February 2006

CPB Board Meeting

[SOURCE: Corporation for Public Broadcasting]

Benton's Communications-related Headlines For Ground Day 2006

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

GOVERNMENT AND COMMUNICATIONS
Administration Faulted on Katrina
Lawmakers slam U.S. firms aiding China cyber-cops
Rumsfeld says U.S. constrained in information war

TELEVISION
DTV Hard Date Passes...Again
Getting to February 2009: Outstanding DTV Transition Issues
MAP Calls Adelphia OK "No Surprise"
Cable's Family Packages Temporarily Placate Lawmakers
Cable a la carte will give consumers less for more
Nexstar Nabs Retrans Deals Worth $48 Million
Hearst-Argyle Tweaks EchoStar Carriage Pact
CBS to sell new "Survivor" episodes on CBS.com

INTERNET
The End of the Internet?

TELECOM
Lawmakers Prep Bill To Overhaul Massive USF Program
FCC urges Congress toughen laws on phone data

MEDIA OWNERSHIP
FCC Considers Tightening Rules On Airwave-Auction Discounts
When You Wish Upon a Merger
Matsushita sells Universal stake for $1.15 Billion

QUICKLY -- When All the 'Greatest Hits' Are Too=20
Many to Download; Beware of Internet trespass;=20
CPB Board Meeting; FCC Continues EEO Audits;=20
Evangelical Filmmakers Criticized for Hiring Gay=20
Actor; Minnesota schools get $55 Million tech=20
windfall; US accuses cyber-piracy group of "massive" theft

GOVERNMENT AND COMMUNICATIONS

ADMINISTRATION FAULTED ON KATRINA
[SOURCE: Washington Post, AUTHOR: Spencer S. Hsu and Amy Goldstein]
Responsibility for the government's bungled=20
response to Hurricane Katrina extends widely but=20
begins at the top of the Bush administration,=20
which failed before the storm to name a White=20
House, homeland security or other senior aide to=20
take command of disaster relief, congressional=20
investigators reported yesterday. House=20
Democrats, who were given an update by Rapuano=20
last month, said the administration review has=20
identified more than 60 flaws, including=20
breakdowns in the new emergency National Response=20
Plan, in federal command and control, in=20
communications and homeland security planning, as=20
well as an overemphasis on terrorism at the expense of natural threats.
http://www.washingtonpost.com/wp-dyn/content/article/2006/02/01/AR200602...
0712.html
(requires registration)

LAWMAKERS SLAM US FIRMS AIDING CHINA CYBER-COPS
[SOURCE: Reuters, AUTHOR: Paul Eckert]
U.S. firms are putting profits before principles=20
by helping China censor the Internet, lawmakers=20
said on Wednesday at the start of a congressional=20
debate that could lead to rules on American=20
technology companies operating in repressive=20
states. The Congressional Human Rights Caucus=20
heard experts tell how technology titans Google,=20
Yahoo, Microsoft and Cisco Systems had made the=20
work of 30,000 Chinese Communist cyber-police=20
easier. "Companies that have blossomed and make=20
billions in this country, a country that reveres=20
freedom of speech, have chosen to ignore that=20
core value in expanding their reach overseas, and=20
to erect a Great Firewall to suit Beijing's=20
purposes," Rep. Tom Lantos (D-CA) told the caucus.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-02-01T223450Z_01_N01294003_RTRUKOC_0_US-CHINA-USA.xml&archived=3DF=
alse
* Web site censorship doesn't work: Gates
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-02-01T202304Z_01_L01386244_RTRUKOC_0_US-MICROSOFT-GATES.xml
* Anti-China hypocrisy in Congress?
http://news.com.com/Anti-China+hypocrisy+in+Congress/2010-1023_3-6033681...
ml?tag=3Dfd_carsl

RUMSFELD SAYS US CONSTRAINED IN INFORMATION WAR
[SOURCE: Reuters, AUTHOR: Will Dunham]
Defense Secretary Donald Rumsfeld said on=20
Wednesday the Pentagon had not done a good job in=20
the information war against enemies like al=20
Qaeda, saying U.S. personnel felt constrained=20
partly due to fear of criticism in the media.=20
"How do we compete in this struggle in a way that=20
can counter the ability of the enemy to lie,=20
which we can't do, (and) the ability of the enemy=20
to not have a free media criticizing them? You=20
don't see much criticizing of them," said Sec=20
Rumsfeld. A debate is under way in America over=20
what is permissible for the U.S. government to do=20
to spread its message to foreign audiences as it=20
engages in wars in Iraq and Afghanistan and in=20
what it calls a global war against terrorism. The=20
U.S. military command in Iraq is investigating a=20
military program that funneled money to some=20
Iraqi newspapers to publish pro-American=20
articles. The Pentagon in 2002 closed its Office=20
of Strategic Influence after reports that it=20
planned to plant false news stories with foreign=20
media outlets. "We're not going to lose wars or=20
battles out there. The only place we can lose is=20
if the country loses its will. And the=20
determinant of that is what is played in the media," Sec Rumsfeld said.
http://today.reuters.com/news/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2006-02-02T071415Z_01_N01383235_RTRUKOC_0_US-ARMS-USA-INFORMATION.xml

TELEVISION

DTV HARD DATE PASSES... AGAIN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
By a squeaker vote of 216 to 214, the House once=20
again set a hard date for the DTV transition --=20
Feb. 18, 2009--and set aside funds--$1.5=20
billion--for digital-to-analog converter boxes.=20
The provisions were part of the overall budget=20
reconciliation bill that the House had already=20
passed Dec. 19 212-206. The re-vote of the=20
reconciliation bill was prompted by Senate=20
Democrats, who had used a procedural gambit to=20
delay the bill's passage and force the revote.=20
The bill now goes to the White House for the=20
president's signature. Details of how the=20
converter box subsidy will be administered have yet to be worked out.
http://www.broadcastingcable.com/article/CA6304165?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* DTV Deadline: 2/17/09
http://www.multichannel.com/article/CA6304170.html?display=3DBreaking+News
(requires subscription)
* Statement from House Commerce Chair Joe Barton
http://energycommerce.house.gov/108/News/02012006_1767.htm
* Odds and Ends, High and Dry
http://www.industryclick.com/magazinearticle.asp?magazineid=3D141&releas...
=3D13812&magazinearticleid=3D236139&siteid=3D15
* Congress gives OK to digital TV switch
http://today.reuters.com/news/newsArticle.aspx?type=3DdomesticNews&storyID=
=3D2006-02-02T064529Z_01_N0210961_RTRUKOC_0_US-CONGRESS.xml&archived=3DFalse

GETTING TO FEBRUARY 2009: OUTSTANDING DTV TRANSITION ISSUES
[SOURCE: Benton Foundation]
With this final Congressional action setting a=20
date certain for the digital TV transition, the=20
work of implementing the legislation falls mainly=20
in the National Telecommunications and=20
Information Administration. But unresolved in the=20
DTV Act are a number of issues that will=20
determine the success of the investment Americans=20
are making in the transition. At their first open=20
meeting of the new year, both FCC Commissioners=20
and staff identified the DTV transition as a=20
major priority for 2006. Anticipating the passage=20
of the DTV Act, the Commission reported on the=20
status of the DTV transition to date.=20
Approximately 90% of US TV stations are currently=20
airing digital TV broadcast and approximately 95%=20
of stations have chosen their permanent digital=20
television channel. Completing the task of=20
deciding final channel placements for all digital=20
TV stations was identified as a major priority by=20
FCC Chairman Kevin Martin, Commissioner Jonathan=20
Adelstein and Media Bureau Chief Donna Gregg.=20
Commissioner Adelstein identified additional=20
issues that must be addressed to make the=20
transition a success including the public=20
interest obligations of digital TV broadcasters,=20
the disclosure requirements of licensees,=20
educating consumers about the transition, and the sale of analog TV sets.
http://www.benton.org/index.php?q=3Dnode/1258

MAP CALLS ADELPHIA OK "NO SURPRISE"
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Andy Schwartzman, president of the Media Access=20
Project, called the Federal Trade Commission's=20
approval of the Adelphia sale to Time Warner and=20
Comcast Tuesday no surprise, but pointed=20
hopefully to the dissenting commissioners'=20
statement "almost begging" the FCC to apply=20
conditions. While not opposing the merger,=20
Democrat Jon Leibowitz and independent Pamela=20
Jones Harbour suggested the FCC, which must still=20
sign off on the merger, could follow its own lead=20
and apply conditions similar to those it put in=20
place when approving News Corp.'s purchase of DBS=20
company DirecTV. The FCC conditioned that deal on=20
News Corp. offering its multichannel video=20
services on a non-exclusive basis and submitting=20
to arbitration on rights to regional sports=20
networks, another key concern of the FTC=20
commissioners. Schwartzman said he expected that=20
clear message from the dissenting FTC voices to=20
encourage FCC Democrats to seek conditions as well.
http://www.broadcastingcable.com/article/CA6303888?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

CABLE'S FAMILY PACKAGES TEMPORARILY PLACATE LAWMAKERS
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
The announcement by major cable operators that=20
they will offer family-friendly packages has=20
temporarily quashed industry concerns that the=20
government would require them to sell pay=20
television channels "a la carte," or=20
channel-by-channel. Still, modifications may be=20
made. FCC Chairman Kevin Martin and Commissioner=20
Michael Copps have questioned the lack of sports=20
programming in the channel lineups by each of the=20
six multi-channel providers that have announced=20
family tiers. Cable critics say the lack of the=20
popular sports shows and the limited amount of=20
news demonstrates the industry's lack of=20
commitment to a successful consumer acceptance of family tiers.
http://www.njtelecomupdate.com/lenya/telco/live/tb-XEAQ1138822772449.html

CABLE A LA CARTE WILL GIVE CONSUMERS LESS FOR MORE
[SOURCE: Buffalo News, AUTHOR: Trenton Mayor Douglas H. Palmer]
[Commentary] If proponents of a per-channel or a=20
la carte model succeed, consumers will be left=20
with little more than a barren menu of choices at=20
higher prices. A per-channel charge regime would=20
be poisonous for smaller cable networks, which=20
depend on getting on the expanded cable tier for=20
their very survival. Once on that platform, they=20
are stumbled on by tens of millions of channel=20
surfers. That kind of "free advertising" is one=20
of the biggest advantages for new programming -=20
worth millions of dollars to an upstart network=20
-- that would evaporate were per-channel charge=20
regulations in effect. In addition, because of=20
the potential audience, new programmers can=20
charge a premium for advertising. Under the=20
per-channel proposal, ad revenue for new=20
programmers would drop precipitously. Thus, were=20
we to adopt per-channel charge regulations, not=20
only would prices for most consumers rise, but=20
scores of new programmers would wilt on the vine.=20
Consumers, and the cause of media diversity,=20
benefit from the shared cable platform.=20
Policymakers in Washington and New York should=20
use caution; a government-mandated elimination of=20
that model would siphon the lifeblood out of new=20
network development and more money out of consumers' pockets.
http://www.buffalonews.com/editorial/20060131/1064996.asp

NEXSTAR NABS RETRANS DEALS WORTH $48 MILLION
[SOURCE: MediaWeek, AUTHOR: Katy Bachman]
After toughing it out with cable operators,=20
Nexstar Broadcasting Group reported Wednesday=20
that its newly-negotiated retransmission=20
agreements will generate about $48 million in=20
revenue over three to five years. In the past few=20
months, Nexstar has reached retransmission=20
agreements with 150 cable operators within the 27=20
markets in which the company broadcasts,=20
effecting 4 million subscribers. A recent Bear=20
Stearns report estimated that retransmission=20
deals in 2006 could bring in about $9 million in=20
incremental dollars, representing as much as 12=20
percent of the Nexstar=92s EBITDA, the highest percentage in TV.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
5551

HEARST-ARGYLE TWEAKS ECHOSTAR CARRIAGE PACT
[SOURCE: TVWeek, AUTHOR: Jay Sherman]
A month after striking an affiliation agreement=20
with EchoStar Communications, Hearst-Argyle=20
Television said Wednesday it has revised its=20
carriage agreement with the satellite operator=20
due to a new affiliation agreement between=20
EchoStar and Lifetime Entertainment Services.=20
Hearst-Argyle will generate more revenue from the=20
deal as a result. EchoStar and Lifetime reached a=20
new affiliation agreement, returning Lifetime and=20
Lifetime Movie Network to EchoStar's lineup. As=20
part of that pact, Hearst-Argyle and EchoStar=20
agreed to revoke the previous agreement and=20
replace it with the pact reached between Lifetime=20
and EchoStar, which also covers Hearst-Argyle's=20
stations. In conjunction with the new carriage=20
agreement, Hearst-Argyle and Lifetime will revise=20
the terms of their alliance, with Hearst-Argyle=20
receiving compensation from Lifetime. Previously,=20
EchoStar was paying Hearst-Argyle directly.
http://www.tvweek.com/news.cms?newsId=3D9322
(requires free registration)

CBS TO SELL NEW "SURVIVOR" EPISODES ON CBS.COM
[SOURCE: Reuters]
Apparently, CBS has learned how to fish. New=20
episodes of the popular "Survivor" reality=20
television series will be made available for=20
download directly from CBS Corp.'s Web site, a=20
first in network TV, the company said on=20
Wednesday.The New York-based owners of the CBS=20
television network and radio stations group=20
already offers its top rated shows including=20
"CSI: Crime Scene Investigation" on Google Inc.=20
video service for $1.99 and on Comcast Corp.'s=20
on-demand system for 99 cents. Its latest plans=20
now cuts out the distributor. The company said it=20
plans to share an undisclosed portion of the=20
revenue with broadcast affiliate stations, as it=20
has done with other new media deals.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-02-01T195835Z_01_HAR165361_RTRUKOC_0_US-MEDIA-CBS.xml&archived=3DFa=
lse
* CBS Cuts Out Download Middleman
http://www.latimes.com/business/printedition/la-fi-cbs2feb02,1,6844767.s...
y?coll=3Dla-headlines-pe-business

INTERNET

THE END OF THE INTERNET?
[SOURCE: The Nation, AUTHOR: Jeff Chester]
[Commentary] Verizon, Comcast, Bell South and=20
other communications giants are developing=20
strategies that would track and store information=20
on our every move in cyberspace in a vast=20
data-collection and marketing system, the scope=20
of which could rival the National Security=20
Agency. According to white papers now being=20
circulated in the cable, telephone and=20
telecommunications industries, those with the=20
deepest pockets--corporations, special-interest=20
groups and major advertisers -- would get=20
preferred treatment. Content from these providers=20
would have first priority on our computer and=20
television screens, while information seen as=20
undesirable, such as peer-to-peer communications,=20
could be relegated to a slow lane or simply shut=20
out. Under the plans they are considering, all of=20
us--from content providers to individual users --=20
would pay more to surf online, stream videos or=20
even send e-mail. Industry planners are mulling=20
new subscription plans that would further limit=20
the online experience, establishing "platinum,"=20
"gold" and "silver" levels of Internet access=20
that would set limits on the number of downloads,=20
media streams or even e-mail messages that could=20
be sent or received. To make this pay-to-play=20
vision a reality, phone and cable lobbyists are=20
now engaged in a political campaign to further=20
weaken the nation's communications policy laws.=20
They want the federal government to permit them=20
to operate Internet and other digital=20
communications services as private networks, free=20
of policy safeguards or governmental oversight.=20
Indeed, both the Congress and the Federal=20
Communications Commission are considering=20
proposals that will have far-reaching impact on=20
the Internet's future. Ten years after passage of=20
the ill-advised Telecommunications Act of 1996,=20
telephone and cable companies are using the same=20
political snake oil to convince compromised or=20
clueless lawmakers to subvert the Internet into a=20
turbo-charged digital retail machine.
http://www.thenation.com/doc/20060213/chester
* Links to White Papers mentioned above:=20
http://www.democraticmedia.org/issues/netneutrality.html
* Grand Rapids requires Network Neutrality in municipal wireless network
http://www.wirelesscommunity.info/2006/01/31/grand-rapids-requires-netwo...
neutrality-in-municipal-wireless-network/
* Just Say No(thing)
http://gigaom.com/2006/02/01/just-say-nothing/
* The Real Bandwidth Hog? The Telcos
http://techdirt.com/articles/20060202/024219_F.shtml

TELECOM

LAWMAKERS PREP BILL TO OVERHAUL MASSIVE USF PROGRAM
[SOURCE: Technology Daily, AUTHOR: David Hatch]
Reps. Lee Terry (R-Nebraska) and Rick Boucher=20
(D-VA) plan to introduce comprehensive=20
legislation in late February overhauling the $7.1=20
billion universal service fund, one of several=20
congressional efforts to revamp the massive=20
federal program designed to lower phone costs in=20
rural and low-income areas. The legislation's=20
success hinges on House Commerce Committee=20
Chairman Joe Barton (R-TX), who repeatedly has=20
criticized the fund and suggested it should be=20
downsized or scrapped. Rep Terry said Chairman=20
Barton has softened his critiques and pledged to=20
address universal service after completing action=20
on another telecom bill. "Joe Barton is a very=20
practical committee chairman," Boucher said,=20
adding that the Texan "has a terrific ability to find the center line."
http://www.njtelecomupdate.com/lenya/telco/live/tb-FSIV1138822560275.html
For more on the bill see: http://www.benton.org/index.php?q=3Dnode/849

FCC URGES CONGRESS TO TOUGHEN LAWS ON PHONE DATA
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
Federal Communications Commission Chairman Kevin=20
Martin on Wednesday urged Congress to toughen=20
laws protecting telephone subscriber records in=20
the wake of the discovery of several online data=20
brokers. He urged Congress to specifically make=20
it illegal to commercially sell phone records,=20
boost penalties the FCC can impose on violators=20
and allow the agency to require carriers to get=20
customer permission before data can be used for=20
marketing. The FCC, state attorneys general,=20
lawmakers, and the Federal Trade Commission are=20
all investigating the practice of companies that=20
offer to obtain and sell telephone subscriber information.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-02-01T230323Z_01_N01282273_RTRUKOC_0_US-TELECOMS-PRIVACY-CONGRESS.=
xml&archived=3DFalse
*Chairman Martin's written statement
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-263577A1.pdf
* Barton: Personal Phone Records Must Be Kept Private
http://energycommerce.house.gov/108/News/02012006_1765.htm
* Regulators Press For Stronger Laws On Phone Records
http://online.wsj.com/article/SB113882537426662424.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

MEDIA OWNERSHIP

FCC CONSIDERS TIGHTENING RULES ON AIRWAVE-AUCTION DISCOUNTS
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz( at )wsj.com]
The Federal Communications Commission is=20
considering tightening rules that have allowed=20
some national wireless carriers to receive=20
multimillion-dollar discounts in spectrum=20
auctions, but the change may not come before a=20
$15 billion auction set for this summer. The FCC=20
will propose closing a loophole that gives=20
discounts to small businesses -- an effort to=20
help small firms compete for licenses with=20
national phone carriers. Critics say the system=20
is being abused because large phone companies are=20
allowed to team up with small businesses to=20
obtain a 25% discount on some licenses. The=20
Commission could unveil its proposal and open the=20
issue for public comment as soon as this week.=20
The revisions would prohibit some alliances=20
between small businesses and national carriers=20
and propose other restrictions. It remains=20
uncertain when the FCC might finalize the=20
proposal and how it might affect the summer auction.
http://online.wsj.com/article/SB113885476847663026.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

WHEN YOU WISH UPON A MERGER
[SOURCE: New York Times, AUTHOR: Neal Gabler]
[Commentary] The $7.4 billion buyout of Pixar=20
Animation by the Walt Disney Company has=20
generated more public speculation than the=20
typical mega-merger, because everyone seemed to=20
realize that this wasn't just another corporate=20
shuffle. It was the convergence of two=20
institutions that have helped shape the American=20
imagination, and it immediately prompted=20
questions about what it might mean for the future=20
of animated movies as well as what it might mean=20
for the entertainment industry generally. The=20
answer is that it might mean a lot for both.
http://www.nytimes.com/2006/02/02/opinion/02gabler.html
(requires registration)

MATSUSHITA SELLS UNIVERSAL STAKE FOR $1.5 BILLION
[SOURCE: Financial Times, AUTHOR: David Turner]
Matsushita Electric, the world=92s biggest consumer=20
electronics maker, has sold its stake in=20
Universal Studios to Vivendi Universal for $1.15=20
billion, giving the French telecoms and media=20
group full ownership of the company. The Japanese=20
company on Thursday justified the sale by saying=20
it was =93no longer strategically important to=20
maintain capital ties with any particular=20
business partner=94 because online distribution of=20
video content and development of other=20
distribution methods made it necessary to work with multiple content provid=
ers.
http://news.ft.com/cms/s/0c9c74be-93d2-11da-82ea-0000779e2340.html
(requires subscription)

QUICKLY

WHEN ALL THE GREATEST HITS ARE TOO MUCH TO DOWNLOAD
[SOURCE: New York Times]
While current radio hits still dominate the=20
digital music charts, classics are regularly=20
ranking among the 200 best-selling tracks on the=20
Internet, a sign of their staying power even in=20
the accelerated culture of modern pop music. The=20
popularity of such songs raises a troubling issue=20
for the music business, which relies in part on=20
the huge profits generated by greatest-hits=20
collections, perennially selling classic albums=20
and the continual repackaging of old material.=20
The question: What if fans who might have paid=20
for a full album of "the very best" of an=20
established act instead choose to pay=20
substantially less and simply buy the very, very best song?
http://www.nytimes.com/2006/02/02/arts/music/02cata.html
(requires registration)

BEWARE OF INTERNET TRESPASS
[SOURCE: C-Net|News.com, AUTHOR: Eric J. Sinrod, Duane Morris]
[Commentary] Information technology continues to=20
advance at warp speed, and the law struggles to=20
catch up. When new laws have not yet been enacted=20
to address emerging areas of Internet disputes,=20
courts are called upon to try to use and mold=20
ancient legal theories to achieve high-tech=20
resolution. Trespass is one of the ancient legal=20
theories relied upon more and more by courts that=20
are grappling with Internet cases.
http://news.com.com/Beware+of+Internet+trespass/2010-1071_3-6033581.html...
g=3Dfd_carsl

CPB BOARD MEETING
[SOURCE: Corporation for Public Broadcasting]
At a public session lasting two days, the=20
Corporation for Public Broadcasting's (CPB) Board=20
of Directors conducted business on a wide range=20
of public broadcasting issues, including: 1)=20
Unanimously Passed a Resolution on Public Radio=20
Programming Priorities; 2) Received an Update on=20
Recent Public Radio and TV Digital Consultations;=20
3) Heard a Presentation on Public Radio and the=20
New Media Environment; 4) Received an Update on=20
the Public TV Affinity Group Coalition Strategic=20
Planning Initiative; and 5) Received a Report on=20
Public Television Major Giving Initiative. CPB's=20
Board of Directors also received an update on=20
"The Champion Project" -- an initiative developed=20
to respond to recommendations contained in the=20
CPB Inspector General's November 2005 report as=20
well as to ensure that all CPB operations comply=20
with governing laws and conform with best=20
practices in the industry. CPB is also finalizing=20
work on a process to ensure political tests are=20
not applied in personnel decisions and to reform=20
its procurement and contracting policies and procedures.
http://www.cpb.org/pressroom/release.php?prn=3D525

FCC CONTINUES EEO AUDITS
[SOURCE: Federal Communications Commission]
On January 30, 2006, the Federal Communications=20
Commission (FCC) began mailing the first of its=20
Equal Employment Opportunity (EEO) audit letters=20
for 2006 to randomly selected radio and=20
television stations. In accordance with the=20
provisions of 47 C.F.R. =A7=A7 73.2080(f)(4) and=20
76.77(d) of the Commission's EEO rules, the FCC=20
is auditing the EEO programs of randomly=20
selected broadcast licensees and multi-channel=20
video programming distributors (MVPDs). Each=20
year, approximately five percent of all licensees=20
and MVPDs are selected for random EEO audits.=20
Media Bureau Contact: EEO Staff (202) 418-1450
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-248A1.doc

EVANGELICAL FILMMAKERS CRITICIZED FOR HIRING GAY ACTOR
[SOURCE: New York Times, AUTHOR: Neela Banerjee]
Christian ministers were enthusiastic at the=20
early private screenings of "End of the Spear,"=20
made by Every Tribe Entertainment, an evangelical=20
film company. But days before the film's=20
premiere, a controversy erupted over the casting=20
of a gay actor that has all but eclipsed the=20
movie and revealed fault lines among evangelicals.
http://www.nytimes.com/2006/02/02/national/02spear.html
(requires registration)

MINNESOTA SCHOOLS GET $55 MILLION TECH WINDFALL
[SOURCE: eSchool News]
Thanks to an antitrust settlement with Microsoft,=20
schools in Minnesota will receive $55 million in=20
hardware and software vouchers intended to=20
bolster educational technology programs across=20
the state. The Jan. 30 announcement has=20
significant implications for schools in as many=20
as 14 other states and the District of Columbia,=20
each of which received similar settlement deals=20
as the result of separate class-action lawsuits against the software giant.
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D6097

US ACCUSES CYBER-PIRACY GROUP OF "MASSIVE" THEFT
[SOURCE: Reuters]
U.S. Attorney Patrick Fitzgerald announced=20
indictments against 19 members of the underground=20
piracy group known as "RISCISO saying they stole=20
up to $6.5 million in copyrighted software, games and movies.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-02-01T194901Z_01_N01143981_RTRUKOC_0_US-CRIME-SOFTWARE.xml
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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.
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DTV Transition Bill Passes Final Hurdle in Congress

Background: On February 1, 2006, the House of Representatives, by a vote of 216-214, approved the Budget Reconciliation conference report which includes the Digital Television Transition and Public Safety Act. With this final Congressional action setting a date certain for the digital TV transition , Charles Benton, chairman of the Benton Foundation, said:
"Punxsutawney Phil will likely see his shadow tomorrow, Groundhog Day, but will he also see a clearer end to the DTV transition now that Congress has acted?
"Now that Congress has set a hard date for an end of analog TV broadcasts, providing a light at the end of a 20+ year transition tunnel, the Federal Communications Commission must make the hard choices that will make this transition worth it.
"The transition from analog to digital television does not just represent a technological change, but an important opportunity to reassess whether the public's airwaves are being used to meet the public's needs.
"What are the public interest obligations of digital television broadcasters? What kind of content should consumers expect in the age of digital television? Will DTV broadcasters provide the necessary civic programming before elections necessary for an informed democracy, or will democracy itself be left behind? Will the DTV future include a variety of voices and views, or will the nation's diversity be left behind? Will DTV provide truly educational content, or will our children be left behind? Will DTV programming be accessible, or will people with sight- or hearing-impairments be left behind?
"With the DTV transition now certain, the FCC needs to provide the same certainty for how the DTV transition will serve the public's interest. Neither broadcasters nor the public will benefit from the FCC responding to the bright light Congress has provided by hiding and hoping the DTV transition completes itself. The FCC needs to complete its proceedings on defining the digital broadcasters' public interest obligations that it began many years ago."
For more on the outstanding issues concerning the DTV transition see http://www.benton.org/node/1258

Feb 16-17
Convened by the Center for Social Media, American University, Washington, DC
with generous funding from the Ford Foundation



Getting to February 2009: Outstanding DTV Transition Issues

Background: The nations 1,600 television stations are converting from traditional analog technology to a digital television format. Digital television (DTV) is a new, more efficient technology for transmitting and receiving broadcast television signals. But DTV signals are not compatible with today's analog TV sets in most American homes. Under the Telecommunications Act of 1996, the amount of spectrum given to television station owners was doubled. The policy rationale for this was to enable the stations to transition US consumers to digital TV without interruption of analog broadcasts. But after ten years of digital TV broadcasts, only a small number of US households have made the switch to DTV, delaying the return of valuable spectrum that could be used by emergency officials and auctioned to offset federal deficit spending.

On February 1, 2006, the House of Representatives, by a vote of 216-214 approved the Budget Reconciliation conference report which includes the Digital Television Transition and Public Safety Act (DTV Act). With this final Congressional action setting a date certain for the digital TV transition, the work of implementing the legislation falls mainly in the National Telecommunications and Information Administration. But unresolved in the DTV Act are a number of issues that will determine the success of the investment Americans are making in the transition.

At their first open meeting of the new year, both FCC Commissioners and staff identified the DTV transition as a major priority for 2006. Anticipating the passage of the DTV Act, the Commission reported on the status of the DTV transition to date. Approximately 90% of US TV stations are currently airing digital TV broadcast and approximately 95% of stations have chosen their permanent digital television channel. Completing the task of deciding final channel placements for all digital TV stations was identified as a major priority by FCC Chairman Kevin Martin, Commissioner Jonathan Adelstein and Media Bureau Chief Donna Gregg. Commissioner Adelstein identified additional issues that must be addressed to make the transition a success including the public interest obligations of digital TV broadcasters, the disclosure requirements of licensees, educating consumers about the transition, and the sale of analog TV sets.

Public Interest Obligations and Disclosure
Because of the enhanced capability of digital television technology, the FCC first asked for public comment on the public interest obligations of digital television broadcasters in July 1995.(1) Since that time, a blue-ribbon Presidential advisory committee has reviewed and made recommendations on broadcasters' public interest obligations,(2) while the FCC has opened a proceeding to examine the Advisory Committee's recommendations and initiated a proceeding on the disclosure requirements of broadcasters.(3) Responding in part to this long delay, the FCC’s own Consumer Advisory Committee, appointed by FCC Chairman Kevin Martin, asked the Commission to complete these proceedings by May 18, 2006.

In addition, in a February 2005 decision on whether or not to require cable operators to carry all of digital TV stations’ multicast channel (see discussion of multicast must carry below), the FCC ruled:

Nothing in this Order diminishes the Commission's commitment to completing action on the multiple open proceedings on localism and on the public interest obligations of digital broadcasters. We believe the public interest and localism proceedings are essential components of the Commission's efforts to complete the transition to digital television. The Commission intends to move forward on these decisions within the next few months and complete action in these dockets by the end of the year.(4)

To date, the Commission has not acted to define the public interest obligations of digital broadcasters.(5)
Consumer Education
The DTV Act allows the NTIA to spend up to $5 million educating consumers about the transition to digital TV and the availability of converter box subsidies. An earlier, House version of the DTV Act included a three-part consumer education plan:

1) the NTIA and FCC would make public aware of a) the deadline for analog TV broadcasts, b) consumers' options after the deadline and c) the converter box program;

2) television set manufacturers would be required to warn analog TV consumers of the coming digital TV transition with warning labels on sets sold in the US; and

3) television broadcasters would have to air a PSA campaign while cable and satellite would have to include notices about the transition in their monthly bills.

These provisions were dropped in the final version of the DTV Act, but FCC Commissioner Adelstein and Media Bureau Chief Gregg admitted there's lots more to be done to alert consumers about the coming end of analog TV. The FCC's current educational campaign has an online home at http://www.dtv.gov/

DTV Tuner Requirement
In early November 2005, the FCC set March 1, 2007 as the date for which all TV receivers sold in the US must include the capability to receive digital television.(6) But in the same order the FCC highlighted that consumer awareness of whether a television can receive off-the-air DTV signals or only off-the-air analog signals is critical to ensuring that consumer expectations are met. The Commission promised to move swiftly to address point-of-sale consumer education saying that it would further consumer education if manufacturers and retailers would provide marketing information to consumers and/or clearly label new television sets. In the interim, the FCC encouraged manufacturers and retailers to clearly label and identify the tuning capabilities of new TV sets regarding whether or not specific models are able to receive off-the-air digital television signals.

Digital Television and Cable
Congress expects that the February 17, 2009, firm deadline will have little impact on most television households. Only consumers relying on over-the-air broadcasts should need to participate in the converter-box program and just under 15% of US television households relied exclusively on over-the-air transmission as of June 2004, according to the FCC. By contrast, the FCC reports that 92.3 million households, representing just over 85%, subscribed to cable or satellite TV. But pay TV subscribership may raise as many issues as it may solve, at least for viewers of smaller broadcast stations.(7)

The House version of the DTV Act included extensive provisions allowing for cable and satellite operators to convert broadcasters' digital TV signals to analog signals. These provisions, however, were stripped from the bill before final passage.

The National Cable & Telecommunications Association, cable's lobbying organization, sees the DTV transition affecting cable customers who have sets that are not hooked up to set-top boxes. The downconversion language in the House bill would have allowed cable operators (after the transition) to carry an analog TV signal "in lieu of" a digital one. The purpose of this was to help out the millions of consumers who won't have a digital TV when the transaction occurs.

The cable industry believes that as a result of the downconversion language not being included in the legislation, cable operators have the option to: 1) carry only stations' digital broadcast signals or 2) carry a downconverted analog signal in addition to the digital signal. If cable operators choose to carry only the digital broadcast signal, and not a second analog signal, local broadcasters will potentially lose market share because their signal will not be viewed on TVs that don't have a set-top box.

The National Association of Broadcasters hailed the outcome on Capitol Hill. The NAB's position throughout had been that degradation of digital-TV signals should be done by the consumer, not the cable company.

Moreover, the NAB has identified multicast must carry as its number one policy priority. In an order noted above, the FCC voted 4-1 in February 2005 to ban TV stations from demanding cable carriage of multiple DTV services, affirming a 2001 ruling that cable is obligated to carry just one service per station and nothing else after broadcasters complete their transition to digital-only transmission. The FCC also voted 5-0 that cable does not have to carry both analog and digital services of local TV stations during the transition. In the 4-1 vote, only then-Commissioner Kevin Martin dissented saying the decision provided no incentive for broadcasters to invest in and develop local news, local weather, local sports, coverage of local elections and government proceedings, and foreign language programming because they would not be guaranteed coverage on local cable systems. In addition to now-Chairman Martin, two commissioners indicated their votes could have been reversed — if the Commission had first addressed the public interest obligations of digital TV broadcasters.

In April 2005, the National Association of Broadcasters asked the FCC to reconsider the February 2005 decision.(8) No action has been taken yet. But it is important to note that two different FCC's and now Congress have rejected a multicasting mandate.

Continue to Getting to February 2009: Implementing the Digital TV Transition

Notes:
1) See http://www.fcc.gov/Bureaus/Mass_Media/Notices/1995/fcc95315.txt

2) See Charting the Digital Future, the final report of the President's Advisory Committee on the Public Interest Obligations of Digital Television Broadcasters (http://www.benton.org/publibrary/piac/report.html).

3) See Standardized and Enhanced Disclosure Requirements for Television Broadcast Licensee Public Interest Obligations (MM 20 Docket No. 00-168; FCC-05-27A1)

4) Second Report and Order and First Order on Reconsideration In the Matter of: Carriage of Digital Television Broadcast Signals: Amendments to Part 76 of the Commission’s Rules (CS Docket No. 98-120) (Adopted February 10, 2005)

5) For more see Citizen's Guide to Public Interest Obligations see http://www.benton.org/pioguide/publicstandard.html.

6) On July 1, 2004, the tuner requirement was applied to 50% of large sets (screen sizes 36" and larger), and last July (July 1, 2005), the tuner requirement was applied to all large sets and to 50% of mid-size sets (25"- 36"). Beginning March 1, 2006, DTV tuners will be required in all mid-size sets as well.

7) Major network affiliates likely have retransmission consent agreements with cable operators already.

8) See http://www.nab.org/newsroom/pressrel/filings/ReconPetitionCarriage42105.pdf

Getting to February 2009: Implementing the Digital TV Transition

Background: The nations 1,600 television stations are converting from traditional analog technology to a digital television format. Digital television (DTV) is a new, more efficient technology for transmitting and receiving broadcast television signals. But DTV signals are not compatible with today's analog TV sets in most American homes. Under the Telecommunications Act of 1996, the amount of spectrum given to television station owners was doubled. The policy rationale for this was to enable the stations to transition US consumers to digital TV without interruption of analog broadcasts. But after ten years of digital TV broadcasts, only a small number of US households have made the switch to DTV, delaying the return of valuable spectrum that could be used by emergency officials and auctioned to offset federal deficit spending.

Now that President Bush has signed the Deficit Reduction Act which includes the Digital Television Transition and Public Safety Act (DTV Act), a clearer picture of the digital television transition is developing. The purpose of the DTV Act is to prepare US consumers for the end of free, over-the-air, analog broadcasts. Mainly, this is to be accomplished by subsidizing the purchase of digital-to-analog converter boxes that will extend the life of current TVs into the age of digital TV broadcasting. Additionally, the law allows the proceeds from the auction of returned analog TV spectrum to be used for other national communications priorities.

Below is a quick outline of the timeline for implementing the new law and the requirements it makes on various government bodies — and consumers — to end analog television broadcasts in the US on February 17, 2009.

2006
September 30, 2006 Before this date the FCC is to assess and deposit in the Treasury extraordinary fees for licenses totaling $10,000,000 as offsetting receipts.

October 2006 Although not an explicit mandate of the DTV Act, Congress expects the National Telecommunications and Information Administration(1) to issue rules for a digital-to-analog converter box subsidy program within nine months, when Fiscal Year 2007 begins. The rules would cover: 1) the content and distribution of coupon request forms and coupons; 2) consumer redemption of, and retailer reimbursement for, the coupons; 3) the types of converter boxes that shall be eligible for purchase with a coupon; 4) certification, education, and auditing of retailers involved in the program; and 5) consumer and retailer appeals.(2)

October 2006 - June 30, 2008 The NTIA may borrow money from the US Treasury to begin implementing various programs mandated by the DTV Act.(3)

October 2006 -- September 2008 The NTIA is to make payments of up to $30 million to reimburse the Metropolitan Television Alliance(4) for costs incurred in the design and deployment of a temporary digital television broadcast system to ensure that New York City area broadcasters can provide the area with digital TV.

October 2006 -- September 2009 The NTIA is to make payments of no more than $43.5 million to implement the ENHANCE 911 Act of 2004.(5)

October 2006 -- September 2010 Working with the Department of Homeland Security the NTIA will establish and implement a $1 billion grant program to assist public safety agencies in the acquisition of, deployment of, or training for the use of interoperable communications systems.

October 2006 -- September 2012 The NTIA is to make payments of no more than $156 million to implement a unified national alert system. The NTIA is to use $50 million to implement a tsunami warning and coastal vulnerability program.

2007
UPDATE: March 12, 2007 The Department of Commerce's National Telecommunications and Information Administration (NTIA) announced the final rule for the Digital-to-Analog Converter Box Coupon Program (coupon program) designed to help consumers continue receiving free, over-the-air television when full-power television stations cease analog broadcasting after February 17, 2009, as authorized in the Digital Television Transition and Public Safety Act of 2005 (the Act).

October 2007 -- September 2009 The NTIA is to make payments of up to $10 million to implement and administer a program through which eligible low-power television stations(6) may receive compensation toward the cost of the purchase of a digital-to-analog conversion devices that enable them to convert incoming digital TV signals of their corresponding full-power television stations to analog format for transmission on the low-power television stations' analog channels. Requests for such compensation must be made on or before February 17, 2009. Priority compensation is to be given to non-profit corporations and stations that serve rural areas of fewer than 10,000 viewers.

2008
January 1, 2008 -- March 31, 2009 US households may obtain $40 coupons towards purchase of digital-to-analog converter boxes by making a request. All coupons expire 3 months after issuance. The NTIA is to ensure that each requesting household receives, via the United States Postal Service, no more than two coupons.

January 28, 2008 The FCC must conduct the auction of the licenses for recovered analog spectrum, commencing the bidding no later than this date, and is to deposit the proceeds of the auction in the US Treasury no later than June 30, 2008.

June 30, 2008 By this date, the FCC is to have deposited in the Treasury proceeds from the auction of spectrum currently used for analog TV broadcasts.

October 2008 -- September 2009 The NTIA is to make payments of no more than $65 million to implement a program to reimburse rural low-power television stations for upgrading to digital TV technology. Such reimbursements shall be issued to eligible stations no earlier than October 1, 2010. Priority compensation will be given to non-profit corporations and stations that serve rural areas of fewer than 10,000 viewers.

2009
February 17, 2009 Analog TV broadcasts from full-power TV stations in the US ends. Low-power stations, including Class A stations, may continue broadcasting in analog format after this day, subject to future decisions by the FCC on how to complete the digital television transition for such stations.

February 18, 2009 By this date the FCC must require that all TV broadcasting occur only on channels between channels 2 and 36, inclusive, or 38 and 51, inclusive (between frequencies 54 and 698 megahertz, inclusive). If low-power stations want to be compensated for digital-to-analog conversion devices, they must make request by end of day.

September 30, 2009 On the last day of Fiscal Year 2009, the Secretary of the Treasury will transfer $7.363 billion from the Digital Television Transition and Public Safety Fund to the general fund of the Treasury.

Continue to Getting to February 2009: Outstanding DTV Transition Issues

Notes:
1) A part of the Department of Commerce created in 1978, the National Telecommunications and Information Administration (NTIA) is the President's principal adviser on telecommunications and information policy issues, and in this role frequently works with other Executive Branch agencies to develop and present the Administration's position on these issues. See http://www.ntia.doc.gov/

2) The NTIA may spend up to $990 million from the Digital Television Transition and Public Safety Fund through September 2009 to carry out the converter box program. It can spend up to $100 million on administrative expenses. Up to $5 million can be spent for consumer education concerning the digital television transition and the availability of the digital-to-analog converter box program. If the NTIA tells Congress that program funds are insufficient, an additional $60 million will be made available for administrative.

3) Includes Digital-to-Analog Converter Box, Public Safety Interoperable Communications, NYC 9/11 Digital Transition, Low Power TV Conversion & Upgrade, National Alert Warning, and Enhance 911 programs.

4) Organization formed by New York City television broadcast station licensees to locate new shared facilities as a result of the attacks on September 11, 2001 and the loss of use of shared facilities that housed broadcast equipment.

5) The purpose of that legislation is to coordinate 911 services and E-911 services, at the Federal, State, and local levels.

6) A low-power television broadcast station, Class A television station, television translator station, or television booster station that is itself broadcasting exclusively in analog format; and that has not purchased a digital-to-analog conversion device prior to the date of enactment of the Digital Television Transition and Public Safety Act of 2005.

Today's Quote

His company's stock has sunk, its debt has been downgraded, and its investment in a new fiber-optic network is regarded by some as a pipe dream, but Verizon Communications Inc.'s chief executive is certain he is doing the right thing.

Cable Transmission Deals Emerge As New Hill Battle

[SOURCE: Technology Daily, AUTHOR: David Hatch]

Few Senators Access Video-Access Hearing

[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Players outnumbered the audience 3-1 at Tuesday afternoon's Senate Commerce Committee hearing. Just Chairman Ted Stevens (R-Alaska) and Sen Byron Dorgan (D - ND) heard industry players argue for and against tiering, importing out-of-market broadcast signals, and placing conditions on the sale of bankrupt cable operator Adelphia to Time Warner and Comcast. The senators who didn't attend will get to ask questions of the witnesses in writing.
http://www.broadcastingcable.com/article/CA6303670?display=Breaking+News...