUTHOR: Rick Weiss]
The new "Grants.gov" system, under development at=20
a cost of tens of billions of dollars, aims to=20
replace paper applications with electronic forms.=20
It is being phased in at the National Institutes=20
of Health, Department of Housing and Urban=20
Development and other federal agencies. All 26=20
grant-giving agencies are supposed to have their=20
application processes fully online by 2007. The=20
problem: Although many U.S. scientists and others=20
depend on graphics-friendly Macintosh computers,=20
the software selected by the government is not=20
Mac-compatible. And it is expected to remain so for at least a year.
http://www.washingtonpost.com/wp-dyn/content/article/2006/02/12/AR200602...
0942.html
(requires registration)

E-WASTE RULES ARE A START, BUT MUCH MORE MUST BE DONE
[SOURCE: San Jose Mercury News, AUTHOR: Editorial Staff]
[Commentary] Here's the good news on e-waste: As=20
of last week, it's illegal in California to throw=20
old computers, cell phones, digital cameras and=20
iPods -- not to mention dead batteries,=20
burned-out fluorescent lights and glass=20
thermometers -- in the trash. It's good news=20
because those items contain mercury, lead, copper=20
and other hazardous materials that, if dumped in=20
landfills, could be a threat to public health and=20
the environment. The bad news is that there's=20
virtually no way for the state to police=20
violators. What's more, the state has done little=20
to educate consumers about the hazards hidden in=20
common consumer electronics or about how to=20
properly dispose of them. It has done little to=20
help cities and counties, which are charged with=20
collecting the hazardous materials. And it has=20
done little to establish effective programs to=20
deal with the ever-increasing flotsam and jetsam of the digital age.
http://www.mercurynews.com/mld/mercurynews/news/opinion/13859610.htm

WHAT DO YOU COMMUNICATE?
[SOURCE: International Trade Forum, AUTHOR: Natalie Domeisen]
The magazine of the International Trade Centre=20
quotes Benton work on strategic communications=20
for non-profit organizations: "Communications is=20
much less about the technology or medium chosen=20
and more about advancing the cause of your=20
organization. Effective communications strategy=20
refects your organization=92s mission, goals and=20
objectives, and is well integrated into daily=20
operations. It requires a clear articulation of=20
audience, clarity of message and a choice of=20
media platform. It includes an ongoing feedback=20
relationship between planning and evaluation."
http://www.tradeforum.org/news/fullstory.php/aid/951/Trade_Development_-...
hat_Do_You_Communicate_.html
See "Strategic communications in the digital age"
http://www.benton.org/publibrary/toolkits/thinkthru.html
--------------------------------------------------------------
Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
through Friday, this service provides updates on=20
important industry developments, policy issues,=20
and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
--------------------------------------------------------------