May 2006

For upcoming media policy events, see http://www.benton.org

GOVERNMENT & COMMUNICATIONS
Bush denies Spying Infringing on Americans' Privacy
Congress 'Flying Blind' on NSA Issue, Some Say
As Tech Advances, Privacy Laws Lag
'Climate has changed' for data privacy
Ever-Expanding Secret
More Domestic Spying
Is any phone call off-limits?
Yahoo turns to Washington for help on China
EU executive Slams "Interference" in Sex Site Vote
US Government urged to Work from Home in Pandemic

VIDEO FRANCHISING
Big Apple Says Franchise Bills Bite
Franchises Being Delayed, Justice Tells FCC

LEGISLATION
Senate Judiciary Panel Eyes Telecom Proposal
What's driving the next telecom law
AT&T Faking Concern for Rural Deployment
Sources: Wyden Floating Cable-Content Bill

INTERNET/BROADBAND
Amazon Makes the Case for Net Neutrality
Why cable companies, Google are eyeing wireless spectrum
Multicast and Network Neutrality
As freedom shrinks, teens seek MySpace to hang out

IN THE STATES
AT&T, Consumer Advocate Agree on Deregulation in Illinois
Connecticut AG Opposes DPUC=92s IPTV Ruling

BROADCASTING
Universal Music Settles Claims Over Radio Play
Televisa Enlists Equity Funds For Univision Bid
CA Public TV merger is a welcome move

QUICKLY -- Philadelphia OKs wireless Internet=20
project; Bloggers Strike Back; CARU Targets Toy=20
Touter; National Security Telecommunications Advisory

GOVERNMENT & COMMUNICATIONS

BUSH DENIES SPYING INFRINGING ON AMERICANS' PRIVACY
[SOURCE: Reuters, AUTHOR: Matt Spetalnick and Andy Sullivan]
President George W. Bush denied on Thursday the=20
government was "trolling through" Americans'=20
personal lives, despite a report that a domestic=20
spy agency was collecting phone records of tens=20
of millions of citizens. Defending his=20
administration's espionage program, Bush said=20
intelligence activities he had authorized were=20
lawful and the government was not eavesdropping=20
on domestic phone calls without court approval.=20
But Democrats and Republicans alike demanded an=20
explanation after USA Today reported the National=20
Security Agency was secretly amassing phone=20
records from phone companies to analyze calling=20
patterns in an effort to detect terrorist plots.=20
Air Force Gen. Michael Hayden, who was nominated=20
by President Bush on Monday as director of the=20
CIA, headed the NSA from 1999 to 2005 and would=20
have overseen the call-tracking program.
http://today.reuters.com/news/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2006-05-11T192803Z_01_WAT005528_RTRUKOC_0_US-SECURITY-USA-PHONECALLS-BUS=
H.xml
* President Bush Discusses NSA Surveillance Program
http://www.whitehouse.gov/news/releases/2006/05/20060511-1.html
* Gathering data may not violate privacy rights, but it could be illegal
http://www.usatoday.com/printedition/news/20060512/1a_coverside12_dom.ar...
tm
* Did The NSA Break The Law?
The NSA's call database was taken in stride by=20
the national security community, which all but=20
assumed that the NSA was up to such data mining=20
after it was revealed last December that the spy=20
agency was intercepting calls made to or from=20
suspected terrorists abroad. Section 222 of the=20
1934 Communications Act forbids phone companies=20
from giving out data on the calling patterns of=20
their customers. But telecom experts say the law=20
wasn't designed to address national security issues.
http://www.forbes.com/home/businessinthebeltway/2006/05/11/nsa-wiretap-b...
_cx_jh_0511NSA.html
* Bush defends spy program after new disclosure
http://news.com.com/Bush+defends+spy+program+after+new+disclosure/2100-1...
_3-6071255.html?tag=3Dhtml.alert
* Bush Is Pressed Over New Report on Surveillance
http://www.nytimes.com/2006/05/12/washington/12nsa.html
(requires registration)
* Bush Seeks to Quell Storm Over Telecom Monitoring
http://online.wsj.com/article/SB114736085710650220.html?mod=3Dtodays_us_...
e_one
(requires subscription)
* Data on Phone Calls Has Been Monitored
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/11/AR200605...
0539.html
* Bush says privacy protected; others tell of =91spider web' use
http://www.usatoday.com/printedition/news/20060512/1a_lede12_dom.art.htm
* New Furor Over NSA Phone Logs
http://www.latimes.com/news/printedition/front/la-na-nsa12may12,1,194339...
tory?coll=3Dla-headlines-frontpage
* White House Won't Confirm or Deny It Tried to Stop 'USA Today' Story
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1002501487

CONGRESS 'FLYING BLIND' ON NSA ISSUE, SOME SAY
[SOURCE: Los Angeles Times, AUTHOR: Ronald Brownstein and Maura Reynolds]
Since the first revelations about the National=20
Security Agency's warrantless surveillance, the=20
struggle over information about the program has=20
been as contentious as the debate over the=20
wiretapping itself. For months, Democrats in=20
Congress have accused the White House of=20
stonewalling questions about the program and have=20
charged that Republicans have failed to press=20
hard enough for answers. Some GOP senators joined=20
in the complaints that Congress had been left too=20
much in the dark. Those disputes appeared to be=20
waning this spring. But they were reignited=20
Thursday with the report in USA Today that the=20
NSA has secretly collected the phone call records=20
of millions of Americans. That report instantly=20
renewed calls from lawmakers in both parties for=20
the administration to answer questions about the=20
range of surveillance activities it has=20
undertaken since the Sept. 11 terrorist attacks.=20
"We're really flying blind on the subject, and=20
that's not a good way to approach =85 the=20
constitutional issues involving privacy," said=20
Senate Judiciary Committee Chairman Arlen Specter=20
(R-Pa.). The debate over whether enough members=20
of Congress know enough about the surveillance=20
seems likely to spill into the confirmation=20
hearings for Air Force Gen. Michael V. Hayden,=20
the former NSA director whom President Bush has=20
nominated to run the CIA. But the rekindled=20
argument also is likely to complicate the push=20
from Sen Specter and other Republicans for=20
legislation providing explicit legal authority=20
for the NSA warrantless surveillance. The new=20
disclosure about the scope of surveillance has=20
hardened Democrats' conviction that Congress=20
knows too little about the NSA's program to set rules for it.
http://www.latimes.com/news/printedition/asection/la-na-assess12may12,1,...
9800.story?coll=3Dla-news-a_section
(requires registration)
* Lawmakers Call for Hearings
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/11/AR200605...
1882.html
* New NSA Revelations Highlight Need for Congressional Oversight
[SOURCE: Center for Democracy and Technology]
Today's revelation that the National Security=20
Agency has been secretly compiling the telephone=20
and Internet records of millions of innocent=20
Americans sends the clearest signal yet that=20
Congress must demand details on the full extent=20
of the administration's domestic spying program.=20
A story in today's USA Today details how the NSA,=20
working with major phone providers, has created a=20
massive database that tracks the phone=20
communications of ordinary Americans. CDT=20
believes that the program described in the article is illegal.
More on NSA Surveillance: http://www.cdt.org/security/nsa/20060203gonzalez.=
pdf

AS TECH ADVANCES, PRIVACY LAWS LAG
[SOURCE: Los Angeles Times, AUTHOR: Joseph Menn and James S. Granelli]
Never has it been so easy to know so much about=20
so many. Thursday's disclosure that three of the=20
nation's biggest telephone companies gave=20
customer calling records to the National Security=20
Agency again demonstrates that technology is=20
rewriting the rules of privacy faster than the=20
law can adapt. And with their powerful database=20
programs tracking a massive amount of personal=20
details of Americans' daily lives, a growing=20
number of companies find themselves sandwiched=20
between the privacy expectations of their=20
customers and the national security demands of=20
the federal government. "It's so easy to say=20
yes," said technology security expert Bruce=20
Schneier. "The government sings a patriotic song,=20
and you want to do what's right. We all want to=20
band together." With the rise of lightning-fast=20
ways to collect, collate and distribute digital=20
data, county sheriffs, credit card companies and=20
even nosy neighbors can dig up private=20
information. But in many cases it is the federal=20
government that has been looking over the public's virtual shoulder.
http://www.latimes.com/news/printedition/front/la-fi-techsnoop12may12,1,...
5395.story?coll=3Dla-headlines-frontpage
(requires registration)
* Disclosure of program reignites the debate on liberty vs. security
http://www.usatoday.com/printedition/news/20060512/1a_cover12x.art.htm

'CLIMATE HAS CHANGED' FOR DATA PRIVACY
[SOURCE: USAToday, AUTHOR: Paul Davidson]
Since the Sept. 11 terrorist attacks, airlines,=20
websites and Las Vegas hotels have divulged=20
private customer information to federal=20
authorities hunting for terrorists or criminals.=20
=93The climate has changed, and many companies give=20
less weight to the privacy interests of their=20
customers,=94 says David Sobel of the Electronic=20
Privacy Information Center (EPIC). Yet privacy=20
advocates say the new case is more egregious=20
because phone records are afforded even greater=20
protections and the information was obtained=20
without a warrant. =93It's an inexcusable violation=20
of the trust we place in the phone company to=20
maintain the privacy of communications,=94 says=20
Kevin Bankston of advocacy group Electronic=20
Frontier Foundation. The group sued AT&T in=20
January for aiding the National Security Agency in eavesdropping.
http://www.usatoday.com/printedition/money/20060512/1b_bizprivacy12.art.htm
* What phone companies have to say
http://www.usatoday.com/printedition/money/20060512/phonequotes12.art.htm
* Cable firms: Law protects customers
Leading cable operators say a 1984 federal law=20
would stop them from handing customer calling=20
records to the National Security Agency the way=20
AT&T, Verizon and BellSouth have.
http://www.usatoday.com/printedition/money/20060512/1b_cableprivacy12.ar...
tm

EVER-EXPANDING SECRET
[SOURCE: New York Times, AUTHOR: Editorial Staff]
[Commentary] Ever since its secret domestic=20
wiretapping program was exposed, the Bush=20
administration has depicted it as a narrow=20
examination of calls made by and to suspected=20
terrorists. But its refusal to provide any=20
details about the extent of the spying has raised=20
doubts. Now there is more reason than ever to be=20
worried =97 and angry -- about how wide the=20
government's web has been reaching. What we have=20
here is a clandestine surveillance program of=20
enormous size, which is being operated by members=20
of the administration who are subject to no=20
limits or scrutiny beyond what they deem to=20
impose on one another. If the White House had=20
gotten its way, the program would have run=20
secretly until the war on terror ended -- that=20
is, forever. Congress must stop pretending that=20
it has no serious responsibilities for monitoring=20
the situation. The Senate should call back=20
Attorney General Alberto Gonzales and ask him --=20
this time, under oath -- about the scope of the=20
program. This time, lawmakers should not roll=20
over when Mr. Gonzales declines to provide=20
answers. The confirmation hearings of Michael=20
Hayden, President Bush's nominee for Central=20
Intelligence Agency director, are also a natural=20
forum for a serious, thorough and pointed review=20
of exactly what has been going on. Most of all,=20
Congress should pass legislation that removes any=20
doubt that this kind of warrantless spying on=20
ordinary Americans is illegal. If the=20
administration finds the current procedures for=20
getting court approval of wiretaps too=20
restrictive, this would be the time to make any=20
needed adjustments. President Bush began his=20
defense of the NSA program yesterday by invoking,=20
as he often does, Sept. 11. The attacks that day=20
firmed the nation's resolve to protect itself=20
against its enemies, but they did not give the=20
president the limitless power he now claims to=20
intrude on the private communications of the American people.
http://www.nytimes.com/2006/05/12/opinion/12fri1.html
(requires registration)
* Opinions from around the country
http://www.usatoday.com/printedition/news/20060512/opline12.art.htm
* Editorials, from Right and Left, Hit Latest NSA Shocker
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1002501664
* NSA has your phone records; =91trust us' isn't good enough
http://www.usatoday.com/printedition/news/20060512/edit12.art.htm

MORE DOMESTIC SPYING
[SOURCE: Washington Post, AUTHOR: Editorial Staff]
[Commentary] When the New York Times revealed the=20
National Security Agency's domestic wiretapping=20
program late last year, President Bush assured=20
the country that the operation was carefully=20
limited to international calls, targeted only=20
al-Qaeda suspects and did not involve snooping on=20
law-abiding Americans. That turns out to be far=20
from the whole truth. In addition to intercepting=20
certain international calls, USA Today reported=20
yesterday, the NSA after Sept. 11, 2001, began=20
assembling a database of records of domestic=20
calls. It attempted to keep track of all phone=20
calls made in the United States and use them in=20
an elaborate data-mining operation. The agency=20
did not go to any court for approval. Rather, it=20
simply asked several major telecommunications=20
companies to turn over huge volumes of call data.=20
With the exception of Qwest, which balked for=20
legal reasons, the companies did so. As with the=20
NSA's warrantless wiretapping program, the law=20
here is murky. The Washington Post doesn't=20
contend that data-mining is illegitimate. With=20
appropriate controls and oversight, it has a role=20
to play in modern intelligence and law=20
enforcement. But a giant government database=20
detailing which phone numbers called which other=20
phone numbers -- the NSA data, according to USA=20
Today, do not include people's names or addresses=20
or the contents of their communications -- is a=20
massive intrusion on personal privacy. Congress=20
urgently needs to examine the full range of NSA=20
domestic surveillance. These latest revelations=20
show the error of well-meaning attempts to=20
legislate concerning the NSA's wiretapping=20
program by senators lacking a comprehensive sense=20
of what it is and how it fits into the agency's=20
larger domestic activities. The goal must be to=20
modernize the rules of anti-terrorism=20
surveillance within the United States, allowing=20
for the uses of new technologies unimagined when=20
Congress wrote current law but insisting on=20
proper limits and systemic judicial and=20
legislative oversight. This cannot begin to=20
happen without a sustained congressional effort=20
to find out what the NSA is doing.
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/11/AR200605...
1702.html
(requires registration)
* An Easy Call: Lying
At least now we know that the Bush=20
administration's name for spying on Americans=20
without first seeking court approval -- the=20
"terrorist surveillance program" -- isn't an=20
exercise in Orwellian doublespeak after all. It's just a bald-faced lie.
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/11/AR200605...
1877.html
(requires registration)
* The General and the Telephone Companies
Reed Hundt writes: "No one should imagine that=20
what NSA has done, if reports are accurate, is=20
normal behavior or standard procedure in the=20
interaction between a private communications=20
network and the government. In an authoritarian=20
country without a bill of rights and with state=20
ownership of the communications network, such=20
eavesdropping by people and computers is assumed=20
to exist. But in the United States it is assumed=20
not to occur, except under very carefully defined=20
circumstances that, according to reports, were=20
not present as NSA allegedly arm-twisted telephone companies into complianc=
e."
http://www.tpmcafe.com/node/29743

IS ANY PHONE CALL OFF-LIMITS?
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
[Commentary] Gen Michael Hayden, President Bush's=20
nominee to head the Central Intelligence Agency,=20
may want to call off his charm offensive with=20
members of Congress. The Air Force general isn't=20
likely to make much headway after the revelation=20
that the National Security Agency, which he used=20
to head, not only eavesdropped on telephone=20
conversations and e-mail messages of Americans=20
suspected of ties with foreign terrorists, it=20
also induced telephone companies to turn over the=20
records of billions -- that's with a "b" -- of=20
domestic calls. Even under the Patriot Act, there=20
are judicially supervised rules on how=20
investigators may use technology -- known as "pen=20
registers" and "trap and trace" -- that monitor=20
telephone traffic without actually listening in=20
on conversations. So the legality of this program=20
is debatable at best. Congress, which has shown=20
no backbone for challenging the previously=20
revealed NSA program, must press the=20
administration to explain and try to justify this=20
much more pervasive operation. By now no one in=20
(or out of) Congress should have any faith in the=20
administration's assurances about either its=20
actions or its intentions under this program. As=20
another president once observed: Trust, but=20
verify. Congress needs to fill in the blanks.
http://www.latimes.com/news/printedition/opinion/la-ed-nsa12may12,1,1008...
.story?coll=3Dla-news-comment
(requires registration)

YAHOO TURNS TO WASHINGTON FOR HELP WITH CHINA
[SOURCE: Reuters]
Yahoo said on Thursday it was seeking the=20
government's help in urging China to allow more=20
media freedom, after reports linking information=20
it gave to Chinese authorities with the jailing=20
of a dissident. "Governments change governments.=20
Governments who are in trade together can=20
certainly change governments," said Yahoo=20
Chairman and Chief Executive Terry Semel. "We=20
tried and we are going to continue to try as an=20
industry to have our government help us." He also=20
said that closing down Yahoo's operations in=20
China would not help boost free speech and he=20
hoped other news and publishing companies doing=20
business in China would stay despite the=20
limitations. "You have to get whatever news you=20
possibly can into China as opposed to pulling=20
back," he said. "Will they be edited? Yes. Should you go home? No."
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-05-11T154037Z_01_N114360_RTRUKOC_0_US-YAHOO.xml

EU EXECUTIVE SLAMS "INTERFERENCE" IN SEX SITE VOTE
[SOURCE: Reuters, AUTHOR: Huw Jones]
The Internet governing body's decision to reject=20
a new .xxx Internet domain for porn sites is a=20
clear case of U.S. political interference in the=20
Web's governance, the European Commission said on=20
Thursday. The EU executive said the decision=20
underscored the need to make ICANN independent=20
quickly, following unsuccessful demands last year=20
by a group of countries including the EU to make=20
ICANN fully independent. "We see here a first=20
clear case of political interference in ICANN,"=20
said Martin Selmayr, spokesman for EU Information=20
Society and Media Commissioner, Viviane Reding.=20
He said correspondence between ICANN and the U.S.=20
Department of Commerce, highlighted the "interference".
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-05-11T164758Z_01_L11387050_RTRUKOC_0_US-EU-INTERNET.xml&archived=3D=
False

US GOVERNMENT URGED TO WORK FROM HOME IN PANDEMIC
[SOURCE: Reuters, AUTHOR: Maggie Fox]
If a flu pandemic forced 40 percent of workers to=20
stay home, telecommuting could help keep=20
governments and businesses running -- but hardly=20
any are set up to do this, experts told the U.S.=20
Congress on Thursday. A report from the=20
Government Accountability Office found that only=20
nine of 23 federal agencies had plans in place=20
for essential staff to work from home during a=20
pandemic. "None of the 23 agencies demonstrated=20
that it could ensure adequate technological=20
capacity to allow personnel to telework during an=20
emergency," GAO Comptroller General David Walker=20
told a hearing of the House Government Reform=20
Committee. One reason for the lack of preparation=20
was that FEMA (the Federal Emergency Management=20
Agency) had not provided specific guidance on=20
what was needed to allow staff to work from home, the GAO report said.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-05-11T225935Z_01_N11258733_RTRUKOC_0_US-BIRDFLU-TELEWORK.xml
See --
* Continuity of Operations: Agencies Could=20
Improve Planning for Telework During Disruptions,=20
by David M. Walker, comptroller general of the=20
United States, before the House Committee on Government Reform. (GAO-06-74=
0T)
http://www.gao.gov/cgi-bin/getrpt?GAO-06-740T
Highlights - http://www.gao.gov/highlights/d06740thigh.pdf

VIDEO FRANCHISING

BIG APPLE SAYS FRANCHISE BILLS BITE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The New York City Council voted unanimously=20
Wednesday to urge its Congressional=20
representatives to oppose video franchise reform=20
legislation currently being considered in=20
Washington. "The City Council of New York=20
opposes, and urges the New York Congressional=20
Delegation and all other members of Congress to=20
oppose, Senate bills S. 1349 and S. 1504 and=20
House bill H.R. 3146, as well as COPE and any=20
other similar legislative proposals." That news=20
was being touted by the Manhattan Neighborhood=20
Network (MNN), which oversees public access=20
channels in the city and was pushing hard for the=20
resolution. The council is concerned about=20
eliminating local video franchises, saying in its=20
resolution that the bill would "severely=20
undermine community programming and the=20
implementation of universal, affordable broadband=20
access." MNN Praised the 50-0 vote, which=20
expressed opposition to both the House and Senate=20
versions of franchise reform, as well as an=20
earlier bill introduced by Senator Jay=20
Rockefeller that backed national franchises. MNN=20
said the vote sent "a strong message in support=20
of local accountability and community media."
http://www.broadcastingcable.com/article/CA6333860?display=3DBreaking+News

FRANCHISES BEING DELAYED, JUSTICE TELLS FCC
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Justice Department has advised the FCC that=20
it believes some local franchising authorities=20
(LFAs) are imposing unnecessary costs on new=20
entrants and slowing the rollout of new services=20
in competition to cable. As part of its=20
recommended remedy, Justice says LFA's should not=20
be allowed to require new video providers, like=20
telcos, to meet the sort of build-out=20
requirements that have been required of the cable=20
industry. Telcos have been pushing for that=20
freedom from lengthy LFA negotiations. In fact,=20
Justice cites some Verizon arguments in its=20
comments. Those comments to the FCC came in the=20
Commission's open proceeding on whether local=20
franchising authorities are levying unreasonable=20
demands that are holding up the franchise=20
process, Justice said that "in light of the=20
significant entry-deterring effects of mandated=20
build-out requirements, the Department believes=20
that LFA's should not be allowed to impose any=20
such requirements except where necessary to=20
prevent income discrimination," which is already=20
illegal. It said the FCC's presumption should be=20
that a phone company planning to provide video=20
service only to existing phone customers is not=20
denying service to anyone else because of income--so-called 'red-lining.'
http://www.broadcastingcable.com/article/CA6333991?display=3DBreaking+News
* DOJ Backs Bells on Franchising
http://www.multichannel.com/article/CA6333874.html?display=3DBreaking+News

LEGISLATION

SENATE JUDICIARY PANEL EYES TELECOM PROPOSAL
[SOURCE: Technology Daily, AUTHOR: Sarah Lai Stirland]
The Senate Judiciary Committee is likely to seek=20
a role in reshaping telecommunications law,=20
according to a committee aide. At least three=20
panel members are concerned about some of the=20
issues addressed in the telecommunications bill=20
crafted by Senate Commerce Chairman Ted Stevens,=20
R-Alaska, and unveiled last week, the aide=20
said. "Net neutrality is something we have=20
significant jurisdiction over," the aide said,=20
referring to the question of whether the Bell=20
telecommunications and cable companies should be=20
barred from charging Internet companies for=20
speedier content delivery. "It's basically a=20
vertical integration issue that involves=20
competition policy, not directly=20
telecommunications policy." Three senators on the=20
Judiciary panel also are concerned about=20
antitrust, copyright policy, distance learning=20
and rights-of-way issues presented in the telecom=20
bill. They include Judiciary ranking member=20
Patrick Leahy (D-VT) and Sens. Orrin Hatch=20
(R-Utah), and Herb Kohl (D-WI). A spokesman said=20
Sen Kohl has not sought to take any action on the=20
telecom reform bill, and noted that the committee=20
already has plans to examine competition policy=20
issues in a hearing about the proposed AT&T and=20
SBC Communications merger later this month.
http://www.njtelecomupdate.com/lenya/telco/live/tb-DCKL1147370676551.html

WHAT'S DRIVING THE NEXT TELECOM LAW
[SOURCE: isen.blog, AUTHOR: David S. Isenberg]
[Commentary] The COPE (Communications, Promotion,=20
and Enhancement) bill in the House of=20
Representatives, and a similar, but more detailed=20
Senate telecommunications bill are racing towards=20
enactment by summer. The likely new law is=20
propelled by the nation=92s big telephone=20
companies=92 perceived business need to deliver=20
video entertainment along with voice telephony=20
and Internet services. The triple-application=20
formula fits the old telco/cableco business=20
model, i.e., collecting fees for delivering=20
established applications and using these fees to=20
subsidize the delivery network. This old model is=20
threatened because today=92s Internet can support=20
voice and video, and infinitely more, delivered=20
from its edges by third-party application=20
providers. Indeed, third parties like Skype and=20
Vonage are breaking out all over and rudimentary=20
video services are popping up like dandelions.=20
National TV franchising will replace thousands of=20
local city-by-city agreements to ease telco entry=20
into video services. This will institutionalize=20
the voice, video and Internet service bundle so=20
only big players, "rational competitors," as=20
cablecos and telcos like to call themselves, can participate.
http://isen.com/blog/2006/05/whats-driving-next-telecom-law.html

AT&T FAKING CONCERN FOR RURAL DEVELOPMENT
[SOURCE: Broadband Reports, AUTHOR: Karl Bode]
[Commentary] AT&T is getting a lot of press for=20
its announcement this week that it is making an=20
effort to reach broadband have-nots with=20
wireless, satellite, and "Project Lightspeed."=20
Buried amidst the bubbly news and analyst=20
coverage, only CNET's Russell Shaw seemed to=20
remember that AT&T is in the middle of a=20
political fight to eliminate local franchises and=20
deployment requirements from state and federal=20
laws. This has already resulted in ample=20
complaints that the company is redlining -- or=20
ignoring less affluent or rural areas as it=20
upgrades its network to VDSL2 & fiber. The=20
company's announcement prepares a counter to=20
these arguments by allowing AT&T to say that it=20
is making an effort to reach these customers.=20
However, looking closely at the announcement, not=20
much really changed from a hard-deployment=20
perspective: 1) The Wild-Blue deal re-brands=20
satellite broadband that was already available to=20
rural Americans. 2) The "Project Lightspeed" plan=20
to "pass" 5.5 million low-income households was=20
already calculated. In part, we'll cynically=20
assume, to skirt redlining allegations. No new=20
deployment was actually announced, and the project remains in trials.
3) The plans for two new fixed wireless trial=20
locations is far from broad deployment. Do we=20
believe AT&T CEO Ed Whitacre when he suggests=20
these new moves "could help bring broadband to as=20
many as 11.5 million additional homes and=20
businesses?" Or do we assume AT&T is doing a song=20
and dance for representatives of these regions to gain political favor?
http://www.broadbandreports.com/shownews/74298

SOURCES: WYDEN FLOATING CABLE-CONTENT BILL
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Sen. Ron Wyden (D-OR) is looking for a Republican=20
co-sponsor, preferably one with a seat on the=20
Commerce Committee, for a=20
cable-television-content bill designed to give=20
consumers more choice in selecting their=20
programming lineups. Wyden=92s bill would pressure=20
cable operators to ensure that consumers had at=20
least three options: a family tier with=20
programming suitable for children, programming=20
tiers covered by broadcast-indecency rules, or=20
channels provided on an a la carte basis.
http://www.multichannel.com/article/CA6333853.html?display=3DBreaking+News

INTERNET/BROADBAND

AMAZON VP PAUL MISENER MAKES THE CASE FOR NET NEUTRALITY
[SOURCE: E-Commerce Times, AUTHOR: Erika Morphy]
An interview with Paul Misener, vice president of=20
Global Public Policy for Amazon.com. An engineer=20
by profession, Misener has worked at the Federal=20
Communications Commission -- a background that=20
allows him to speak from both a regulatory and=20
technical perspective when he testifies to=20
Congress, which he does frequently. What's a=20
worse case scenario, if net neutrality isn't made=20
law? "Carriers say they would prioritize content=20
based on economic reasons. But if they have that=20
latitude for financial purposes, then they can=20
also do it for political reasons. A carrier could=20
block access to a labor union site during a=20
dispute. It could block access to a Web site=20
after a special interest group makes a lot of=20
noise about it. It could even block a political=20
site to curry favor with the current=20
administration. All that sounds far fetched, but=20
the whole point is that there is nothing in place=20
to stop carriers from doing it. So why dismantle the protection?
http://www.ecommercetimes.com/story/50442.html

WHY CABLE COMPANIES, GOOGLE ARE EYEING WIRELESS SPECTRUM
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
The Federal Communications Commission's upcoming=20
auction for wireless spectrum is attracting=20
interest from several unlikely bidders, including=20
cable companies such as Time Warner and Internet=20
companies such as Google. But what, exactly, will=20
these companies do with this expensive asset? The=20
spectrum could be used to roll out more=20
third-generation, or 3G, mobile networks or=20
newer, 4G wireless technology that would shuttle=20
voice, data, video and other services at even=20
higher speeds. "It's ideal spectrum," said Craig=20
Mathias, an analyst with Farpoint Group. "I'd say=20
it's as good as PCS (personal communications=20
services) spectrum. It allows the owners of the=20
spectrum to use any number of technologies,=20
including next-generation cellular technology and=20
Wimax." Cable operators see wireless as a way to=20
distribute their content to mobile devices. They=20
also see potential in wireless to let customers=20
interact with existing services in a new way. For=20
Google, the licensed spectrum would provide an=20
alternative way to reach its users.
http://news.com.com/Why+cable+companies%2C+Google+are+eyeing+wireless+sp...
rum/2100-1039_3-6071163.html?tag=3Dnefd.top

MULTICAST AND NETWORK NEUTRALITY
[SOURCE: Technology Liberation Front, AUTHOR: Tim Lee]
[Commentary] Right now, if ABC wants to deliver=20
20 million copies of Desperate Housewives over=20
the Internet, it would have to transmit the same=20
stream of bits 20 million times to its ISP. The=20
ISP, in turn, might have to transmit 5 million=20
copies to each of 4 peers. Those peers, in turn,=20
might have to transmit a million copies to each=20
of 5 of its peers. And so on down the line, until=20
each end user receives a single copy of the=20
content. That=92s wasteful, because sending 20=20
million redundant copies of a file uses a lot of=20
bandwidth. In a perfect world, ABC should only=20
have to transmit one copy to its ISP, and the=20
ISP, in turn, should only have to transmit one=20
copy to each interested peer, and so on. Each=20
Internet node would receive one copy and transmit=20
several, until everyone who wants a copy is able=20
to get one. Geeks call this multicast. there are=20
plenty of quasi-multicast technologies out there.=20
One of the most important is Akamai=92s=20
EdgePlatform. It=92s a network of 18,000 servers=20
around the world that serve as local caches for=20
distributing content. So when a company like=20
Apple wants to distribute 20 million copies of a=20
file, it doesn't have to transmit it 20 million=20
times. Instead, it transmits the content to=20
Akamai=92s servers and then users download the=20
files from the Akamai server that=92s topologically=20
closest to them on the network. Which brings me=20
to the network neutrality point: how would a=20
network neutrality rule regard this sort of=20
scheme? After all, Akamai already does precisely=20
what NN advocates fret about: they allow big=20
companies to pay for their content to get to=20
consumers faster. It seems to me that=92s=20
indisputably a good thing in this case, but it=92s=20
not clear how the FCC would regard it when=20
applying a NN rule. Would a network neutrality=20
rule forbid Comcast from signing deals with=20
content companies to cache their content locally=20
for faster delivery? If so, is that a good thing or a bad thing?
http://www.techliberation.com/archives/038724.php

AS FREEDOM SHRINKS, TEENS SEEK MYSPACE TO HANG OUT
[SOURCE: Reuters, AUTHOR: Jill Serjeant]
Although originally aimed at 20-somethings=20
interested in independent music, Web sites like=20
MySpace.com, which is owned by News Corp, have=20
attracted an enormous following among middle=20
school students, and cultural theorists say it's=20
not hard to see why. As the real world is=20
perceived as more dangerous with child abductors=20
lurking on every corner, kids flock online to=20
hang out with friends, express their hopes and=20
dreams and bare their souls with often painful=20
honesty -- mostly unbeknownst to their=20
tech-clumsy parents. "We have a complete culture=20
of fear," said Danah Boyd, 28, a Ph.D student and=20
social media researcher at the University of=20
California Berkeley. "Kids really have no place=20
where they are not under constant surveillance."=20
Driven to and from school, chaperoned at parties=20
and often lacking public transport, today's=20
middle-class American kids are no longer free to=20
hang out unsupervised at the park, the bowling=20
alley or to bike around the neighborhood they way=20
they did 20 years ago. "A lot of that=20
coming-of-age stuff in public is gone. So kids=20
are creating social spaces within all this controlled space," said Boyd.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-05-11T122933Z_01_N09287157_RTRUKOC_0_US-LIFE-MYSPACE.xml&archived=
=3DFalse

IN THE STATES

AT&T, CONSUMER ADVOCATE AGREE ON DEREGULATION IN ILLINOIS
[SOURCE: Chicago Tribune, AUTHOR: Jon Van jvan( at )tribune.com]
A deal enabling AT&T to deregulate consumer phone=20
service in Illinois was reached Wednesday with=20
the Citizens Utility Board that includes a=20
four-year rate freeze available to residential=20
customers for basic service. If approved by the=20
Illinois Commerce Commission the deal would also=20
require AT&T to expand availability of its=20
high-speed Internet connections using digital=20
subscriber lines to 99 percent of Chicago-area=20
customers. Under terms of the settlement the ICC=20
would retain some oversight of consumer phone=20
rates, even though it would give up the close=20
regulatory control it now has. "When you compare=20
it to what's happened in nearby states, this deal=20
is infinitely better for the Illinois consumers,"=20
said David Kolata, CUB executive director. The=20
agreement virtually assures that deregulation of=20
consumer phone rates in Illinois will take place,=20
meaning the marketplace will set phone rates=20
without any approval required from regulators.=20
Deregulation is a trend across the country,=20
brought on by the rise of cable=20
television-provided phone service and the=20
popularity of mobile phones. Last year AT&T, the=20
dominant phone company in Illinois, declared its=20
traditional residential phone service to be=20
competitive, a move that effectively removes most=20
state regulatory controls. The Illinois Commerce=20
Commission is scheduled to decide whether to=20
approve the deregulation by later this summer.=20
Regulatory bodies in Indiana, Wisconsin,=20
Michigan, Ohio, Missouri and elsewhere have=20
already approved similar deregulation.
http://www.chicagotribune.com/technology/chi-0605110206may11,1,2123358.s...
y?coll=3Dchi-business-hed

CONNECTICUT AG OPPOSES DPUC's IPTV RULING
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
Connecticut's attorney general will actively=20
oppose the planned ruling by the state's utility=20
regulators that would green-light AT&T Inc.'s=20
rollout of Internet-protocol TV without=20
cable-type franchising. The draft decision,=20
scheduled for a final vote early in June, also=20
concluded that AT&T's plan to select communities=20
in which it will serve does not discriminate.=20
It's a legitimate business practice that was used=20
by incumbent cable operators when they rolled=20
out, the panel wrote. But Attorney General=20
Richard Blumenthal said self-selection will allow=20
AT&T to cherry-pick only wealthy Connecticut residents.
http://www.multichannel.com/article/CA6333851.html?display=3DBreaking+News

BROADCASTING

UNIVERSAL MUSIC SETTLES CLAIMS OVER RADIO PLAY
[SOURCE: Wall Street Journal, AUTHOR: Ethan Smith ethan.smith( at )wsj.com]
New York Attorney General Eliot Spitzer fired the=20
latest salvo in his battle against corrupt=20
practices in the music industry, announcing a $12=20
million settlement with Universal Music Group in=20
a probe involving payola allegations. Spitzer's=20
office produced emails and other documentation=20
that showed Universal executives agreeing to give=20
radio programmers computers, travel, concert=20
tickets and other inducements in exchange for=20
specific amounts of airplay for specific songs.=20
That practice is illegal under decades-old laws=20
against payola. Although other behavior that was=20
detailed, such as buying ad time and using it to=20
play songs, are less clearly violations of the=20
law, Universal nonetheless agreed to discontinue=20
such practices. Many of the transactions cited=20
depict radio station employees soliciting goods=20
from Universal employees in exchange for airplay.=20
But they also depict Universal employees as=20
complicit. In an internal email exchange, one=20
Universal executive tells another to produce two=20
"good" U2 tickets for radio station executives=20
and to give "cheaper" ones to listeners who won a=20
contest. The Federal Communications Commission=20
has launched its own pay-for-play investigation.
http://online.wsj.com/article/SB114737907462850504.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* Universal Music Settles Big Payola Case
http://www.nytimes.com/2006/05/12/business/12payola.html
* Universal Fined a Record to Settle Payola Claims
http://www.latimes.com/news/printedition/front/la-fi-uni12may12,1,725182...
tory?coll=3Dla-headlines-frontpage

TELEVISA ENLISTS EQUITY FUNDS FOR UNIVISION BID
[SOURCE: Wall Street Journal, AUTHOR: John Lyons=20
john.lyons( at )wsj.com and Dennis K. Berman]
Mexican broadcaster Grupo Televisa SA's efforts=20
to structure a bid for U.S. Spanish-language=20
broadcaster Univision Communications Inc. are=20
coming into focus, as Televisa has formed an=20
alliance with a group of private-equity funds.=20
After weeks of negotiations, Televisa, Mexico's=20
biggest broadcaster, has teamed up with Bain=20
Capital Inc., Carlyle Group LP, Kohlberg Kravis=20
Roberts & Co. and Blackstone Group to make a=20
formal offer for Univision as early as last=20
night. The Televisa-led bid probably isn't the=20
only offer in the works, setting the stage for a=20
possible bidding war. The private-equity arm of=20
Goldman Sachs Group Inc., Texas Pacific Group and=20
Thomas H. Lee Partners are also weighing a bid.=20
Not everyone thinks the $12 billion or more=20
Univision may fetch is a good deal. Several big=20
U.S. media companies, including Time Warner Inc.=20
and CBS Corp., have appeared to shy away from=20
making a bid after showing early interest. In=20
part, that is because some analysts question how=20
much the market for Spanish-language television=20
will grow because they say the children of=20
Spanish-speaking immigrants often prefer to watch television in English.
http://online.wsj.com/article/SB114740127884251040.html?mod=3Dtodays_us_...
e_one
(requires subscription)
* Televisa Teams Up in Bid for Univision
(http://www.latimes.com/business/printedition/)
(requires registration)

KQED-KTEH MERGER IS A WELCOME MOVE
[SOURCE: San Jose Mercury News, AUTHOR: Editorial Staff]
[Commentary] The board of San Jose public=20
television station KTEH has made the wise,=20
perhaps destined, decision to merge with San=20
Francisco's KQED to create Northern California=20
Public Broadcasting. In giving up local control,=20
the station will gain more resources, which=20
should result in more local programming -- a=20
vital ingredient that's been missing for some=20
time. KTEH, which will keep its call letters and=20
its production facility in San Jose, can serve=20
the South Bay better as a strong affiliate than=20
as a weak independent station. With one-fifth the=20
membership and one-sixth the budget and staff of=20
KQED, KTEH hasn't fully tapped into the dynamism=20
and wealth of Silicon Valley. Its loyal audience=20
had to be satisfied with how-to shows and British=20
comedies. Meanwhile, KTEH has been sitting on an=20
undervalued asset: spectrum. There will be=20
efficiencies in combining operations, but the big=20
advantage will be in marketing one PBS affiliate=20
for the region. KQED hasn't shopped much for=20
members and donors in the South Bay, in deference=20
to KTEH. Corporations and viewers in the valley=20
that have balked at donating to what they=20
considered a superfluous station might now=20
contribute to a bigger operation that includes a=20
Silicon Valley focus. The new organization fully=20
intends to produce more local programs, says KTEH=20
Chairman John Michael Sobrato.
http://www.mercurynews.com/mld/mercurynews/news/opinion/14557671.htm

QUICKLY

PHILADELPHIA OKs WIRELESS INTERNET PROJECT
[SOURCE: Associated Press]
The City Council on Thursday unanimously approved=20
a plan to blanket the city's 135 square miles=20
with a high-speed wireless Internet connection, a=20
measure the mayor is expected to sign soon. If=20
the system is fully deployed by the third quarter=20
of 2007 as planned, Philadelphia would be the=20
first large city to have its own wireless=20
Internet network. EarthLink Inc. will build,=20
operate and maintain the network under a 10-year contract.
http://www.mercurynews.com/mld/mercurynews/business/technology/14561697.htm

BLOGGERS STRIKE BACK
[SOURCE: AlterNet, AUTHOR: Glenn Greenwald]
[Commentary] Reporting from the blogosphere has=20
already changed the face of politics, journalism=20
and even publishing. And the changes have only just begun.
http://www.alternet.org/mediaculture/36100/
* Liberal Bloggers' 'Patriot' Act
Left-leaning bloggers help propel S.F.=20
publisher's book to the top of the Amazon best-seller chart.
http://sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2006/05/12/BLOGBOOK.TMP

CARU TARGETS TOY TOUTER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
CARU, The Better Business Bureau's children's=20
advertising review unit, has asked toy company=20
MGA, makers of the Bratz Babyz and Ponyz lines to=20
modify their TV ads to clarify the limitations of=20
their toys. At issue was a picnic sequence where=20
the dolls are depicted moving without assistance=20
and show a camera and cake that are not sold with=20
the doll. The company agreed to take the=20
suggestion into account for any future ads, but=20
said it does not agree with portions of the=20
decision. CARU's findings are not binding, though=20
it can refer companies to the Federal Trade Commission.
http://www.broadcastingcable.com/article/CA6333881?display=3DBreaking+News

President Bush intends to appoint Arthur E.=20
Johnson and Walter B. McCormick, Jr. to be=20
Members of the President's National Security=20
Telecommunications Advisory Committee. McCormick=20
is CEO of the United States Telecom Association.=20
Johnson is a senior vice president at Lockheed Martin.
http://www.whitehouse.gov/news/releases/2006/05/20060511-3.html
--------------------------------------------------------------
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.
--------------------------------------------------------------