May 2006

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GOVERNMENT & COMMUNICATIONS
Winning Lawsuits may be Difficult
BellSouth Denies It Handed Over Telephone Records to the NSA
Telco rivals cannot promise more privacy: analysts
Markey Asks FCC To Probe Phone Flap
Copps Calls for Inquiry into Disclosure of Phone Records
Powell: 'New Balance' Needed on Privacy Rights
FBI Source Confirms ABC Report on Monitoring of Reporters' Calls
Congress may make ISPs snoop on you

INDECENCY
Odds Now Long on Indecency Markup
Hollywood Voices Decry Indecency Crackdown

LEGISLATION
Barton: Support National Cable Bill
McSlarrow Likely to Testify on Stevens Bill
Not so Fast on Network Neutrality

QUICKLY -- Televisa to face a tougher contest in tussle for
Univision; Department of Ed Official Joins CPB; Online Degree
Programs Take Off; Project tackles credibility of online info;
Inmarsat Broadband Satellite Service Gets FCC Nod; God's Call Comes
by Cellphone

GOVERNMENT & COMMUNICATIONS

WINNING LAWSUITS MAY BE DIFFICULT
[SOURCE: USAToday, AUTHOR: Paul Davidson]
Consumers and privacy advocates face high legal hurdles as they try
to sue phone companies for aiding the government in its efforts to
monitor the communications of millions of Americans, legal experts
say. On Monday, Michael Copps, a Democratic member of the Federal
Communications Commission, called for an inquiry into whether the
disclosure of the phone records violates the Communications Act (see
below). But it's unlikely the Republican-led FCC, headed by longtime
Bush administration loyalist Kevin Martin, will fine carriers for
complying with administration requests, says Mark Rasch, former head
of computer-crime investigations for the Justice Department.
http://www.usatoday.com/printedition/money/20060516/1b_nsa_lawsuit16.art...
* Phone companies' customers offer their take on assisting NSA
[SOURCE: USAToday, AUTHOR: Stephanie Armour and Sharon Silke Carty]
Some customers are calling phone companies to praise their actions,
while others are posting angry comments online and vowing to switch services.
http://www.usatoday.com/printedition/news/20060516/a_backlash16.art.htm

BELLSOUTH DENIES IT HANDED OVER TELEPHONE RECORDS TO THE NSA
[SOURCE: New York Times, AUTHOR: Ken Belson]
BellSouth said yesterday that it had not shared customer calling
records with the National Security Agency, denying a report last week
that it was among three major telephone companies to have done so.
BellSouth, the country's third-largest local phone company, said that
after an internal review it had found no evidence that it had even
been contacted by the agency.
http://www.nytimes.com/2006/05/16/washington/16phone.html
(requires registration)
* BellSouth Denies Giving NSA Data
http://online.wsj.com/article/SB114773335523453451.html?mod=todays_us_pa...
* BellSouth Denies Giving Phone-Call Records to NSA
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/15/AR200605...
* BellSouth denies giving information to National Security Agency
http://www.usatoday.com/printedition/news/20060516/a_backlashbox16.art.htm

TELCO RIVALS CANNOT PROMISE MORE PRIVACY: ANALYSTS
[SOURCE: Reuters, AUTHOR: Sinead Carew and Yinka Adegoke]
Consumers concerned that the largest U.S. telephone companies may
have let the government track call records might find few options for
more privacy. While cable, wireless and Internet companies were not
named in the reports, they may not be able to promise more privacy
for their customers, especially if the record database is ultimately
endorsed by the U.S. government. "If the President wins on this, one
would think that the NSA would require more providers to
participate," Forrester Research analyst Lisa Pierce said. She noted
that many calls that originate on cable or Internet services end up
going through traditional phone networks if the recipient is a
customer of AT&T, Verizon or BellSouth, which have up to 90 percent
of U.S. customers. "You could walk across town to talk to somebody in
person," said Surterre Research analyst Todd Rethemeier. "There is
really no way to hide from something like this."
http://today.reuters.com/news/newsArticle.aspx?type=domesticNews&storyID...

MARKEY ASKS FCC TO PROBE PHONE FLAP
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Top House Telecommunications Subcommittee Democrat Ed Markey (MA)
wrote to FCC Chairman Kevin Martin Monday asking him to investigate
whether telcos Verizon, AT&T, and BellSouth violated consumer
safeguards in the Communications Act by revealing consumer records --
phone logs -- as part of a National Security Agency effort to track
terrorists. "The Bush Administration says this program of sweeping up
phone call data of tens of millions of Americans who have nothing to
do with Al Qaeda is 'narrowly defined,' but it appears this
electronic driftnet over our homes is only 'narrowly described,'"
Rep. Markey said. A FCC spokesperson said the Commission is reviewing
the letter. Last week, Rep Markey, along with all other Democrats
serving on the House Commerce Committee, sent a letter to Committee
Chairman Joe Barton (R-TX) requesting committee hearings on the
subject. To date there has been no response from the Committee Chairman.
http://www.broadcastingcable.com/article/CA6334815?display=Breaking+News
* Letter to FCC Regarding the Legality of Telco Complicity in Phone
Records Mining
http://markey.house.gov/index.php?option=com_content&task=view&id=1561&I...
* Markey Seeks FCC Ruling on NSA Program
http://www.multichannel.com/article/CA6335142.html?display=Breaking+News

COPPS CALLS FOR INQUIRY INTO DISCLOSURE OF PHONE RECORDS
[SOURCE: Federal Communications Commission]
Reacting to recent news reports that the nation's largest
telecommunications carriers provided the government with customers'
calling records, Commissioner Michael J. Copps stated: "Recent news
reports suggest that some - but interestingly not all - of the
nation's largest telephone companies have provided the government
with their customers' calling records. There is no doubt that
protecting the security of the American people is our government's
number one responsibility. But in a Digital Age where collecting,
distributing, and manipulating consumers' personal information is as
easy as a click of a button, the privacy of our citizens must still
matter. To get to the bottom of this situation, the FCC should
initiate an inquiry into whether the phone companies' involvement
violated Section 222 or any other provisions of the Communications
Act. We need to be certain that the companies over which the FCC has
public interest oversight have not gone - or been asked to go - to a
place where they should not be."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-265373A1.doc
* FCC Member Voices Concern on Wiretaps
http://www.latimes.com/news/printedition/asection/la-na-eavesdrop16may16...

EX-FCC CHIEF: 'NEW BALANCE' NEEDED ON PRIVACY RIGHTS
[SOURCE: Charlotte Business Journal, AUTHOR: David Mildenberg]
Speaking Monday in Charlotte, former Federal Communications
Commission Chairman Michael Powell said changing views of privacy
rights helps explain why the public is nearly divided over reports
that the federal government secretly collected phone records of
millions of Americans. Powell said he has mixed views on the issue
but believes many Americans understand the world changed on Sept. 11,
2001, when terrorists attacked New York City and Washington, D.C.
Political and regulatory leaders are searching for a "new balance"
between privacy rights and national security needs, he added. He
emphasized that Americans are much more willing to give up some
privacy rights than in the past, provided they receive a commensurate
benefit such as increased mobility. As an example, he cited how many
cell-phone customers speak loudly in public venues nowadays, compared
with past practice in which callers retreated to phone booths for
private conversations.
http://www.bizjournals.com/charlotte/stories/2006/05/15/daily10.html?fro...

FBI SOURCE CONFIRMS ABC REPORT ON MONITORING OF REPORTERS' CALLS
[SOURCE: Editor&Publisher]
Brian Ross and Richard Esposito of ABC News reported on the networks
"The Blotter" web site this morning that a senior federal law
enforcement official had informed them that "the government is
tracking the phone numbers we call in an effort to root out
confidential sources." This source quipped: "It's time for you to get
some new cell phones, quick." Late Monday, the ABC reporters updated
their account: "The FBI acknowledged late Monday that it is
increasingly seeking reporters' phone records in leak investigations.
"It used to be very hard and complicated to do this, but it no longer
is in the Bush administration," said a senior federal official. He
said it wasn't so much that the calls were being "tracked" as "backtracked."
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...

CONGRESS MAY MAKE ISPs SNOOP ON YOU
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
House Judiciary Committee Chairman F. James Sensenbrenner (R-WI) is
proposing that ISPs be required to record information about
Americans' online activities so that police can more easily "conduct
criminal investigations." Executives at companies that fail to comply
would be fined and imprisoned for up to one year. In addition, Rep
Sensenbrenner's legislation -- expected to be announced as early as
this week -- also would create a federal felony targeted at bloggers,
search engines, e-mail service providers and many other Web sites.
It's aimed at any site that might have "reason to believe" it
facilitates access to child pornography--through hyperlinks or a
discussion forum, for instance.
http://news.com.com/Congress+may+make+ISPs+snoop+on+you/2100-1028_3-6072...

INDECENCY

ODDS NOW LONG ON INDECENCY MARKUP
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
With just a few mark-up sessions left for the Senate Commerce
Committee before the November election, do not expect to see
consideration of a broadcast indecency regulation bill introduced by
Sen Sam Brownback (R-KS). He was hoping his stripped-down version
would get committee attention. It boosts FCC indecency fines by
10-fold, to a top fine of $325,000 per incident, but without bringing
station licenses into play for multiple violations or targeting
performers as an already-passed House version does. The House bill
also ups the fine to $500,000 per incident. Marking up the bill had
been discussed among Commerce Committee top staffers last week, and
Brownback supporters were confident it would make the cut, according
to a source close to the legislator. But there was apparently a
scheduling problem with another bill. If the bill does is not
considered by the Commerce Committee, it will be discharged from the
committee, which leaves up to the majority leader, Bill Frist (R-TN)
to decide whether to schedule a floor vote on it or not.
http://www.broadcastingcable.com/article/CA6335139?display=Breaking+News
* Pro-Family Supporters Frustrated Over Stalled Broadcast Decency Bill
http://www.gopusa.com/news/2006/may/0515_decency_bill1.shtml

HOLLYWOOD VOICES DECRY INDECENCY CRACKDOWN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Center for Creative Voices in Media, which includes some voices
from the Hollywood production community, has added its voice to the
court challenge by networks and TV stations of some of the FCC's
indecency crackdown. "These Commission decisions put creative,
challenging, controversial, non-homogenized broadcast television
programming at risk, harming not only media artists, but the American
public," said Center Executive Director Jonathan Rintels, announcing
his group's filing of a motion to intervene, which it is doing in
support of the challenge. The Center also warned Monday against
raising the indecency fines 10-fold or more, as would bills in
Congress. "The consistent inconsistency of the FCC decisions, and the
'chilling effect' they place on free speech should concern and give
pause to legislators now considering increasing these chilling FCC
fines tenfold or more, and extending those fines to creative artists.
Such legislation will chill even more speech that is supposed to be
protected by the First Amendment."
http://www.broadcastingcable.com/article/CA6335036?display=Breaking+News
* Creative Voices Seeks to Intervene In Network Suit Against FCC
Indecency Decisions
http://www.creativevoices.us/php-bin/news/showArticle.php?id=157&PHPSESS...

LEGISLATION

BARTON: SUPPORT NATIONAL CABLE BILL
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
House Commerce Committee Chairman Joe Barton (R-TX) sent a letter to
every House member Monday seeking support for his bill, which would
create a national cable-franchising system sought by major phone
companies. The bill (HR 5252), Rep Barton said in a one-page letter
co-signed by Rep. Bobby Rush (D-IL), would "bring more choices, lower
bills and better video services by creating a single, national
approval process that will speed entry of competitors." Under current
law, cable companies are required to negotiate contracts, called
franchises, with local governments before offering cable service.
"One company official testified that if AT&T signed a franchise
agreement every day, it would take more than seven years to complete
its deployment plan," the Barton-Rush letter declared. "We must clear
roadblocks on the information superhighway." Critics say the bill
lacks explicit requirements to build out entire franchise areas as
local franchises require cable incumbents. The Barton-Rush letter did
not directly reference the controversial buildout issue. Instead, it
said the bill would "bring faster broadband in more places,
especially in rural areas." Another benefit of the bill, the
Barton-Rush letter added, were provisions designed to ensure that
broadband-access providers would pay a price for discriminating
against Web-based services offered by Google, Yahoo! and Microsoft.
The bill includes a $500,000 fine per violation. The bill would
"preserve network neutrality by allowing the Federal Communications
Commission explicit power to go after companies that violate
network-neutrality principles," the letter said.
http://www.multichannel.com/article/CA6335164.html?display=Breaking+News

MCSLARROW LIKELY TO TESTIFY ON STEVENS BILL
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
National Cable & Telecommunications Association president Kyle
McSlarrow is expected to testify Thursday before the Senate Commerce
Committee on legislation partly designed to streamline local
franchising of new cable companies, informed sources said Monday. The
hearing will be the first of two on a bill (S. 2686) Senate Commerce
Committee chairman Ted Stevens (R-Alaska) introduced May 1. Stevens
is planning a second hearing May 25, followed by a June 8 committee
vote. In the Stevens bill, a new cable company could expect to begin
building a cable system after 30 days based on franchising procedures
established by the Federal Communications Commission. An incumbent
cable operator would be afforded the same opportunity if it has
expired franchises or has received notice that a new cable company
planned to enter the same local market.
http://www.multichannel.com/article/CA6335128.html?display=Breaking+News

NOT SO FAST ON NETWORK NEUTRALITY
[SOURCE: The Oregonian (Portland), AUTHOR: Editorial Staff]
[Commentary] Net neutrality -- the idea that everybody should be
equal in cyberspace -- has gained momentum as a populist movement but
seems no closer to becoming law. Part of the problem with the
discussion of net neutrality is that beyond broad statements of
principles, people disagree about what it is. For example, few would
disagree that the Internet should be free of discrimination, that a
user should have as unfettered access to a suburban teen's fan site
as he does to Disney.com. The disagreements come in writing laws to
preserve those principles. The problem with Congress dictating the
Internet's myriad legal contracts, technological underpinnings and
business behaviors is that Congress simply isn't wise enough or
prescient enough to make the right choices. More important, Congress
could unwittingly interfere with the development of a more robust
Internet, capable of delivering more multimedia, faster, in two
directions. In addition, it would hand more enforcement powers to the
Federal Communications Commission, a step that itself may have
unwelcome, anti-democratic consequences. For these reasons, Congress
should not overreach with its efforts to enshrine the principle of
net neutrality. Congress should borrow the first principle of the
medical profession: First, do no harm. Bad law, in this case, could
be much worse than no law. And it's not entirely clear yet what a
good law would look like.
http://www.oregonlive.com/editorials/oregonian/index.ssf?/base/editorial...
See also --
* Telecom network: Web of confusion
"If America is entering the era of Internet regulation, it would be
advisable if Congress erred on the side of competition and passed
'network neutrality.'"
http://www.suburbanchicagonews.com/couriernews/opinions/3_4_EL15_EDITTEL...

QUICKLY

TELEVISA TO FACE A TOUGHER CONTENT IN TUSSLE FOR UNIVISION
[SOURCE: Financial Times, AUTHOR: James Politi]
Texas Pacific Group and Thomas H. Lee Partners, two private equity
groups that had been considering a separate bid for Univision, have
been joined by Madison Dearborn and Providence Equity Partners. The
four-member consortium is expected to be a strong rival to Televisa
as the auction for Univision enters its final stretch. Initial bids
for the company are expected to be made in early June, with a deal
expected later in the summer. A sale of Univision could be worth as
much as $12 billion.
http://news.ft.com/cms/s/0d4047e4-e44d-11da-8ced-0000779e2340.html
(requires subscription)

DEPARTMENT OF ED OFFICIAL JOINS CPB
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Dr. Jayne W. James, an official from the Department of Education who
has been heading a No Child Left Behind offshoot, has been hired by
the Corporation for Public Broadcasting to head Ready To Learn. Ready
To Learn is the majority Department of Ed-funded programming effort
that caught flak from the department for not being sufficiently
curriculum-based. That criticism was driven by the flap over a "two
mommies" episode of animated show from major noncom producer WGBH,
Postcards From Buster. James has been "Team Leader" for the Enhancing
Education Through Technology program under the No Child Left Behind
Act of 2001. Before that, she was associate director of the Advanced
Learning Technologies in Education Consortia at the University of Kansas.
http://www.broadcastingcable.com/article/CA6334786?display=Breaking+News

ONLINE DEGREE PROGRAMS TAKE OFF
[SOURCE: Washington Post, AUTHOR: Lois Romano]
An extraordinarily fast-growing number of students nationwide and
worldwide are turning to online degree programs to complete or
advance their educations while they work, decisions that are driven
by economics as well as by a society that is increasingly mobile.
Congress passed a law in March that drops the requirement that
colleges offer at least half their courses face to face to receive
federal student aid. The new law will undoubtedly attract more
students and schools into the fledgling online industry. Online
enrollment, including multiple courses taken by a single student,
jumped from 1.98 million in 2003 to 2.35 million the following year,
accounting for 7 percent of postsecondary education, according to
Eduventures, a Boston firm that studies trends in education. Another
study, funded by the Alfred P. Sloan Foundation, reports that 65
percent of universities offering face-to-face graduate courses also
offer graduate courses online. By early 2008, Eduventures predicts,
about one in 10 college students will be enrolled in an online degree program.
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/15/AR200605...
(requires registration)

PROJECT TACKLES CREDIBILITY OF ONLINE INFO
[SOURCE: eSchool News, AUTHOR: Laura Ascione]
For students, and even for many educators, judging the reliability of
information they find online can present a challenge. Now, a new
project, Credibility Commons, launched by two university researchers
-- Michael Eisenberg, professor and dean emeritus at the University
of Washington, and David Lankes, an associate professor at Syracuse
University -- aims to change that. The project seeks to provide users
with tools to more easily gauge the credibility of information they
find through web searches. The project is funded by the MacArthur
Foundation for two years, but organizers plan to seek out additional
funding to sustain and expand on the web site.
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=6306
See http://www.credibilitycommons.org/

INMARSAT BROADBAND SATELLITE SERVICE GETS NOT FROM FCC
[SOURCE: Broadcasting&Cable, AUTHOR: Glen Dickson]
Global satellite operator Inmarsat says that the FCC has granted the
necessary licenses for its new broadband satellite communications
system to be marketed in the U.S., where it hopes to find adoption
among public-safety agencies as well as broadcast news crews looking
for an ultra-light satellite link.
http://www.broadcastingcable.com/article/CA6335163?display=Breaking+News

GOD'S CALL COMES BY CELLPHONE
[SOURCE: Los Angeles Times, AUTHOR: Stephanie Simon]
Bible verses on a BlackBerry, sermons on an MP3 -- an explosion in
digitalized spirituality is making true believers of online e-vangelists.
http://www.latimes.com/news/printedition/front/la-na-digital16may16,1,26...
(requires registration)
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Communications-related Headlines is a free online news summary
service provided by the Benton Foundation (www.benton.org). Posted
Monday through Friday, this service provides updates on important
industry developments, policy issues, and other related news events.
While the summaries are factually accurate, their often informal tone
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Headlines are compiled by Kevin Taglang headlines( at )benton.org -- we
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