May 2006

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UPDATE ON LEGISLATION
House Telecom Bill Stalls Over 'Net Neutrality' Vote
Stevens Introduces Comprehensive Telecom Reform Bill
Senate Republicans Draft Huge Telecom Bill
Stevens Bows Sweeping Telecom Bill
Keeping a Democratic Web
PTC Slams Stevens on Smut Non-Bill

BROADCAST/CABLE TV
Groups Push CPB For More Changes
Viewers Favor Unfettered Cable Programming
CPB and PBS Announce Major Grant for NOVA

QUICKLY -- Microsoft and Google Set to Wage Arms Race; Intel Aims to
Bridge Digital Divide; Group Sues Video Firms On Tot-Learning Claims;
MediaNews to Pay for Most of McClatchy Deal; Chinese Internet
activists challenge censorship; Cities deploying Wi-Fi face
challenges; Bedford Park, Illinois: Free DSL for All

UPDATE ON LEGISLATION

HOUSE TELECOM BILL STALLS OVER 'NET NEUTRALITY'
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
Legislation to grant Bell telephone companies quick entry into the
pay-television market will not be on the House floor this week, aides
to Majority Leader John Boehner (R-OH) confirmed. The House Judiciary
Committee has sought a referral of the bill, particularly for its
"network neutrality" language. The delay is likely to work to
Judiciary's advantage. Committee Chairman James Sensenbrenner (R-WI)
and ranking member John Conyers (D-MI) have drafted their own version
of net neutrality legislation, which they are expected to release
this week. "Judiciary has requested jurisdiction on it, and the
parliamentarians are getting ready to wade in," said Kevin Madden, an
aide to Rep Boehner. The House leadership wants to "let these kind of
events play out first." Congressional and industry sources said
Republican leaders are worried that voting against a network
neutrality amendment -- one that would keep dominant Bell and cable
companies from charging competitors more to transmit high-speed
Internet content -- could be a political liability. Some technology
companies and public-interest groups want FCC-enforceable regulations
barring Bell and cable companies from undermining neutrality. "We are
trying to explain that a vote for a telecom bill that does not
address the issue of network neutrality in any way is a very
difficult vote politically, closer to the election, for Republicans,"
said former Rep. Vin Weber, R-Minn., who was hired by technology
companies to lobby his former colleagues on the subject. "There is
huge grassroots constituency for the net neutrality position: all
sorts of Internet users," said Weber. "It is a big and powerful
constituency, but it is not necessarily an organized constituency. I
would not like to cast a vote that can be portrayed by bloggers and
others as a vote against the Internet."
http://www.njtelecomupdate.com/lenya/telco/live/tb-OWOW1146513301117.html
* TV Lobby Supports Barton-Rush Cable Plan/ Deals between
AT&T/Verizon and Stations Reflect Net Neutrality Concerns
[SOURCE: Digital Democracy, AUTHOR: Jeff Chester]
[Commentary] Don't expect much coverage by local TV station news
departments on the plan to kill-off community franchising of cable.
The powerful National Association of Broadcasters (NAB) supports AT&T
and Verizon's quest to dump local cable oversight. That's because the
telco's are doling out money and probably special broadband favors to
both stations and the networks. The phone companies desperately need
programming; the broadcast industry wants cash. Last month, Verizon
announced a deal with CBS that likely gave the network lots of money
for its programming and a way it "can use the bandwidth and
flexibility of [Verizon's FIOS] fiber network to reach their
customers in innovative ways."
http://www.democraticmedia.org/jcblog/?p=35
* Ohio Digital Divide Working Group on COPE
http://angelastuber.blogspot.com/2006/05/cope-act-talking-points-and-bro...

STEVENS INTRODUCES COMPREHENSIVE TELECOM REFORM BILL
[SOURCE: US Senate Commerce Committee press release]
On Monday, Senate Commerce Committee Chairman Ted Stevens (R-Alaska)
introduced S.2686, the Communications, Consumer's Choice, and
Broadband Deployment Act of 2006. The legislation, which consists of
10 separate titles, aims to reform existing communications laws to
promote competition, cost savings for consumers, and the speedy
deployment of broadband services to all Americans. Co-Chairman Daniel
Inouye (D-Hawaii) co-sponsored the bill. The Committee will take up
the bill during a two-step process. First, the Committee will hold
two public hearings to consider the bill. Following this period of
review, the Committee will hold an Executive Session after the
Memorial Day recess to markup the legislation. Hearing dates and the
Committee markup of the bill are to be determined. Broadcasting&Cable
reports that Sen Inouye apparently doesn't like the bill that much.
"Today, I have agreed to co-sponsor telecommunications legislation
introduced by Senator Stevens," he said in a statement. "I do so in a
spirit of bipartisanship, because I believe that bipartisanship will
be required if we are to successfully update our nation's
communications laws. My co-sponsorship, however, is not a
demonstration of support for the bill itself. This is the draft of
the Majority Staff, and I have numerous, substantive objections to
the bill in its current form. Given that my colleagues and I have not
yet had an opportunity to weigh in on this critical legislation, I
consider its introduction the very beginning of the legislative
process. " Sen Inouye feels the network neutrality language in the
Senate bill does not go far enough in protecting the Internet from
discrimination in service provision by networks, the same criticism
leveled by Democrats at the House bill, though that one passed with
strong Democrat support anyway.
http://commerce.senate.gov/newsroom/printable.cfm?id=254996
* Text of bill: http://commerce.senate.gov/pdf/06telcom.pdf
* Title by Title summary:
http://commerce.senate.gov/pdf/Telecom%20bill%20title%20by%20title.pdf
* Sen Stevens' statement: http://commerce.senate.gov/pdf/floorstatement.pdf
* Benton will track the bill's progress at:
http://www.benton.org/index.php?q=node/2173

SENATE REPUBLICANS DRAFT HUGE TELECOM BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Key provisions include making cable pay into the Universal Service
Fund for high-speed Internet service; allowing unlicensed devices to
operate in the broadcast band; mandating nondiscriminatory access to
sports programming; and reinstating the FCC's audio and video flag
rules, with caveats to take care of fair use distribution. Those
include carve-outs for "timely: news and public affairs and distance
learning. The bill includes a number of DTV-related issues that could
not be included in a DTV hard date bill due to Senate rules. They
include requiring labels on TV sets that can't receive a digital
signal and allowing cable operators to convert a digital signal to
analog for customers who don't have digital sets. The bill also
directs the FCC to develop rules requiring video service providers to
"prevent the distribution of child porn." Last, but not least, it
would allow fewer than the full complement of sitting FCC
commissioners to talk among themselves so long as there was at least
one member of the minority party present. Currently, FCC
commissioners can't meet in smaller groups.
http://www.broadcastingcable.com/article/CA6330240?display=Breaking+News
* USTelecom Statement:
Senators Stevens and Inouye have crafted legislation that will bring
real video choice, put consumers in charge of the dynamic
communications market and address the future of the nation's
universal service system. The bill's introduction today is a
significant step toward meaningful reform and we look forward to
working with both the Senate and House to enact legislation this year."
http://www.ustelecom.org/news_releases.php?urh=home.news.nr2006_0501

STEVENS BOWS SWEEPING TELECOM BILL
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Unlike the House bill, the Stevens legislation doesn't establish a
national video franchise, although it would set a 30-day deadline for
local governments to decide on an application by a phone or cable
company to offer local video service. AT&T -- which, along with
Verizon, has been urging Congress to eliminate local franchising --
praised the Stevens bill but did not endorse it, probably because the
measure did not allow new cable entrants to bypass the local approval
process and avoid explicit buildout requirements. In a little-noticed
provision, the Stevens bill would eliminate cable-rate regulation.
Currently, local governments cap the basic-cable rates of cable
operators that do not face effective competition, which generally
means that EchoStar Communications Corp. and DirecTV Inc. have less
than 15% penetration or a phone company has not entered the market to
offer pay TV.
http://www.multichannel.com/article/CA6330262.html?display=Breaking+News
* Phone Firms' Bid To Ease Cable Push Hits Senate Snag
http://online.wsj.com/article/SB114653250430341105.html?mod=todays_us_pa...
(requires subscription)
Bill on Video Franchises Introduced
[SOURCE: Washington Post, AUTHOR: Arshad Mohammed]
Regulatory analysts said they thought there was a less than 50-50
chance of telecom legislation becoming law this year because of the
range of issues addressed by the Senate bill, the potential
difficulty of reconciling it with the narrower House version passed
last week and the short legislative calendar ahead of the November
midterm elections. Paul L. Glenchur, who tracks telecom regulatory
developments for the Stanford Washington Research Group, said it will
be tough to get a law enacted this year. "There are plenty of things
working against it, but I think people dismiss the notion that this
could actually pass at their peril," he said.
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/01/AR200605...
(requires registration)
* Net neutrality missing from telecom bill
http://news.com.com/Net+neutrality+missing+from+telecom+bill/2100-1028_3...

KEEPING A DEMOCRATIC WEB
[SOURCE: New York Times, AUTHOR: Editorial Staff]
[Commentary] "Net neutrality" is a concept that is still unfamiliar
to most Americans, but it keeps the Internet democratic. Cable and
telephone companies that provide Internet service are talking about
creating a two-tiered Internet, in which Web sites that pay them
large fees would get priority over everything else. Opponents of
these plans are supporting Net-neutrality legislation, which would
require all Web sites to be treated equally. Net neutrality recently
suffered a setback in the House, but there is growing hope that the
Senate will take up the cause. The House Energy and Commerce
Committee defeated a good Net-neutrality amendment last week. But the
amendment got more votes than many people expected, suggesting that
support for Net neutrality is beginning to take hold in Congress. In
the Senate, Olympia Snowe, a Maine Republican, and Byron Dorgan, a
North Dakota Democrat, are drafting a strong Net-neutrality bill that
would prohibit broadband providers from creating a two-tiered
Internet. Senators who care about the Internet and Internet users
should get behind it.
http://www.nytimes.com/2006/05/02/opinion/02tue3.html
(requires registration)

PTC SLAMS STEVENS ON SMUT NON-BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Parents Television Council reacted Monday to the news that Senate
Commerce Committee Chairman Ted Stevens (R-Alaska) had no plans to
bring up an indecency bill in his committee until industry
self-regulation has been given a chance to work. In a statement, PTC
President Brent Bozell accused Sen Stevens of "holding the popular
legislation as a political hostage instead of protecting children
from the graphic sex, violence and foul language that can be found on
broadcast television." "We are not advocating a specific piece of
legislation," PTC spokesman Dan Isett said. Why not let the industry
self-regulation efforts play out? "I think the industry has been very
clear about their idea of self-regulation," he said. "It is to file
suit, claiming they should have the ability to air the "f" and "s"
words anytime of day, no matter who is watching."
http://www.broadcastingcable.com/article/CA6330308?display=Breaking+News
See also --
* Christian Coalition Sends Martin Thank-You Note
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Christian Coalition has asked its members to send FCC Chairman
Kevin Martin a thank-you note for the FCC's recent proposed indecency
fines, among other things. "Chairman Martin has done a tremendous job
in enforcing the indecency rules, such as proposing a record $3.6
million fine against dozens of CBS stations and affiliates for
indecency on television," the group says.
http://www.broadcastingcable.com/article/CA6330194?display=Breaking+News

BROADCAST/CABLE TV

GROUPS PUSH CPB FOR MORE CHANGES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Corporation For Public Broadcasting board is meeting this week,
in part to consider proposed changes in the wake of an Inspector
General's report finding problems with its governance. Common Cause
and Center for Digital Democracy give CPB credit for some "important
steps to ending political tests in hiring and offering protection to
whistle-blowers," but say that in other areas, CPB "appears unwilling
to make changes that would ensure more transparency and
accountability." The groups say that on April 7, a board subcommittee
rejected financial disclosure requirements. "It appears that the
current CPB board leadership isn't interested in serious governance
rules," the group said in a statement Monday. The full board was
scheduled to consider those requirements yesterday. The board is
scheduled to vote on a boatload of measures to update and strengthen
governance and external controls at the nonprofit corporation, which
oversees the distribution of government funds to noncommercial TV and radio.
http://www.broadcastingcable.com/article/CA6329987?display=Breaking+News
* CPB's Proposed Reforms Fall Short
http://www.democraticmedia.org/news/CPBpr4.html

VIEWERS FAVOR UNFETTERED CABLE PROGRAMMING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Almost two thirds of respondents in a new poll say the government
should keep its hands off cable programming, while almost half say
that cable is "rarely or almost never objectionable." That is
according to a just-released Arbitron study on the "Consumer's
Relationship with Cable TV." The "government hands off" number is
even higher for premium channels like HBO and Showtime, with 77%
saying that programming should be unrestricted. A majority, 54%, say
they want to be able to assemble their own channel lineups (a la
carte), while 42% say they would opt for the current model. More
people (47%) would prefer ad-supported free video-on-demand (VOD)
content than to pay even a small fee (99 cents, say), per show for ad-free VOD.
http://www.broadcastingcable.com/article/CA6330065?display=Breaking+News

CPB AND PBS ANNOUNCE MAJOR GRANT FOR NOVA
[SOURCE: Corporation for Public Broadcasting press release]
The Corporation for Public Broadcasting (CPB) and PBS (Public
Broadcasting Service) today announced that NOVA -- the most-watched
documentary series on PBS -- will receive funding of approximately $4
million over two years. The funds will support new episodes, an
expanded Web site, and other elements of a strategic plan intended to
build viewership and strengthen support for the program. NOVA is the
highest-rated science series on television and the most-watched
documentary series on public television; it also is the most visited
Web site on PBS.org. Now in its 33rd broadcast season on PBS, it is
one of the medium's most celebrated series, having won every major
industry award, most of them many times over, from the Emmy to the
Peabody. The $27 million Opportunity Fund was designed to help
strengthen PBS core primetime series in accordance with CPB audience
research and strategic priorities. The first grant, made in October
2005, went to WGBH Boston's MASTERPIECE THEATRE.
http://www.cpb.org/pressroom/release.php?prn=537

QUICKLY

MICROSOFT AND GOOGLE SET TO WAGE ARMS RACE
[SOURCE: New York Times, AUTHOR: Steve Lohr & Saul Hansell]
The rivalry between Microsoft and Google is growing more combative,
and with good reason: the outcome is likely to shape the future of
competition in computing and the way people use information
technology. A measure of how seriously Microsoft takes the challenge
came last Thursday when it announced that its spending would rise
sharply next year, about $2 billion higher than previous estimates.
Much of the extra money, analysts say, is going to meet the threat
from companies offering advertising-supported Internet services and
software, led by Google. To succeed, Microsoft has to make strong
inroads into Internet services and software, where Google is a
leader. Microsoft enters that battle from a stronghold: its
lucrative, powerful business in personal computer software. Google
has asserted that Microsoft's next Web browser typically steers users
to Microsoft's search service, limiting consumer choice and
potentially hurting Google, the leading Internet search engine.
http://www.nytimes.com/2006/05/02/technology/02google.html
(requires registration)

INTEL AIMS TO BRIDGE DIGITAL DIVIDE
[SOURCE: Wall Street Journal, AUTHOR: Don Clark don.clark( at )wsj.com]
Intel is pledging to invest $1 billion over five years to help
provide broader access to technology and educational resources in
developing countries. The big U.S. chip maker said the program,
called World Ahead, combines projects the company has funded
previously with new activities -- all aimed at giving people in
developing countries more access to computers and the Internet. Intel
said the program has three primary goals: to design affordable
computers that are tailored to needs of developing regions; to make
high-speed Internet access more ubiquitous, in some cases through use
of a wireless technology called WiMAX, and to provide training to
teachers and students on the use of information technology. As part
of World Ahead, Intel said it plans to donate 100,000 PCs for use in
classrooms in developing nations. The company had already been
spending about $100 million a year on educational programs. The
company has trained about three million teachers so far in the use of
technology, and plans to train 10 million more over five years as
part of the World Ahead program.
http://online.wsj.com/article/SB114652603653140919.html?mod=todays_us_ma...
(requires subscription)
* Intel to Offer Its Own Plan for Global Internet Access
http://www.nytimes.com/2006/05/02/technology/02chip.html
* Tech rivals target the world's poor
http://www.mercurynews.com/mld/mercurynews/business/technology/14479435.htm

GROUP SUES VIDEO FIRMS ON TOT-LEARNING CLAIMS
[SOURCE: Washington Post, AUTHOR: Caroline E. Mayer]
The Campaign for a Commercial-Free Childhood filed a complaint with
the Federal Trade Commission, saying Baby Einstein Co. and Brainy
Baby Co. should not be able to say their products inspire "logical
thinking," foster "the development of your toddler's speech and
language skills," or give "your child a jumpstart on learning." The
group said the claims are deceptive, since there is no proof that
these increasingly popular videos are beneficial and educational. In
fact, it said, "research shows that television viewing is potentially
harmful for infants and toddlers," because it could adversely affect
cognitive development if it replaces creative play and interaction
with a child's parents and surroundings.
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/01/AR200605...
(requires registration)

MEDIANEWS TO PAY MOST FOR MCCLATCHY DEAL
[SOURCE: Los Angeles Times, AUTHOR: Joseph Menn]
William Dean Singleton's MediaNews Group Inc. is putting up most of
the $1 billion that it and Hearst Corp. are spending to buy four
newspapers from McClatchy Co., regulatory filings showed Monday.
Denver-based MediaNews is paying $737 million to McClatchy for the
San Jose Mercury News and the Contra Costa Times. Hearst will spend
$263 million for the Monterey County Herald and the St. Paul Pioneer
Press in Minnesota. All four papers are now owned by Knight Ridder
Inc., and Sacramento-based McClatchy is selling those and other
publications as it buys Knight Ridder. As previously reported, Hearst
plans to trade its two papers to MediaNews for 20% to 30% of
MediaNews' publications outside the Bay Area. MediaNews will end up
with 11 daily papers surrounding San Francisco and a financial
alliance with Hearst, which owns Singleton's largest remaining Bay
Area competitor, the San Francisco Chronicle. MediaNews, which will
become the fourth-largest U.S. chain by circulation after the deal is
completed, is privately held, mostly by the families of Singleton --
the chef executive -- and the company's chairman, Richard Scudder.
http://www.latimes.com/business/printedition/la-fi-mcclatchy2may02,1,109...
(requires registration)

CHINESE INTERNET ACTIVISTS CHALLENGE CENSORSHIP
[SOURCE: Reuters, AUTHOR: Chris Buckley]
A coalition of Chinese Web activists has launched a petition decrying
censorship of the Internet and challenging the legality of government
information controls on China's more than 100 million net users.
Hundreds of citizens signed the petition along with representatives
of 13 local Chinese Web sites recently closed or targeted by censors.
It began circulating on Saturday via email and overseas
Chinese-language Web sites unaffected by domestic censorship. The
signatories said China's constitution grants citizens freedom of
expression and publication, and those rights "should be respected and
protected, and should not be subject to any unlawful restrictions and
obstructions."
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID...

CITIES DEPLOYING WI-FI FACE CHALLENGES
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
The number of cities interested in building their own wireless
networks is on the rise, but judging from the few cities that have
begun offering service, deploying a citywide Wi-Fi network is more
complicated than it may first appear.
http://news.com.com/Cities+deploying+Wi-Fi+face+challenges/2100-7351_3-6...

BEDFORD PARK, ILLINOIS: FREE DSL FOR ALL
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
Bedford Park, Ill., says it will give digital-subscriber line service
to any of its 520 residents who want it. The service will be paid for
from city coffers. Village president David Brady said he hopes 100
residents will take the community up on its offer. The cost: $31,000
a year, he said. The winner in the deal? Local consumers, who get
tax-supported high-speed data service, and AT&T Inc., which has
contracted to provide the service as if Bedford Park were just
another bulk account. The loser? Comcast Corp., the town's cable
provider and a high-speed data competitor. The village president said
city officials wanted something to improve educational opportunities
for local kids, give residents a sense of pride and help the
community compete for potential home buyers.
http://www.multichannel.com/article/CA6329764.html?display=Top+Stories
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