March 2006

Hearst-Argyle Makes Time for Politics

HEARST-ARGYLE MAKES TIME FOR POLITICS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]

Radio Multicasting: Will it be another broadcast industry giveaway?

THE FCC'S IMMINENT RADIO MULTICASTING VOTE: WILL IT BE ANOTHER BROADCAST INDUSTRY GIVEAWAY?
[AUTHOR: J.H. Snider]

Stations Eye $2 Billion in 2015

STATIONS EYE $2 BILLION IN 2015
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano ]

Stations Build Virtual Duopolies

STATIONS BUILD VIRTUAL DUOPOLIES
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano ]

How France Became A Leader in Offering Faster Broadband

HOW FRANCE BECAME A LEADER IN OFFERING FASTER BROADBAND
[SOURCE: Wall Street Journal, AUTHOR: Leila Abboud leila.abboud@wsj.com]

CAMRY Calls For Alcohol Marketing Cutbacks

CAMRY CALLS FOR ALCOHOL MARKETING CUTBACKS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Center On Alcohol Marketing and Youth (CAMY), which is funded by the Pew Charitable Trusts and The Robert Wood Johnson Foundation, has concluded that underage drinking is the nation's number one drug problem and exposure to alcohol ads is a contributing factor. The center is advocating for "strong efforts pursued nationwide to reduce youth exposure to alcohol advertising."

Benton's Communications-related Headlines For Tuesday March 28, 2006

To view Benton's Headlines feed in your RSS=20
Aggregator, paste=20
http://www.benton.org/index.php?q=3Dtaxonomy/term/6/all/feed into your read=
er.
For upcoming media policy events, see http://www.benton.org

POLICYMAKERS
Sen Rockefeller Puts Hold on FCC Nominee

TELECOM REFORM
House Would Grant 10-Year National Franchise
Bells, Cable Likely To Face Off On Second Front: 1992 Cable Act
Report: Broadband Won't Backfill Voice Losses
Memo to AT&T: The Debate Over the Internet=92s Future is Not Just =93About=
Movies=94

CAMPAIGNING/LOBBYING
FEC Rules Exempt Blogs From Internet Political Limits
CDT Commends FEC For Protecting Political Speakers
Phone, Cable Trade Fire Over Ads
Consumer Groups Tied to Industry
Nonprofits are True Powerbrokers
Google Joins the Lobbying Herd

BROADCASTING
How DJs Put 500,000 Marchers in Motion
Hearst-Argyle Makes Time for Politics
Radio Multicasting: Will it be another broadcast industry giveaway?
Stations Eye $2 Billion in 2015
Stations Build Virtual Duopolies

INTERNET/BROADBAND
How France Became A Leader in Offering Faster Broadband

JOURNALISM
Local journalism imperiled
Newspaper Sale Stirs Up Local Moguls' Ambitions

QUICKLY -- FCC Considers Per-Sub Satellite Fee;=20
Comcast Sues Oakland; Whose Internet Is It?; Curb=20
on Access to News in Prison; CAMRY Calls For=20
Alcohol Marketing Cutbacks; US regains top ranking for technology

POLICYMAKERS

SEN ROCKEFELLER PUTS HOLD ON FCC NOMINEE: SOURCES
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
Sen. John Rockefeller (D-WV) has placed a hold on=20
the nomination of telecommunications lawyer=20
Robert McDowell to fill the third Republican seat=20
on the Federal Communications Commission. Mr.=20
McDowell would break a 2-2 deadlock at the=20
agency. With a majority, the FCC has been=20
expected to launch a review that could lead to=20
relaxing media ownership restrictions. His=20
nomination would require confirmation by the full=20
Senate but any senator can put a so-called hold=20
on a nomination for any reason. Traditionally,=20
Senate leaders try to resolve the differences=20
that prompted the action. A spokesman for Sen=20
Rockefeller declined to confirm or deny the hold,=20
but said the lawmaker did have concerns about=20
properly accounting for the Universal Service=20
Fund, which subsidizes communications services=20
for low-income and rural areas and is overseen by=20
the FCC. The Universal Service Administrative=20
Co., which runs the USF E-Rate program, had to=20
freeze hundreds of millions of dollars in=20
subsidies when it was discovered that the program=20
did not comply with certain government accounting=20
rules. Congress has eased those rules on the=20
program while it reviewed possible changes and=20
the subsidies resumed. "Senator Rockefeller is=20
looking for the administration to give written=20
confirmation that the Universal Service Fund=20
accounting problem is fixed," said Rockefeller spokesman Stuart Chapman.
http://today.reuters.com/news/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2006-03-28T001822Z_01_N27290400_RTRUKOC_0_US-CONGRESS-FCC-MCDOWELL.xml&a=
rchived=3DFalse

TELECOM REFORM

HOUSE WOULD GRANT 10-YR NATIONAL FRANCHISE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The House Commerce Committee has released a bill=20
to be considered at a hearing on Thursday. The=20
bill would allow new video providers to get a=20
10-year franchise within 30 days of filing the=20
requisite application, so long as they file the=20
correct paperwork. It also allows cable to get a=20
franchise under the same national franchise terms=20
if a competitor enters the market with a national=20
franchise or when their current franchise=20
expires. The national franchise can be revoked=20
for "repeated and willfull violations," including=20
discrimination in terms of service (so-called=20
"red lining"), violating rights-of-way laws, or=20
making false statements about service.
http://www.broadcastingcable.com/article/CA6319469?display=3DBreaking+News
* Net neutrality fans lose on Capitol Hill
http://news.com.com/Net+neutrality+fans+lose+on+Capitol+Hill/2100-1036_3...
54567.html?tag=3Dhtml.alert
* Barton Gives Bells 10 Years
http://www.multichannel.com/article/CA6319478.html?display=3DBreaking+News
* McSlarrow to Testify on Video Bill
http://www.multichannel.com/article/CA6319352.html?display=3DBreaking+News
* Track the "Communications Opportunity,=20
Promotion, and Enhancement Act of 2006" at:
http://www.benton.org/index.php?q=3Dnode/1882

BELLS, CABLE LIKELY TO FACE OFF ON SECOND FRONT: 1992 CABLE ACT
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
Bell telecommunications companies fighting with=20
cable operators over whether they should be=20
allowed to circumvent municipal video franchises=20
are likely to soon begin clashing on a new=20
legislative front: revisions to a 1992 law=20
governing access to television programming. The=20
1992 Cable Act created a "program access"=20
requirement that generally requires cable=20
operators to share channels distributed over=20
satellites with direct broadcast satellite=20
systems and other cable competitors. The law=20
helped jumpstart the satellite television=20
industry with programming such as CNN and HBO.=20
The programming issue comes to a head as other=20
business, regulatory and TV-viewing issues=20
converge on Washington. Those factors include the=20
start of the baseball season, commercial disputes=20
between Verizon Communications and a cable=20
operator, and the proposed acquisition of=20
Adelphia Communications by Comcast and Time=20
Warner. Although the programming fight would pit=20
the Bells against cable operators, they could=20
have allies: satellite operators, independent=20
television networks, and cable "over-builders," such as RCN Networks.
http://www.njtelecomupdate.com/lenya/telco/live/tb-GVYW1143493841651.html

REPORT: BROADBAND WON'T BACKFILL VOICE LOSES
[SOURCE: Multichannel News, AUTHOR: Karen Brown]
A new report issued by In-Stat (a sister company=20
to Multichannel News) indicated that the growth=20
in broadband-wireline revenues will not be enough=20
to replace losses in traditional consumer voice=20
services. While broadband growth remains healthy,=20
the total revenue picture for=20
wireline-telecommunications services in the=20
United States will dwindle by 3.3% on average=20
every year through 2009, according to the report.=20
The study also found that while telcos=92=20
digital-subscriber-line and cable-modem services=20
are growing, bundling strategies are eroding=20
their revenue margins. And it found that business=20
voice services are seeing similar revenue=20
declines, but at a slower rate than consumer services.
http://www.multichannel.com/article/CA6319416.html?display=3DBreaking+News

MEMO TO AT&T: THE DEBATE OVER THE INTERNET'S FUTURE IS NOT JUST "ABOUT MOVI=
ES"
[SOURCE: Digital Destiny, AUTHOR: Jeff Chester]
[Commentary] In a revealing comment last week,=20
AT&T lobbyist honcho Jim Cicconi told journalists=20
that the battle over network neutrality was =93all=20
about movies.=94 That AT&T would see it that way is=20
understandable, since their =93vision=94 for the=20
future of the Internet is basically a souped-up=20
version of pay television (with endless embedded=20
=93rich media=94 interactive ads). The Bells and the=20
cable industry want to control the pipeline into=20
our computerized devices so they can reap the=20
profits from such downloads. They believe that=20
the proponents of network neutrality only want to=20
also provide the public with video programming,=20
including films. Reflecting their narrow view of=20
our broadband futures, it was reported that AT&T=20
and Verizon would be happy to offer others access=20
if they receive enough bags of dough. But, of=20
course, the real issue is whether the U.S. will=20
have a democratic digital media system. We need=20
an open pipeline not for Hollywood films, but for=20
the never-ending bandwidth intensive content that=20
will be an important part of our lives. From=20
advocacy videos to streaming media about art;=20
from broadband community health wiki=92s to new=20
public affairs channels owned by persons of=20
color=97our broadband future will be diverse. But=20
we must ensure that everyone has fair entry into=20
the PC, the IPTV, and even mobile devices. We=20
need a robust public lane for all, with=20
guarantees that everyone can have ready access to=20
content. The debate over network neutrality isn't=20
about whether the Cable and Bell giants will=20
block website access. It=92s really over whether=20
Americans will be treated fairly=97so they can=20
enjoy the bounty of content that can help enrich=20
their families, communities and our democracy.
http://www.democraticmedia.org/jcblog/?p=3D11

CAMPAIGNING/LOBBYING

FEC RULES EXEMPT BLOGS FROM INTERNET POLITICAL LIMITS
[SOURCE: Washington Post, AUTHOR: Thomas B. Edsall]
In a unanimous vote yesterday, the Federal=20
Election Commission left unregulated almost all=20
political activity on the Internet except for=20
paid political advertisements. Campaigns buying=20
such ads will have to use money raised under the=20
limits of current federal campaign law. Perhaps=20
most important, the commission effectively=20
granted media exemptions to bloggers and other=20
activists using the Web to allow them to praise=20
and criticize politicians, just as newspapers=20
can, without fear of federal interference. The=20
rules "totally exempt individuals who engage in=20
political activity on the Internet from the=20
restrictions of the campaign finance laws. The=20
exemption for individual Internet activity in the=20
final rules is categorical and unqualified," said=20
FEC Chairman Michael E. Toner. The regulation=20
"protects Internet activities by individuals in=20
all forms, including e-mailing, linking,=20
blogging, or hosting a Web site," he said. The 6=20
to 0 vote was widely expected after the FEC=20
released the proposed rules last week. That=20
followed months of discussions and widespread=20
concern -- which turned out to be unfounded --=20
among many political activists that the=20
commission would impose significant restrictions=20
on Internet campaign activity. The vote drew=20
praise from most ideological quarters, as well as=20
from several watchdog groups. Three=20
public-interest groups that are often critical of=20
the FEC -- Democracy 21, the Campaign Legal=20
Center and the Center for Responsive Politics --=20
said in a statement that "the new FEC regulation=20
strikes the correct balance in preserving the=20
Internet as an unregulated forum for robust=20
political activity by individuals, while ensuring=20
that the Internet does not become a loophole for unregulated soft money."
http://www.washingtonpost.com/wp-dyn/content/article/2006/03/27/AR200603...
1474.html
(requires registration)
See the amendment to FEC rules:
http://www.fec.gov/agenda/2006/mtgdoc06-20a.pdf

CDT COMMENDS FEC FOR PROTECTING POLITICAL SPEAKERS
[SOURCE: Center for Democracy & Technology]
The FEC today approved a series of rule changes=20
that exempt bloggers from most federal campaign=20
finance regulations. CDT believes that the FEC=20
adopted the strongest protections for small=20
speakers possible under the statutory framework=20
set by Congress. The FEC rules strike an=20
appropriate balance between competing concerns,=20
and CDT believes Congress should not undercut=20
what the FEC has done. CDT maintains that=20
certain of the provisions of H.R. 4900 would=20
provide broader or more comprehensive protection=20
for individuals than the FEC rules, but that the=20
FEC rules offer a very strong set of protections.
New FEC Rules : http://www.fec.gov/agenda/2006/mtgdoc06-20.pdf
Supplement to FEC Rules: http://www.fec.gov/agenda/2006/mtgdoc06-20a.pdf
Two-Page Summary of FEC Rules:=20
http://www.fec.gov/members/lenhard/speeches/statement20060327.pdf

PHONE, CABLE TRADE FIRE OVER ADS
[SOURCE: Washington Post, AUTHOR: Arshad Mohammed]
AT&T yesterday accused cable television companies=20
of suppressing public debate by refusing to air=20
ads that urge lawmakers to make it easier for=20
phone companies to get into the TV business. Time=20
Warner Cable shot back that it was under no=20
obligation to carry its competitors' ads while=20
Comcast Corp. said it rejected the spots because=20
they were riddled with false and misleading=20
claims. The charges are the latest in a long=20
series of broadsides between phone companies,=20
which want to offer TV without having to get=20
thousands of franchise agreements at localities=20
all over the country, and cable companies, which=20
believe their rivals should have to secure local=20
agreements just as they did. Both sides have=20
launched media campaigns to sway lawmakers=20
debating whether to grant phone companies state=20
or national franchises. The Federal=20
Communications Commission is also studying=20
whether local authorities are "unreasonably" denying franchises.
http://www.washingtonpost.com/wp-dyn/content/article/2006/03/27/AR200603...
1492.html
(requires registration)
See also --
* Profile: Stealing a March on Cable TV's Turf
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
A look at AT&T lobbyist Tim McKone.
http://www.tvweek.com/news.cms?newsId=3D9620
(requires free registration)

CONSUMER GROUPS TIED TO INDUSTRY
[SOURCE: Wall Street Journal, AUTHOR: Dionne Searcey dionne.searcey( at )wsj.com]
A number of lobbying groups that claim to=20
represent consumer interests are backed by phone=20
and cable companies promoting their corporate=20
agendas, according to a report from consumer=20
group Common Cause. The report, expected to be=20
released today, cites groups such as Consumers=20
for Cable Choice, which calls itself an "alliance=20
of consumer advocacy groups, private citizens and=20
others." The group, which pushes for laws that=20
would let phone companies roll out television=20
service easier, has received financial support=20
from Verizon and AT&T, according to both Common=20
Cause and the group itself. "These=20
corporation-backed groups are shamelessly working=20
to convince Congress that there is widespread=20
public and scholarly support for their policy=20
proposals," the Common Cause report says.=20
"Unfortunately almost all of the debate over=20
telecom reform is happening between telephone,=20
cable and Internet industry interests." Lobbying=20
groups whose intentions aren't immediately clear=20
are neither new nor unique to the telecom and=20
cable industries. But such groups, which Common=20
Cause labels "astroturf" because they falsely=20
purport to represent grassroots interests, have=20
proliferated as Congress considers a host of=20
bills that could have sweeping impact on the=20
telecom industry. Common Cause named nine=20
lobbying groups that are focusing on possible=20
legislative changes such as whether to allow=20
communities to deploy their own wireless networks=20
that would directly compete with phone and cable=20
companies as well as whether to block network=20
providers from charging content providers to pay=20
for speedy deliver of their services. One=20
particularly controversial issue is whether to=20
let phone companies roll out TV without asking=20
permission from local governments, as cable=20
companies must do. Jeff Chester, executive=20
director of the Center for Digital Democracy, a=20
Washington group that promotes a so-called=20
democratic broadband access, said policymakers=20
often have no idea that the lobbying groups are=20
affiliated with corporations when they receive=20
letters and hear testimony from them. Common=20
Cause is a nonprofit organization with a lobbying=20
arm and an education fund. It doesn't disclose=20
names of donors. Common Cause says it doesn't=20
support any lobbying groups for its causes.
http://online.wsj.com/article/SB114351167476409676.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

NONPROFITS ARE TRUE POWERBROKERS
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
As technology companies and their political=20
rivals vie for more influence in Washington,=20
nonprofit groups and trade associations are=20
benefiting handsomely from the expanding war=20
chests. A CNET News.com analysis of 47=20
organizations active in technology policy and=20
legislation shows that, in total, they have=20
assets of about $1.1 billion, annual revenue of=20
$573 million and an average executive director=20
salary of $332,665. Because of a loophole in=20
federal law, nonprofit groups that receive=20
corporate contributions are not legally required=20
to disclose the identities of their funders. Not=20
only do the corporations receive tax breaks, but=20
the recipients also routinely use the money to=20
pay lawyers to testify before Congress, draft=20
legislation and meet privately with government=20
officials--activities that might be viewed as=20
lobbying if done directly by a company. A=20
nonprofit group "should have policies not to take=20
money from corporate interests that could overly=20
serve to influence their stance on the issues,"=20
said Daniel Borochoff, president of the American=20
Institute of Philanthropy, a charity watchdog=20
organization. "Just as health groups tend to not=20
want to take money from the cigarette=20
companies--though of course some do." Nobody=20
expects trade associations organized under=20
section 501c6 of the tax code to do anything=20
other than represent the interests of their=20
member companies. But 501c3 groups are supposed=20
to represent the public interest, and donations=20
to them are completely tax-deductible for that=20
reason. (Trade association dues are tax-deductible if not used for lobbying=
.)
http://news.com.com/Nonprofits+are+true+powerbrokers/2009-1028_3-6050711...
ml?tag=3Dnefd.lede

GOOGLE JOINS THE LOBBYING HERD
[SOURCE: New York Times, AUTHOR: Kate Phillips]
For a company that takes pride in being the=20
quintessential outsider, Google is moving quickly=20
into the ultimate insider's game: lobbying.=20
Started less than a decade ago in a Stanford dorm=20
room, Google has evolved into a=20
multibillion-dollar business, its search engine=20
ubiquitous on the Internet. Its sprawling growth,=20
fueled by a public stock offering in August 2004=20
that created a market behemoth, has now thrust it=20
into the glare of Washington. As lawmakers and=20
regulators begin eyeing its ventures in China and=20
other countries and as its Web surfers worry=20
about the privacy of their online searches,=20
Google is making adjustments that do not fit=20
neatly with its maverick image. It has begun=20
ramping up its lobbying and legislative=20
operations after largely ignoring Washington for=20
years, in a scramble to match bases long=20
established here by competitors like Yahoo and=20
Microsoft, as well as the deeply entrenched=20
telecommunication companies. Google has hired=20
politically connected lobbying firms and=20
consultants with ties to Republican leaders like=20
the party chairman, Ken Mehlman; Speaker J.=20
Dennis Hastert; and Senator John McCain; and=20
advisers say the company may set up a=20
fund-raising arm for political donations to=20
candidates. And in a town where Republicans hold=20
the levers of power, Google has begun stockpiling=20
pieces of the party's machine. To some, Google is=20
a novice arriving late to the table. To others,=20
the company's embedding on K Street, which serves=20
as home to many of Washington's top lobbyists,=20
represents a new and not necessarily welcome sign of sophistication.
http://www.nytimes.com/2006/03/28/politics/28google.html
(requires registration)

BROADCASTING

HOW DJs PUT 500,000 MARCHERS IN MOTION
[SOURCE: Los Angeles Times, AUTHOR: Teresa Watanabe and Hector Becerra]
He's one of the hottest Spanish-language radio=20
personalities in the nation. So when Los Angeles=20
deejay Eddie Sotelo joined hands with his radio=20
rivals to urge listeners to turn out for a=20
pro-immigrant rally in downtown Los Angeles on=20
Saturday, organizers hoped for a big turnout. But=20
many said Monday that they were stunned by how=20
many responded to the call to march against=20
federal legislation that would crack down on=20
undocumented immigrants and penalize those who=20
assist them. As a result, what was initially=20
expected to draw fewer than 20,000 ballooned into=20
a massive march that police estimated at 500,000=20
and said was one of the largest demonstrations in=20
Los Angeles' history. The march topped a wave of=20
protests drawing hundreds of thousands of=20
participants in cities around the nation, which=20
organizers said influenced the U.S. Senate=20
Judiciary Committee's approval Monday of=20
legislation that includes legalization for=20
undocumented immigrants. Rally supporters,=20
including immigrant-rights activists, churches,=20
and labor and community groups, agreed that the=20
active advocacy of the region's top=20
Spanish-language radio personalities was critical=20
in drawing the enormous crowds, who marched more=20
than 20 blocks along Spring and Main streets and=20
Broadway to City Hall, wearing white "peace"=20
shirts and waving American and Mexican flags.
http://www.latimes.com/news/printedition/front/la-me-march28mar28,1,3049...
.story?coll=3Dla-headlines-frontpage
(requires registration)

HEARST-ARGYLE MAKES TIME FOR POLITICS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Hearst-Argyle owned TV stations that offer local=20
news (there's 26 of them) will offer in the 30=20
days before both general elections and primaries=20
10 minutes per day of election news and=20
candidate-centered airtime. And at least five=20
will be original content. Yes, 5 minutes a day of=20
original election coverage for 60 days/year --=20
this is the kinda stuff we should give medals for=20
-- or, at least, very valuable spectrum licenses.=20
Some in Congress, which will ultimately determine=20
whether broadcasters get multicast digital=20
must-carry, want political airtime to be one of=20
broadcasters' explicit public-interest=20
obligations in the digital age. Broadcasters have=20
balked at mandatory minimums but have increasingly offered airtime.
http://www.broadcastingcable.com/article/CA6319103?display=3DBreaking+News
For more on broadcasters' public interest obligations, see --
* Citizen=92s Guide to the Public Interest=20
Obligations of Digital Television Broadcasters
http://www.benton.org/pioguide/index.html

THE FCC'S IMMINENT RADIO MULTICASTING VOTE: WILL=20
IT BE ANOTHER BROADCAST INDUSTRY GIVEAWAY?
[AUTHOR: J.H. Snider]
On March 16, 2006 the Senate Commerce Committee=20
unanimously endorsed Robert McDowell's nomination=20
to fill a Republican seat on the five-member=20
Federal Communications Commission. Full Senate=20
confirmation is expected soon. This will give=20
the Republicans a 3-2 majority at the Commission.=20
Radio broadcast industry lobbyists have been=20
patiently waiting for such a majority before=20
bringing their radio multicasting proposal before=20
the FCC for a vote. Currently, the Commission is=20
deadlocked, 2-2 on the multicasting=20
proposal. Last fall the two Democratic=20
commissioners asked for public interest=20
obligations in return for granting multicasting=20
rights. With a 3-2 majority, the radio broadcast=20
industry is expected to be able to get what it=20
wants without having to compromise. Multicasting=20
rights probably represent the last, best chance=20
for the public to get something in return for the=20
multibillion dollar spectrum rights windfall the=20
radio broadcasters have so brilliantly maneuvered=20
to get out of their digital=20
transition. Unfortunately, at this late stage in=20
the digital radio transition, the practical=20
options for a digital dividend are far fewer than=20
they were at the beginning of radio's digital=20
transition. Snider offers a few ideas for a=20
digital dividend that he thinks are still=20
feasible. They would come under the conventional=20
rubric of "public interest obligations." Some=20
are unlike any public interest obligations radio broadcasters have ever had.
http://quixote.blogs.com/SpecialPosts/06-03-27--RadioMulticastingRights.doc
See comments on the PIOs of digital radio broadcasters at:
http://www.nfcb.org/services/PDF/testimony/DABComments.pdf

STATIONS EYE $2 BILLION IN 2015
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano ]
TV-station owners stand to collect nearly $2=20
billion in 2015 from cable and satellite=20
operators and telcos in exchange for the right to=20
retransmit their broadcast signals. The=20
projection, released last week by Kagan Research,=20
delighted station operators battling a tough=20
advertising market and increased competition for=20
viewers. Some stations want cash for=20
retransmission rights, while others negotiate for=20
advertising or carriage of sister stations. The=20
Kagan predictions are based on an all-cash model,=20
with every broadcaster in a five-station market=20
receiving 40 cents per subscriber. With that=20
standard, Kagan projects that broadcasters could=20
take in about $225 million in fees this year and=20
$1 billion in 2009. That is considered a=20
watershed year because it's when some station=20
owners' cable deals, notably CBS', come due and=20
they will likely seek cash payments. Currently,=20
retransmission payments come mainly from=20
satellite operators, and telco companies will=20
likely pay, too. Most major cable operators have=20
so far resisted paying cash fees, and that's=20
where broadcasters are setting their sights.
http://www.broadcastingcable.com/article/CA6318916?display=3DNews

STATIONS BUILD VIRTUAL DUOPOLIES
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano ]
When The CW and My Network TV debut Sept. 5,=20
stations in about two dozen small and midsize=20
markets will distribute the networks differently=20
from their big-city brethren. Both The CW and My=20
Network TV have signed affiliation deals with=20
=93digital affiliates,=94 stations that will carry=20
their feed on a secondary broadcast channel. When=20
viewers in these markets=97such as Augusta, Ga.,=20
and Duluth, Minn.=97tune in to The CW or My Network=20
TV, they will get the same product as any other=20
affiliate. For local broadcasters, however, these=20
deals represent significant opportunities to=20
build new businesses. As TV stations upgrade to=20
government-mandated digital broadcast, they gain=20
additional spectrum that allows them to carry=20
multiple programming feeds. So far, most are just=20
simulcasting their standard channel and a=20
high-definition feed. But a growing number of=20
stations are experimenting with =93multicasting=94=20
second and third services, such as NBC's local=20
weather service, NBC Weather Plus. For these=20
broadcasters, a single station becomes a virtual=20
duopoly. =93This is an opportunity to reach=20
different audiences and cross-promote,=94 says Jeff=20
Marks, president/general manager of WAGT Augusta,=20
an NBC affiliate that will multicast The CW on=20
digital TV. =93It also provides more exposure for=20
our advertisers and public service.=94
http://www.broadcastingcable.com/article/CA6318929?display=3DSyndication

INTERNET/BROADBAND

HOW FRANCE BECAME A LEADER IN OFFERING FASTER BROADBAND
[SOURCE: Wall Street Journal, AUTHOR: Leila Abboud leila.abboud( at )wsj.com]
For years, France's telecommunications industry=20
was a state-owned monopoly with one of the=20
world's most backward broadband markets. But=20
thanks to deregulation six years ago, French=20
consumers have access to high-speed Internet=20
service that is much faster and cheaper than in=20
the U.S. How did France get ahead of the U.S. in=20
broadband services? In 2000, French regulators=20
required the country's dominant France Telecom SA=20
to make its national network of phone lines=20
available to other providers of phone and=20
Internet services. France Telecom had to allow=20
alternative providers like Iliad, Neuf-Cegetel,=20
and Telecom Italia SpA's Alice to install their=20
own equipment in the massive underground centers=20
that collect thousands of phone lines. Regulators=20
determine how much France Telecom could charge=20
providers to rent its lines and how many days=20
France Telecom has to fix service problems=20
reported by competitors' customers. In the U.S.,=20
Congress and regulators have pushed phone=20
companies since 1996 to give competitors access=20
to parts of their networks. But the courts have=20
struck down key parts of these efforts. In recent=20
years, regulators have rolled back many of those=20
requirements because they contend that=20
competition is forming on its own between cable,=20
Internet companies and phone-service providers,=20
making regulation unnecessary. Some telecom=20
experts believe that U.S. consumers would benefit=20
from more competition if regulators here imposed=20
stricter requirements on major carriers to make=20
their networks available. "France's quick shift=20
to broadband and the oncoming storm of Internet=20
calling and digital television make it the=20
country to watch as a model of market=20
transformation," says James Belcher, senior=20
analyst at market research firm, eMarketer.
http://online.wsj.com/article/SB114351413029509718.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

JOURNALISM

LOCAL JOURNALISM IMPERILED
[SOURCE: USAToday, AUTHOR: Dan Neuharth]
[Commentary] The sale of Knight Ridder isn't just=20
about the future of newspapers. It's also about=20
whether quality journalism can survive the whims=20
of Wall Street. How dedicated will the leaders of=20
publicly traded news companies be to spending the=20
money necessary to publish hard-hitting,=20
top-notch newspapers and websites that profit=20
their communities' well-being, even if it means=20
somewhat lower profits for shareholders?
http://www.usatoday.com/printedition/news/20060328/oplede28.art.htm

NEWSPAPER SALE STIRS UP LOCAL MOGULS' AMBITIONS
[SOURCE: Los Angeles Times, AUTHOR: James Rainey and Joseph Menn]
Syrian immigrant Nader Agha is interested in=20
buying the Monterey County Herald from the=20
McClatchy Company which just purchased it from=20
Knight Ridder. I am not interested in the=20
newspaper because I am a developer," said Agha,=20
who's putting together an investment group to bid=20
on the paper. "I am interested because I can make=20
a difference. I can return it to the people." A=20
little more than half a century ago, independent=20
publishing families owned 1,300 of the nation's=20
1,785 daily newspapers, according to a Harvard=20
University scholar. But as newspaper profits=20
soared during the 1960s, higher gift and estate=20
taxes persuaded many owners to sell out to=20
Gannett Co. or one of the other publishing=20
companies formed in the late '60s and early '70s,=20
rather than pass the papers on to the next=20
generation. Today, just 19% of the nation's daily=20
papers are held by individuals or companies that=20
don't own any other newspapers. Monterey's Herald=20
has been no exception to the trend.
http://www.latimes.com/business/printedition/la-fi-localmogul28mar28,1,5...
395.story?coll=3Dla-headlines-pe-business
(requires registration)

QUICKLY

FCC CONSIDERS PER-SUB SATELLITE FEE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC is seeking comment on proposed changes to=20
its regulatory-fee-collection process. The FCC=20
plans to collect $288,771,000 in regulatory fees=20
from users including broadcasters and cable in=20
2006. The commission is considering making DBS=20
pay the same per-sub regulatory fee as cable.=20
Satellite companies now pay a per-franchise fee, rather than a per-sub fee.
http://www.broadcastingcable.com/article/CA6319338?display=3DBreaking+News
* Cable=92s FCC Regulatory Fees to Rise 7%
http://www.multichannel.com/article/CA6319460.html?display=3DBreaking+News

COMCAST SUES OAKLAND
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
The city of Oakland, Calif., violated federal=20
labor laws when it enacted an ordinance that=20
would ease union organizing at the local cable=20
company, according to a lawsuit filed by Comcast=20
of California/Colorado LLC against the city. The=20
organizing activities the city of Oakland=20
addressed in a Feb. 28 ordinance are the=20
authority of the National Labor Relations Board,=20
according to the March 24 suit filed in U.S.=20
District Court for the Northern District of=20
California in San Francisco. The suit also=20
alleged that the ordinance is pre-empted by the=20
Labor Management Relations Act and the due-process clause of the constituti=
on.
http://www.multichannel.com/article/CA6319349.html?display=3DBreaking+News

WHOSE INTERNET IS IT?
[SOURCE: Justice Talking]
Recorded before a live audience in Palm Springs,=20
CA, industry representative David McClure and=20
advocate Art Brodsky debate the past, present and future of the Internet.
http://www.justicetalking.org/viewprogram.asp?progID=3D539

CURB ON ACCESS TO NEWS IN PRISON GETS HEARING
[SOURCE: New York Times, AUTHOR: Linda Greenhouse]
Pennsylvania went before the Supreme Court on=20
Monday to defend its policy of denying most=20
newspapers, magazines and photographs to its most=20
incorrigible prison inmates against claims that=20
the restriction violates the First Amendment. The=20
policy is one of the most restrictive in the=20
country. The federal appeals court in=20
Philadelphia ruled last year that prison=20
officials had to provide some objective evidence=20
to show that the policy actually accomplished the=20
twin goals they claimed for it: improved security=20
and "behavior modification" of recalcitrant inmates.
http://www.nytimes.com/2006/03/28/politics/28scotus.html?pagewanted=3Dall
(requires registration)

CAMRY CALLS FOR ALCOHOL MARKETING CUTBACKS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Center On Alcohol Marketing and Youth (CAMY),=20
which is funded by the Pew Charitable Trusts and=20
The Robert Wood Johnson Foundation, has concluded=20
that underage drinking is the nation's number one=20
drug problem and exposure to alcohol ads is a=20
contributing factor. The center is advocating for=20
"strong efforts pursued nationwide to reduce=20
youth exposure to alcohol advertising."
http://www.broadcastingcable.com/article/CA6319336?display=3DBreaking+News

US REGAINS TOP RANKING FOR TECHNOLOGY
[SOURCE: Financial Times, AUTHOR: Frances Williams]
Kegger tonight at Bill's house! The US has=20
regained top position in the 2005 information=20
technology rankings compiled by the World=20
Economic Forum after slipping to fifth place in=20
2004. Releasing its latest Global Information=20
Technology Report, Geneva-based WEF said the US=20
lead reflected its excellent physical=20
infrastructure, a supportive market environment=20
and high levels of business and government usage of the latest technologies.
http://news.ft.com/cms/s/a75c5b56-be37-11da-b10f-0000779e2340.html
(requires subscription)
--------------------------------------------------------------
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.
--------------------------------------------------------------

Today's Quote

"In a series of recent research reports that I entitled ”The Dumb pipe Paradox” – which I believe provided the original impetus for the Committee’s invitation to testify today – I tried to address the expectation that the telcos are rapidly rushing in to meet this need and to provide competition for cable incumbents. In fact, by their own best estimates, they’ll be able to reach no more than 40% or so of American households with fiber over the next seven years.

House Schedules Telecom Reform Bill Hearing

HOUSE SCHEDULES VIDEO FRANCHISE HEARING BILL
[SOURCE: House Commerce Committee]
The House Commerce Committee's Subcommittee on Telecommunications and the Internet has scheduled a hearing Thursday morning to consider a committee print on the Communications Opportunity, Promotion, and Enhancement Act of 2006, a yet to be introduced bill. The bill would make it easier for telephone companies like Verizon and AT&T to offer video and broadband Internet service in competition to cable and satellite by helping them bypass often-contentious local franchise negotiations.