March 2006

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http://www.benton.org/index.php?q=3Dtaxonomy/term/6/all/feed into your read=
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For upcoming media policy events, see http://www.benton.org

TELECOM REWRITE
Stevens Bears Down on Telecom Rewrite
Senator: Net neutrality may not happen
U.S. gold in telecom Olympics?
Upton: Franchise Bill Could Save $27 BILLION
Indiana Passes Statewide Video Franchise Law
Florida=92s Turn for Franchise Reform?
NCTA Challenges the Bell Companies to Tell the Truth

SPECTRUM POLICY
Wireless Entrepreneurs: Can You Hear Us Now?
Kerry chides Bush administration on broadband
NTIA Releases Spectrum Policy Plan
Options for and Barriers to Spectrum Reform
RCA opposes FCC=92s =91blind bidding=92 plan

TELEVISION
FCC Will Open Kids Deal for Comment
Draft Converter-Box Subsidy Rules Imminent
TV Networks Gear Up For Telling 'Upfront' Talks

POLICYMAKERS
Agenda for April 7 Meeting of the FCC's
Consumer Advisory Committee
Benton Foundation Names Former FCC
Commissioner Gloria Tristani President
Kathleen Wallman Join's MAP's Board

INTERNET/BROADBAND
The Internet Campaign Loophole
U.S. Court Likely Will Force Google To Turn Over Data
You've got (paid) mail
Tolls may slow Web traffic
Debate heats up over Net neutrality
A better idea for Net neutrality
Experts debate municipal Wi-Fi efforts
FCC: Investigate BPL interference

OWNERSHIP
Knight Ridder Chief Expresses His Regrets Over Deal to Sell Newspapers
Media consolidation Ain't Just for TV

QUICKLY -- BBC must reach =91consensual=20
relationship=92 with rivals; Weighing Reality;=20
Ephemeral films, resurrected on the Web; Mexico=20
competition chief urges telecoms reform; Movie=20
theaters may ask to jam cell phones; California=20
sues over sale of cell phone records; Universal Service Contribution Factor

TELECOM REWRITE

STEVENS BEARS DOWN ON TELECOM REWRITE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senate Commerce Committee Chairman Ted Stevens=20
(R-Alaska) said that the committee would bear=20
down and try to mark up a revise of the 1996=20
Telecommunications Act sometime after Easter.=20
That was during a hearing Tuesday with financial=20
analysts, who were arguing for clarity ASAP.=20
Their mantra: Regulatory certainty, regulatory=20
certainty, regulatory certainty. Issues like=20
national video franchising, cable =E0 la carte and=20
network neutrality will need to be resolved to=20
free up the capital markets, said financial=20
analysts from companies including JP Morgan,=20
Wachovia, UBS and Sanford Bernstein. "Especially=20
video franchising," said Aryeh Bourkoff of UBS=20
Investment Research. Clarity and certainty,=20
agreed Bourkoff and Kevin Moore of Wachovia=20
Securities, with the caveat that what action=20
Washington takes be guided by a "light regulatory=20
touch" and the admonition: "First do no harm."=20
Mandating "network neutrality," not allowing=20
cable and other networks to charge third parties=20
more for faster Internet-access speeds, is not in=20
the regulatory "light touch" category. Sanford=20
Bernstein's Craig Moffett said that "network=20
neutrality" would have the unintended consequence=20
of further "souring Wall Street's taste for=20
broadband-infrastructure investments."
http://www.broadcastingcable.com/article/CA6315997?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* Street Warns Congress Not To Mandate 'Net Neutrality'
http://news.morningstar.com/news/DJ/M03/D14/200603141859DOWJONESDJONLINE...
958.html?Cat=3DWashWire

SENATOR: NET NEUTRALITY MAY NOT HAPPEN
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh and Anne Broache]
Senate Commerce Committee Chairman Ted Stevens=20
(R-Alaska) said Tuesday that a much-anticipated=20
proposal to overhaul U.S. telecommunications laws=20
may not require network providers to follow Net=20
neutrality principles. He told reporters that he=20
supports the idea of Net neutrality -- that is,=20
legally requiring network providers to treat=20
everyone equally -- in principle. Because=20
Stevens' committee is the Senate panel=20
responsible for updating the 1996=20
Telecommunications Act, his lukewarm endorsement=20
of Net neutrality could be a setback for=20
companies that have been pressing for it to be=20
mandated by law. Google, Microsoft, Yahoo, eBay,=20
Amazon.com, Skype and liberal advocacy groups=20
have been pressing Congress for strict laws in=20
this area. During an afternoon hearing before=20
Stevens' committee, some Wall Street analysts=20
expressed skepticism that aggressive new laws on=20
Net neutrality were necessary. "The very idea=20
that third parties who benefit from Internet=20
infrastructure investments--say, Google and=20
Yahoo--might economically contribute in some way=20
to these costs has been roundly greeted as if it=20
is a threat to basic liberties," said Craig=20
Moffett, an equity research analyst at Sanford=20
Bernstein who studies the cable and satellite=20
sector. If some of the current proposals for Net=20
neutrality were enacted, it would, Moffett said,=20
"likely trigger a host of unintended=20
consequences. Mandated 'Net Neutrality' would=20
further sour Wall Street's taste for broadband=20
infrastructure investments, making it=20
increasingly difficult to sustain the necessary capital investments."
http://news.com.com/Senator+Net+neutrality+may+not+happen/2100-1028_3-60...
38.html?tag=3Dhtml.alert
* Stevens Indicates Senate Prospects Unclear For 'Net Neutrality' Clause
http://www.njtelecomupdate.com/lenya/telco/live/tb-PKMQ1142371107278.html

US GOLD IN TELECOM OLYMPICS?
[SOURCE: Washington Times, AUTHOR: Sen Jim DeMint (R-SC)]
[Commentary] I have introduced the Digital Age=20
Communications Act (S. 2113). This legislation=20
would sweep away the archaic telecommunications=20
rules that accumulated over the last century and=20
open the market to all service providers who=20
would play by the same rules. Consumers in a=20
competitive market, not regulators in government,=20
would decide what services best suit=20
them. Providers would be forced to compete for=20
customers and rather than attempt to establish=20
new rules for every new technology, the FCC would=20
focus its efforts on guarding consumers against=20
any abuse of market power. We no longer live in a=20
monopoly era. It is past time that Congress act=20
to protect American jobs, by getting the FCC out=20
of the way of this dynamic market. As Congress=20
begins to debate this and other legislation that=20
will determine the future of our high-tech=20
sector, you can be sure that companies who enjoy=20
government protection from competition and=20
lawyers who profit from the current system of=20
litigation will emerge from the woodwork to try=20
to defend their piece of the regulatory pie.=20
Congress must resist these pleas to pick winners=20
and losers, and instead put the focus where it=20
belongs: on benefiting consumers through robust competition.
http://www.washtimes.com/commentary/20060314-095241-3032r.htm

UPTON: FRANCHISE BILL COULD SAVE $27 BILLION
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
A controversial House proposal to speed=20
phone-company entry into local cable markets=20
could save consumers up to $27 billion on their=20
annual household communications expenditures,=20
Rep. Fred Upton (R-Mich.) said Tuesday. =93I am=20
convinced that if we were able to get a bill =85 it=20
would reduce prices in the neighborhood of=20
$200-$250 per household across the country for=20
the year for all of the different services=20
combined,=94 Rep Upton said. rep Upton=92s cost=20
projections would produce national consumer=20
savings of $21.2 billion-$26.5 billion annually=20
if based on 106 million occupied households in the 2000 U.S. Census.
http://www.multichannel.com/article/CA6315992.html?display=3DBreaking+News
(requires subscription)
See also --
* Rep Solis Weighs in on Video Franchising Reform Debate
[SOURCE: tvover.net]
In a letter to House Commerce Committee Chairman=20
Joe Barton (R-TX) and Ranking Member John D.=20
Dingell (D-MI), Congresswoman Hilda L. Solis=20
(D-CA) urged them to include enforceable=20
provisions in the Committee's video franchising=20
reform bill to prohibit the deployment of=20
broadband in a discriminatory manner. "A strong=20
non-discrimination provision," she writes, "will=20
help forge a bipartisan consensus in ushering in=20
new competition that will benefit consumers,=20
raise our national productivity, and ensure the=20
kind of robust broadband deployment that is clearly in the national interes=
t."
http://www.tvover.net/Solis+Weighs+In+On+Video+Franchising+Reform+Debate...
px

INDIANA PASSES STATEWIDE VIDEO FRANCHISE LAW
[SOURCE: TVWeek, AUTHOR: Jay Sherman]
Indiana Gov. Mitch Daniels (R) signed statewide=20
legislation into law Tuesday, joining Texas as=20
the only states in the U.S. that allow phone=20
companies to offer video services by obtaining a=20
franchise license at the state level. The new law=20
will mean that telephone companies such as AT&T=20
will no longer have to seek town-by-town=20
approvals to offer video and can instead seek=20
approval from the state. The new law also=20
requires that applicants get an answer within 15=20
days of applying. The law applies to cable operators as well.
http://www.tvweek.com/news.cms?newsId=3D9546
(requires free registration)

FLORIDA'S TURN FOR FRANCHISE REFORM?
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
The Florida legislature will begin discussion=20
next week on a bill that would allow competitors=20
into video delivery after they receive a permit=20
from the office of the Secretary of State. No=20
buildout or service-delivery schedule is included=20
in the bill. Cable operators would be held to=20
their current agreements until the competitive=20
company reaches 45% penetration. Regulatory=20
oversight of the new providers would be minimal.=20
For instance, customer-service complaints would=20
be addressed by the state Department of=20
Agriculture and Consumer Services. The bill is=20
being promoted by Verizon Communications, which=20
has already negotiated municipal franchises in=20
the state, and BellSouth Corp. Opponents so far=20
include the incumbent cable industry, the Florida=20
League of Cities, the Florida Association of=20
Counties and the state chapter of the National=20
Association of Telecommunications Officers and Advisors.
http://www.multichannel.com/article/CA6316058.html?display=3DBreaking+News
(requires subscription)

NCTA CHALLENGES THE BELL COMPANIES TO TELL THE TRUTH
[SOURCE: National Cable & Telecommunications Association press release]
As the Bell telephone companies pressure Congress=20
and statehouses for one-sided legislation that=20
would give them privileged regulatory status in=20
the video marketplace, they continue to flood the=20
airwaves and print media with a multitude of=20
advertising that distorts the truth, according to=20
a research paper released today by the National=20
Cable & Telecommunications Association (NCTA).=20
=93Phone Companies and the Truth: A Bad=20
Connection,=94 provides a fact-filled rebuttal to=20
claims made by the Bell companies and their=20
=93supporters=94 in recent advertising. In addition=20
to using false and misleading advertising in=20
order to convince Congress they should receive=20
special favors, the Bells also continue to pay=20
third-party organizations to run advertising and=20
advocate their viewpoint without disclosing Bell=20
funding of those groups, NCTA said. NCTA supports=20
reform of existing telecommunications law in=20
light of advancing technology and a rapidly=20
changing marketplace, and it supports measures=20
that streamline and simplify government rules and=20
regulations to promote competition, provided=20
those rules apply equally to all competitors. The=20
Bell companies by contrast are pushing federal=20
and state legislative activities that tilt the=20
competitive playing field strongly to their benefit.
http://www.ncta.com/press/press.cfm?PRid=3D681&showArticles=3Dok
* Phone Companies and the Truth: A Bad Connection
http://www.ncta.com/pdf_files/Bells_Misleading_America.pdf

SPECTRUM POLICY

WIRELESS ENTREPRENEURS: CAN YOU HEAR US NOW?
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Republicans and Democrats on the Senate Commerce=20
Committee remain pretty much in agreement that=20
some legislation is needed to open up spectrum to=20
wireless devices, likely including some in the=20
spaces between broadcast channels. Driving the=20
concern is the rollout of broadband service to=20
rural and other underserved areas. At a hearing=20
on the issue in the committee Tuesday, John=20
Kneuer, of the National Telecommunications and=20
Information Administration, pointed out that,=20
starting in 2005, the Office of Management and=20
Budget said spectrum policy has to be looked at=20
in terms of conserving and efficiently using=20
spectrum. Thomas Walsh, of the rural Cellular=20
Association, argued that it is technologically=20
feasible to open up the broadcast band to=20
unlicensed devices "with no danger" to existing=20
broadcast channels, and said there is a clear=20
benefit to doing so. Sen Kerry called=20
broadcasters' fears of interference from the new=20
unlicensed devices a "false argument."
http://www.broadcastingcable.com/article/CA6315809?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* Intel urges lawmakers to free up U.S. airwaves
http://www.iht.com/articles/2006/03/14/business/techbrief-5845447.php

KERRY CHIDES BUSH ADMINISTRATION ON BROADBAND
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
Sen. John Kerry (D-MA) accused the Bush=20
administration on Tuesday of falling behind in=20
its goal to make high-speed Internet service,=20
known as broadband, universally available by=20
2007. He said the Federal Communications=20
Commission was holding up action that would allow=20
companies to use extra airwaves in between=20
television channels that were not being utilized.=20
Despite the president's promise of ubiquitous=20
broadband by 2007, we are clearly, now well into=20
2006, short of that goal," Kerry said at a Senate=20
Commerce Committee hearing. "Only 40 percent of=20
households in America have it. It seems,=20
incredibly, the FCC is sitting on the rulemaking=20
that will help correct this problem," Sen Kerry said.
http://today.reuters.com/news/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2006-03-14T210459Z_01_N14290472_RTRUKOC_0_US-CONGRESS-BROADBAND.xml&arch=
ived=3DFalse

NTIA RELEASES SPECTRUM POLICY PLAN
[SOURCE: National Telecommunications and Information Administration]
In response to the President=92s Spectrum Policy=20
Memorandum, the Department of Commerce=20
(Department) organized the Federal Government=20
Spectrum Task Force, an interagency advisory=20
group of federal agencies that use spectrum. The=20
Department also sought the views of the private=20
sector and of state, local, and regional=20
governments for improving U.S. spectrum use. In=20
June 2004, the Department submitted two reports=20
to the President that reflect the views obtained.=20
The reports contained far-reaching=20
recommendations on a wide range of issues. On=20
November 30, 2004, the President issued a second=20
Memorandum that directed inter alia, the=20
Department to submit by May 2005 a plan to=20
implement those recommendations of the reports=20
that were not expressly directed to other=20
agencies and offices. In this plan, the=20
Department=92s National Telecommunications and=20
Information Administration (NTIA) outlines seven=20
projects that together implement the=20
recommendations of Reports 1 and 2 as directed by=20
the President. The projects are summarized at the URL below.
http://www.ntia.doc.gov/osmhome/reports/ImplementationPlan2006.htm

OPTIONS FOR AND BARRIERS TO SPECTRUM REFORM
[SOURCE: Government Accountability Office]
With demand for spectrum exploding, and most=20
useable spectrum allocated to existing users,=20
there is growing concern that the current=20
spectrum management framework might not be able=20
to respond adequately to future demands. This=20
testimony, which is based on previous GAO=20
reports, provides information on 1) the extent to=20
which the Federal Communications Commission (FCC)=20
has adopted market-based mechanisms for=20
commercial use, 2) the extent to which=20
market-based mechanisms have been adopted for=20
federal government users of spectrum, 3) options=20
for improving spectrum management, and 4)=20
potential barriers to spectrum reform. In=20
previous reports, GAO recommended that 1) the=20
Secretary of Commerce and FCC should jointly=20
develop a national spectrum plan to guide=20
decision making, and 2) the relevant=20
administrative agencies and congressional=20
committees work together to develop and implement=20
a plan for the establishment of an independent=20
commission that would conduct a comprehensive=20
examination of current spectrum management. To=20
date, these recommendations have not been implemented. (GAO-06-526T)
http://www.gao.gov/cgi-bin/getrpt?GAO-06-526T
Highlights - http://www.gao.gov/highlights/d06526thigh.pdf

RCA OPPOSES FCC'S 'BLIND BIDDING' PLAN
[SOURCE: RCRNews, AUTHOR: Heather Forsgren Weaver]
The Rural Cellular Association came out against a=20
proposal by the Federal Communications Commission=20
to keep spectrum auction information secret.
=93A =91blind bidding=92 process would deter=20
participation by RCA members who want to know,=20
round by round in the bidding, what other=20
entities are bidding for the same licenses, and=20
for licenses in the region that surrounds a=20
market of interest,=94 said Thomas Walsh, general=20
manager of Illinois Valley Cellular and president=20
of the RCA board. Walsh was one of several=20
witnesses to discuss spectrum reform and other=20
wireless issues before the Senate Commerce=20
Committee, which is studying various=20
telecommunications issues as it readies its=20
telecom-reform bill that is expected to be considered within the coming wee=
ks.
http://www.rcrnews.com/news.cms?newsId=3D25850

TELEVISION

FCC WILL OPEN KIDS DEAL FOR COMMENT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
According to an FCC spokeswoman, the commission=20
will not vote on the compromise kids DTV rule=20
proposal at its March 17 meeting, but will=20
instead open up the deal for public comment. No=20
word on how long the comment period would be. The=20
commission is widely expected to eventually OK=20
some version of the deal, which heads off=20
lawsuits filed by both kids-TV activists and=20
media companies. The NAB board has already voted to support the agreement.
http://www.broadcastingcable.com/article/CA6315951?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

DRAFT CONVERTOR-BOX SUBSIDY RULES IMMINENT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
John Kneuer, of the National Telecommunications=20
and Information Administration, told the Senate=20
Commerce Committee Tuesday that draft rules on=20
DTV converter-box subsidies should be issued=20
"shortly." In response to a question from one=20
senator about whether NTIA was considering=20
levying user fees on broadcasters, Kneuer said=20
that NTIA had a task force working on various=20
incentives for more-efficient spectrum use,=20
including spectrum fees that would recognize the=20
value of that spectrum. He also pointed out that=20
the Bush administration budget also currently=20
empowers the FCC to collect user fees from=20
non-auction services, including broadcasters.
http://www.broadcastingcable.com/article/CA6315834?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

TV NETWORKS GEAR UP FOR TELLING 'UPFRONT' TALKS
[SOURCE: Wall Street Journal, AUTHOR: Brian=20
Steinberg brian.steinberg( at )wsj.com]
The primetime "upfront" ad-sales session, when=20
broadcast-TV networks try to secure ad=20
commitments for their fall TV season, is still=20
two months away. But preparations are already=20
under way for what is likely to be the most=20
closely watched upfront in years. Last year, the=20
broadcast-TV networks suffered a drop in their=20
total upfront take to between $9.2 billion and=20
$9.4 billion, from about $9.5 billion in 2004. It=20
was the first down year since 2001, interpreted=20
by some in the ad industry as a sign that=20
marketers were starting to scale back their=20
network-TV ad spending to put more emphasis on=20
other media options. Still, one down year can be=20
an anomaly; a second down year would suggest the=20
decline is part of a structural change in=20
advertising. Among the things influencing the=20
debate: 1) the use of DVRs like TiVo, 2)=20
consolidation in the auto, retail and=20
telecommunications industries may mean less ad=20
spending, and 3) splintering audiences.
http://online.wsj.com/article/SB114238573890098421.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

POLICYMAKERS

AGENDA FOR APRIL 7 MEETING OF THE FCC'S CONSUMER ADVISORY COMMITTEE
[SOURCE: Federal Communications Commission]
The Consumer Advisory Committee (CAC) will hold=20
its next meeting on Friday, April 7, from 9:00=20
A.M. to 4:00 P.M. at the Commission's=20
Headquarters Building, 445 12th Street, S.W.,=20
Room TW-C305, Washington, DC 20554. The meeting=20
is open to the public. At its April 7, 2006=20
meeting, the Committee will 1) receive briefings=20
by FCC staff regarding Agency activities; 2)=20
receive a report and recommendations from its TRS=20
Working Group regarding speech-to-speech call=20
standards, captioned telephony, IP and VRS=20
provider certification, and description of VRS=20
service; 2) receive a report and recommendation=20
from its Media Working Group regarding media=20
ownership rules; 3) receive a report and=20
recommendations from its Advanced Technologies=20
Working Group regarding capabilities of=20
digital-to-analog set-top boxes, closed=20
captioning related to digital television and=20
multicast channels, and a proposed=20
consumer/disability impact statement for=20
inclusion in FCC proceedings; and 4) receive=20
reports from its Consumer Affairs and Rural=20
Working Groups regarding their activities. The=20
full Committee may take action on any or all of these agenda items.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-580A1.doc

BENTON FOUNDATION NAMES FORMER FCC COMMISSIONER GLORIA TRISTANI PRESIDENT
[SOURCE: Benton Foundation]
The Benton Foundation has named former FCC=20
Commissioner Gloria Tristani to be President of=20
the foundation, effective April 5, 2006. Ms.=20
Tristani said, "The Benton Foundation=92s=20
leadership is needed now more than ever to ensure=20
that the public will benefit from the emerging=20
digital communications environment as access,=20
equity, and diversity are under siege by=20
increasing media concentration and=20
commercialization. I look forward to directing=20
the foundation=92s efforts to both educate people=20
about their stake in communications policy=20
debates and to advocate for a media environment=20
that ensures communities can produce and have=20
access to diverse and locally responsive media=20
content." According to foundation board chair=20
Charles Benton, "Gloria=92s character, experience,=20
and skills reflect the core values of the=20
foundation, and her hiring reaffirms the=20
foundation=92s longstanding commitment to education=20
and advocacy on media policy issues."
http://www.benton.org/benton_files/BentonGTannouncement.doc
* UCC=92s media advocacy director accepts prestigious Benton Foundation post
http://news.ucc.org/index.php?option=3Dcom_content&task=3Dview&id=3D492&...
mid=3D54
* Tristani Heads Benton Foundation
http://www.broadcastingcable.com/article/CA6315864?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

KATHLEEN WALLMAN JOIN'S MAP BOARD
[SOURCE: Media Access Project press release]
Kathleen Wallman, former Chief of the FCC=92s=20
Common Carrier Bureau, has joined Media Access=20
Project=92s (MAP) Board of Directors. Throughout=20
her service in government, Ms. Wallman was=20
responsible for a wide range of domestic and=20
international telecommunications and mass media=20
issues including cable, broadcast, satellite, wireless and wireline matters.
http://www.mediaaccess.org/WallmanPressRelease.pdf

INTERNET/BROADBAND

THE INTERNET CAMPAIGN LOOPHOLE
[SOURCE: New York Times, AUTHOR: Editorial Staff]
[Commentary] For all the avowals to put the=20
brakes on ethical lapses, the House is showing=20
its true colors with an attempt to turn the=20
Internet into a free-flowing big-money trough for=20
uncontrolled political spending. The measure=20
would exempt political ads on the Internet from a=20
reform law barring corporate and union donors=20
from buying up grateful candidates with six- and=20
seven-figure contributions. The House bill=20
pretends to be trying to protect the free speech=20
rights of bloggers on the Internet. That is a=20
legitimate concern, but relicensing soft-money=20
bagmen is hardly the solution. A far preferable=20
alternative measure would fully protect the=20
growing legions of bloggers, but not at the cost=20
of turning the Internet into a tool for the=20
abusive enrichment of candidates. A critical=20
question is whether the Republican leadership=20
will deny the public a fair debate over this=20
issue by bottling up the alternative bill this=20
week. It is imperative that the courageous=20
lawmakers who supported the McCain-Feingold=20
reform law four years ago stand together against=20
making the Internet a cornucopia of political=20
corruption. Wavering Democrats, in particular,=20
need a strong leadership call to stand fast,=20
despite campaign-year cravings for more money.=20
Voters need to pay particular attention to which=20
lawmakers endorse this unfettered sale of political influence.
http://www.nytimes.com/2006/03/15/opinion/15wed3.html
(requires registration)

US COURT LIKELY WILL FORCE GOOGLE TO TURN OVER DATA
[SOURCE: Wall Street Journal, AUTHOR: Mark Boslet mark.boslet( at )dowjones.com]
Google likely will have to turn over search data=20
to government lawyers making a case for a=20
child-pornography law, but a much smaller amount=20
than originally requested, a federal judge said.=20
U.S. District Judge James Ware said he is=20
inclined to require the company to respond to a=20
Justice Department subpoena seeking the text of=20
search queries and randomly selected Web=20
addresses from Google's index of Internet sites.=20
During a hearing in San Jose, the judge said he=20
was persuaded partly by the government's=20
willingness to seek only 50,000 randomly selected=20
addresses and 5,000 search queries instead of the=20
one million addresses and millions of search=20
queries initially sought. The government filed=20
suit in January seeking the information after=20
Google resisted complying with an August=20
subpoena. "What I've been trying to balance is=20
the interest society has in the litigation with=20
the interest of a private company," Judge Ware=20
said. The government hopes to use the information=20
to defend its Child Online Protection Act, a law=20
designed to shield minors from sexually explicit=20
materials on the Internet. The Supreme Court=20
blocked implementation of the act and returned=20
the case to district court in Pennsylvania, where=20
the Bush administration is battling claims from=20
the American Civil Liberties Union that it=20
violates the Constitution's First Amendment right to free speech.
http://online.wsj.com/article/SB114235949450997932.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* U.S. Limits Demands on Google
http://www.nytimes.com/2006/03/15/technology/15google.html
* Judge Orders Google To Give Up Some Data
http://www.washingtonpost.com/wp-dyn/content/article/2006/03/14/AR200603...
0430.html

YOU'VE GOT (PAID) MAIL
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
[Commentary] America Online may be the country's=20
best-known, and most widely mocked, mass mailer.=20
Every few months the company sends out thousands=20
of promotional CDs, and shortly thereafter most=20
of the shiny plastic discs make their way to=20
nearby landfills -- unless they're converted to=20
beer coasters. So it's kind of funny that AOL is=20
coming under fire these days for the way it plans=20
to handle mass mailings online. At issue is the=20
Time Warner subsidiary's plan to create a=20
priority lane for commercial e-mail. Starting=20
later this month, companies can pay to be added=20
to a certified e-mail delivery system run by an=20
AOL contractor, Goodmail Systems. If they abide=20
by Goodmail's rules for e-mail etiquette, their=20
messages will be delivered straight to AOL users'=20
inboxes, bypassing AOL's spam filters. The=20
freedom and openness of the Net are already under=20
assault from spammers, virus writers and phishers=20
=97 con artists who try to trick people into=20
revealing Social Security numbers, passwords and=20
other personal information. Most of these=20
offenses are carried out through e-mail because=20
it's free, anonymous and tricky to authenticate.=20
The main drawback to AOL's plan is that it offers=20
mass marketers an easy way to evade spam filters.=20
A better approach is Yahoo's plan to use Goodmail=20
only for "transactional" e-mails, such as=20
messages confirming an online purchase. Even=20
AOL's system, though, will have to answer to the=20
company's subscribers. And if the Goodmail system=20
turns out to be a font of unwanted sales pitches=20
and fundraising pleas, those customers have=20
plenty of other places to take their business.
http://www.latimes.com/news/printedition/opinion/la-ed-aol15mar15,1,3896...
.story?coll=3Dla-news-comment
(requires registration)

TOLLS MAY SLOW WEB TRAFFIC
[SOURCE: The Christian Science Monitor, AUTHOR: Gregory M. Lamb]
For now, the Internet is a superhighway open to=20
all. Information is delivered quickly via phone=20
lines and cable to homes and businesses=20
worldwide. But for online businesses, the=20
express-lane ride may be over. As the Internet=20
matures, new bandwidth-gobbling online television=20
channels and phone services may soon be charged=20
to access the superhighway. That could turn the=20
Internet of tomorrow into a toll road, with those=20
who can't pay a premium shunted into the slow=20
lane. In one online forum, Vonage customers=20
shared suspicions that cable company Comcast is=20
degrading the quality of their Vonage phone=20
calls. (Comcast is rolling out a digital phone=20
service.) Comcast and Vonage Holding Corp. have=20
denied that any such problem exists. "You can=20
imagine all kinds of scenarios," says David=20
Isenberg, an independent telecommunications=20
analyst (www.isen.com/blog) and a fellow at the=20
Berkman Center for Internet and Society at=20
Harvard Law School. "Once you establish the=20
principle, you can see where it leads.... Maybe=20
they'll charge a lower price for publications the=20
carrier deems politically acceptable and a higher=20
price - maybe a prohibitively high price - for=20
publications the carrier considers unacceptable.=20
Or maybe you won't be able to get them at all."=20
Mr. Isenberg is helping to sponsor the Freedom to=20
Connect conference April 3-4 in Washington, D.C.=20
He hopes to spur "an in-depth conversation" about=20
what's at stake in the "net neutrality" debate.=20
"You're not looking at a free marketplace of=20
competitors," says Wendy Seltzer, a former staff=20
attorney at the Electronic Frontier Foundation, a=20
consumer rights group, who now teaches Internet=20
law at Brooklyn Law School. Without forcing some=20
commitment to net neutrality from Internet=20
providers, small startups may never get a chance=20
to see where their ideas could lead, advocates=20
say. The very vitality of the Internet will be=20
threatened. "That's certainly something that the=20
net neutrality forces will be trying to argue,"=20
says Ms. Seltzer. "Network neutrality might be a=20
little bit of regulation, but it's regulation=20
that's good for [promoting] a lot more free market."
http://www.csmonitor.com/2006/0315/p14s01-stct.html

DEBATE HEATS UP OVER NET NEUTRALITY
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon ]
At the Voice over the Net (VON) conference at the=20
San Jose Convention Center on Tuesday, companies=20
on both sides of the bandwidth isle debated how=20
much Net regulation is needed. But the broader=20
discussion was what exactly Net neutrality means=20
and whether legislators are discussing a solution=20
to a problem that doesn't yet exist. "I am=20
hopelessly confused about Net neutrality," said=20
Blair Levin, a managing director and regulatory=20
analyst for Stifel, Nicolaus and Co., a financial=20
research company. "I know what the Bells are=20
saying, but it's unclear what they mean."
http://news.com.com/Debate+heats+up+over+Net+neutrality/2100-1037_3-6049...
.html?tag=3Dhtml.alert
* USIIA calls Network Neutrality 'A solution in search of a problem'
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=3D104&STORY=3D/www/sto...
03-14-2006/0004319991&EDATE=3D
* Stop using Broadband
http://www.wirelesscommunity.info/2006/03/15/stop-using-broadband/

A BETTER IDEA FOR NET NEUTRALITY
[SOURCE: C-Net|News.com, AUTHOR: Randolph J. May, Progress&Freedom Foundati=
on]
[Commentary] Thus far, there have been virtually=20
no complaints that any network operator has=20
actually engaged in any discriminatory conduct.=20
No network operator has entered into a business=20
arrangement, say, that somehow favors Amazon's=20
content over that of Borders. There have been a=20
few statements made by AT&T Chief Executive Ed=20
Whitacre and other network operator executives to=20
the effect that network owners ought to have the=20
flexibility to consider charging content=20
providers such as Google or Yahoo a higher fee=20
for speedier service on their Internet backbone=20
facilities if these content providers desire some=20
form of premium service to better serve their=20
customers. In a competitive marketplace, the=20
government usually does not require that vendors=20
treat all customers and all suppliers alike for=20
all purposes. Very often such differences in=20
treatment in a competitive marketplace reflect=20
economic efficiencies to be realized from that=20
result in cost savings, and these cost savings=20
enhance overall consumer welfare. Avoiding broad=20
prohibitions on such differential treatment gives=20
operators the freedom and flexibility to invest=20
with confidence in new facilities and innovative=20
services consumers may value. So any legislation=20
containing specific Net neutrality provisions is=20
a bad idea. There is a better approach that=20
should go far to assuage the Net neutrality=20
advocates' fears. This is to adopt a regulatory=20
framework under which specific Net neutrality=20
complaints are adjudicated on a case-by-case=20
basis under an "unfair competition" standard that=20
is tied closely to real-world marketplace developments.
http://news.com.com/A+better+idea+for+Net+neutrality/2010-1028_3-6048882...
ml?tag=3Dhtml.alert
See also --
* Network Neutrality Regulation
[SOURCE: Heritage Foundation, AUTHOR: James L. Gattuso]
[Commentary] At first glance, =93network=20
neutrality=94 may seem an unobjectionable=20
principle. Who, after all, would want their=20
telephone company to keep them from accessing=20
CNN.com, or force them to use one the provider=20
owns? However, in practice, no major operator=20
has ever blocked sites, and likely never will.=20
The reason is competition: operators know that if=20
they don't give consumers what they want, those=20
consumers will go to a competing provider.=20
Proposals to impose =93network neutrality=94=20
regulations on the Internet should be rejected.=20
Instead, policymakers should work to expand=20
further competition among network operators in order to protect consumers.
http://www.heritage.org/Research/Regulation/Regulation_brief031306.cfm

EXPERTS DEBATE MUNICIPAL WI-FI EFFORTS
[SOURCE: Network World, AUTHOR: Tim Greene]
Municipal Wi-Fi - free or cheap Wi-Fi access to=20
the Internet set up by cities and towns for all=20
to use - is a waste of taxpayer money, according=20
to VON panelists opposed to these programs=20
proliferating across the country. These wireless=20
municipal endeavors stand little chance of being=20
profitable and run the risk of driving up the=20
cost of other municipal services in order to=20
subsidize them, according to Tom Lenard, vice=20
president of research for the Progress and=20
Freedom Foundation. And they do little for the=20
public that commercial broadband access doesn't=20
already do, says Link Hoewling, assistant vice=20
president of Verizon Business. "The market has=20
worked well to improve access speed with good prices," he says.
http://www.networkworld.com/news/2006/031406-von-reporters-notebook.html

FCC: INVESTIGATE BPL INTERFERENCE
[SOURCE: Potomac news, AUTHOR: J Pitts]
After more than two years and several complaints=20
to the Federal Communications Commission, local=20
amateur radio operators feel that the FCC is=20
finally listening to them. Manassas-area amateur=20
radio operators have battled with alleged=20
interference from broadband over powerline=20
technology in the city since fall 2003, when=20
Manassas first implemented the system. The FCC=20
has requested that Manassas and its BPL system=20
operator Communication Technologies Inc. (COMTek)=20
investigate these allegations and take steps to=20
eliminate "harmful interference." The FCC also=20
requested that the city report plans it has, if=20
any, for upgrading the BPL equipment. The city=20
has 30 days from March 7 to report its findings back to the FCC.
http://www.potomacnews.com/servlet/Satellite?pagename=3DWPN%2FMGArticle%...
PN_BasicArticle&c=3DMGArticle&cid=3D1137834703070&path=3D!news

OWNERSHIP

KNIGHT RIDDER CHIEF EXPRESSES HIS REGRETS OVER DEAL TO SELL NEWSPAPERS
[SOURCE: New York Times, AUTHOR: Katharine Seelye]
The chairman and chief executive of Knight=20
Ridder, P. Anthony Ridder, who sold the newspaper=20
chain to the McClatchy Company on Monday, said=20
last night that he resisted the sale and then=20
sought to persuade McClatchy to keep most of the=20
company's 32 papers. But immediately after=20
acquiring Knight Ridder for $4.5 billion,=20
McClatchy and its company's chairman, Gary=20
Pruitt, said they were putting 12 of the papers,=20
nearly a third of them, back on the market. The=20
acquisition of the newspaper chain will lead to=20
the dissolution of a company that Mr. Ridder's=20
family started in 1892, a prospect that he called=20
depressing. The newspapers to be sold are=20
profitable, but in difficult, slow-growth=20
markets. They include The Inquirer and The Daily=20
News in Philadelphia, The San Jose Mercury News=20
and The Beacon Journal in Akron, Ohio. With these=20
papers separated from rest of the Knight Ridder=20
package, they are starting to attract interest=20
from numerous potential buyers, many of them local to each market.
http://www.nytimes.com/2006/03/15/business/media/15paper.html?pagewanted...
all
(requires registration)
* Bidding For Dozen KR 'Orphans' Could Be Family Affairs
After the dramatic $6.5 billion blockbuster=20
Knight Ridder sale between two public companies,=20
the deals for the 12 dailies The McClatchy Co. is=20
immediately unloading appear to be attracting=20
family-owned groups and private investors.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1002158244
* McClatchy Now Gets 49% of 'Seattle Times'--And=20
Gains 2 Other Washington Papers
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1002158146
* Analysts Have Complicated Views of McClatchy Deal
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1002158034

MEDIA CONSOLIDATION AIN'T JUST FOR TV
[SOURCE: Facing South]
[Commentary] With their acquisition of Knight=20
Ridder, McClatchy will control most of North and=20
South Carolina's major daily newspapers: The=20
McClatchy Co. will become the major media player=20
in the Carolinas and the nation=92s second-largest=20
newspaper company by paying $4.5 billion in cash=20
and stock for Knight Ridder, parent of The State.=20
The combined company will have seven newspapers=20
in North Carolina and South Carolina, including=20
the three largest. Nationwide, McClatchy will own=20
32 daily newspapers and roughly 50 nondaily=20
publications, making it second to Gannett in the=20
industry. McClatchy also will acquire The=20
Charlotte Observer and The (Myrtle Beach) Sun=20
News from Knight Ridder. The Sacramento,=20
Calif.-based company already owns newspapers in=20
Beaufort, Hilton Head Island, Rock Hill and Raleigh.
http://southernstudies.org/facingsouth/2006/03/media-consolidation.asp

QUICKLY

BBC MUST REACH 'CONSENSUAL RELATIONSHIP' WITH RIVALS
[SOURCE: Financial Times, AUTHOR: Andrew=20
Edgecliffe-Johnson and Emiko Terazono]
The BBC must reach =93a more consensual=20
relationship=94 with its commercial rivals and=20
reconnect with the citizens who fund it, the=20
British government said yesterday as it outlined=20
plans to renew the royal charter of the world=92s=20
best-known public sector broadcaster for the next 10 years.
http://news.ft.com/cms/s/93a9dd1a-b386-11da-89c7-0000779e2340.html
(requires subscription)

WEIGHING REALITY
[SOURCE: AlterNet, AUTHOR: Jacob Anderson-Minshall]
[Commentary] As doctors fret about our obesity=20
epidemic, reality TV is revealing some intriguing=20
things about American corpulence.
http://www.alternet.org/mediaculture/33471/

EPHERMAL FILMS, RESURRECTED ON THE WEB
[SOURCE: The Christian Science Monitor, AUTHOR: Jim Regan]
Given the ephemeral nature of the Web, it can be=20
interesting to note just how much of the=20
ephemeral is actually being preserved and=20
(perhaps as important) made widely available by=20
the Web. From long-forgotten product packaging=20
and period postcards to family photos and even=20
East German Paper Shopping Bags, the Web is=20
jammed with items that would have been lost=20
forever to attics and museum warehouses without=20
the advent of online distribution. Probably the=20
most entertaining exhibits in this category=20
feature ephemeral films -- ads and movies=20
produced for a specific time and purpose, with=20
little or no thought to long-term relevance or preservation.
http://www.csmonitor.com/2006/0315/p25s02-stct.html

MEXICO COMPETITION CHIEF URGES TELECOMS REFORM
[SOURCE: Financial Times, AUTHOR: Adam Thomson]
Mexico=92s top competition official, Eduardo P=E9rez=20
Motta who heads the Federal Competition=20
Commission, has urged the government of Vicente=20
Fox to push ahead with reforms to the country=92s=20
telecommunications market to allow companies to=20
compete with Telmex, the privatized telephone monopoly.
http://news.ft.com/cms/s/a4b78a52-b39b-11da-89c7-0000779e2340.html
(requires subscription)

MOVIE THEATERS MAY ASK TO JAM CELL PHONES
[SOURCE: Reuters]
Tell the baby sitter you're unavailable for the=20
next two hours... Movie theater owners faced with=20
falling attendance are considering asking federal=20
authorities for permission to jam cell phone=20
reception in an attempt to stop annoying=20
conversations during films, the head of the=20
industry's trade group said on Tuesday.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-03-15T090531Z_01_N14374910_RTRUKOC_0_US-MEDIA-FILMS-CELLPHONES.xml

CALIFORNIA SUES OVER SALE OF CELL PHONE RECORDS
[SOURCE: Reuters ]
The state of California filed a $10 million=20
lawsuit on Tuesday against an online firm that=20
offers private cell phone numbers for sale. Data=20
Trace USA, which is based in Florida, advertises=20
a same-day ability to find cell phone numbers for=20
$79.95. They require the cell phone holder's=20
Social Security number, address and name. The=20
suit, filed in San Diego County Superior Court,=20
alleges the company unlawfully obtains the=20
numbers by misrepresenting their intentions to=20
phone companies. The legal filing seeks an end to the practice.
http://today.reuters.com/news/newsArticle.aspx?type=3DdomesticNews&storyID=
=3D2006-03-14T221021Z_01_N14327107_RTRUKOC_0_US-TELECOMS-LAWSUIT.xml&archiv=
ed=3DFalse

UNIVERSAL SERVICE CONTRIBUTION FACTOR
[SOURCE: Federal Communications Commission]
If you love to crunch numbers... the FCC's=20
Wireline Competition Bureau has) announced that=20
the proposed universal service contribution=20
factor for the second quarter of 2006 is 10.9=20
percent. Total Projected Collected Interstate and=20
International End-User Telecommunications=20
Revenues for Second Quarter 2006: $18.317957 billion.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-571A1.doc
--------------------------------------------------------------
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.
--------------------------------------------------------------