June 2006

* The Senate Commerce Committee will reconvene to=20
continue its consideration of the Communications,=20
Consumers' Choice, and Broadband Deployment Act=20
of 2006 on Wednesday, June 28, 2006, at 10 a.m.=20
in room 216 of the Hart Building. See webcast at=20
http://commerce.senate.gov/live.ram *

A BIG DAY AT CONGRESS
Senate Commerce Committee Rejects Key Democratic Telco Amendments
Stevens OK With Build-Out Info Addition
The Joker in the Stevens Deck -- Section 1004
Senate Commerce Committee Moves to Limit Ads on Kids Programming
Senate Commerce Defers 700 Mhz Amendment
NTCA Reacts to Senate Mark of Telecom Rewrite Legislation
Wyden Guards the Net
Consumer groups, states question telecom bill
Broadcast Flag Waves on Hill
Congress mulls slew of Net-sex rules

MEDIA OWNERSHIP
McClatchy ordered to divest Pioneer Press
Adelphia Deal Moves One Step Closer
Televisa not done after losing Univision battle

FCC AGENDA
Observers Expect TV Issues To Dominate FCC Agenda

GOVERNMENT & COMMUNICATIONS
Patriotism and the Press

QUICKLY -- Bush's Challenges of Laws He Signed Is=20
Criticized; Cities May Lose Power Over Cable TV;=20
New Media Luring Money Away From Networks;=20
Australians Fret Over Telstra; Break-up of telcos=20
could spur growth: EU's Reding

A BIG DAY AT CONGRESS

SENATE COMMERCE COMMITTEE REJECTS KEY DEMOCRATIC TELCO AMENDMENTS
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
The Senate Commerce Committee rejected three=20
Democratic amendments to a telecommunications=20
package. The amendments covered Internet=20
telephone regulation, communications subsidies=20
for emergency responders and city cable=20
franchises. The committee rejected, 7-15, an=20
amendment that would have allowed states to=20
regulate Internet telephone calls. It also=20
rejected, 10-12, the call to add a subsidy for=20
emergency communications to the universal service=20
fund. The third amendment to allow local=20
conditions on cable system sales failed 9-13. The=20
three votes came as the committee continued its=20
marathon debate of a bill, S. 2686, offered by=20
Chairman Ted Stevens. He began Tuesday's session=20
by introducing a package of 16 separate=20
modifications. The package was accepted by voice=20
vote. The most significant of those changes was=20
Stevens' own amendment on video franchising. The=20
change "includes the final four issues requested=20
by the cities," according to a statement by Sen=20
Stevens. Municipalities have been reluctant to=20
accept the key purpose of the bill's=20
video-franchising title, which would allow Bell=20
telephone companies quick entry into the=20
pay-television marketplace by circumventing the=20
review process for local cable franchises. TVWeek=20
reports that the committee put off until tomorrow a debate on net neutralit=
y.
http://www.njtelecomupdate.com/lenya/telco/live/tb-PIGO1151436415191.html
* Chairman Stevens' Opening Statement at the Communications Reform Bill Mar=
kup
"The measure is the work product of every Member=20
of this Committee. It incorporates suggestions,=20
language, and in some cases entire bills drafted=20
by our members on both sides of the aisle."
http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.D...
il&PressRelease_id=3D248633&Month=3D6&Year=3D2006
* Congress Looks to Offer Big Telecom "Prize"
http://newstandardnews.net/content/index.cfm/items/3315

STEVENS OK WITH BUILD-OUT INFO ADDITION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Senate Commerce Committee began its second=20
day of hearings on video franchise reform with=20
Chairman Ted Stevens (R-Alaska) trying to=20
accommodate a host of groups in marking up a bill=20
he hopes will pass committee and the full Senate.=20
The committee quickly passed the mangers=20
amendment, which had been modified from last week=20
to include provisions pushed by city governments,=20
including extending, from 75 to 90 days, the time=20
cities have to strike and agreement before a new=20
video franchisee can seek a standardized=20
franchise from the FCC. It also clarified the=20
definition of video service provider to include=20
IPTV services like that of AT&T, which has argued=20
that its Internet-based service did not need a=20
franchise. See the URL below for a look at the=20
amendments considered (there were over 100) and=20
which ones created the most fireworks.
http://www.broadcastingcable.com/article/CA6347467.html?display=3DBreaki...
News

THE JOKER IN STEVENS DECK -- SECTION 1004
[SOURCE: Tales from the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] In the dead of night, just before=20
the latest draft of the Stevens bill came out, a=20
helpful Telco lobbyist inserted a little=20
provision to stack the deck in the case of=20
judicial review. Section 1004 of the Stevens=20
draft now places exclusive jurisdiction for all=20
decisions by the FCC in the D.C. Circuit. This=20
includes not just network neutrality, but media=20
ownership, CALEA, wireless issues, anything. Why=20
would anyone do that you ask? Because the D.C.=20
Cir. is, without doubt, the most activist court=20
in the land when it comes to pressing its vision=20
of media and telecom policy. More than any other=20
court, the D.C. Cir. can be credited with=20
destroying hope of telecom competition in the=20
United States by perpetually reversing and=20
remanding the FCC's efforts at rulemaking and=20
enforcement until the FCC finally gave up and=20
effectively deregulated. The D.C. Cir. is also=20
responsible for vacating (eliminating by judicial=20
fiat) the rule preventing cable companies from=20
owning television stations where they have cable=20
systems, and overturning much of the FCC's cable=20
and broadcast ownership limits. Finally, through=20
the legal doctrine known as =93standing=94, the D.C.=20
Circuit has done its best to make it impossible=20
for regular people to challenge FCC decisions or=20
bring individual cases on antitrust grounds.
http://www.wetmachine.com/totsf/

SENATE COMMERCE COMMITTEE MOVES TO LIMIT ADS ON KIDS PROGRAMMING
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
The Senate Commerce Committee moved to impose new=20
limits on advertising and interactive content in=20
children's programming, piling amendments into a=20
bill that would ease telephone companies' entry=20
into the television business. with no debate, the=20
committee added a provision to the legislation=20
that would apply the current limits on the number=20
of commercials in children's TV -- which now=20
apply to broadcast and cable -- to any video=20
provider. (The Federal Communications Commission=20
limits advertising on children's TV to 12 minutes=20
per hour on weekdays and 10.5 minutes per hour on=20
weekends.) The amendment, proposed by Senators=20
Bill Nelson (D-FL) and Mark Pryor (D-AK) would=20
extend the current limits to any video service=20
aimed at kids on the Web, which is luring younger=20
viewers away from traditional TV. The committee=20
adopted a ban on "any interactivity designed with=20
the purpose of selling or promoting a product,=20
service or brand" during children's programming.=20
The amendment was sponsored by Sen. Jay=20
Rockefeller (D-WV), who also moved to require the=20
FCC complete within six months its two-year-old=20
inquiry into the effects of violent TV on=20
children. In another potentially controversial=20
amendment, the committee voted to bar the FCC=20
from fining independent network affiliates for=20
airing network programming they hadn't been given=20
the opportunity to preview for objectionable=20
content. The amendment from Sen. Ben Nelson=20
(R-NE) would protect stations from the kind of=20
fines generated by the 2004 Super Bowl broadcast,=20
when Janet Jackson's breast was bared in a=20
half-time show and the FCC punished stations that aired the game.
http://www.tvweek.com/news.cms?newsId=3D10274
(requires free registration)
* Senators adopt Web labeling requirement
http://news.com.com/Senators+adopt+Web+labeling+requirement/2100-1028_3-...
8745.html?tag=3Dnefd.top

SENATE COMMERCE DEFERS 700 MHZ AMENDMENT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Senate Commerce Committee deferred action on=20
an amendment that would have reconfigured the 700=20
Mhz band so that it could be auctioned off in=20
more geographically targeted chunks. Committee=20
Chairman Ted Stevens (R-Alaska) pointed out that=20
he supported the idea, and had even championed it=20
in a DTV bill that had to be stripped of that and=20
other issues to square with Senate rules. But he=20
also said that the auction had already been set=20
for 2008 for the spectrum being reclaimed from=20
broadcasters after the switch to digital, and=20
that to try to reconfigure the band now would=20
delay that auction and could change the value of=20
the spectrum and put an additional burden on the=20
committee for the money promised to the US=20
Treasury. Co-sponsor Olympic Snowe (R-Maine)=20
argued that the Congressional Budget Office had=20
already determined that reconfiguring would not=20
lessen the value of the spectrum, which as=20
currently constituted could be as much as $36 billion.
http://www.broadcastingcable.com/article/CA6347621.html?display=3DBreaki...
News

NTCA REACTS TO SENATE MARK OF TELECOM REWRITE LEGISLATION
[SOURCE: National Telecommunications Cooperative Association press release]
Calling it another step forward in the process of=20
reforming our communications laws to reflect the=20
changing realities of today=92s market place, the=20
National Telecommunications Cooperative=20
Association (NTCA) today commended the Senate=20
Commerce Committee for its thoughtful=20
consideration of S. 2686, the =93Communications=20
Consumer=92s Choice and Broadband Deployment Act of=20
2006,=94 introduced by Sen. Ted Stevens (R-Alaska).=20
NTCA was particularly pleased with the withdrawal=20
of an amendment that would have capped the=20
Universal Service Fund (USF) at $6.52 billion=20
annually. A cap is a disincentive to network=20
investment, as it would hinder a carrier=92s=20
ability to receive the support it is due. Capping=20
USF also runs counter to President Bush=92s goal of=20
ubiquitous broadband by 2007. The group commended=20
Senator Dorgan for raising the complexities of=20
preempting state control over voice over Internet=20
protocol, noting that =93while his attempt to=20
strike VoIP preemption failed to pass the=20
committee, Senator Dorgan engaged the committee=20
in a colloquy about the importance of competitive=20
neutrality and ensuring state and federal USF=20
obligations for VoIP providers,=94 Bloomfield said.
http://www.ntca.org/ka/ka-3.cfm?content_item_id=3D4403&folder_id=3D644

WYDEN GUARDS THE NET
[SOURCE: The Oregonian, AUTHOR: David Sarasohn]
Sen. Ron Wyden (D-OR) said, "I will do anything I=20
can to block a major telecom rewrite that=20
undermines what makes the Internet special. I=20
will block it. I will do anything I can to derail=20
it. This is something I consider extremely=20
important." The issue at stake, for him, is=20
Network Neutrality. Historically, phone companies=20
-- the people who now own the Internet pipes --=20
have been prevented from charging Web sites extra=20
to get hooked up quicker than other sites. Last=20
August, the Federal Communications Commission=20
ruled that the companies could charge more,=20
opening up all kinds of possibilities. Net=20
neutrality backers point out that the new=20
arrangement gives the phone companies a new=20
authority over Internet connections. "From=20
Intel's perspective," explains Marjorie Dickman,=20
a senior government affairs attorney for the=20
company in Washington, D.C., "we believe that=20
without quite explicit consumer safeguards, the=20
openness that has been the hallmark of the=20
Internet up to this point will be endangered."=20
Sen Wyden is a co-sponsor of an amendment to=20
attach net neutrality to the telecom reform bill=20
in the Commerce Committee, and if what comes out=20
looks different, he has options -- including=20
placing a hold on the bill that would slow its=20
process through the Senate. Already, this is a=20
Congress that runs slower than dial-up=20
connection, "There aren't a lot of legislative=20
days left," he points out accurately. "We'll see=20
how much clout the big telephone and cable people=20
have over the United States Senate." And in=20
trying to keep Congress from ratifying a change=20
in the basic principles of cyberspace, Wyden's=20
side starts out with a major advantage: The=20
Internet is a lot more efficient that the Senate.
http://www.oregonlive.com/search/index.ssf?/base/editorial/1151114123112...
.xml?oregonian?yedcds&coll=3D7

CONSUMER GROUPS, STATES QUESTION TELECOM BILL
[SOURCE: IDG News Service, AUTHOR: Grant Gross]
An overlooked piece of a far-reaching broadband=20
bill scheduled to be debated in a U.S. Senate=20
committee this week would end state regulators'=20
power to mediate in consumer complaints about=20
wireless phone service. Several consumer groups=20
and state attorneys general have protested the=20
removal of state consumer protection powers in a=20
recent draft of the Consumers' Choice and=20
Broadband Deployment Act, scheduled for amendment=20
hearings in the Senate Commerce, Science and=20
Transportation Committee Tuesday and Wednesday.=20
Net neutrality provisions remain a huge focus of=20
debate surrounding the bill, which would also=20
streamline franchising requirements for telecom=20
carriers offering broadband television service in=20
competition with cable TV. But the switch to a=20
national consumer protection model for wireless=20
services could hurt consumers, said=20
representatives of the National Association of=20
Regulatory Commissioners (NARUC). The U.S.=20
Federal Communications Commission (FCC) doesn't=20
have the resources to investigate and mediate=20
thousands of complaints about wireless telephone=20
service each year, said Tony Clark, a member of=20
the North Dakota Public Service Commission and=20
chairman of the NARUC telecom committee. States=20
have long had the power to investigate consumer=20
complaints about wireless service, NARUC notes.=20
The new provision "really takes states completely=20
out of the playing field," said Clark, a=20
Republican. "This is way out of line to take an=20
eraser to the chalkboard of any state consumer=20
protection laws out there." But the Cellular=20
Telecommunications and Internet Association=20
(CTIA), a trade group representing wireless=20
carriers, says a regime of dozens of slightly=20
different state regulations hurts consumers by=20
limiting the services and pricing plans carriers can offer.
http://www.infoworld.com/article/06/06/26/79650_Hntelecombill_1.html?sou...
=3Drss&url=3Dhttp://www.infoworld.com/article/06/06/26/79650_Hntelecombill_=
1.html

BROADCAST FLAG WAVES ON HILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The digital audio and video broadcast flag got a=20
double dose of Hill attention Tuesday. In the=20
Senate, the digital-content-protection technology=20
was part of a video franchising bill being marked=20
up in the Commerce Committee. Two amendments=20
related to the flag were withdrawn, but may be=20
reintroduced during floor debate on the bill. In=20
the House, the Commerce Telecommunications=20
Subcommittee held a hearing on the flags Tuesday=20
under the heading: "Can Content Protection and=20
Technological Innovation Coexist?" Both sides=20
would say the twin goals in the title are=20
achievable, but disagree on how to strike that=20
balance. It was the first hearing held on the audio flag.
http://www.broadcastingcable.com/article/CA6347610.html?display=3DBreaki...
News
* Senators endorse broadcast flag plan
http://news.com.com/Senators+endorse+broadcast+flag+plan/2100-1028_3-608...
1.html?tag=3Dnefd.top
* Public Knowledge Asks House Panel To Oppose Content Controls
Public Knowledge President Gigi B. Sohn told the=20
House Telecom Subcommittee there is no need for=20
Congress to enact content controls on broadcast=20
digital television and digital radio. At a June=20
27 hearing on =93The Audio and Video Flags: Can=20
Content Protection and Technological Innovation=20
Coexist?=94, Sohn noted that TV networks are now=20
offering their programs on digital services,=20
including the iTunes store and direct downloads,=20
while Warner Brothers is working with BitTorrent,=20
the peer-to-peer company. Sohn said in her=20
written statement. =93Yet even as innovators in the=20
motion picture and recording industries promote=20
these alternative distribution models and the=20
technologies that facilitate them, their=20
colleagues in Washington are asking Congress to=20
step in and give them protection from the vague=20
threat of massive copyright infringement the=20
industry says these new technologies could facilitate.=94
http://www.publicknowledge.org/node/489

CONGRESS MULLS SLEW OF NET-SEX RULES
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
When it comes to topics conducive to political=20
speechifying, few compare to the volatile mix of=20
the Internet, sex and children. At a hearing=20
before the House of Representatives' Subcommittee=20
on Oversight and Investigations, politicians=20
served up a dizzying slew of suggestions about=20
what kind of new federal laws should be enacted.=20
The ideas were all over the map, and most were=20
new. Only one or two have actually been turned=20
into formal legislation so far, but politicians=20
are vowing to take action in the very near=20
future. A child exploitation law is "one of the=20
highest priority issues not just before this=20
subcommittee, but the full committee," said House=20
Commerce Committee Chairman Joe Barton (R-TX).=20
"It is my intention to...see if we can't develop=20
very quickly a comprehensive piece of=20
anti-child-pornography legislation." Article=20
includes roundup of some of the proposals for new=20
federal laws, rules or regulations.
http://news.com.com/Congress+mulls+slew+of+Net-sex+rules/2100-1028_3-608...
7.html?tag=3Dhtml.alert
* Internet Companies Divided on Plan to Fight Pornography
http://www.nytimes.com/2006/06/28/technology/28porn.html
(requires registration)

MEDIA OWNERSHIP

MCCLATCHY ORDERED TO DIVEST PIONEER PRESS
[SOURCE: MarketWatch, AUTHOR: David B. Wilkerson]
McClatchy Co., all set to close its $6.5 billion=20
acquisition of Knight Ridder, has been ordered by=20
the U.S. Department of Justice to sell the=20
Knight-Ridder-owned St. Paul Pioneer Press before=20
it can complete the deal. McClatchy also owns the=20
neighboring Minneapolis Star-Tribune. The company=20
has already announced that it intends to sell the=20
St. Paul Pioneer Press to Hearst Corp. The DOJ=20
said that without the divestiture of Pioneer=20
Press, competition between it and the=20
Star-Tribune would be eliminated, "and likely=20
would have resulted in higher prices for=20
advertisers and readers in the Minneapolis/St.=20
Paul metropolitan area." According to Justice's=20
complaint, competition has led to "better quality=20
news coverage for readers and lower advertising=20
rates and better service for local advertisers."
http://www.marketwatch.com/News/Story/Story.aspx?guid=3D%7B169349B4%2D3D...
2D4E0C%2DBB90%2D49EEBD948162%7D&siteid=3Dmktw
* McClatchy Announces Done Deal -- With One Thing Left on 'To Do' List
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1002728988

ADELPHIA DEAL MOVES ONE STEP CLOSER
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
Adelphia Communications cleared the first major=20
bankruptcy court hurdle on its way to completing=20
its sale to Time Warner and Comcast Tuesday,=20
after U.S. Bankruptcy Court Judge Robert Gerber=20
approved a motion to go through with the sale of=20
the bulk of Adelphia=92s assets without the=20
approval of bondholders. Adelphia had first=20
proposed the motion in May, after months of=20
negotiations with two classes of bondholders --=20
Arahova and ACC Holding, noteholders -- reached a=20
standstill. In his order issued Tuesday in U.S.=20
Bankruptcy Court for the Southern District of New=20
York, Judge Gerber approved the motion, stating=20
that it was in the best interests of the estate.=20
Next up for Adelphia is a hearing in bankruptcy=20
court Wednesday morning to approve a=20
reorganization plan for its Century-TCI and=20
Parnassos joint ventures, which are being sold to=20
Comcast. Comcast owns 25% of Century-TCI (which=20
includes about 640,000 subscribers in the Los=20
Angeles area) and 33% of Parnassos (which=20
includes 408,000 customers in western New York=20
and Ohio). Comcast is expected to swap those=20
properties with Time Warner after the deal is closed.
http://www.multichannel.com/article/CA6347514.html?display=3DBreaking+News

TELEVISA NOT DONE AFTER LOSING UNIVISION BATTLE
[SOURCE: Reuters, AUTHOR: Cyntia Barrera Diaz]
Televisa may have lost a bidding battle for=20
partner Univision, but analysts believe the=20
Mexican media group is still the most likely=20
long-term buyer of the No. 1 U.S. Hispanic=20
broadcaster. Univision said on Tuesday it=20
accepted a $12.3 billion cash offer by an=20
investor group led by media entrepreneur Haim=20
Saban, edging out favored suitor Televisa after=20
weeks of tense negotiations between the parties.=20
But with no broadcasting experience and because=20
of the tendency of equity groups to buy and then=20
resell, Televisa could still snap up Univision by=20
using its strong leverage in the Spanish-language=20
media world. Televisa, which owns 11.4 percent of=20
Univision, has a long- term programming deal with=20
the U.S Spanish-language broadcaster that expires=20
in 2017 and the Saban group will still have to=20
deal with Televisa because of this agreement.=20
"The winning consortium will ultimately want to=20
sell Univision and Televisa remains the logical=20
buyer," said Merrill Lynch in a report.
http://today.reuters.com/news/newsArticle.aspx?type=3DindustryNews&storyID=
=3D2006-06-27T222932Z_01_N27220789_RTRIDST_0_INDUSTRY-MEDIA-MEXICO-TELEVISA=
-DC.XML
* Televisa Balks at Univision Deal
http://www.multichannel.com/article/CA6347403.html?display=3DBreaking+News
* Univision Jilts Televisa for Rival Bid
http://www.nytimes.com/2006/06/28/business/media/28univision.html
* How Televisa Lost Univision Bid
http://www.latimes.com/business/printedition/la-fi-univision28jun28,1,65...
98.story?coll=3Dla-headlines-pe-business
(requires registration)

FCC AGENDA

OBSERVERS EXPECT TV ISSUES TO DOMINATE FCC AGENDA
[SOURCE: Technology Daily, AUTHOR: Sarah Lai Stirland]
A panel of telecommunications providers=20
handicapped some of the most pressing issues=20
facing the FCC, and the transition to digital=20
television transition and news rules for media=20
ownership were among the most prominent. Congress=20
has set February 2009 as the "hard date" by which=20
broadcasters must end analog broadcasting and=20
send only digital signals. That date could be=20
delayed if the FCC does not take the "transition=20
seriously," said Rick Chessen, a partner at the=20
law firm of Shepphard Mullin Richter &=20
Hampton. Chessen, former chairman of the FCC's=20
digital TV task force, noted that the agency=20
needs to keep monitoring and ensuring that the=20
various industry players involved in the=20
transition keep making changes so they are ready=20
for the cut-off date. Broadcasters will have to=20
do a tremendous amount of work to meet the 2009=20
DTV deadline, Chessen said. They may need to=20
obtain additional financing and to coordinate=20
with other broadcasters. They also will have to=20
move their transmitting towers, and the time=20
available for that is limited because it can only=20
be done during favorable weather conditions, he=20
said. Consumers will have to be prepared for the=20
transition as well, he added. "There's nothing=20
you can do to get people more irate than make=20
people lose their television signals," Chessen=20
said. "There's got to be a massive effort to=20
bring consumers along." David Oxenford, a partner=20
at the law firm of Davis Wright Tremaine, said=20
media ownership will be the big issue for the FCC in the foreseeable future.
http://www.njtelecomupdate.com/lenya/telco/live/tb-QZVX1151433423465.html

GOVERNMENT & COMMUNICATIONS

PATRIOTISM AND THE PRESS
[SOURCE: New York Times, AUTHOR: Editorial Staff]
[Commentary] Over the last year, The New York=20
Times has twice published reports about secret=20
antiterrorism programs being run by the Bush=20
administration. Both times, critics have claimed=20
that the paper was being unpatriotic or even=20
aiding the terrorists. Some have even suggested=20
that it should be indicted under the Espionage=20
Act. There have been a handful of times in=20
American history when the government has indeed=20
tried to prosecute journalists for publishing=20
things it preferred to keep quiet. None of them=20
turned out well -- from the Sedition Act of 1798=20
to the time when the government tried to enjoin=20
The Times and The Washington Post from publishing=20
the Pentagon Papers. The United States will soon=20
be marking the fifth anniversary of the war on=20
terror. The country is in this for the long haul,=20
and the fight has to be coupled with a commitment=20
to individual liberties that define America's=20
side in the battle. A half-century ago, the=20
country endured a long period of amorphous,=20
global vigilance against an enemy who was=20
suspected of boring from within, and history=20
suggests that under those conditions, it is easy=20
to err on the side of security and secrecy. The=20
free press has a central place in the=20
Constitution because it can provide information=20
the public needs to make things right again. Even=20
if it runs the risk of being labeled unpatriotic in the process.
http://www.nytimes.com/2006/06/28/opinion/28Wed1.html
(requires registration)
* Piling On the New York Times With a Scoop
http://www.washingtonpost.com/wp-dyn/content/article/2006/06/27/AR200606...
1708.html

QUICKLY

BUSH'S CHALLENGES OF LAWS HE SIGNED IS CRITICIZED
[SOURCE: Washington Post, AUTHOR: Jonathan Weisman]
A bipartisan group of senators and scholars=20
denounced President Bush yesterday for using=20
scores of "signing statements" to reserve the=20
right to ignore or reinterpret provisions of=20
measures that he has signed into law. Bush's=20
statements have challenged, for instance, a=20
congressional ban on torture, a request for data=20
on the administration of the USA Patriot Act and=20
even a legislative demand for suggestions on the=20
digital mapping of coastal resources. The Senate=20
Judiciary Committee's hearing marked the latest=20
effort by Chairman Arlen Specter (R-PA) and panel=20
Democrats to reclaim authority that they say the=20
president has usurped as he has expanded the=20
power of the executive branch. It came on the=20
same day Bush gave a speech pushing for a=20
line-item veto that would allow him to strike=20
spending and tax provisions from legislation=20
without vetoing the bill. Other presidents have=20
used signing statements to clarify their=20
interpretation of laws, but no president has used=20
such statements instead of ever using the veto=20
authority spelled out in the Constitution, said=20
Harvard University law professor Charles J.=20
Ogletree Jr., who is serving on a new American=20
Bar Association task force examining Bush's=20
signing statements. Bush has never used his veto power in his presidency.
http://www.washingtonpost.com/wp-dyn/content/article/2006/06/27/AR200606...
0145.html
(requires registration)

CITIES MAY LOSE POWER OVER CABLE TV
[SOURCE: Los Angeles Times, AUTHOR: Marc Lifsher and James S. Granelli]
California cities and counties would be stripped=20
of most of their power to regulate local cable=20
television operators as part of a compromise that=20
emerged Tuesday in a high-stakes legislative=20
battle over local television service. The plan=20
would allow cable TV operators to be regulated=20
statewide by the California Public Utilities=20
Commission. Local officials were wary Tuesday of=20
the proposal, saying they were worried about the=20
effect on pay-TV consumers if local governments=20
could no longer set basic rates, ensure equal=20
access to services for all residents and handle=20
customer complaints. The PUC's proposed role in=20
setting pay-TV rates and service standards was=20
not spelled out Tuesday. "We still think that the=20
kinds of problems that come up are going to be=20
best solved at the local level," said Megan=20
Taylor of the League of California Cities. "If=20
someone puts graffiti on switching boxes, are you=20
going to call the PUC?" Dan Wall, the top=20
lobbyist for Los Angeles County, agreed. "We=20
think local control is the best model, but that=20
doesn't seem to be an option," he said. The=20
compromise was unveiled in the state Senate on=20
Tuesday by Assembly Speaker Fabian Nu=F1ez (D-Los=20
Angeles). He has been shepherding a bill through=20
the Legislature that would allow the state's=20
telephone companies to begin offering local=20
television service transmitted through phone=20
lines. The legislation passed the Assembly on May 31.
http://www.latimes.com/news/printedition/front/la-fi-tvbyphone28jun28,1,...
904.story?coll=3Dla-headlines-frontpage
(requires registration)

NEW MEDIA LURING MONEY AWAY FROM NETWORKS
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
Advance advertising sales for the fall television=20
season will probably be down for a second year in=20
a row, reflecting the growing impact of new media=20
outlets on broadcasters. Estimates are that the=20
five networks will sell $8.9 billion to $9=20
billion in commercial time ahead of the 2006-7=20
season, in what is known as the upfront market.=20
That compares with an estimated $9.1 billion sold=20
in the upfront market last year, before the start=20
of the 2005-6 season, and an estimated $9.3=20
billion in the upfront market two years ago, ahead of the 2004-5 season.
http://www.nytimes.com/2006/06/28/business/media/28adco.html
(requires registration)
* 'Upfront' Closes With a Whimper
http://online.wsj.com/article/SB115145077373792431.html?mod=3Dtodays_us_...
ketplace

AUSTRALIANS FRET OVER TELSTRA
[SOURCE: Wall Street Journal, AUTHOR: Lyndal McFarland]
Australia's government may have to significantly=20
reshape its long-planned 24 billion Australian=20
dollar (US$17.59 billion) privatization of=20
Telstra Corp. later this year because of an=20
uncertain regulatory environment and wary=20
investors. Prime Minister John Howard is acutely=20
aware that his government can't afford the=20
political backlash if the Telstra sale bombs. His=20
conservative coalition will head to the polls=20
sometime next year. With Telstra shares at=20
roughly half of where they were at the last sale=20
-- while the company's investment plans are in=20
limbo and the outlook for the telecommunications=20
industry seems increasingly grim -- officials are=20
scrambling for ways to make the sale come off without big problems.
http://online.wsj.com/article/SB115143967324792171.html?mod=3Dtodays_us_...
ey_and_investing
(requires subscription)

BREAK-UP OF TELCOS COULD SPUR GROWTH: EU'S REDING
[SOURCE: Reuters, AUTHOR: Huw Jones]
A forced separation of a telecom company's=20
network from its services could inject fresh=20
competition into the sector to create more=20
growth, the European Union's telecoms chief said=20
on Tuesday. European Information Society and=20
Media Commissioner Viviane Reding threw down the=20
gauntlet to the EU's 25 member states, saying=20
they should act radically if they believed in the=20
strategic importance of the communications=20
sector. Reding unveils proposals on Thursday to=20
overhaul EU telecoms rules and markets to reflect=20
advances in technology and competition, such as=20
multi-service offerings. Her proposals, many of=20
which have been leaked, have sparked outrage=20
among telecoms firms, who accuse Reding of being=20
a populist who fails to listen to the industry.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-06-27T170653Z_01_L27769012_RTRUKOC_0_US-TELECOMS-EU.xml&archived=
=3DFalse
--------------------------------------------------------------
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.
--------------------------------------------------------------