April 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.

In advance of the Easter break for legislators,=20
there'a a good deal going this week. The Freedom=20
to Connect Conference begins today, the Quello=20
Center hosts a conference "Toward a New=20
Communication Policy Paradigm," the FCC's=20
Consumer Advisory Committee meets on Friday as=20
does the Corporate Governance Committee of the=20
CPB board. And, of yeah, the House Telecom=20
Subcommittee will try to pass a national video=20
franchise bill by COB Wednesday. For these and=20
other upcoming media policy events, see http://www.benton.org

LEGISLATION
Upton Counts Enough Votes To OK Franchise Bill
Competition, Not Consent
Michigan Cities Cry Foul

INTERNET/BROADBAND
Martin: Why Every American Should have Broadband Access
Campaigns Turning More to Online Videos
The Economics Of Metro Wi-Fi
Net neutrality laws will harm future high-speed networks

TELECOM
AT&T Seeks Formal Approval for Merger
FCC tax proposal faces criticism
Merger Deal Is Reached With Lucent and Alcatel
Time Warner Needs Mobile Assets

BROADCASTING
Station Market Still Sizzling
Court Vacates Tribune Sale
Air America Founders Seek Their Own Stations

CONTENT
Guardians of Decency
Survey Says: Don't Crack Down On Content
Radio Industry Said to Seek Deal to Settle Payoff Accusations
Who Decides =93Responsible=94 Advertising?

QUICKLY -- Tate: Still in Fact-Finding Mode;=20
Copps visits Virginia to discuss media ownership;=20
Newspapers' Online Audiences Growing Rapidly;=20
Macedonia Dreams of One Nation, Wireless; Fewer Identity Theft Victims

LEGISLATION

UPTON COUNTS ENOUGH VOTES TO OK FRANCHISE BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In an interview with C-Span, House=20
Telecommunications Subcommittee Chairman Fred=20
Upton (R-MI) said his panel will begin a mark-up=20
of a national video franchising bill on Tuesday=20
at 5pm, moving toward a consideration of=20
amendments and final vote on the legislation on=20
April 5. The full Commerce Committee would then=20
consider the bill after the Easter break. Even=20
without support of top Democrats on the Commerce=20
Committee, Rep Upton said he thought the bill=20
would still pass out of subcommittee and=20
committee, and said, "I suspect that we have way=20
more than enough votes to pass it with a decent=20
margin on the House floor, and I suspect we will=20
get there by May." He added that both telephone=20
and cable companies are close to endorsing the bill.
http://www.broadcastingcable.com/article/CA6321103?display=3DBreaking+News
* Franchise Bill To Get Stronger 'Anti-Red Lining' Language
Maybe Rep Bobby Rush (D-IL) is crazy like a fox.=20
According to House Telecom Subcommittee Chairman=20
Fred Upton, Rep Rush and Rep Albert Wynn (D-MD)=20
are working together on strong language to add to=20
the national franchise bill to insure against=20
"red lining" -- not providing service to less=20
lucrative customers, often rural or poorer areas.=20
Chairman Upton said he and others on the=20
committee will be able to support the language=20
when the bill is marked up on Wednesday.
http://www.broadcastingcable.com/article/CA6321147?display=3DBreaking+News
* Upton: Video Franchise Bill Could Rate With Consumers
http://www.broadcastingcable.com/article/CA6321107?display=3DBreaking+News
* Barton Bullish on Telecom Bill
http://www.broadcastingcable.com/article/CA6321201?display=3DNews
* Barton: Bush Will OK National Franchising
http://www.multichannel.com/article/CA6321256.html?display=3DTop+Stories
* Rep. Joe Barton and Co. destroy =93Community Communications=94
http://www.democraticmedia.org/jcblog/?p=3D15
* USTA=92s =93TV Freedom=94: You Can Fool Almost All the Politicians All of=
the Time
http://www.democraticmedia.org/jcblog/?p=3D17
* Following the money on the net neutrality issue: meet Joe Barton's friend=
$$
http://blogs.zdnet.com/ip-telephony/?p=3D1000
* Voices From Everywhere On The Barton Bill
http://www.multichannel.com/article/CA6321222.html?display=3DOpinion

COMPETITION, NOT CONSENT
[SOURCE: Multichannel News, AUTHOR: Rep. Nathan Deal (R-GA)]
[Commentary] As we move steadily into the 21st=20
century, many have begun to question if the=20
current television regulations allow our media=20
companies sufficient freedom to meet the demands=20
of their viewers. Under the current regime,=20
whenever an individual or family chooses to sign=20
up for a cable or satellite service, they are=20
presented with a relatively limited number of=20
bundled packages. These packages consist of a=20
predetermined set of channels, ranging from=20
family friendly cartoons to controversial gay and=20
lesbian programs. It is a take-it-or-leave-it=20
deal, with the viewer forced to accept stations=20
they would never watch nor support. In an ideal,=20
free-market based economy, consumer demand would=20
dictate the television programming supplied.=20
Unfortunately, such a scenario is unlikely to=20
unfold in today's market, due to a federal=20
regulation known as retransmission consent.=20
Retransmission consent rules initially proved=20
beneficial in increasing access to programs such=20
as the news and weather. As the media market=20
expanded, though, they became more hindrance than=20
help. Broadcast monopolies, whose very existence=20
relies on taxpayer-owned broadcast airwaves,=20
backed cable and satellite providers into either=20
paying overly steep prices for their local=20
stations or taking extra programming produced by=20
the parent company which either owned or=20
affiliated the local channel. By the end of=20
negotiations, dozens and dozens of extra channels=20
were forced upon the cable and satellite=20
companies. End result: consumers are left with a=20
package full of channels they would never have=20
requested. It should come as no surprise,=20
therefore, that the top six programming=20
conglomerates, of which four are broadcasters,=20
own or have interest in 153 cable channels,=20
including nearly 75% of the top 50 channels,=20
leading to a combined revenue of $149.6 billion.=20
It is time our telecommunication laws be based on=20
free-market principles where demand dictates=20
supply. Currently, demand is harnessed by=20
retransmission consent rules, thus preventing new=20
and inventive programming services.
http://www.multichannel.com/article/CA6321223.html?display=3DOpinion

MICHIGAN CITIES CRY FOUL
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
Municipal officials from across Michigan are=20
stepping up in a very public way to oppose state=20
House and Senate versions of an AT&T-backed=20
franchise-reform bill that city officials say=20
will wrest power from the local communities.=20
These representatives from municipalities stress=20
that their towns are open for business to any=20
competitive providers -- and argue that their=20
local rules are not a barrier to entry. The local=20
leaders are responding to proposed bills which=20
state that current franchising rules and buildout=20
requirements create a barrier to entry at a time=20
when speed to market is critical. The bill=20
declares there is =93minimal competition in=20
facilities-based video programming,=94 even though=20
Michigan was one of the states that best fostered=20
cable competition last decade, during the=20
telephone industry's prior push into cable.=20
Ameritech New Media earned several franchises in=20
the Detroit suburbs before the regional Bell=20
company gave up on the business and sold out to=20
WideOpenWest LLC, which continues to operate in=20
the state in head-to-head competition with cable=20
operators, including Comcast. The AT&T-backed=20
bill would allow for statewide certification of=20
new providers, who would agree to pay a 5% fee to=20
local governments, plus a 1% fee on gross=20
revenues to support public-access activities.=20
Both fees are passed through to consumers. Though=20
new providers are required to pay these fees,=20
they can also qualify for a credit equal to the=20
amount they spend on rights-of-way maintenance in local communities.
http://www.multichannel.com/article/CA6321213.html?display=3DTop+Stories

INTERNET/BROADBAND

WHY EVERY AMERICAN SHOULD HAVE BROADBAND ACCESS
[SOURCE: Financial Times, AUTHOR: FCC Chairman Kevin Martin]
[Commentary] Today we are living through a=20
technological revolution. Broadband and the=20
ability to communicate at increasing speeds are=20
increasing our productivity, helping drive our=20
economy and affecting every aspect of daily life.=20
As chairman of the Federal Communications=20
Commission, my priority is speeding the=20
deployment of fibre infrastructure and broadband=20
services. Today, the FCC issues its most recent=20
broadband development report, and we are closing=20
in on President George W.?Bush=92s goal of=20
providing broadband access to every US household.=20
With 42.9m subscribers, the US has more people=20
connected to broadband than any other country,=20
and the report notes that the number of broadband=20
subscribers continues to grow rapidly. Advanced=20
services lines increased by 60 per cent in 2005.=20
The report also indicates that about 91 per cent=20
of those with access to cable television services=20
have access to cable broadband and about 76 per=20
cent of those with landline telephones have=20
access to a residential DSL (digital subscriber=20
line) service. All this means that more than 85=20
per cent of the country has access to cable, DSL=20
or both. There is still more we can do to=20
encourage competition and speed broadband=20
deployment. We must ensure that government=20
regulations do not unreasonably stifle further=20
investment and market entry. The FCC has taken=20
several steps to create a policy environment that=20
encourages network providers to invest in further=20
broadband deployment. Last summer, the commission=20
deregulated DSL services. This decision allows=20
broadband platforms to invest in their networks=20
without having to provide their rivals with=20
access at unfair discounts. The commission is=20
working to facilitate broadband throughout=20
America. This country has a longstanding history=20
of equal opportunity, an underlying value that=20
once compelled us to work to connect everyone to=20
the telephone network. Now it must mean providing=20
the ability to connect with broadband. Since 2001=20
when I came to the commission, the number of=20
high-speed lines has increased more than sixfold.=20
We stand ready to tackle the remaining challenges=20
to our goal of universal, affordable broadband access for all Americans.
http://news.ft.com/cms/s/837637ee-c269-11da-ac03-0000779e2340,_i_rssPage...
6e6e833c-cbff-11d7-81c6-0820abe49a01.html
(requires subscription)

CAMPAIGNS TURNING MORE TO ONLINE VIDEOS
[SOURCE: Washington Post, AUTHOR: Zachary A. Goldfarb]
Political campaigns have begun to understand what=20
corporate America already knows: Multiple sources=20
of information and entertainment are making it=20
more difficult for advertisers to reach their=20
target audiences through traditional TV spots.=20
Now, consultants say campaigns are turning to=20
online video -- which can have more emotional=20
impact than a TV ad -- as a form of targeted=20
media to reach particular groups. "The problem is=20
fragmentation. In 1982, a media planner could go=20
out and buy ABC, NBC and CBS, and reach 80=20
percent of the market," said Bill Caspare, a=20
veteran of political advertising who recently=20
started an online video company. These days, he=20
added, "they have to buy 57 stations and get 57=20
reporting mechanisms to get 80 percent. All of=20
the sudden, the Internet becomes much more=20
relevant." Audience research shows that the=20
proportion of people watching broadcast TV has=20
declined by about 30 percentage points in the=20
past 20 years. An increasing share of people who=20
do watch uses new technology such as digital=20
recorders to skip commercials. Campaigns started=20
to tap the Internet as early as 2000 for=20
fundraising, and the 2004 presidential campaigns=20
launched a number of online videos. This year,=20
political consultants expect their use to expand=20
substantially in Senate and House campaigns -- a=20
preview of an even greater breakout in 2008.
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/02/AR200604...
1219.html
(requires registration)

DOWN TO BUSINESS: THE ECONOMICS OF METRO WI-FI
[SOURCE: InformationWeek, AUTHOR: Rob Preston]
[Commentary] The politics of metro Wi-Fi center=20
on special interests: the incumbent wireless=20
carriers that want to protect their licensed=20
monopolies or duopolies; the equipment makers=20
that need fat contracts to pay for their R&D; the=20
mayors and other elected officials who want to=20
primp progressive for their constituents; as well=20
as the state and national legislators taking=20
mostly ideological sides. The societal issues=20
revolve around whether affordable Internet access=20
is a consumer or business necessity that demands=20
some level of government assistance, or whether=20
it's just another commercial good that's subject=20
to supply and demand. The political and social=20
squabbles are just background noise compared with=20
the economics of metro Wi-Fi. If the economics of=20
rolling out thousands of access points in=20
congested cities prove compelling, critics don't=20
have much of a case. But if the economics break=20
down because these networks perform poorly or=20
don't scale efficiently, metro Wi-Fi doesn't have=20
a political or social leg to stand on. The=20
economic arguments aren't as black and white. In=20
places where there isn't much broadband competition, Wi-Fi holds great prom=
ise.
But in places that aren't Podunk small or=20
tortilla flat, the potential for radio=20
interference and signal degradation can't be=20
ignored. Meantime, big city Wi-Fi networks,=20
because of the sheer volume and power output of=20
their access points, can interfere with=20
smaller-footprint Wi-Fi networks already in=20
place, experts say. And because the metro Wi-Fi=20
industry is so immature, cities are locking=20
themselves into pre-standard systems, mostly from=20
small vendors. Ubiquitous broadband=20
communications is a worthy public policy goal--to=20
serve underserved citizens, cut municipal costs,=20
and promote overall economic vitality. But don't=20
equate a solution to a problem to the solution.=20
Big city Wi-Fi may very well be the real deal,=20
but a few intrepid municipalities may have to=20
make some costly mistakes before we know for sure.
http://www.informationweek.com/hardware/showArticle.jhtml?articleID=3D18...
2784
* Why Municipal Wi-Fi May Be a Bad Investment for Cities
http://feeds.bignewsnetwork.com/redir.php?jid=3D813224c3cf616d05&cat=3D4...
3fae10632f63
* An April's Fool. AKA When Verizon VPs Start Making Sense
http://www.digitaldivide.net/blog/sascha/view?PostID=3D12487

NET NEUTRALITY LAWS WILL HARM FUTURE HIGH-SPEED NETWORKS
[SOURCE: The Spectrum (Southern Utah), AUTHOR:=20
Braden Cox, Competitive Enterprise Institute ]
[Commentary] Do we want the Internet to be stuck=20
in neutral? Congress is getting political heat=20
from powerful interests in the telecommunications=20
industry to create a "neutral zone" for network=20
access. Network owners would be blocked from=20
charging content and application providers to=20
access their network and from offering preferred=20
access for high-bandwidth users. This form of=20
"net neutrality," supporters say, will keep the=20
Internet open. But do we really want legislation=20
mandating neutrality? Not if we want to advance=20
the dynamism of the Internet into tomorrow's=20
networks. The term "network neutrality" is a=20
misnomer -- there is nothing neutral about the=20
policies its advocates want implemented into law.=20
Instead, net neutrality is about government=20
choosing sides. On one side are network owners=20
such as cable and phone companies. On the other=20
side are application and content providers, such=20
as VoIP phone companies and Web sites that make=20
money from advertising and high-volume traffic.=20
It is sometimes hard to be against unfettered=20
"choice." But how - and at what level of product=20
offering - choice is defined is best left up to a=20
competitive marketplace - not federal or state=20
regulators. Network owners should be free to=20
innovate new ways to invest in future networks.=20
We shouldn't want the Internet to be stuck in=20
neutral, but rather, to drive forward.
http://www.thespectrum.com/apps/pbcs.dll/article?AID=3D/20060331/OPINION...
603310338/1014/OPINION

TELECOM

AT&T SEEKS FORMAL APPROVAL FOR MERGER
[SOURCE: WOIA-TV San Antonio, AUTHOR: Walker Robinson]
On Friday, AT&T and BellSouth formally asked the=20
Justice Department and Federal Communications=20
Commission to approve their $67 billion deal,=20
which was announced March 5. Approval requests=20
also were being filed in the states where they do=20
business, and shareholders, too, will have to=20
give their nod for San Antonio-based AT&T's=20
purchase of Atlanta-based BellSouth to be=20
completed. The two companies hope to close the=20
deal by March 2007. In their FCC filing, the=20
companies argue that joint ownership of Cingular=20
Wireless has caused challenges in managing the=20
nation's largest cell phone provider that would=20
disappear if its parent companies were allowed to=20
merge. They also noted that the merger would=20
provide efficiencies for the combined company. A=20
day after the deal was announced, AT&T said it=20
plans to cut up to 10,000 jobs, mostly through=20
normal turnover, if its purchase of BellSouth is=20
approved. The work force reduction would take place over three years.
http://www.woai.com/news/local/story.aspx?content_id=3D7AB92C93-9D7A-49A...
AC7-1353908A331F

FCC TAX PROPOSAL FACES CRITICISM
[SOURCE: Time Union (Albany), AUTHOR: Larry Rulison]
A proposal by the Federal Communications=20
Commission to change the way it collects money=20
for its Universal Service Fund would cost New=20
Yorkers nearly $60 million a year in new taxes,=20
says Keep USF Fair Coalition, a group of business=20
and special-interest groups. Possible changes=20
include charging telephone companies by the=20
number of phone lines they operate. Like the=20
current variable charge, the flat-tax cost would=20
be passed on to customers by the companies. Keep=20
USF Fair says the proposal would be wrong,=20
especially for senior citizens who limit their=20
use of long distance to save money because they are on fixed budgets.
http://www.timesunion.com/AspStories/story.asp?storyID=3D467146&category...
BUSINESS&newsdate=3D4/1/2006

MERGER DEAL IS REACHED WITH LUCENT AND ALCATEL
[SOURCE: New York Times, AUTHOR: Vikas Bajaj]
Alcatel and Lucent Technologies said yesterday=20
that they had reached agreement on a $13.4=20
billion merger that would create a=20
French-American maker of telecommunications=20
equipment with revenue of $25 billion, 88,000=20
employees and phone company customers across the=20
world. The deal comes in response to the=20
increasing competition Western telecommunications=20
firms are facing from low-cost Asian=20
manufacturers, as well as the growing size and=20
purchasing power of a few large phone companies.=20
If Alcatel and Lucent are successful at combining=20
their far-flung operations, which analysts say=20
will be a significant challenge, it could prompt=20
competitors like Ericsson, Nortel Networks and=20
Siemens to seek their own deals so they can keep=20
up. The combined company, which has yet to be=20
named, would be based in Paris, where Alcatel has=20
its headquarters. Lucent's legendary Bell Labs=20
research center would remain in Murray Hill, N.J.=20
Serge Tchuruk, Alcatel's chairman and chief=20
executive, would be the nonexecutive chairman,=20
and Patricia F. Russo, Lucent's chairman and=20
chief executive, would become chief executive of=20
the new company. Executives said they would lay=20
off about 9,000 people, or 10 percent of their=20
combined staff, in the next three years as part=20
of an effort to cut costs by $1.7 billion. The=20
companies did not provide a geographic breakdown=20
of the job cuts, but they said the cuts would be=20
spread out fairly. Lucent also dismissed concerns=20
of employees and retirees about the fate of its=20
pension plans, saying they were financially healthy.
http://www.nytimes.com/2006/04/03/business/03lucent.html
(requires registration)

PARSONS SAYS TIME WARNER NEEDS MOBILE ASSETS
[SOURCE: Financial Times, AUTHOR: Aline van Duyn and Joshua Chaffin]
Dick Parsons, chairman and chief executive of=20
Time Warner, the world=92s biggest media company,=20
has set his sights on establishing a strong=20
presence in mobile phone services, either by=20
purchasing wireless spectrum or via an=20
acquisition. =93The ultimate table has to be=20
constructed with four legs, not three. The fourth=20
leg will be wireless =96 how one solves the=20
equation I don't know,=94 Mr Parsons said.
http://news.ft.com/cms/s/177094c6-c26f-11da-ac03-0000779e2340.html
(requires subscription)

BROADCASTING

STATION MARKET STILL SIZZLING
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
Barrington Broadcasting cut a deal last week to=20
buy a dozen affiliates from Raycom Media,=20
doubling the size of Barrington=92s group and=20
buoying the prospects for the station market.=20
Barrington, which is backed by former AOL COO=20
Robert Pittman=92s private-equity firm Pilot Group,=20
agreed to buy 12 Raycom stations in nine markets=20
for $262 million. The price represents about 11=20
times cash flow, according to executives familiar=20
with the deal. Raycom is a seller after making a=20
major acquisition of its own. In February, it=20
closed on its $987 million purchase of Liberty=20
Corp.=92s station group. Because of some market=20
overlap, the company pledged to sell stations in=20
12 markets. Barrington President Jim Yager,=20
former head of Benedek Broadcasting, said,=20
=93Investors are seeing commercial, over-the-air TV=20
is alive and well and a very viable business.=94=20
Station sales perked up last year, with $3.2=20
billion worth of transactions at an average price=20
of $45.4 million per station, according to new=20
data from Kagan Research. The figures are up from=20
$1.2 billion the year before and $1 billion in=20
2003. Leading the way were the Raycom-Liberty=20
deal and Emmis Communications=92 sales of its=20
stations, which has so far fetched more than $1=20
billion. Still, sales figures are well below the=20
late 1990s and early 2000s levels, when the=20
economy was robust and several major media=20
companies were in the market for stations.
http://www.broadcastingcable.com/article/CA6321199?display=3DNews

COURT VACATES FORCED WTXX SALE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Hold on to your WB affiliate, partner. A US Court=20
of Appeals has vacated a lower court ruling that=20
could have forced Tribune to sell either its=20
WTXX-TV Hartford or the Hartford Courant=20
newspaper to come into compliance with the FCC's=20
ban on cross-ownership of TV stations and local=20
newspapers. The FCC essentially already nullified=20
that court's order last April when it granted the=20
Trib a waiver of the sale only weeks after a=20
court had ruled it must sell. The Court of=20
Appeals for the Second Circuit ruled March 23,=20
2006, that the lower court had "acted prematurely=20
in not allowing the FCC to decide Tribune's=20
pending waiver request," even conceding the FCC's=20
"inordinate delay" in ruling on it. Since 2001,=20
Tribune has been under FCC orders to sell either=20
WTXX or the Hartford Courant newspaper, which the=20
company acquired as part of its purchase of=20
Times-Mirror. Now, Tribune has permission to keep=20
the station until 2007, when licenses for WTXX=20
and another Hartford station owned by Tribune, WTIC, must be renewed.
http://www.broadcastingcable.com/article/CA6321251?display=3DBreaking+News

AIR AMERICA FOUNDERS SEEK THEIR OWN STATIONS
[SOURCE: New York Times, AUTHOR: Lia Miller]
Anita and Sheldon Drobny, two of the founders of=20
Air America Radio, are taking the next step to=20
ensure that liberal programming stays on the air:=20
obtaining radio stations. The couple has=20
announced plans to begin buying or leasing radio=20
stations across the United States through their=20
new company, Nova M Radio. The Drobnys, who own a=20
venture capital firm called the Paradigm Group=20
based near Chicago, started the new company with=20
Dr. Michael Newcomb, and a handful of investors.=20
Mrs. Drobny said she and her husband were=20
motivated in part by events that began in October=20
in Phoenix, where a Christian broadcasting=20
company called Communicom Broadcasting bought the=20
station that broadcast Air America programming=20
and subsequently changed the format to religious programming.
http://www.nytimes.com/2006/04/03/business/03air.html
(requires registration)

CONTENT

GUARDIANS OF DECENCY
[SOURCE: Detroit News, AUTHOR: David Ho]
The indecency issue has simmered for decades,=20
occasionally boiling over after high-profile=20
incidents such as Janet Jackson's breast-baring=20
"wardrobe malfunction" during the 2004 Super Bowl=20
halftime show. Much of the public worries about=20
increasingly raunchy and graphic entertainment,=20
but opposes government censorship. TV watchdog=20
and values groups campaign against shows they=20
oppose, flooding regulators with complaints and=20
demanding tougher laws. Big media companies want=20
the government to stay out of it. They say=20
consumers can block shows on their own with=20
technology in most TVs and set-top boxes. And, as=20
broadcasters ponder murky decency definitions and=20
lawmakers consider boosting FCC penalty powers,=20
rapidly changing technology threatens to upend=20
the media landscape and the debate itself by=20
giving consumers more control. A recipe is in=20
place for a more activist FCC -- bipartisan=20
agreement on the need for a tougher stand,=20
heightened public concern and a backlog of=20
complaints from more lenient years -- said Blair=20
Levin, an analyst with the Stifel, Nicolaus & Co.=20
investment firm and a former FCC chief of staff.=20
Unlike the FCC's other regulatory work, where=20
decisions rely on hard facts and figures, in the=20
case of indecency "the line-drawing exercise is=20
very different, very hard and subject to a lot of=20
political second-guessing," Levin said. That can=20
take a toll, said David Solomon, a partner with=20
Wilkinson Barker Knauer LLP, who served as the=20
FCC's first Enforcement Bureau chief from 1999 to=20
2005. He said years enforcing indecency rules=20
made him question the effort. "It's so difficult=20
to make objective decisions without trampling on=20
First Amendment rights," Solomon said. Even with=20
commissioners acting in good faith, he said, five=20
people deciding what is appropriate on radio and=20
TV is "a very troubling concept."
http://www.detnews.com/apps/pbcs.dll/article?AID=3D/20060402/POLITICS/60...
0340/1034/rss28
* WB's self-censoring a sign of more?
http://www.heraldtribune.com/apps/pbcs.dll/article?AID=3D/20060402/COLUM...
T26/604020573
* Victory for Decency Crusaders? Not So Fast
The American Family Association has declared=20
victory. Again. This time the decency crusaders=20
are taking credit for The WB=92s decision last=20
month to cut potentially indecent scenes from its=20
new sexy-ed show, The Bedford Diaries.
http://www.broadcastingcable.com/article/CA6321283?display=3DBreaking+News

SURVEY SAYS: DON'T CRACK DOWN ON CONTENT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
According to a study from TV network-funded TV=20
Watch, only 12% of respondents say that the=20
government should decide what's appropriate TV.=20
TV Watch points out that is less than the 20% in=20
another poll who believe in alien abductions.=20
When asked whether "people should be able to=20
choose for themselves what they watch in their=20
own homes," or whether "it's time for the FCC to=20
penalize the networks and increase government=20
control and enforcement" because "broadcast=20
television and radio have gone too far," 78% said=20
they should be the ones in control, with only the=20
above 12% supporting a government crackdown. Even=20
more -- 76% -- said they would be upset if=20
government regulation "limited the programming choices available to them."
http://www.broadcastingcable.com/article/CA6320995?display=3DBreaking+News
* Survey: More Likely to Find An Adult Who=20
Believes in Alien Abductions Than A Voter Who=20
Wants The Feds to Pick What's on TV
http://www.zwire.com/site/news.cfm?newsid=3D16412990&;BRD=3D1678&;PAG=3D...
&;dept_id=3D226966&

RADIO INDUSTRY SAID TO SEEK DEAL TO SETTLE PAYOFF ACCUSATIONS
[SOURCE: New York Times 4/1, AUTHOR: Jeff Leeds]
The nation's biggest radio broadcasters are in=20
discussions with the Federal Communications=20
Commission to resolve accusations that station=20
programmers accepted improper payments from=20
record companies in exchange for playing specific=20
songs, officials involved in the talks said last=20
night. But the talks have stalled on questions=20
about how much money the companies =97 Clear=20
Channel Communications, CBS Radio, Entercom=20
Communications and the Citadel Broadcasting=20
Corporation =97 might have to pay to settle the=20
case. (No, no, no... keep your money, please --=20
we just want your licenses.) If the two sides do=20
not come to an accord, the agency is expected to=20
start a broad investigation into the payments and=20
request internal documents and e-mail messages=20
from the radio chains. The companies are trying=20
to avoid the expense -- and potential=20
embarrassment -- that could arise from an investigation.
http://www.nytimes.com/2006/04/01/business/media/01payola.html
(requires registration)
* New action against bribes fights a practice that goes back decades
http://www.mysanantonio.com/business/stories/MYSA040206.1R.payola.4cf712...
tml

WHO DECIDES "RESPONSIBLE" ADVERTISING?
[SOURCE: Broadcasting&Cable, AUTHOR: Adonis=20
Hoffman, American Association of Advertising Agencies]
[Commentary] The new era of =93responsible=20
advertising=94 seeks to protect consumers from=20
advertising that someone, somewhere, deems=20
socially irresponsible. Even if we stipulate=20
there are categories of advertising that can --=20
and should be -- disallowed, responsible=20
advertising goes well beyond traditional notions=20
of content regulation. Should values become an=20
indispensable part of the advertising mix?=20
Bolstered by a conservative mood in Washington,=20
the would-be arbiters of responsible advertising=20
claim a public mantle, if not a public interest.=20
Most would like to see advertising go entirely=20
away, but would surely settle for heavier=20
regulation. They seem to be getting nearer to=20
that goal every year because it is impolitic for=20
big corporations to wage war with do-good=20
public-interest groups. So companies prudently=20
have taken initiative on another front. More=20
advertisers are choosing to aggressively=20
self-regulate. Since most large companies already=20
have mandates of social responsibility, applying=20
those principles to marketing and advertising=20
isn't hard. The emphasis on responsibility is=20
well-placed. What troubles me is who gets to=20
define it. Advertisers have a vested commercial=20
interest in portraying their products in the best=20
light possible. They are, after all, ultimately=20
accountable to both their customers and=20
shareholders. It would be a mistake to abdicate=20
this role to outside interest groups that want to=20
do away with advertising altogether, or would=20
promote a system that only permits marketing=20
products they alone deem to be good, healthful,=20
nutritious, wholesome or necessary.
http://www.broadcastingcable.com/article/CA6321268?display=3DOpinion

QUICKLY

TATE: STILL IN FACT-FINDING MODE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
New FCC Commissioner Deborah Taylor Tate spoke=20
with reporters on Friday. She indicated she's=20
still on a fact-finding mission and is not yet=20
ready to articulate specific policy direction on=20
issues like the broadcast flag or upcoming=20
spectrum auctions. Being from Nashville, music=20
issues are on her mind as is interoperability of=20
emergency communications in the wake of Katrina.
http://www.broadcastingcable.com/article/CA6321245?display=3DBreaking+News

FCC COMMISSIONER VISITS AREA TO DISCUSS MEDIA OWNERSHIP
[SOURCE: The Virginian-Pilot, AUTHOR: Michelle=20
Shaw michelle.shaw( at )pilotonline.com]
More than 250 people turned out Thursday night to=20
tell the Federal Communications Commission what=20
they think about possible changes to media-ownership rules.
http://home.hamptonroads.com/stories/story.cfm?story=3D102324&ran=3D28001
* Virginia Tells FCC to Curb Media Consolidation
http://www.freepress.net/press/release.php?id=3D124

NEW NAA STUDY: NEWSPAPERS' ONLINE AUDIENCES GROWING RAPIDLY
[SOURCE: Associated Press]
The Newspaper Association of America plans to=20
release a study today that finds that newspapers'=20
online audiences are growing rapidly. One in=20
three Internet users -- 55 million -- visit a=20
newspaper Web site every month. Also, unique=20
visitors to newspaper Web sites jumped 21 percent=20
from January 2005 to December 2005, while the=20
number of page views soared by 43 percent over=20
the same period. The study coincides with the=20
NAA's annual convention in Chicago.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1002276032

MACEDONIA DREAMS OF ONE NATION, WIRELESS
[SOURCE: New York Times, AUTHOR: Nicholas Wood]
In Macedonia, a former Yugoslav republic, it is=20
estimated that as little as 4 percent of the=20
population has regular access to computers and=20
the Internet. But within a year, if the=20
government has its way, those figures could be=20
turned around with the creation of a wireless=20
Internet network that will be the world's=20
largest, covering the entire nation. Supporters=20
of the network believe that it will deliver more=20
than just a means of mass communication. They=20
hope it will provide new opportunities to=20
ordinary people, schools and businesses in remote=20
villages spread across this mountainous nation.=20
Government officials believe affordable access to=20
the Internet could help transform a moribund=20
economy, but that aim is proving difficult to=20
realize. The cost of going online remains=20
prohibitively expensive at about $1.30 an hour=20
for a dial-up connection, a substantial sum in=20
villages where workers earn an average of $150 a=20
month, mainly through agriculture. The cost of a=20
broadband connection is beyond most people's=20
dreams at $45 a month for the most basic service.=20
The source of the problem, service providers and=20
technology-based businesses say, is that access=20
to the Internet is dominated by the country's=20
telecommunications company, Makedonski=20
Telekomunikacii, known as Maktel. Maktel,=20
formerly a state-owned monopoly, is now partly=20
privatized and is 53 percent owned by Magyar=20
Telekom, the Hungarian subsidiary of Deutsche=20
Telekom. Maktel users say that while they depend=20
on the company, they resent its service, which=20
they say stifles competition in order to retain its substantial profits.
http://www.nytimes.com/2006/04/03/world/europe/03macedonia.html
(requires registration)

FEWER IDENTITY THEFT VICTIMS ARE CITED IN NEW US STUDY
[SOURCE: Associated Press]
An estimated 3.6 million U.S. households -- or=20
about three out of every 100 -- reported being=20
victims of identity theft, according to a=20
government study that counted misuse of someone=20
else's cellphone, credit card or personal=20
information. Of the 3.6 million victimized=20
households, the study said, an estimated 1.7=20
million discovered unauthorized use of credit=20
cards during the six-month period.
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/02/AR200604...
1066.html
(requires registration)
--------------------------------------------------------------
* Thanks for indulging my warped sense of humor=20
Saturday. See=20
http://scrawford.blogware.com/blog/_archives/2006/4/2/1855864.html
Go Cubs!
--------------------------------------------------------------
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.
--------------------------------------------------------------