May 2006

** All eyes are on the House this week to see=20
what happens next with COPE, but their are other=20
policy events on this week's agenda: the CPB=20
board meets today and tomorrow; the National=20
Journal is hosting a telecom policy panel=20
Tuesday; the FCC holds an open meeting Wednesday;=20
the House Commerce Committee is holding a hearing=20
"Digital Content and Enabling Technology:=20
Satisfying the 21st Century Consumer;" and the=20
New America Foundation hosts "Strengthening=20
America=92s Competitive Edge Through Investment in=20
Advanced Technology Tools for Learning."
For these and other upcoming media policy events, see http://www.benton.org=
**

LEGISLATION/NEWS FROM CONGRESS
Local Governments Urge Congress to Vote 'No' on COPE
Antitrust Law Aimed at Net Neutrality
Senate Preps Telecom Rewrite
It is Too Soon to impose Net Neutrality
Capitol Hill Joins Criticism of Smithsonian Film Deal
Congress may consider mandatory ISP snooping
Upton Resists Cyren Call

BROADCASTING/CABLE
Politics On-Demand
Are Video News Releases All Bad?
FTC To Start Naming Bogus Ad Broadcasters
TV Wants Clear Rules on What's a Bad Word
Media Institute Backs Indecency Challenge
Spectrum Shift Sprints to Finish Line
Local Flavor
The View From Sesame Street
Production Days for 'Reality' TV Soar
Networks push online package for TV ads

QUICKLY -- Rhode Island embarks on wireless=20
network; Level 3 Buys TelCove for $1 Billion; AT&T Helps CA Dems Raise Money

LEGISLATION/NEWS FROM CONGRESS

LOCAL GOVERNMENTS URGE CONGRESS TO VOTE 'NO' ON COPE
[SOURCE: National League of Cities press release]
The telecom reform bill, as it now stands, will,=20
in effect, silence the voices of consumers and=20
local governments. If enacted, consumers will be=20
at the mercy of telecommunication giants and the=20
federal government when faced with concerns about=20
their television and advanced Internet=20
services. This measure leaves the door wide open=20
for service providers to pick and choose which=20
neighborhoods get premium services and which get=20
no service at all. Local governments continue to=20
urge Congress to protect our taxpaying consumers=20
and maintain local government oversight of=20
service providers. We urge them to vote "no" on=20
the COPE bill when it comes before the=20
House. Specific concerns are: 1) The bill strips=20
local governments of their authority to franchise=20
the use of public rights-of-way for video/cable=20
services and gives that authority to the federal=20
government. The FCC has never had the authority=20
to regulate local public rights-of-way and has no=20
expertise concerning local streets, sidewalks,=20
public safety or traffic patterns. 2) The bill=20
gives the federal government the authority to=20
oversee and second-guess all local rights-of-way=20
management practices and all customer service=20
issues. 3) The bill allows broadband-video=20
service providers to pick and choose which=20
neighborhoods they want to serve while bypassing=20
all others completely. The bill would even allow=20
broadband/video providers to avoid maintaining or=20
upgrading facilities in poorer neighborhoods=20
while affluent neighborhoods receive cutting-edge services and lower prices.
http://www.nlc.org/Newsroom/Press_Room/9752.cfm
* As Fight Against Telco/Cable Net Monopoly Looms=20
for House Floor, the Barton-Rush Bill Should Be Scuttled
http://www.democraticmedia.org/jcblog/?p=3D33

ANTITRUST LAW AIMED AT NET NEUTRALITY
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Reps. Rick Boucher (D-VA) and Zoe Lofgren (D-CA),=20
members of the House Judiciary Committee, are=20
drafting a bill designed to impose antitrust=20
penalties on broadband-access providers that=20
attempt to demand fees from Web-content providers=20
in exchange for priority treatment of their=20
search, shopping and information-retrieval=20
services. Depending on how the bill is written,=20
antitrust violations can carry criminal or civil=20
penalties, including prison terms for criminal=20
violations and heavy fines for civil offenses.
http://www.multichannel.com/article/CA6329736.html?display=3DBreaking+News

SENATE PREPS TELECOM REWRITE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
During a two-week Congressional break earlier=20
this moth, Senate Commerce Committee staffers=20
were busy scrambling drafting the panel's version=20
of telecommunication reform legislation. A vote=20
by the Committee on the bill could come in the=20
next two or three weeks. Considered certain to be=20
in the bill is video-franchising reform, the key=20
provision of the narrower version the House=20
Commerce Committee overwhelmingly passed last=20
week. Also expected to be in the Senate bill is=20
network neutrality, or preventing telcos from=20
discriminating against Internet content=20
providers, although the language is not likely to=20
be as strong as some activists would like. Other=20
provisions likely to be included: municipal=20
broadband (which is also in the House version),=20
universal service, and allowing unlicensed=20
wireless devices to use broadcast spectrum.
http://www.broadcastingcable.com/article/CA6329734?display=3DNews

IT IS TOO SOON TO IMPOSE NET NEUTRALITY
[SOURCE: Financial Times, AUTHOR: John Gapper]
[Commentary] Central control of the Internet need=20
not go hand-in-hand with increased download=20
speeds. Regulators can prevent the obvious abuses=20
and the blanket imposition of a net neutrality=20
rule immediately would have unpredictable=20
consequences. The first priority for the US is to=20
push enough investment into fibre-optic lines to=20
create the kind of high-speed Internet that is=20
becoming widespread in countries across Asia and=20
Europe. Despite some of the rhetoric, the=20
Internet already has slower and faster lanes.=20
Companies such as Ebay and Google plug into it=20
through big pipes and store their data on servers=20
around the world so that their pages load more=20
rapidly. Telecoms companies exchange traffic in=20
order to make it travel faster than it would=20
through the public hubs that were the foundation=20
of the Internet. The =93best efforts=94 nature of=20
Internet architecture =96 all packets of data are=20
delivered as fast as they can be with no=20
discrimination =96 also works better for some=20
applications than others. It does not matter too=20
much if an e-mail is delayed by a split second or=20
a photograph takes a fraction longer to load. But=20
videos and films fare less well under these=20
egalitarian rules. They may run jerkily or freeze=20
if too much data is delayed. The best approach is=20
to give the telecom companies some leeway on net=20
neutrality now and watch to see the results over=20
the next few years. They have promised not to=20
block any Internet applications and services and=20
to ensure that all traffic is delivered as fast=20
tomorrow as it is today. But this is only a=20
start: to merit their newfound freedom, they must=20
do a great deal better than that.
http://news.ft.com/cms/s/0c39e582-d866-11da-9715-0000779e2340.html
(requires subscription)

CAPITOL HILL JOINS CRITICISM OF SMITHSONIAN FILM DEAL
[SOURCE: Washington Post 4/29, AUTHOR: Jacqueline Trescott]
Angered that the Smithsonian Institution sold a=20
television network access to its treasures=20
without consulting Congress, two influential=20
members of the House have asked for a public=20
airing of the business deal. Rep. Charles Taylor=20
(R-N.C.), chairman of the House subcommittee that=20
approves the federal appropriation to the=20
Smithsonian, and Rep. Norman D. Dicks (D-Wash.),=20
the ranking minority member of the subcommittee,=20
are also displeased that the institution refuses=20
to make the contract public. In a letter to=20
Smithsonian Secretary Lawrence Small, the=20
congressmen warned that they are monitoring all=20
future agreements, especially ones that "appear=20
to essentially sell access to Smithsonian=20
resources." "The Subcommittee requests the Board=20
of Regents to immediately review this contract to=20
determine whether it violates the spirit if not=20
the letter of the Smithsonian Trust and to=20
consider changes to the contract which would=20
fully guarantee that its terms are limited to a=20
narrow set of programs," the letter said. Reps=20
Taylor and Dicks also said they objected to the=20
restrictions on "legitimate commercial filmmakers=20
who we believe have the right to reasonable=20
access to the collections and staff." In a=20
written response, released Friday night, Small=20
defended the venture and said the regents would=20
review the "issues you have raised regarding=20
reasonable access to collections and staff." He=20
argued that the television deal would bring the=20
Smithsonian to many more people than are able to=20
visit the Mall. "The venture provides an=20
unprecedented opportunity for the Smithsonian to=20
expand exponentially its ability to reach the=20
public with information about our collections and=20
activities, at no cost to us," he wrote. The=20
panel is currently considering a $644.4 million=20
appropriation for fiscal 2007. The Smithsonian=20
receives about 70 percent of its funds from the government.
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/28/AR200604...
2213.html
(requires registration)
* Criticism Of Showtime/Smithsonian Deal Mounts
http://www.broadcastingcable.com/article/CA6329777?display=3DBreaking+News

CONGRESS MAY CONSIDER MANDATORY ISP SNOOPING
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
It didn't take long for the idea of forcing=20
Internet providers to retain records of their=20
users' activities to gain traction in the=20
Congress. Last week, Attorney General Alberto=20
Gonzales gave a speech saying that data retention=20
by Internet service providers is an "issue that=20
must be addressed." Child pornography=20
investigations have been "hampered" because data=20
may be routinely deleted, Gonzales warned. Now,=20
in a demonstration of bipartisan unity, a member=20
of the Congressional Internet Caucus is preparing=20
to introduce an amendment -- perhaps during a=20
House of Representatives floor vote this week --=20
that would make such data deletion=20
illegal. Colorado Rep. Diana DeGette's (D)=20
proposal says that any Internet service that=20
"enables users to access content" must=20
permanently retain records that would permit=20
police to identify each user. The records could=20
not be discarded until at least one year after the user's account was close=
d.
http://news.com.com/Congress+may+consider+mandatory+ISP+snooping/2100-10...
3-6066608.html?tag=3Dhtml.alert
* See the amendment:
http://dw.com.com/redir?destUrl=3Dhttp%3A%2F%2Fenergycommerce.house.gov%...
08%2FMarkups%2F04262006%2Fdegette_001_XML.PDF&siteId=3D3&oId=3D2100-1028-60=
66608&ontId=3D1023&lop=3Dnl.ex

UPTON RESISTS CYREN CALL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Invoking disturbing images of the Air Florida=20
plane crash in Washington, 9/11, and Hurricane=20
Katrina and the emergency communications problems=20
associated with each, a communications company=20
called Cyren Call is asking the FCC to switch=20
gears on plans for UHF spectrum reclaimed from=20
broadcasters and allocate addition spectrum to=20
public safety. Cyren's plan would be to have the=20
public safety communications reservation be=20
assigned to a single, nationwide, interoperable=20
broadband network funded by private industry,=20
which would lease back some of that spectrum for=20
commercial use. Cyren is volunteering to be the=20
manager of that emergency communications network.=20
Congressman Fred Upton (R-MI), who chairs the=20
House Telecommunications Subcommittee that=20
oversees the FCC and has already designated the=20
700 Mhz band for public safety and commercial use=20
per the FCC's original plan, doesn't like the=20
change. "The DTV bill which Congress recently=20
passed will clear 24 MHz of spectrum for=20
critically important public safety interoperable=20
communications, provide $1 billion for new public=20
safety radios, enable the auctioning of valuable=20
spectrum for new wireless services for consumers=20
all across America, and bring in billions of=20
dollars to the federal treasury from those=20
auctions," said Rep Upton."The Cyren Call=20
proposal threatens to undermine that equation,=20
and for this reason I oppose it."
http://www.broadcastingcable.com/article/CA6329351?display=3DBreaking+News

BROADCASTING/CABLE

POLITICS ON-DEMAND
[SOURCE: Broadcasting&Cable, AUTHOR: Stewart Schley]
The last election year was a watershed for=20
political advertising on cable. Both George W.=20
Bush's and John Kerry's presidential campaigns=20
showered record sums on interconnects and local=20
cable systems late in the race. As another=20
election year heats up, cable advertising=20
managers are hoping that a full slate of=20
contests, increased viewership and new on-demand=20
advertising technologies will prove the adage=20
that all politics is local -- at least as far as=20
advertising is concerned. According to TNS Media=20
Intelligence's Campaign Analysis Group, spot-TV=20
sellers collected a record $1.27 billion in 2004,=20
more than half of which ($724 million) came from=20
non-presidential campaigns for federal, state and=20
local offices. (TNS Media didn't measure=20
local-cable advertising specifically). Radio and=20
newspaper advertising accounted for less than=20
$150 million in total political-ad spending. Even=20
without a presidential race this year, many=20
expect to see an increase of 10% or greater in=20
total political spending, propelled by the=20
tripling of gubernatorial races and the contests=20
for House of Representatives seats. Indeed, the=20
audience for cable ads has grown since the last=20
election, with significant chunks of TV viewers=20
migrating from broadcast-network affiliates. When=20
voters reelected Bush president in November 2004,=20
the aggregate share of prime time TV viewing=20
produced by ad-supported cable networks was 51.6=20
%, according to the Cabletelevision Advertising=20
Bureau's analysis of Nielsen Media Research data.=20
By November 2005, the share had climbed to 53.4%.=20
Cable operators also have grown more comfortable=20
with the regulatory vagaries of political=20
advertising well known to broadcast stations The=20
greater familiarity that account executives have=20
with unit-rate regulations and requirements for=20
making ad inventory available on equal terms to=20
candidates, the more likely candidates will do business.
http://www.broadcastingcable.com/article/CA6329696?display=3DSpecial+Report

ARE VIDEO NEWS RELEASES ALL BAD?
[SOURCE: Broadcasting&Cable, AUTHOR: Kevin E.=20
Foley, creator of "sponsored news content"]
[Commentary] A video news release apologist=20
argues that fake news is good news. "Times have=20
changed, and the commercial interests in=20
television today demand financial accountability=20
from news operations. With fewer resources at=20
their disposal, the pressure is on the producers=20
to fill airtime with newsworthy, informative and=20
even entertaining content. It=92s a daunting=20
challenge in many TV markets without outside=20
help. Indeed, one of the most common practices in=20
print journalism is to lift quotes and even=20
blocks of copy from press releases. Reporters=20
from local weekly newspapers to The New York=20
Times do it every day without ever disclosing to=20
the reader the source of the material. And you know what? Nobody cares."
http://www.broadcastingcable.com/article/CA6329692?display=3DOpinion

FTC TO START NAMING BOGUS AD BROADCASTERS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a speech last week, Federal Trade Commission=20
Chairman Deborah Platt Majoras praised the=20
broadcast and cable outlets who have made=20
"conscientious efforts" to screen out bogus=20
weight-loss spots and infomercials. She noted=20
that those efforts, according to 2004 data,=20
resulted in a precipitous drop in the number of=20
weight-loss ads being flagged for deceptive=20
claims (from 50% to 15%). But she says there has=20
been some "backsliding" since. She cited some=20
recent claims: "New Calorie-Busting Slimming=20
Pill Forces You to Lose Weight Without Diet or=20
Exercise"; and, "How I lost 41 Pounds in Less=20
than 2 Months Without Dieting." To insure against=20
that backsliding, she said "we are planning to=20
identify those media companies that disseminate=20
allegedly false ads. We will include the names of=20
these companies in our press releases announcing=20
an FTC action challenging those claims. In=20
addition," she said, "companies that disseminate=20
'Red Flag' claims [lose weigh without exercise,=20
cure cancer, etc.) may receive a formal letter=20
from the FTC reminding them of the Red Flags=20
campaign and telling them of the need to take steps to stop such backslidin=
g."
http://www.broadcastingcable.com/article/CA6329227?display=3DBreaking+News

TV WANTS CLEAR RULES ON WHAT'S A BAD WORD
[SOURCE: Los Angeles Times 4/30, AUTHOR: Jim Puzzanghera]
The legal battle that began this month between=20
the four major networks and the Federal=20
Communications Commission revolves around an=20
I-word that is disturbing in its own way to TV=20
executives: inconsistency. Why, they wonder, did=20
the FCC allow the F-word and the S-word in the=20
airing of Steven Spielberg's "Saving Private=20
Ryan," but rule that the same words in the Martin=20
Scorsese documentary, "The Blues: Godfathers and=20
Sons," were indecent? Why did the FCC say in=20
2003 that the F-word was OK if used as an=20
adjective, then several months later change=20
course and say there was no acceptable=20
grammatical construction? "At one time I could=20
explain indecency to you in seven words," said=20
Washington communications attorney John Crigler.=20
"Now I need seven volumes." Frustrated by that=20
growing complexity and confusion, the broadcast=20
TV networks showed rare unity in filing notices=20
of appeal April 14 alleging that a March 15=20
ruling by the FCC was unconstitutional. In so=20
doing, networks executives knowingly embarked on=20
what probably will be a long legal struggle. But=20
their goal =97 bringing more clarity to what they=20
describe as the increasingly blurry and outdated=20
world of federal indecency rules =97 was key,=20
several said, to assuring the continued viability=20
of the broadcast TV business.
http://www.latimes.com/business/printedition/la-fi-decency30apr30,1,5446...
.story?coll=3Dla-headlines-pe-business
(requires registration)

MEDIA INSTITUTE BACKS INDECENCY CHALLENGE
[SOURCE: Broadcasting&Cable, AUTHOR:John Eggerton]
Gee, big surprise here... media company-backed=20
think tank The Media Institute has come out in=20
support of judicial review of the FCC's=20
long-standing indecency policy. In response to=20
the lawsuits brought by the major broadcast=20
television networks and their affiliates's=20
against the FCC over its indecency standards,=20
specifically profanity, the institute said in a=20
statement: "The FCC now finds itself locked in a=20
battle with the television networks and their=20
affiliates over a matter of program content:=20
specifically, how to define the words and images=20
that will be considered indecent or profane. The=20
Supreme Court addressed this issue in the 1978=20
Pacifica radio case. Given the changes in social=20
mores and technology that have occurred in the=20
intervening span of almost three decades,=20
however, this appears to be an opportune time for=20
the courts to revisit this matter. The judiciary=20
could: 1) define the scope of the FCC=B9s authority=20
to regulate content; 2) determine if the FCC=20
should clarify its standards for television so=20
that broadcasters can predict how the standards=20
will be applied; (3) consider the impact of new=20
technologies that permit parents to determine=20
what their children can watch; and, most=20
importantly, 4) evaluate the applicability of First Amendment protections."
http://www.broadcastingcable.com/article/CA6329420?display=3DBreaking+News

SPECTRUM SHIFT SPRINTS TO FINISH LINE
[SOURCE: Broadcasting&Cable, AUTHOR: Glen Dickson]
After months of complicated negotiations,=20
broadcasters and wireless carrier Sprint Nextel=20
appear to have reached an agreement on how Sprint=20
Nextel will reimburse them for new digital=20
microwave gear. The pact would allow stations to=20
vacate spectrum they have been using for=20
electronic newsgathering (ENG), freeing it up for=20
Sprint Nextel=92s use. Over the past two months,=20
industry trade group Association for Maximum=20
Service Television (MSTV) and lawyers working on=20
behalf of several station groups have crafted a=20
rough template for a =93Frequency Relocation=20
Agreement=94 (FRA) that stations and Sprint Nextel=20
can work with, says MSTV President David Donovan.=20
The roadmap gives the industry a fighting chance=20
of making the FCC=92s September 2007 deadline for=20
the spectrum switch. The process, known as =932 GHz=20
Relocation,=94 is the result of a $4.8 billion=20
agreement the FCC brokered with Sprint Nextel in=20
February 2005. The deal moves some of Sprint=20
Nextel=92s operations out of the 800 megahertz=20
(MHz) frequency band, where its signals were=20
interfering with public-safety communications,=20
and into part of the 2 gigahertz (GHz) band,=20
which broadcasters use to send both live and=20
taped feeds from their trucks to the station.=20
Broadcasters will move off existing ENG channels=20
and use new digital microwave gear to continue=20
operations in a smaller swath of microwave=20
spectrum. Sprint Nextel must spend roughly $500=20
million on the digital ENG gear. It will give=20
back spectrum valued at $2.1 billion and also=20
write the federal government a check for $2.2 billion.
http://www.broadcastingcable.com/article/CA6329698?display=3DTechnology

LOCAL FLAVOR
[SOURCE: Broadcasting&Cable, AUTHOR: Stewart Schley]
Once an afterthought in local cable advertising,=20
Hispanic, African-American and Asian-American=20
viewers are increasingly on advertisers' radars.=20
And operators are helping advertisers reach them=20
with more culturally sensitive ads and smarter ad=20
buys. Executives who work in multicultural cable=20
advertising stress that advertisers must begin by=20
understanding multicultural audiences as people,=20
not just as numbers on a Census report.
http://www.broadcastingcable.com/article/CA6329695?display=3DSpecial+Report

THE VIEW FROM SESAME STREET
[SOURCE: Washington Post, AUTHOR: Gary Knell, CEO of Sesame Workshop]
[Commentary] When the groundbreaking show "Sesame=20
Street" was created in 1968 to help children=20
prepare for school, it was not without its=20
critics, but it has won more Emmys and been the=20
subject of more postgraduate theses than any=20
program in television history. Nearly 38 years=20
later, our newest initiative has also come in for=20
criticism. Upon launching "Sesame Beginnings," a=20
series of videos for parents and children under=20
the age of 2, the nonprofit educational=20
organization Sesame Workshop was immediately=20
accused by some "experts" of "betraying children=20
and families." Somehow, by merely entering the=20
market, we are promoting television as babysitter=20
when caregivers should be engaging in hands-on=20
parenting, free of TV. But the reality is that=20
with the explosion of media, more families are=20
allowing their youngest children to watch=20
television, whether we like it or not. Television=20
is a powerful teacher. Research to date has=20
looked more at total viewing time than content.=20
What we've learned, with our own decades of=20
research on the impact of "Sesame Street," is=20
that content does matter -- programs designed to=20
be age-appropriate educational viewing=20
experiences do have beneficial educational=20
effects. That is why we support a closer look at=20
media for children based on content rather than=20
screen time. We need to examine whether marketing=20
guidelines are required for products and whether=20
parents have the information they need to make=20
informed decisions. Most important, we have to=20
make sure we take an honest look at the reality=20
of media today and base our decisions on the=20
real-world needs of parents and children.
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/30/AR200604...
0868.html
(requires registration)

PRODUCTION DAYS FOR 'REALITY' TV SOAR
[SOURCE: Los Angeles Times, AUTHOR: Richard Verrier]
The number of production days for "reality" TV=20
shoots =97 one day representing a day of work at a=20
single location =97 soared to 1,942 during the=20
first quarter of the year, up 128% from the same=20
period a year ago, according to Film L.A. Inc.,=20
which coordinates film permits in the city and in=20
unincorporated areas of the county. The surge in=20
unscripted TV shoots by MTV, VH1 and other cable=20
channels and broadcast networks triggered a=20
modest increase in overall film and television=20
production, which totaled 9,278 permit days, up=20
4% from a year ago. Such activity is usually slow=20
in the first quarter. Although Los Angeles=20
remains on track to exceed last year's record=20
level of production, local film industry=20
promoters weren't cheering the latest statistics,=20
scheduled to be released today. They noted that=20
unscripted TV had fewer economic benefits than=20
other types of television shows, and that Los=20
Angeles continued to lose ground to locales=20
outside the state, including other countries,=20
that have lured productions with a bevy of tax=20
incentives offered to film, TV and commercial producers.
http://www.latimes.com/business/printedition/la-fi-tv1may01,1,2680372.st...
?coll=3Dla-headlines-pe-business
(requires registration)

NETWORKS PUSH ONLINE PACKAGE FOR TV ADS
[SOURCE: Financial Times, AUTHOR: Aline van Duyn]
US television broadcasters and cable networks are=20
for the first time pitching for millions of=20
advertising dollars by highlighting their ability=20
to reach Internet and on-demand audiences=20
alongside traditional viewers. Media buyers said=20
they had noticed the trend during annual=20
negotiations over US television time. Donna=20
Speciale, president at Mediavest, a large=20
ad-buying agency, said: =93What is new is that the=20
networks are really focusing on digital. Some of=20
the presentations are even starting with the=20
digital component. That has never happened before.=94
http://news.ft.com/cms/s/0900c472-d874-11da-9715-0000779e2340.html
(requires subscription)

QUICKLY

RHODE ISLAND EMBARKS ON WIRELESS NETWORK
[SOURCE: Reuters, AUTHOR: Richard C. Lewis]
Rhode Island is seeking to become the first state=20
to offer a wireless broadband network from border=20
to border. Backers of the $20 million project say=20
it would improve services and make the state a=20
testing ground for new business technologies. It=20
also comes at a time when Rhode Island's capital=20
of Providence is stepping up efforts to lure=20
business from Boston, where office rents are=20
among the nation's most expensive. The Rhode=20
Island Wireless Innovation Networks (RI-WINs)=20
should be fully in place by 2007, providing=20
wireless connectivity throughout state, whose=20
land mass of about 1,045 square miles is only=20
slightly more than double the size of=20
metropolitan Los Angeles. A pilot project=20
involving state agencies, Brown University and=20
businesses is to begin next month.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-04-28T204303Z_01_N28446626_RTRUKOC_0_US-RHODEISLAND.xml

LEVEL 3 ADDS A TELECOM NETWORK WITH $1 BILLION DEAL FOR TELCOVE
[SOURCE: Wall Street Journal, AUTHOR: Dennis K.=20
Berman dennis.berman( at )wsj.com and Shawn Young]
Network provider Level 3 Communications announced=20
today the purchase of closely held TelCove for=20
about $1 billion, the latest in Level 3's plan to=20
roll up telecom infrastructure as the battered=20
industry returns to health. The data-transmission=20
business was overrun by a glut of capacity and=20
investor enthusiasm during the late 1990s. Level=20
3 managed to survive the tumult and has become an=20
aggressive consolidator of companies in the=20
field, having acquired three other networking=20
companies in the past six months alone. In=20
purchasing TelCove, Level 3 will gain access to=20
new infrastructure on the East Coast, including=20
22,000 miles of data-transmission lines serving=20
70 markets. Level 3 will pay just over $1 billion=20
for TelCove, $637 million of it in stock and an=20
additional $445 million in cash. It also will=20
assume $156 million in debt. Level 3's moves show=20
that the networking industry is going through the=20
advanced stages of an inevitable and necessary consolidation.
http://online.wsj.com/article/SB114645663352840256.html?mod=3Dtodays_us_...
e_one
(requires subscription)

AT&T, NUNEZ SWING FOR THE GREEN
[SOURCE: Los Angeles Times 4/29, AUTHOR: Nancy Vogel]
State Assembly Speaker Fabian Nu=F1ez is being=20
feted at a Pebble Beach fundraiser this weekend=20
by AT&T, whose interests he is championing in=20
video franchising legislation. AT&T, which wants=20
to compete freely with cable television companies=20
and stands to gain billions if lawmakers allow=20
it, is holding the "Speaker's Cup" fundraiser at=20
the fabled Monterey County golf resort. Dozens of=20
corporations, unions and Indian tribes will pay=20
$10,000 to $45,000 to have their lobbyists and=20
other representatives hobnob with Nu=F1ez (D-Los=20
Angeles) and other elected officials over golf=20
games, cocktails, spa treatments and dinner. The=20
event, scheduled a year in advance, is one of the=20
biggest annual fundraisers for the state=20
Democratic Party. The party, a major source of=20
money for legislative campaigns, can accept=20
unlimited donations; individual candidates cannot.
http://www.latimes.com/news/printedition/front/la-me-nunez29apr29,1,2707...
.story?coll=3Dla-headlines-frontpage
(requires registration)
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