May 2006

GOVERNMENT & COMMUNICATIONS
A Sudden Taste for the Law
FCC Chief says Won't Probe NSA call Program
For Telecoms, a Storm of Lawsuits Awaits

MEDIA OWNERSHIP
Philadelphia Group Buys Inquirer, Daily News, Philly.com
Surrounded by Singleton
CBS Radio Stations on the Block

INTERNET/BROADBAND
Copps: FCC Can Impose Net Neutrality
Berners-Lee calls for Net Neutrality

BROADCASTING
Copps Calls Smut Bill 'Powerful Message'
PTC Willing to Accept Senate Indecency Bill
McCain Cable TV Measure Gets A Fuzzy Reception

QUICKLY -- Senate Judiciary Postpones Net=20
Neutrality Hearing; South Carolina Adopts=20
Statewide Franchise; Teens' Heavy Cellphone Use=20
Could Signal Unhappiness, Study Finds

GOVERNMENT & COMMUNICATIONS

A SUDDEN TASTE FOR THE LAW
[SOURCE: New York Times, AUTHOR: Editorial Staff]
[Commentary] It's hard to say which was more=20
bizarre about Attorney General Alberto Gonzales's=20
threat to prosecute The Times for revealing=20
President Bush's domestic spying program: his=20
claim that a century-old espionage law could be=20
used to muzzle the press or his assertion that=20
the administration cares about enforcing laws the=20
way Congress intended. Mr. Gonzales served as=20
White House counsel and as attorney general=20
during the period Mr. Bush concocted more than=20
750 statements indicating that the president=20
would not obey laws he didn't like, or honor the=20
recorded intent of those who passed them. Among=20
the most outrageous was Mr. Bush's statement that=20
he did not consider himself bound by a ban on=20
torturing prisoners. Mr. Gonzales was part of the=20
team that came up with the rationalization for=20
torture, as well as for the warrantless=20
eavesdropping on Americans' e-mail and phone=20
calls. If Mr. Gonzales has developed a respect=20
for legislative intent or a commitment to law=20
enforcement, he could start by using his=20
department's power to enforce the Voting Rights=20
Act to protect Americans, rather than challenging=20
minority voting rights and endorsing such=20
obviously discriminatory practices as the=20
gerrymandering in Texas or the Georgia voter ID=20
program. He could enforce workplace safety laws,=20
like those so tragically unenforced at the=20
nation's coal mines, instead of protecting=20
polluters and gun traffickers. He could uphold=20
the Geneva Conventions and the U.N. Convention=20
Against Torture, instead of coming up with=20
cynical justifications for violating them. He=20
could repudiate the disgraceful fiction known as=20
"unlawful enemy combatant," which the=20
administration cooked up after 9/11 to deny legal=20
rights to certain prisoners. And he could suggest=20
that the administration follow Congress's clear=20
and specific intent for the 1978 Foreign=20
Intelligence Surveillance Act: outlawing wiretaps=20
of Americans without warrants.
http://www.nytimes.com/2006/05/24/opinion/24weds1.html
(requires registration)
* Gonzales Defends Phone-Data Collection
Attorney General Alberto R. Gonzales said=20
yesterday that the government can obtain domestic=20
telephone records without court approval under a=20
1979 Supreme Court ruling that authorized the collection of business record=
s.
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/23/AR200605...
1594.html

FCC CHIEF SAYS WON'T PROBE NSA CALL PROGRAM
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
The Federal Communications Commission will not=20
pursue complaints about a US spy agency's access=20
to millions of telephone records because it=20
cannot obtain classified material, the FCC=20
chairman said in a letter released on Tuesday.=20
Rep. Edward Markey (D-MA) had asked Commission to=20
investigate a newspaper report that AT&T, Verizon=20
Communications and BellSouth gave access to and=20
turned over call records to help the National=20
Security Agency fight terrorists. "The classified=20
nature of the NSA's activities makes us unable to=20
investigate the alleged violations," FCC Chairman=20
Kevin Martin, a Republican, said in the May 22=20
letter released by Rep Markey. AT&T was sued by=20
the privacy rights group Electronic Frontier=20
Foundation for violating customer privacy by=20
turning over telephone data to the government.=20
The Justice Department asked that the case be=20
dismissed, saying it could reveal military and=20
state secrets. The FCC's Martin said the=20
government's arguments in that case would prevent=20
the FCC from conducting an investigation. Such a=20
probe would require access to "highly sensitive=20
classified information" and the "commission has=20
no power to order the production of classified=20
information," Martin said. He said the National=20
Security Act of 1959 prevented the disclosure of the NSA's activities.
http://today.reuters.com/news/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2006-05-23T233824Z_01_N23187803_RTRUKOC_0_US-SECURITY-TELECOMS-FCC.xml&a=
rchived=3DFalse
* NSA secrecy makes investigation impossible, FCC says
http://www.usatoday.com/printedition/news/20060524/a_nsa24.art.htm
* Martin: FCC Can't Probe Phone Flap
http://www.broadcastingcable.com/article/CA6337234?display=3DBreaking+News
* Martin Won't Probe NSA-Phone Records Link
http://www.multichannel.com/article/CA6337214.html?display=3DBreaking+News
* FCC Won't Probe NSA-Phone Ties
http://online.wsj.com/article/SB114841352393360937.html?mod=3Dtodays_us_...
e_one
* FCC Refuses to Investigate NSA Program,=20
Predicting Likely Administration Road Blocks
http://markey.house.gov/index.php?option=3Dcom_content&task=3Dview&id=3D...
0&Itemid=3D141

FOR TELECOMS, A STORM OF LAWSUITS AWAITS
[SOURCE: The Christian Science Monitor, AUTHOR: Peter Grier]
Lawyers specializing in class-action litigation=20
are lining up to sue phone firms alleged to have=20
handed over customer records to the National=20
Security Agency without a court order. On Monday,=20
for instance, the American Civil Liberties Union=20
of Illinois filed suit against AT&T, charging=20
that its actions in the NSA program violated=20
customer privacy. Despite this rush to the=20
courthouse, it isn't yet clear which phone firms=20
handed over what records to whom. Some companies=20
have denied involvement - while critics note that=20
those denials are carefully worded. Further=20
scrutiny by Congress or the Federal=20
Communications Commission (FCC) is needed to=20
resolve this issue for the public, say some.
http://www.csmonitor.com/2006/0524/p02s01-usju.html

MEDIA OWNERSHIP

PHILADELPHIA GROUP BUYS INQUIRER, DAILY NEWS, PHILLY.COM
[SOURCE: Philadelphia Inquirer, AUTHOR: Joseph N.=20
DiStefano and Harold Brubaker]
McClatchy Co. has agreed to sell Philadelphia's=20
major daily newspapers and web site Philly.com to=20
a group of local investors for $562 million, most=20
of which will be borrowed from banks. "We got=20
it," said a jubilant Brian P. Tierney as he=20
rushed through The Inquirer and Philadelphia=20
Daily News lobby this afternoon to a meeting with=20
publisher Joe Natoli. "We signed every line."=20
Tierney, a Philadelphia public relations and=20
advertising executive who organized the local=20
buyers, said that Philadelphia Media Holdings=20
L.L.C. intended to be long-term owners. "Our plan=20
is to invest in and grow both papers" and=20
Philly.com, he said in a news release. Union=20
leaders said they look forward to meeting with=20
the new owners in preparation for contract talks=20
later this year. "His enthusiasm is infectious,"=20
said John Laigaie, president of Teamsters Local=20
628, which represents Inquirer and Daily News=20
truck drivers. "Enthusiasm is good."
http://www.philly.com/mld/philly/14649158.htm
* Ex-'Inky' Editor: New Ownership Of Philly Papers Could Be 'Dangerous'
Former Inquirer editor cautions that new=20
ownership includes "some of the most influential=20
business people in Philadelphia and people who=20
actively support politicians locally and nationally."
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1002541091
* Analysts See Pros and Cons of Local Group Buying Philly Papers
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1002540865
* Philadelphia Investors Buy Two Newspapers
http://www.nytimes.com/2006/05/24/business/media/24paper.html

SURROUNDED BY SINGLETON
[SOURCE: American Journalism Review, AUTHOR: Charles Layton]
Most major newspapers came of age in big cities,=20
surrounded by smaller papers in the suburbs and=20
outlying towns. These rivals may have nipped at=20
their heels and cut into their circulation, but=20
they never threatened the big papers' market=20
dominance. But now, in the San Francisco Bay=20
Area, a cluster of suburban papers is rising up=20
to challenge, and perhaps one day overshadow, the=20
San Francisco Chronicle. This summer, a series of=20
newspaper sales involving six media companies =97=20
Knight Ridder, McClatchy, Hearst, Gannett,=20
Stephens Media Group and MediaNews Group =97 will=20
reshape the newspaper business in the Bay Area.=20
Unless those transactions are blocked by=20
government antitrust action, one group of local=20
papers, owned by MediaNews, will more than double=20
its circulation overnight, becoming larger and=20
more potent economically than its big-city rival,=20
the Chronicle. What this means for advertisers,=20
readers and the newspapers' employees remains to=20
be seen. The one certainty is that plenty of=20
people are worried. The architect behind the new=20
juggernaut is William Dean Singleton, the=20
innovative, somewhat flamboyant 54-year-old chief=20
executive of MediaNews, a Denver-based company=20
that presently owns 51 dailies in 13 states.=20
Singleton began preparing the ground for this=20
little revolution in 1985, when he bought three=20
small family-owned dailies in the towns of=20
Hayward, Fremont and Pleasanton, in Alameda=20
County just across the bay from San Francisco.=20
Later, he bought more small papers in that area,=20
and by 2002 he had stitched nine of them together=20
into what he calls the Alameda Newspaper Group,=20
or ANG. Because they are close together, six of=20
these papers share newsgathering, production,=20
distribution, accounting and administrative=20
facilities, a strategy known as clustering. They=20
also offer combination advertising deals. It is=20
possible to think of them, in fact, as one big=20
paper with six zoned editions. Their news coverage is heavily local.
http://ajr.org/Article.asp?id=3D4112

CBS RADIO STATION ON THE BLOCK
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
Just one day after announcing a deal to sell its=20
Paramount Parks theme parks, CBS Corp. said=20
Tuesday that it is exploring opportunities to=20
divest its radio stations in 10 markets -- Austin=20
and San Antonio (TX), Buffalo and Rochester (NY),=20
Cincinnati and Columbus (OH), Fresno (CA),=20
Greensboro-Winston/Salem (NC), Kansas City, and=20
Memphis. CBS owns 39 stations in these markets.=20
Just what price those stations could attract is=20
anyone=92s guess. However, earlier this year,=20
Cumulus Media Inc. purchased 33 radio stations in=20
large and small markets from Susquehanna Media=20
Co. for about $1.2 billon. CBS Radio owns about=20
179 radio stations -- including those earmarked=20
for sale -- across the country.
http://www.multichannel.com/article/CA6337318.html?display=3DBreaking+News

INTERNET/BROADBAND

COPPS: FCC CAN IMPOSE NET NEUTRALITY
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
The Federal Communications Commission has=20
authority under current law to ensure that=20
broadband-access providers -- currently mainly=20
cable and phone companies -- do not discriminate=20
against Web-based providers of content, search=20
services and applications, FCC commissioner=20
Michael Copps said Tuesday. Speaking to=20
reporters, Copps stressed that it was essential=20
for the agency to go beyond hortatory policy=20
principles and adopt enforceable rules that=20
guarantee network neutrality and shield Internet=20
companies without wires into millions of homes=20
from potential misconduct by companies that=20
control those wires. =93I think we have authority=20
to go now to the second phase of network=20
neutrality, to make sure that there=92s not=20
discrimination against those that are not=20
affiliated with the network owners,=94 Copps said=20
in a press briefing held in his office . Although=20
some have questioned the FCC authority=92s to=20
impose network neutrality on information-service=20
providers under Title I of the Communications=20
Act, the U.S. Supreme Court issued a majority=20
opinion last June indicating otherwise. =93The=20
[FCC] remains free to impose special regulatory=20
duties on facilities-based [Internet-service=20
providers] under its Title I ancillary=20
jurisdiction,=94 Justice Clarence Thomas wrote in=20
National Cable & Telecommunications Association=20
vs. Brand X Internet Services. Copps indicated=20
that the FCC could rely on Title I authority to=20
act. =93I think we have a good bit of authority in=20
serving the public interest in keeping the=20
networks open to move ahead on this,=94 he said.
http://www.multichannel.com/article/CA6337396.html?display=3DBreaking+News

BERNERS-LEE CALLS FOR NET NEUTRALITY
[SOURCE: C-Net|News.com, AUTHOR: Jonathan Bennett]
Tim Berners-Lee, inventor of the Web, has called=20
for clear separation between Internet access and=20
Internet content. Speaking at the World Wide Web=20
conference in Edinburgh on Tuesday morning,=20
Berners-Lee gave his views on the growing battle=20
over Net neutrality. "It's better and more=20
efficient for us all if we have a separate market=20
where we get our connectivity, and a separate=20
market where we get our content. Information is=20
what I use to make all my decisions. Not just=20
what to buy, but how to vote," Berners-Lee told=20
journalists. "There is an effort by some=20
companies in the U.S. to change this. There's an=20
attempt to get to a situation where if I want to=20
watch a TV station across the Internet, that TV=20
station must have paid to transmit to me."=20
Berners-Lee characterized the issue as a=20
U.S.-only problem at present. "In Europe, Net=20
neutrality is the rule," he said. Although=20
Berners-Lee offered his support for Net=20
neutrality, he does not support a completely=20
unregulated telecoms and Internet market. "The=20
fact is that the openness of the Internet, which=20
is such a wonderful thing, does depend on a=20
certain amount of regulation. We've had in=20
Britain the fact that if you put a stamp on a=20
letter it gets there," Berners-Lee said.
http://news.com.com/Berners-Lee+calls+for+Net+neutrality/2100-1036_3-607...
2.html?tag=3Dhtml.alert

BROADCASTING

COPPS CALLS SMUT BILL 'POWERFUL MESSAGE'
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
FCC Commissioner Michael Copps Tuesday said that=20
last week's unanimous Senate passage of the bill=20
boosting indecency fines tenfold sent "a powerful=20
message." He said the fact that the increased=20
fines "will now possibly be available to the=20
commission obviously gets the attention of=20
anybody who is concerned." Calling indecency a=20
difficult and sensitive topic, he nonetheless=20
said that there was "plenty for everybody to do"=20
on the issue, beginning with the family, but=20
including the industry, the Commission and=20
Congress. "I think the family has the=20
responsibility for understanding the tools that=20
are available," he said in a press conference=20
with reporters, praising industry efforts to help=20
parents do that. "I applaud the idea that they=20
are highlighting the use of new tools, trying to=20
educate people on their use." But he said that=20
effort "should not be to the exclusion of coming=20
forward with other ideas for family-friendly=20
programming and carrying through on the=20
commitment that NAB and others gave about what=20
they are going to do. We have been waiting two years," he said.
http://www.broadcastingcable.com/article/CA6337216?display=3DBreaking+News

PTC WILLING TO ACCEPT SENATE INDECENCY BILL
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
An executive of the Parents Television Council=20
said Tuesday his group will be satisfied if the=20
House of Representatives opts to end the debate=20
over indecent TV programming by dropping its own=20
legislation and accepting a Senate bill that=20
would simply raise the cap on federal fines to=20
$325,000. A bill approved by the House last year=20
would raise the cap to $500,000, and also=20
includes provisions that would clear the way for=20
the FCC to fine on-air talent for infractions --=20
not just the broadcast licensees -- and would=20
allow the agency to revoke the licenses of repeat=20
offenders. "The consensus is for raising the=20
fines, and [lawmakers are] willing to accept=20
two-thirds of a loaf," said Blair Levin, an analyst for Stifel Nicolaus.
http://www.tvweek.com/news.cms?newsId=3D10056
(requires free registration)

MCCAIN CABLE TV MEASURE GETS A FUZZY RECEPTION
[SOURCE: Congress Daily, AUTHOR: David Hatch]
Sen. John McCain (R-AZ) is having difficulty=20
lining up cosponsors for cable television=20
legislation that he plans to announce this week=20
-- and might have to go it alone when he unveils=20
it, industry and congressional sources said. As=20
of Monday, Sen McCain was still reaching out to=20
other legislators, particularly Democrats, for=20
support. The bill would reward incumbent cable=20
operators and new video entrants -- such as the=20
former regional Bell operating companies -- with=20
relaxed franchise regulations if they carry=20
programming on a per channel, or a la carte,=20
basis. The introduction of the legislation has=20
been delayed several times in recent months,=20
partly to give Sen McCain more time to build=20
support. Another reason for the holdup is that=20
there is no clear legislative vehicle for=20
McCain's bill. While Commerce Committee Chairman=20
Ted Stevens (R-AZ) plans to mark up a sweeping=20
draft telecommunications measure on June 20, he=20
does not want it to include content regulation.=20
McCain's bill is now expected to be unveiled no later than this Thursday.
http://www.njtelecomupdate.com/lenya/telco/live/tb-EUXO1148412581291.html

QUICKLY

SENATE JUDICIARY POSTPONES NET NEUTRALITY HEARING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Sometimes Headlines is published a little too=20
early. Yesterday morning we noted the Senate=20
Judiciary Committee planned a hearing --=20
Reconsidering Our Communications Laws: Ensuring=20
Competition and Innovation. In fact, the hearing=20
was postponed as debate on the Senate's=20
immigration bill began. The hearing has not been rescheduled yet.
http://www.broadcastingcable.com/article/CA6337074?display=3DBreaking+News

SOUTH CAROLINA ADOPTS STATEWIDE FRANCHISE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Starting Tuesday, no South Carolina city or town=20
can issue a cable franchise and can only enforce=20
existing franchise agreements until they expire.=20
New franchise applicants will apply to the=20
Secretary of State for a franchise. The city or=20
town in which the franchise will be built has 65=20
days to say yes or no. If it's no, the franchise=20
is not granted, but the locality has to give its=20
reasons and could be sued if the denial is=20
actionable in court. Otherwise, franchises must=20
be awarded within 80 days of application.
http://www.broadcastingcable.com/article/CA6337392?display=3DBreaking+News

TEENS' HEAVY CELLPHONE USE COULD SIGNAL UNHAPPINESS, STUDY FINDS
[SOURCE: Los Angeles Times, AUTHOR: Denise Gellene]
The teen obsession with yakking, text messaging=20
and ring-tone swapping on cellphones might mean=20
more than a whopping phone bill. For the most=20
crazed, it's a sign of unhappiness and anxiety,=20
according to a new medical study. A survey of 575=20
South Korean high school students found that the=20
top third of users -- students who used their=20
phones more than 90 times a day -- frequently did=20
so because they were unhappy or bored. They=20
scored significantly higher on tests measuring=20
depression and anxiety than students who used=20
their phones a more sedate 70 times daily. Two of=20
every five youths in the U.S. from ages 8 to 18=20
have a cellphone, according to a recent survey.=20
Students in grades seven through 12 spend an=20
average of an hour a day on their cellphones --=20
about the same time they devote to homework.
http://www.latimes.com/news/printedition/asection/la-sci-cellphone24may2...
,1881384.story?coll=3Dla-news-a_section
(requires registration)
--------------------------------------------------------------
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.
--------------------------------------------------------------