February 2006

To view Benton's Headlines feed in your RSS=20
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er.

Four events of note next week: two Senate=20
Commerce Committee hearings on Universal Service,=20
a discussion of spectrum management, and a=20
hearing on VoIP. For these and other upcoming=20
media policy events, see http://www.benton.org

SPECTRUM POLICY
Dueling Wireless Bills Spark Confusion, Surprise
New Legislation Would Open Unused TV Channels for Wireless Broadband
Tech leaders ask U.S. government to scrap=20
outdated policies on valuable airwaves use

INTERNET
Neutrality and Municipalities
Americans' Home Net Adoption Slowing

TELEVISION
Phone Companies=92 Redlining not Good for Digital Divide
Statewide video franchise bill advances in Missouri Legislature
Cable a la carte
Time Warner Sells Turner South to Fox
Stations Get Lion's Ad Share of My TV

POLICYMAKERS
AT&T Bucks Top Upton, Dingell Contributions
Time for PUC to protect the public

QUICKLY -- China's media censorship rattling=20
world image; Journalists Praise Coverage, Pan=20
Administration; California bill would bar toxins=20
in cell phones, iPods; UK telecoms watchdog turns=20
gaze to VoIP services; Canadian college curbs Wi-Fi due to health risks

SPECTRUM POLICY

DUELING WIRELESS BILLS SPARK CONFUSION, SURPRISE
[SOURCE: Technology Daily, AUTHOR: David Hatch]
So why did both Senate Commerce Chairman Ted=20
Stevens (R-Alaska) and Sen. George Allen (R-VA)=20
introduce bills on wireless broadband last week?=20
The bills are intended to spur the deployment of=20
wireless broadband by utilizing unassigned or=20
unused broadcast television spectrum called=20
"white space." The measures would let unlicensed=20
service providers operate on the frequencies=20
before and after the nation's transition to=20
digital television. A Commerce Committee staffer=20
notes that multiple bills with varying approaches=20
on a subject are not uncommon. The bills differ=20
on how they would tackle potential interference=20
with TV signals, a key concern of broadcasters.=20
Sens Barbara Boxer (D-CA), John Kerry (D-MA) and=20
John Sununu (R-NH) co-sponsored Sen Allen's bill.=20
Sen Stevens' measure was filed without co-sponsors.
http://www.njtelecomupdate.com/lenya/telco/live/tb-MPIZ1140707295830.html
* Press release for Stevens bill:=20
http://commerce.senate.gov/newsroom/printable.cfm?id=3D251754
* Press release for Allen bill:=20
http://allen.senate.gov/?c=3Drecord&t=3D&record_id=3D5531

NEW LEGISLATION WOULD OPEN UNUSED TV CHANNELS FOR WIRELESS BROADBAND
[SOURCE: New America Foundation]
Last Friday, Senate Commerce Committee Chair Ted=20
Stevens (R-AK) introduced legislation directing=20
the FCC to open unused TV channels in each local=20
market=97also known as =93white spaces=94 -- for=20
unlicensed wireless broadband access. A=20
bipartisan foursome of Commerce Committee=20
members=97Senators George Allen (R-VA), John Sununu=20
(R-NH), John Kerry (D-MA) and Barbara Boxer=20
(D-CA)=97introduced similar legislation. These=20
tremendously valuable=97and presently dormant=97TV=20
band frequencies represent the much-needed rocket=20
fuel that rural and other under-served areas need=20
for affordable broadband deployment. Vacant TV=20
channels are perfectly suited for WiFi and other=20
unlicensed wireless Internet=20
technologies. Low-frequency TV band spectrum=20
propagates farther and penetrates physical=20
obstacles better than the crowded =93junk band=94=20
currently used for WiFi networking. Access to TV=20
spectrum will allow commercial ISPs,=20
municipalities and non-profit community efforts=20
to deploy wide-area wireless broadband networks=20
quickly and at a low cost. In 2004, the FCC=20
initiated a rulemaking (Docket 04-186) to open up=20
these white spaces to wireless broadband devices,=20
subject to strict rules to avoid interference=20
with TV reception. The proceeding has stalled=20
since the departure of Chairman Michael=20
Powell. The newly introduced legislation would=20
break this regulatory impasse. Here are New=20
America=92s most recent policy papers regarding the=20
importance of opening up low-frequency spectrum=20
in the TV band for unlicensed use: 1) Reclaiming=20
the Vast Wasteland: The Economic Case =AD This=20
Issue Brief, by New America's J.H. Snider,=20
describes the tremendous economic benefits of=20
unlicensed spectrum and how economic and=20
technological forces are leading the world in a=20
natural shift from high-power, licensed wireless=20
networks to wide-area networks of low-frequency,=20
low-power unlicensed devices. 2) Myth vs. Fact:=20
Rhetoric and Reality of Progress in Allocating=20
More Spectrum for Unlicensed Use =AD This Fact=20
Sheet demonstrates just how little high-quality=20
low-frequency spectrum is dedicated for=20
unlicensed use, compared to the amount devoted to=20
exclusive use by licensed wireless service=20
providers. 3) Wireless Public Safety Data=20
Networks Operating on Unlicensed Airwaves =AD This=20
updated Policy Backgrounder describes how local=20
governments=97in Texas, Kansas, California and=20
other states=97are using unlicensed wireless=20
broadband networks to improve public safety across the country.
For additional recent publications on this issue=20
-- and related issues -- see www.spectrumpolicy.org.
Also see --
* Miracle of Miracles
http://quixote.blogs.com/telecompolicy/2006/02/miracle_of_mira.html
* New America Pushes Unlicensed Bills
http://www.broadcastingcable.com/article/CA6310176?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

TECH LEADERS AS US GOVERNMENT TO SCRAP OUTDATED=20
POLICIES ON VALUABLE AIRWAVES USE
[SOURCE: RedHerring]
some of the most influential companies in high=20
tech on Thursday called on the U.S. Congress and=20
President Bush=92s administration to adopt a=20
revamped wireless spectrum policy that=20
accommodates the growing importance of the=20
nation=92s valuable airwaves. The Technology CEO=20
Council announced a 10-point plan it believes=20
will help the U.S. government de-politicize=20
policy-making regarding spectrum distribution.=20
The group is asking the government to factor in=20
recent technological and commercial demands on=20
the nation=92s airwaves and to try to balance those=20
needs with the needs of emergency first=20
responders. The council, a 17-year-old coalition=20
of chief executives, includes Motorola=92s Edward=20
Zander, IBM=92s Samuel Palmisano, Paul Otellini of=20
Intel, and Hewlett-Packard=92s Mark Hurd, among=20
others. It was formerly known as the Computer Systems Policy Project.
http://www.redherring.com/Article.aspx?a=3D15838&hed=3DCEOs%3a+New+Wirel...
+Policy+
See press release:=20
http://www.techceocouncil.org/index.php?option=3Dcom_content&task=3Dview...
=3D249&Itemid=3D159

INTERNET

NEUTRALITY AND MUNICIPALITIES
[SOURCE: Telephony, AUTHOR: Ed Gubbins]
Inflamed by countless bloggers and sizzling=20
beneath the spotlight of congressional hearings,=20
debate over network neutrality reached a boiling=20
point this month as no less an authority than=20
Vinton Cerf -- one of the Internet's founding=20
fathers and a current employee of net neutrality=20
advocate Google -- warned the Senate's Commerce=20
Committee that incumbent carrier control of=20
broadband networks could =93fundamentally=20
undermine=94 the Internet as we know it. With this=20
dramatic stride upstage, the net neutrality=20
debate -- and its attendant fears about=20
censorship, prices and consumer choice -- could=20
fuel interest in municipally owned broadband=20
networks as an alternative to privately owned=20
pipes. However, net neutrality proponents may=20
find public networks to be fraught with plenty of=20
their own problems as well. =93[The] network=20
neutrality [debate] is not a fuel for the=20
municipal broadband movement in the U.S.,=94 said=20
Pam Baker, and analyst for visiongain. =93It's a =85=20
stumbling block. Cities and communities need=20
technology companies' expertise, experience and=20
money to build, operate and maintain [municipal=20
broadband networks], but they cannot afford to=20
give those companies total, or even majority,=20
control. To do so would be perceived as=20
governmental favoritism, which is seen as equally=20
destructive as government competition with=20
private companies. Yet cities repeatedly fail=20
when they attempt to provide [muni broadband=20
networks] themselves.=94 In addition, even=20
wholesale municipal network models don't=20
necessitate net neutrality. It's conceivable, at=20
least in theory, that municipalities could seek=20
to defray part of the cost of their broadband=20
networks by following AT&T's lead, charging=20
content providers for premium use of networks.=20
It's unknown how Congress will ultimately handle=20
the net neutrality issue as it embarks on a=20
rewrite of the 1996 Telecom Act. Whatever actions=20
legislators take are unlikely to completely=20
resolve the issue. In the meantime, muni=20
broadband may be motivated to act now before the rules change again.
http://telephonyonline.com/regulatory/news/telecom_neutrality_municipali...
s/
More commentary --
* Network neutrality? Hush!
http://www.cedmagazine.com/article/CA6303855.html
* Network Neutrality
http://news.tmcnet.com/news/2006/02/20/1389045.htm

AMERICANS' HOME NET ADOPTION SLOWING
[SOURCE: C-Net|News.com, AUTHOR: Daniel Terdiman]
New research from Parks Associates finds that=20
about 64 percent of Americans had some form of=20
Internet access at home in 2005 -- up from 62=20
percent in 2004. But the firm predicts that=20
Internet adoption will grow only 3 percentage=20
points by 2009. The Parks Associates report said=20
that 42 percent of Americans now have some form=20
of broadband access at home, while 22 percent=20
more have dial-up. An additional 13 percent get=20
Internet access only outside of the home -- at=20
work or a library, for example -- and 23 percent=20
don't use the Internet at all. John Barrett,=20
director of research at Parks Associates, says=20
that there are large pockets of Americans for=20
whom modern technology means fancy televisions=20
and home entertainment systems and not computers.=20
And thus, he suggested, the only way to convince=20
such people to get online would be to bundle=20
computers and Internet service with televisions.
http://news.com.com/Study+Americans+home+Net+adoption+slowing/2100-1034_...
042670.html?tag=3Dnefd.top
See the Park Associates press release at=20
http://www.parksassociates.com/press/press_releases/2006/nat-scan_pr1.html

TELEVISION

PHONE COMPANIES REDLINING NOT GOOD FOR DIGITAL DIVIDE
[SOURCE: Fort Wayne Journal Gazette, AUTHOR:=20
James Bertram, Mayor of Lockhart, Texas]
[Commentary] First-of-its-kind video franchise=20
legislation written on behalf of the big phone=20
companies made dubious history when the Texas=20
legislature enacted it this year. But before=20
Congress, Indiana and other states consider=20
mimicking this legislation, they should look=20
under the hood. For if they do, they will realize=20
that what was sold as a plan for competition is=20
really just a road map for the Bells to=20
systematically redline minority and low-income=20
communities by bypassing them in the deployment=20
of their high-speed fiber networks. The big phone=20
companies=92 attempt to balkanize their rollout of=20
high-speed facilities, and to systematically=20
exclude low-income and minority communities, runs=20
contrary to federal law, local franchise=20
agreements and sound public policy. For decades,=20
the Supreme Court has recognized that =93separate=20
is inherently unequal.=94 By pushing a policy that=20
will deepen an already cavernous digital divide,=20
the big phone companies seem bent on keeping us=20
separate -- and therefore unequal -- a bit longer.
http://www.fortwayne.com/mld/journalgazette/news/editorial/13931726.htm

STATEWIDE VIDEO FRANCHISE BILL ADVANCES IN MISSOURI LEGISLATURE
[SOURCE: St Louis Post Dispatch, AUTHOR: Jerri=20
Stroud jerristroud( at )post-dispatch.com]
The Missouri Senate Commerce Committee voted 7-2=20
Tuesday to send a statewide video franchising=20
bill to a working group chaired by its sponsor,=20
Sen. John Griesheimer, R-Washington. The group=20
will discuss language governing the construction=20
of video systems before the bill moves to the=20
Senate floor. Gary Markenson, executive director=20
of the Missouri Municipal League, said he'd like=20
to see requirements that cable companies carry=20
public access and emergency interrupt channels.=20
The current bill would allow franchisees to carry=20
them only if it was technologically feasible.
http://www.stltoday.com/stltoday/business/stories.nsf/story/F0A54D1A3F84...
B8625711D001545B5?OpenDocument

CABLE A LA CARTE
[SOURCE: The Kansas City Star, AUTHOR: Editorial Staff]
[Commentary] With choices multiplying, cable=20
companies will be pressured to do more to keep=20
subscribers happy, and are likely to respond by=20
offering more options, including a la carte=20
pricing. Currently, Congress requires cable=20
companies to offer basic service packages that=20
include local TV stations. There's no need for=20
legislation that goes much beyond that. With the=20
media landscape changing so rapidly, lawmakers=20
should resist the temptation to pass laws that could soon be outdated.
http://www.chron.com/disp/story.mpl/editorial/3678757.html

TIME WARNER SELLS TURNER SOUTH TO FOX
[SOURCE: Broadcasting&Cable, AUTHOR: Anne Becker]
After months of deep discussions, Time Warner has=20
sold Atlanta-based regional cable channel Turner=20
South to Fox. Seven-year-old Turner South, a=20
division of Turner Broadcasting System, reaches=20
about 8 million subscribers across six states=20
with mainly sports programming including Atlanta=20
Braves, Hawks and Thrashers games. In acquiring=20
the network, Fox also inherits the long-term=20
broadcast deals Turner South had with Atlanta=92s=20
baseball, basketball and hockey teams. The=20
financial terms of the deal were not disclosed,=20
but industry analysts have estimated Turner South=20
to be worth about $200 million. With the addition=20
of Turner South, Fox Cable Networks (FCN) now=20
owns 15 regional cable networks and partners with=20
44 MLB, NBA and NHL franchises. FCN already owns=20
Atlanta-based FSN South, the country=92s largest=20
regional sports network with more than 11 million subscribers.
http://www.broadcastingcable.com/article/CA6310352?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
* Fox Cable Nets Purchases Turner South For $200 Million
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
4216
* News Corp. Buys Turner South For $375 Million
http://online.wsj.com/article/SB114074230282382000.html?mod=3Dtodays_us_...
ketplace

STATIONS GET LION'S SHARE OF MY TV
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
Fox=92s planned network My Network TV will give its=20
affiliates a majority of advertising inventory in=20
its prime time block, one way the network is=20
enticing stations to sign on. When the network=20
launches in September, affiliates will receive=20
65% of ad inventory, or nine minutes an hour,=20
while the network keeps the remaining five=20
minutes. That is more ad time than local stations=20
typically receive in prime time or in barter=20
syndication deals, which are usually an even=20
split with syndicators. The CW, for example, is=20
offering stations three minutes of commercials in=20
prime and four minutes during daytime.
http://www.broadcastingcable.com/article/CA6310365?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

POLICYMAKERS

AT&T BUCKS TOP UPTON, DINGELL CONTRIBUTIONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton ]
With network neutrality, telco video, and a=20
rewrite of the Communications Act on Washington's=20
agenda, it should probably come as no surprise=20
that AT&T shows up as the top contributor to the=20
2006 campaigns of a couple of top house=20
Telecommunications Subcommittee members, with=20
other communications companies well-represented.=20
According to the Center for Public Integrity,=20
AT&T's PAC contributions combined with those of=20
individual executives or employees and family=20
members, top the list of contributors to House=20
Telecommunications Subcommittee Chairman Fred=20
Upton (R-MI) at $12,000. But telcos are not the=20
only interested parties. Comcast is at #3 with=20
$10,000, tied with the National Cable &=20
Telecommunications Association, followed by the=20
National Association of Broadcasters at $9,250.
http://www.broadcastingcable.com/article/CA6310328?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

TIME FOR PUC TO PROTECT THE PUBLIC
[SOURCE: San Francisco Chronicle, AUTHOR: Richard=20
Holober, Consumer Federation of California]
[Commentary] As cell phones become more popular,=20
consumer complaints have soared. One means of=20
mitigating those grievances: the California=20
Public Utilities Commission, which is supposed to=20
protect the consumer. So far, however, the=20
commission has fiddled while phone users burn=20
with anger and frustration. Next month, the=20
spotlight will be on the PUC as it considers=20
enacting modest rules to curb the worst=20
cell-phone industry practices. The Consumer=20
Federation recommends a proposal from PUC=20
Commissioner Dian Grueneich which grants=20
consumers some real relief from the worst phone=20
company abuses. The alternative restores the=20
right to revoke new phone service for 30 days=20
without penalty or early termination fees. It=20
stops phone companies from changing the terms of=20
a contract without the customer's consent. And it=20
adds an important new protection for non-English=20
speaking customers. It would require phone=20
contracts to be written in the same language the=20
company uses to market the product -- saving=20
vulnerable consumers from bait-and-switch tactics.
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2006...
/23/EDG2PHCEC91.DTL

QUICKLY

CHINA'S MEDIA IMAGE RATTLING WORLD IMAGE
[SOURCE: The Christian Science Monitor, AUTHOR: Robert Marquand ]
The war on liberal ideas is starting to alter the=20
image of China overseas. For a decade, the=20
country has been seen as a rambunctious marvel of=20
manufacturing and export, of developing=20
infrastructure, and a major source of cash=20
reserves. It has managed to outflank human rights=20
agendas, and enjoys an image as a safe,=20
traditional society that is emerging into the=20
international mainstream. Beijing won its 2008=20
Olympics bid in the midst of a brutal roundup of=20
Falun Gong practitioners in 2001 -- many of whom=20
remain disappeared. "China's deteriorating=20
international image is impacting its ability to=20
achieve its foreign policy goals, and could well=20
affect its ability to stage a successful Olympics=20
in 2008," argues John Kamm, former head of the=20
American Chamber of Commerce in Hong Kong, who=20
now runs Dui Hua, a nonprofit human-rights group=20
in San Francisco. Mr. Kamm says the State=20
Department report on human rights in China due=20
next month will be far tougher than in recent years.
http://www.csmonitor.com/2006/0224/p01s04-woap.html
* Breaching China's great firewall
http://www.csmonitor.com/2006/0224/p08s01-comv.html

JOURNALISTS PRAISE COVERAGE, PAN ADMINISTRATION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Journalists primarily divided their energy at the=20
National Press Foundation awards dinner Thursday=20
night in Washington between praising their=20
colleagues for their efforts to report on=20
Hurricane Katrina and slamming the Bush Administration.
http://www.broadcastingcable.com/article/CA6310368?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

CALIFORNIA BILL WOULD BAR TOXINS IN CELL PHONES, iPODS
[SOURCE: Reuters]
California would require manufacturers to phase=20
out the use of hazardous materials in making cell=20
phones, iPods and other electronic devices under=20
a bill introduced by a state lawmaker. The bill=20
unveiled on Thursday by Assembly Member Lori=20
Saldana, a Democrat from San Diego, would apply=20
to any electronic or battery-operated device. The=20
bill, which was introduced on Wednesday, would=20
require manufacturers to stop using the=20
substances in devices sold in California by 2008.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-02-24T003419Z_01_N23179980_RTRUKOC_0_US-TOXICS-CALIFORNIA.xml&arch=
ived=3DFalse

UK TELECOMS WATCHDOG TURNS GAZE TO VOIP SERVICES
[SOURCE: Financial Times, AUTHOR: Mark Odell]
On Wednesday, England's Ofcom, the telecoms and=20
media regulator, published a consultation=20
document in which it outlined basic consumer=20
protection measures and moves to investigate=20
complaints and potentially take punitive action=20
concerning Internet telephone services (VoIP).=20
Interested parties have until May to respond to=20
the document with Ofcom expected to publish its=20
decision in August. Ofcom, which published=20
initial guidelines for VoIP service providers in=20
September 2004, said it had decided some=20
regulation was necessary because of recent=20
technological changes and increasing consumer=20
appetite. Despite the promise of low-cost and=20
sometimes free calls, VoIP is dogged with=20
problems of reliability and quality. Ofcom is=20
proposing that service providers make clear to=20
consumers what their services offer. Most service=20
providers do not give users access to the=20
emergency services on 999, nor will they allow=20
their customers to use their existing phone numbers.
http://news.ft.com/cms/s/f2949024-a46b-11da-897c-0000779e2340.html
(requires subscription)

CANADIAN COLLEGE CURBS WI-FI DUE TO HEALTH RISKS
[SOURCE: Reuters, AUTHOR: David Rider]
Lakehead University, in Thunder Bay, Ontario, has=20
ruled out campus-wide wireless Internet access=20
because its president fears the system's=20
electromagnetic forces could pose a risk to=20
students' health. But the president's stance has=20
prompted a backlash from students and from=20
Canadian health authorities, who say his fears are overdone.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-02-23T191816Z_01_N23531951_RTRUKOC_0_US-LIFE-CANADA-INTERNET.xml&a=
rchived=3DFalse
--------------------------------------------------------------
...and we're outta here. Have a great weekend.
--------------------------------------------------------------
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.
--------------------------------------------------------------