June 2006

A BUSY DAY ON THE HILL
Bill to raise Indecency Fines goes to Bush
'Net Neutrality' Seems Likely To Get House Floor Vote
Senate Commerce Committee to Revisit Net Neutrality Proposal
Financial Services Industry Urges 'Network Neutrality' Provisions
Neutrality Check
No Tolls on The Internet
House Committee Cuts CPB Funding
McCain Introduces a la Carte Bill

AN INTERESTING DAY AT THE FCC, TOO
FCC Postpones Vote to Relax Media Ownership Regulation
Stevens Prefers Congress Act on TV Multicasting; Barton, Upton Agree

CHILDREN & MEDIA
TV Is Surrogate Parent, Says Clinton
Copps Pushes Content Study in Ownership Review

MORE ON MEDIA OWNERSHIP
McClatchy Sells 5 KR Papers -- To 4 Companies
Tribune Board Is Considering A Broad Overhaul
Televisa says will have US Internet broadcast rights

TELECOM
Specter, Cheney & the NSA
U.S. to Ask Courts to Toss Phone Suits
AT&T gets more for less

QUICKLY -- New Web Site to Simplify=20
Public-Interest Searches; 2 Charged in Scheme=20
Said to Defraud Internet Phone Providers;=20
Comments Sought on Spectrum Sharing; More doctors=20
can use computers; EchoStar Converts TV's To One=20
Dish; China net users miffed at Google access issues

A BUSY DAY ON THE HILL

BILL TO RAISE INDECENCY FINES GOES TO BUSH
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
Legislation boosting fines tenfold on broadcast=20
television and radio stations that violate=20
decency standards was sent on Wednesday to=20
President George W. Bush in a victory for=20
conservative groups. The bill raising fines to=20
$325,000 per violation, which President Bush said=20
he would sign, caps fines at $3 million for=20
continuing violations. The U.S. House of=20
Representatives approved the measure by a 379 to=20
35 vote on Wednesday, while the Senate passed the=20
bill by unanimous consent last month. The=20
punishment was less than groups like the=20
Christian Coalition and Parents Television=20
Council had sought, but the passage of the bill=20
could help bolster support for Republicans who=20
are facing tough re-election races in November.=20
"This legislation will make television and radio=20
more family friendly by allowing the FCC (Federal=20
Communications Commission) to impose stiffer=20
fines on broadcasters who air obscene or indecent=20
programming," President Bush said in a statement.=20
"I look forward to signing this important legislation into law."
http://today.reuters.com/news/newsArticle.aspx?type=3DtelevisionNews&sto...
D=3D2006-06-07T223421Z_01_WAT005764_RTRIDST_0_TELEVISION-MEDIA-DECENCY-CONG=
RESS-DC.XML
* President Applauds Congress on Passage of S.=20
193, the Broadcast Decency Enforcement Act
http://www.whitehouse.gov/news/releases/2006/06/20060607-5.html
* FCC Chairman Kevin Martin on the bill:
"I welcome Congress' decision to give the=20
Commission increased fining authority in our=20
efforts to protect children from inappropriate=20
programming. Many parents are increasingly=20
concerned about what is on television and radio=20
today. Today's vote demonstrates that Congress=20
shares their concern and has a clear desire for a=20
more meaningful enforcement of our decency=20
standard. The Broadcast Decency Enforcement Act=20
gives the Commission more tools to enable parents=20
to watch television and listen to radio as a=20
family. In addition, I believe that concerns=20
regarding content should be addressed in a=20
comprehensive fashion by empowering parents to=20
choose the programming that comes into their homes."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-265837A1.doc
* FCC Commissioner on the bill:
"Congress has once again sent a firm message that=20
the minds of our children are a national=20
priority. Increased fines strengthen the FCC's=20
ability to enforce the law. I take this=20
responsibility very seriously. However, it will=20
take more than cleaning up indecency to make=20
television a positive force in our children's=20
lives. We need to also give parents more choice=20
in the channels sent into their homes, find ways=20
to make our children more media literate, and=20
promote the production of more positive,=20
educational, and inspirational children's programming."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-265838A1.doc
* Stevens Confident of Indecency Self-Reg
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senate Commerce Committee Chairman Ted Stevens=20
(R-Alaska) said Wednesday he was confident of the=20
success of industry self-regulatory efforts on=20
indecency though he added that he would have to=20
"wait and see." A $300 million combined media=20
initiative, led by former Motion Picture=20
Association of America President Jack Valenti,=20
will launch later this month to educate parents=20
about existing content blocking technologies via=20
cable, satellite and the V-chip ratings system for broadcast.
http://www.broadcastingcable.com/article/CA6341640?display=3DBreaking+News
*** There's lots more coverage/reaction. See=20
http://www.benton.org/index.php?q=3Dnode/2597 ***

'NET NEUTRALITY' SEEMS LIKELY TO GET HOUSE FLOOR VOTE
[SOURCE: Technology Daily, AUTHOR: Susan Davis and Drew Clark]
House Speaker Dennis Hastert (R-IL) indicated=20
that so-called network neutrality amendments to=20
the pending telecommunications overhaul bill --=20
amendments authored by Judiciary Chairman James=20
Sensenbrenner (R-WI) and Commerce=20
Telecommunications and the Internet Subcommittee=20
ranking member Edward Markey (D-MA) -- likely=20
will be allowed a floor vote when the bill comes=20
to the floor later this week. "Yes, a piece of=20
that will get a vote," Speaker Hastert told=20
reporters when asked about network neutrality=20
language written by Rep Sensenbrenner that is at=20
odds with telecom legislation approved by the=20
House Commerce Committee. When pressed on the=20
Sensenbrenner and Markey amendments -- each of=20
which is intended to prohibit the Bell=20
telecommunications companies and cable TV=20
companies from charging businesses to allow=20
speedier Internet delivery to preferred customers=20
-- Rep Hastert replied, "One of those amendments=20
will be on the floor, if not both of them." House=20
Commerce Chairman Joe Barton (R-TX), who has=20
engaged in a turf war with Chairman Sensenbrenner=20
over the telecom overhaul legislation, clearly=20
was not pleased with the prospect of allowing=20
floor votes on the net neutrality amendments --=20
and remained hopeful they would be blocked in the=20
House Rules Committee, which sets the guidelines=20
for floor debates. "We are in discussions with=20
the leadership and the stakeholders on what=20
amendments, if any, will be made in order, but I=20
think it's safe to say that the=20
Sensenbrenner-Markey forces have gotten a black=20
eye every time they've tried to bring their ideas=20
up," Rep Barton declared -- referring to the=20
defeat of the Markey amendment when it was=20
brought before the Commerce panel in late April.
http://www.njtelecomupdate.com/lenya/telco/live/tb-VOCF1149712117408.html
* House plans Vote on Net Neutrality
http://news.com.com/House+plans+vote+on+Net+neutrality/2100-1028_3-60809...
html?tag=3Dhtml.alert
* Diverse groups urge Rules Committee to permit net neutrality amendment
Expressing the views of more than 1 million=20
Americans, 35 groups, including Common Cause,=20
Free Press, Consumers Union, the American Library=20
Association and the Christian Coalition, formally=20
asked the House Rules Committee to permit House=20
members to vote on amendments to preserve a free and open Internet.
http://www.commoncause.org/site/apps/nl/content2.asp?c=3DdkLNK1MQIwG&b=3...
0365&content_id=3D{706FAD88-D8D6-4F4C-9F91-4321373309C7}&notoc=3D1
http://www.commoncause.org/site/apps/nl/content2.asp?c=3DdkLNK1MQIwG&b=3...
6043&ct=3D2541743

SENATE COMMERCE COMMITTEE TO REVISIT NET NEUTRALITY PROPOSAL
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Net neutrality provisions criticized by Internet=20
companies in a sweeping Senate proposal could be=20
getting a makeover. Senate Commerce Committee Ted=20
Stevens (R-Alaska) said Wednesday that he plans=20
to release a revised version of his committee's=20
broad communications bill because "many members=20
do not believe that the (Net neutrality)=20
provision in the existing bill goes far enough."=20
Addressing about 300 cable industry=20
representatives at the start of a summit=20
organized by the National Cable and=20
Telecommunications Association, Sen Stevens said=20
he is still working with one major critic -- Sen.=20
Daniel Inouye, the committee's top Democrat -- on=20
new language that should be available later this=20
week. A hearing on the revised version is=20
scheduled for June 13. Sen Stevens said=20
Wednesday that he still has reservations about=20
issuing sweeping regulations "before Congress=20
really knows what the problem is." He said the=20
revision would be focused on "protecting the=20
needs and rights of consumers, preserving network=20
management and stimulating commercial interaction=20
between companies" but was unable to supply=20
additional details. The senator told reporters=20
after his speech that he didn't plan to give the=20
FCC the power to make new rules on the subject,=20
though the Commission would be given the power to=20
take enforcement action related to consumer=20
complaints. If that's the case, the revised=20
Senate bill could end up taking a similar=20
approach to its House of Representatives=20
counterpart, which authorizes the FCC to police=20
violations of its broadband use principles and=20
levy fines if appropriate but bars the regulators=20
from making new rules. That technique has earned=20
deep disapproval from Net neutrality fans, who=20
say it doesn't do enough to ward off=20
discriminatory tactics by network operators.
http://news.com.com/Senate+panel+to+revisit+Net+neutrality+proposal/2100...
28_3-6080950.html?tag=3Dhtml.alert
* Chairman Stevens Addresses NCTA Key Contacts Breakfast
http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.D...
il&PressRelease_id=3D248622&Month=3D6&Year=3D2006
* Stevens Tells Cable about Possible Telecom Bill Revisions
http://www.broadcastingcable.com/article/CA6341631?display=3DBreaking+News

FINANCIAL SERVICES INDUSTRY URGES 'NETWORK NEUTRALITY' PROVISIONS
[SOURCE: Congress Daily, AUTHOR: Bill Swindell and Bara Vaida]
Some financial services firms are expressing=20
concern that they could be charged more for=20
offering online banking and brokerage services=20
under House telecommunications legislation=20
without strong "network neutrality" provisions=20
but have yet to mount a large-scale lobbying=20
effort. These firms worry that phone and cable=20
broadband providers could charge them more for=20
offering such popular services under legislation=20
sponsored by House Commerce Chairman Joe=20
Barton that would let providers favor online=20
traffic of their choosing and charge fees for=20
faster service to certain Web sites. Consumer=20
groups are urging that the bill be amended to=20
require that broadband providers give equal=20
access to online sites, a concept known as=20
network neutrality. John Hildreth, a lobbyist for=20
the Credit Union National Association, said that=20
without network neutrality, his members could=20
potentially pay local broadband providers more=20
money to obtain and maintain connections for=20
online banking accounts. "That would result in=20
higher costs to credit unions and their members,"=20
Hildreth said. A House GOP aide noted that some=20
financial services groups were lobbying the=20
Financial Services Committee to get involved in=20
the issue before the vote. Some of the firms were=20
concerned that broadband providers would charge=20
them premium fees for online stock trades.
http://www.njtelecomupdate.com/lenya/telco/live/tb-QGSC1149712582276.html

NEUTRALITY CHECK
[SOURCE: Wall Street Journal, AUTHOR: Charles Giancarlo, Cisco Systems]
[Commentary] When the public Internet was=20
created, its guiding principle was that everyone=20
would be free to use it in a way that was=20
privately beneficial without being publicly=20
detrimental. That principle fostered the birth of=20
thousands of companies, products, services and=20
creative activities that together built the=20
Internet to become the indispensable=20
infrastructure that exists today -- and the=20
ultimate beneficiaries are consumers. However,=20
many of the companies that were helped by the=20
light government regulation of the early Internet=20
are now advocating more regulation in a debate=20
turning on "Net neutrality." The outcome of this=20
debate could change the relationship between=20
consumers and the technology that connects them=20
to information and services. At issue is whether=20
broadband access providers will be able to=20
effectively manage their networks and have the=20
incentives to invest in next-generation networks.=20
Is regulation needed to accomplish "Net=20
neutrality"? The prudent policy at this point=20
would be not to regulate. First, the Internet is=20
still in its adolescence, and it is undergoing=20
rapid change. Regulation would lock in rules and=20
practices that might seem correct today, but=20
could create havoc tomorrow. Instead, we should=20
allow the massive convergence to Internet=20
technology to continue unabated, and regulators=20
should address specific problems on a=20
case-by-case basis. The FCC has already endorsed=20
"connectivity principles" that clearly spell out=20
that consumers should be able to access their=20
choice of safe, legal content and applications=20
within the bandwidth limits and quality of=20
service of their service plan. The House's Energy=20
and Commerce Committee recognized this approach=20
by rejecting proposals to regulate network=20
technology and management tools in a way that=20
would have reduced innovation, choices and new=20
services. Congress must protect freedom and=20
openness on the Internet, while promoting=20
responsibility and fairness among its users, and=20
the ability of providers to compete on technology=20
and services. Quick, reactionary and heavy-handed=20
regulation could snuff out incentive and=20
creativity. With forbearance and wise policies,=20
we can actually ensure that innovation and growth=20
continue and that consumers win.
http://online.wsj.com/article/SB114973113198074497.html?mod=3Dtodays_us_...
nion
(requires subscription)

NO TOLLS ON THE INTERNET
[SOURCE: Washington Post, AUTHOR: Lawrence Lessig=20
(Stanford) and Robert W. McChesney (Free Press)]
[Commentary] The protections that guaranteed=20
network neutrality have been law since the birth=20
of the Internet -- right up until last year, when=20
the Federal Communications Commission eliminated=20
the rules that kept cable and phone companies=20
from discriminating against content providers.=20
This triggered a wave of announcements from phone=20
company chief executives that they plan to do=20
exactly that. Now Congress faces a legislative=20
decision. Will we reinstate net neutrality and=20
keep the Internet free? Or will we let it die at=20
the hands of network owners itching to become=20
content gatekeepers? The implications of=20
permanently losing network neutrality could not=20
be more serious. The current legislation, backed=20
by companies such as AT&T, Verizon and Comcast,=20
would allow the firms to create different tiers=20
of online service. They would be able to sell=20
access to the express lane to deep-pocketed=20
corporations and relegate everyone else to the=20
digital equivalent of a winding dirt road. Worse=20
still, these gatekeepers would determine who gets=20
premium treatment and who doesn't. Congress is=20
deciding on the fate of the Internet. The=20
question before it is simple: Should the Internet=20
be handed over to the handful of cable and=20
telephone companies that control online access=20
for 98 percent of the broadband market? Only a=20
Congress besieged by high-priced telecom=20
lobbyists and stuffed with campaign contributions=20
could possibly even consider such an absurd act.=20
People are waking up to what's at stake, and=20
their voices are growing louder by the day. As=20
millions of citizens learn the facts, the message=20
to Congress is clear: Save the Internet.
http://www.washingtonpost.com/wp-dyn/content/article/2006/06/07/AR200606...
2108.html
(requires registration)

HOUSE COMMITTEE CUTS CPB FUNDING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
On Wednesday, the House Appropriations=20
Subcommittee on Labor, Health and Human Services,=20
Education and Related Agencies voted to cut $115=20
million from the federal appropriation for=20
noncommercial broadcasting, a 23% cut in the 2007=20
appropriation. Included in the cuts is funding=20
for the DTV transition, all the money for the=20
Ready To Learn program as well as the Ready to=20
Teach complementary effort targeted at teachers.=20
The same committee last year proposed cutting=20
$223 million form CPB, including for Ready to=20
Learn and digital transition, but the Senate=20
restored those cuts after protests led by Rep. Ed=20
Markey (D-MA) and Senator Hillary Clinton (D-NY),=20
among others. Free Press saw the cuts as a threat=20
to diversity of news outlets. "Americans across=20
the political spectrum aren't willing to abandon=20
public broadcasting, or to allow it to turn it=20
into a purely commercial enterprise," said=20
Executive Director Josh Silver. "Congress must=20
restore full funding to public broadcasting or=20
risk losing a source of news and information that=20
Americans say, in poll after poll, is the most trusted in America."
http://www.broadcastingcable.com/article/CA6341676?display=3DBreaking+News
* CPB Responds to House Appropriations=20
Subcommittee's Proposed Funding Levels for Public Broadcasting
"While we appreciate the difficult choices=20
confronting the Appropriations Committee, we are=20
disappointed with the funding levels contained in=20
the current House Labor-HHS bill," said Patricia=20
Harrison, CPB president and CEO. "A twenty-plus=20
percent cut, amounting to 104.5 million dollars,=20
will impact all CPB programs, and undermine=20
public broadcasting's ability to continue to=20
offer essential educational services and provide=20
a backbone for a national emergency alert system.=20
I look forward to making the case to the House=20
and Senate for their full support, appreciation=20
and respect for the inherent value of public=20
broadcasting to our civil society, our children's=20
education, and our nation's security," concluded Harrison.
http://www.cpb.org/pressroom/release.php?prn=3D551
* Markey: Cheney Gunning for Big Bird
Rep Ed Markey (D-MA) said, "The decision by=20
Republicans to slash $115 million from the budget=20
for public broadcasting is a body blow to a=20
treasured institution," he said. It seems that=20
Dick Cheney and the House GOP have the hunting=20
party out for Big Bird and Clifford the Big Red=20
Dog and the vast majority of Americans won't stand for it."
http://www.broadcastingcable.com/article/CA6341919?display=3DBreaking+News

MCCAIN INTRODUCES A LA CARTE BILL
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Cable operators that offer channels on a=20
per-channel or a la carte basis would be exempt=20
from local franchising and pay less in franchise=20
fees to local governments, according to=20
legislation introduced Wednesday by Sen. John=20
McCain (R-AZ). The bill would not mandate a la=20
carte, but it would reward cable operators that=20
chose that route by eliminating state and local=20
franchising obligations and by reducing=20
franchise-fee payments from 5% of gross revenue=20
to 3.7%. Sen McCain, in a prepared statement,=20
said he hoped that the ability of cable operators=20
to receive national franchises would spur the=20
sale of channels a la carte, which, he said,=20
consumers are clamoring to receive in lieu of=20
large programming packages that include channels=20
they don't want to buy or consider indecent for=20
children to experience. Consumers Union, while=20
endorsing =93the spirit of the legislation,=94=20
declined to back McCain, arguing that the bill=20
would go =93too far in eliminating important public=20
obligations of video-service providers to ensure=20
nondiscriminatory delivery of cable service,=20
diversity of local programming and essential=20
consumer protections, including the timely and=20
successful resolution of consumer complaints.=94=20
Sen McCain=92s bill would encourage new cable=20
entrants to build out entire communities, but=20
would not mandate it. However, denial of service=20
based on the income of subscribers would be=20
prohibited. The bill also provides a la carte=20
incentives both for cable operators and broadcasters that own cable network=
s.
http://www.multichannel.com/article/CA6341831.html?display=3DBreaking+News
* McCain, Tate Tout Cable Choice
http://www.broadcastingcable.com/article/CA6341690?display=3DBreaking+News
* Commissioner Tate's Remarks to the KidVid Summit
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-265839A1.doc

AN INTERESTING DAY AT THE FCC, TOO

FCC POSTPONES VOTE TO RELAX MEDIA OWNERSHIP REGULATION
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
In order to allow newly-seated FCC Commissioner=20
Robert McDowell some time to review the matter, a=20
Commission vote on proceedings to consider=20
relaxing media ownership regulations has been=20
postponed from June 15 to June 21.
http://www.tvweek.com/news.cms?newsId=3D10146
(requires free registration)
* House Media Caucus Weighs In
Calling the FCC's remanded ownership rules an=20
"unmitigated disaster," sixteen members of the=20
Future of American Media Caucus in the House have=20
written FCC Chairman Kevin Martin asking him not=20
to deregulate along the lines of those rules. Led=20
by Rep Maurice Hinchey of New York, the 15=20
Democrats and Bernie Sanders (an independent),=20
said that the FCC should strengthen the rules to protect diversity.
http://www.broadcastingcable.com/article/CA6341852?display=3DBreaking+News

STEVENS PREFERS CONGRESS ACT ON TV MULTICASTING; BARTON, UPTON AGREE
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
If U.S. cable companies are going to be required=20
to carry extra channels from broadcasters, the=20
mandate should come from Congress not regulators,=20
Senate Commerce Committee Chairman Ted Stevens=20
(R-Alaska) said on Wednesday. The Federal=20
Communications Commission is preparing to vote,=20
possibly next week, on a plan that would require=20
cable operators to carry extra channels that=20
television broadcasters are launching. With the=20
advent of digital broadcasting, television=20
stations have the capability of offering=20
additional channels, known as multicasting. Under=20
current regulations, a broadcaster can force=20
cable to carry its primary signal. The cable=20
industry has fought broadcasters' efforts to have=20
the FCC require the extra channels be carried,=20
and is expected to challenge any such plan in=20
court. The FCC, under former Chairman Michael=20
Powell, last year rejected must-carry for=20
multicast channels. But agency officials and=20
industry sources said new FCC Chairman Kevin=20
Martin has circulated a proposal reversing=20
course. Democratic Commissioners Michael Copps=20
and Jonathan Adelstein have said they wanted to=20
address public interest obligations of local=20
television stations first before voting on=20
multicasting. They worry that additional digital=20
channels in multicasting may not include local content.
http://today.reuters.com/news/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2006-06-07T172458Z_01_N07183851_RTRUKOC_0_US-MEDIA-MULTICASTING.xml&arch=
ived=3DFalse
* Chairman Stevens Addresses NCTA Key Contacts Breakfast
http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.D...
il&PressRelease_id=3D248622&Month=3D6&Year=3D2006
* Barton, Upton Oppose Multicast Must-Carry
Calling it a regulatory fiat that would "usurp=20
Congressional authority," the chairmen of the=20
House Commerce Committee and House=20
Telecommunications Subcommittee are allied with=20
Senate Commerce Committee Chairman Ted Stevens=20
(R-Alaska) in their opposition to FCC Chairman=20
Martin's effort to secure multicast must-carry for broadcasters.
http://www.broadcastingcable.com/article/CA6341936?display=3DBreaking+News
* Multicast Must-carry Is Congress' Call, Says Stevens
http://www.broadcastingcable.com/article/CA6341631?display=3DBreaking+News
* Stevens to FCC: We'll Handle Multicast
http://www.multichannel.com/article/CA6341648.html?display=3DBreaking+News
* Barton, Upton to Martin: No Multicast Mandates
http://www.multichannel.com/article/CA6341943.html?display=3DBreaking+News
* Congress Bigs Rap FCC Chair On Multicast
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
0191
* Senator Snowe Backs Martin on Must-Carry
Sen Olympia Snowe (R-Maine) wrote to FCC Chairman=20
Kevin Martin on June 5 she strongly supports=20
requiring cable to carry all of a broadcasters'=20
multicast, must-carry channels, not just a single=20
replication of their primary signal, as the FCC has previously concluded.
http://www.broadcastingcable.com/article/CA6341784?display=3DBreaking+News

CHILDREN & MEDIA

TV IS SURROGATE PARENT, CLINTON SAYS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
At a New America Foundation event exploring=20
various content-control strategies, including the=20
V-chip, =E0 la carte cable, and TiVo=20
parental-control functions, Sen Hillary Clinton=20
(D-NY) warned that the US is in the midst of a=20
social experiment of TV as surrogate parent. She=20
said it is hard for parents to find time to=20
supervise TV viewing, and exponentially harder=20
for single parents. She also said that technology=20
has outpaced our ability to respond to it, which=20
is why it was important to start gauging what the=20
effect of that technology on kids is. Sen Clinton=20
said it is time to get beyond the ideological=20
divide between censorship and free speech to an=20
understanding that everyone has a role. She said=20
she had drafted a parents' media guide to help=20
with things like understanding the V-Chip and=20
TiVo parental-control functions and was posting=20
it on her Website. She also drafted a bill, the=20
Children and Media Research Advancement Act,=20
which funds a long-term National Institutes of=20
Health study of the effects of various media on=20
children. The bill passed out of committee in=20
March and Sen Clinton said she was hoping for a floor vote soon.
http://www.broadcastingcable.com/article/CA6341731?display=3DBreaking+News
* Sen. Clinton: Feds must help parents on video games
http://news.com.com/Sen.+Clinton+Feds+must+help+parents+on+video+games/2...
-1028_3-6081268.html?tag=3Dhtml.alert

COPPS PUSHES CONTENT STUDY IN OWNERSHIP REVIEW
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Commissioner Michael Copps used a New America=20
Foundation content-control forum in Washington=20
Wednesday to push for a study of the influence of=20
media concentration on programming as part of a=20
new ownership rule review being launched by FCC=20
Chairman Kevin Martin. Commissioner Copps said=20
that ownership trumped all other issues relating=20
to the media's affect on kids, saying that=20
studying the connection as part of the crafting=20
of any new ownership rules was vital if parents=20
want "a world where there is wholesome=20
programming for children." Commissioner Copps=20
called on industry to "begin exercising some=20
self-discipline during the hours when children=20
are likely to be in the audience" by 1) providing=20
understandable and accurate content control tools=20
2) slating more family-friendly programming, 3)=20
re-instituting a programming code of conduct, 4)=20
"doing something at long last about gratuitous=20
violence," and 5) "protecting youngsters from=20
viewing unsuitable ads and promos." He also said=20
cable could "step up to the dialogue, too. And=20
speaking of ads and promos, Copps said children=20
should have more access to "positive educational=20
programming," and less access to "pre-canned,=20
nationalized, vulgar fare that is aimed chiefly at selling products."
http://www.broadcastingcable.com/article/CA6341707?display=3DBreaking+News

MORE ON MEDIA OWNERSHIP

MCCLATCHY SELLS 5 KR PAPERS -- TO FOUR COMPANIES
[SOURCE: Editor&Publisher, AUTHOR: Jennifer Saba]
McClatchy Co. announced late this afternoon it=20
has found buyers for five Knight Ridder papers=20
now in its hands, resulting in a total sale of=20
$450 million. 1) The Akron (Ohio) Beacon Journal=20
is going to Sound Publishing Holdings, a wholly=20
owned subsidiary of Black Press, a Canadian=20
company which produces over 100 publications in=20
British Columbia, Alberta, Washington State and=20
Hawaii. 2) Forum Communications will buy The News=20
Tribune in Duluth, Minn., and the Grand Forks=20
(N.D.) Herald. Forum is a media firm based in=20
Fargo, North Dakota. The company owns a number of=20
newspapers in North Dakota, South Dakota,=20
Minnesota, and Wisconsin, including The Forum of=20
Fargo-Moorhead (N.D.). 3) Ogden Newspapers is=20
purchasing The News-Sentinel in Fort Wayne, Ind.,=20
which is under a joint operating agreement.=20
Ogden, a private family-owned company=20
headquartered in Wheeling (WV), publishes 39=20
daily newspapers, as well as related web sites,=20
telephone directories, weekly newspapers,=20
shoppers, and magazines in 15 states. 4) Schurz=20
Communications agreed to acquire the American=20
News in Aberdeen, S.D. Schurz publishes 12 daily=20
and six weekly newspapers in medium and small=20
markets with a combined circulation of nearly=20
225,000. It also owns four television stations,=20
seven radio stations, two cable companies, phone=20
directories, shopping guides, and a printing company.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1002649281
* McClatchy in Accords to Sell 5 More Papers
http://www.latimes.com/business/printedition/la-fi-mcclatchy8jun08,1,594...
6.story?coll=3Dla-headlines-pe-business

TRIBUNE BOARD IS CONSIDERING A BROAD OVERHAUL
[SOURCE: Wall Street Journal, AUTHOR: Sarah=20
Ellison sarah.ellison( at )wsj.com & Dennis K. Berman]
The board of Tribune Co. since January has been=20
seriously considering a restructuring that would=20
include a spinoff of the company's broadcasting=20
group and could pave the way for the eventual=20
sale of the rest of the company, according to=20
people familiar with the situation. The Chandler=20
family trusts, which are Tribune's second-largest=20
shareholder and which nominated three of the=20
board's 11 directors, have been involved in the=20
discussions, and all parties appear to agree on=20
exploring a broadcast spinoff, these people said.=20
But the Chandlers disagree with Tribune's=20
management over the timing and strategy of the=20
move, which would entail months of complex and=20
costly preparation. In part, the Chandlers, who=20
formerly ran the Los Angeles Times and became=20
major Tribune shareholders with the 2000 sale of=20
Times Mirror Co. to Tribune for $8.3 billion, are=20
unhappy over the $2 billion stock-buyback program=20
that Tribune announced last week. The three=20
Chandler-nominated directors voted against the=20
buyback, according to a company securities filing=20
on Tuesday. The discussions suggest Tribune is=20
more seriously considering a breakup of the=20
160-year-old media conglomerate than previously=20
had been known. Chicago-based Tribune controls a=20
wide range of broadcast properties and=20
newspapers, including 26 TV stations as well as=20
the Chicago Tribune, the Los Angeles Times,=20
Newsday of Long Island, N.Y., and other=20
newspapers. The talks also suggest that a breakup=20
would have the support of the Chandler Trusts, which control 12.2% of Tribu=
ne.
http://online.wsj.com/article/SB114973387435674567.html?mod=3Dtodays_us_...
e_one
(requires subscription)
See also at:=20
http://www.washingtonpost.com/wp-dyn/content/article/2006/06/07/AR200606...
2256.html
* Chandlers in Dissent at Tribune Co.
http://www.latimes.com/business/printedition/la-fi-tribune8jun08,1,39234...
story?coll=3Dla-headlines-pe-business

TELEVISA SAYS WILL HAVE US INTERNET BROADCAST RIGHTS
[SOURCE: Reuters]
Mexican programmer Televisa on Wednesday said it=20
expected to be able to air its shows on the=20
Internet in the United States, despite remarks by=20
U.S. broadcast partner Univision Communications=20
that the two differ on Web rights. The statement=20
by Grupo Televisa came in response to comments by=20
Univision President Ray Rodriguez last month.=20
Rodriguez told reporters at the Univision upfront=20
presentation to advertisers that there was "a=20
difference of opinion" on Internet rights.=20
Televisa said a long-term programming agreement=20
between the two sides specifically states that=20
Univision may not broadcast or transmit any of=20
its shows "by means of the Internet or similar=20
systems, now existing or hereafter developed."=20
"There is no room for any 'difference of opinion'=20
by Univision or any other party as to this=20
prohibition," the company said. Televisa, which=20
is also part of a group that may bid for control=20
of Univision, said a clause of the programming=20
agreement does bar it from distributing shows=20
over the Internet in the United States. But the=20
provision expires on December 19, after which=20
Televisa believes it will have the right to do so.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-06-07T213104Z_01_N07242106_RTRUKOC_0_US-MEDIA-TELEVISA-UNIVISION.xml

TELECOM

SPECTER, CHENEY & THE NSA
[SOURCE: New York Times, AUTHOR: Carl Hulse & Jim Rutenberg]
Senate Judiciary Committee Chairman Arlen Specter=20
(R-PA) has released to the media a letter he sent=20
to Vice President Dick Cheney concerning a=20
potential hearing on the National Security Agency=20
domestic spying program. Sen Specter said the=20
vice president had cut him out of discussions=20
with all the other Republicans on his own=20
committee about oversight of the administration's=20
eavesdropping programs, a subject on which Sen=20
Specter has often been at odds with the White=20
House. The trigger for Sen Specter's anger was a=20
deal made by VP Cheney with the other Republicans=20
on the committee to block testimony from phone=20
companies that reportedly cooperated in providing=20
call records to the NSA. Sen Specter, who had=20
been considering issuing subpoenas to compel=20
telephone company executives to testify, learned=20
of VP Cheney's actions only when he went into a=20
closed meeting of the committee's Republicans on=20
Tuesday afternoon, shortly after encountering the=20
vice president at a weekly luncheon of all Senate=20
Republicans. In his letter, Sen Specter told VP=20
Cheney that events were unfolding in a "context=20
where the administration is continuing=20
warrantless wiretaps in violation of the Foreign=20
Intelligence Surveillance Act and is preventing=20
the Senate Judiciary Committee from carrying out=20
its constitutional responsibility for=20
Congressional oversight." VP Cheney, by=20
contrast, has led the White House's effort to=20
defend the surveillance programs on legal and national security grounds.
http://www.nytimes.com/2006/06/08/washington/08specter.html
(requires registration)
* Specter: Cheney put pressure on panel
http://www.usatoday.com/printedition/news/20060608/a_capcol08.art.htm
* Specter Says Cheney Tried to Derail Hearings
http://www.latimes.com/news/printedition/asection/la-na-cheney8jun08,1,5...
062.story?coll=3Dla-news-a_section
* Regulate the spooks
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
[Commentary] Congress should back Sen Feinstein's=20
plan to bring NSA wiretapping under an expanded FISA.
http://www.latimes.com/news/printedition/opinion/la-ed-nsa08jun08,1,5268...
.story?coll=3Dla-news-comment
(requires registration)

US TO ASK COURTS TO TOSS PHONE SUITS
[SOURCE: Bloomberg News, AUTHOR: Andrew Harris]
The government will seek dismissal of 20 lawsuits=20
accusing the biggest telecommunications companies=20
of providing customer call data to the National=20
Security Agency, claiming that "military and=20
state secrets" might be divulged were the=20
lawsuits to proceed. The Justice Department said=20
it will not ask for the dismissal until all the=20
lawsuits are consolidated before a single judge,=20
according to papers filed in U.S. District Court=20
in Chicago, where a complaint is pending against AT&T Inc.
http://www.washingtonpost.com/wp-dyn/content/article/2006/06/08/AR200606...
0048.html
(requires registration)

AT&T GETS MORE FOR LESS
[SOURCE: San Francisco Chronicle, AUTHOR: David Lazarus]
In March 2005, then-SBC's chief exec, Ed=20
Whitacre, testified in Congress that his=20
company's then-pending $16 billion acquisition of=20
AT&T would have no adverse effect on consumers.=20
He was asked by Rep. Ed Markey (D-MA) if he would=20
pledge not to raise residential phone rates once=20
the merger goes through. According to reports of=20
the hearing, Whitacre assured the congressman=20
that the deal would "have no impact on the=20
consumer marketplace." Rep Markey persisted. If=20
that's the case, he said, would Whitacre publicly=20
pledge that rates won't go up? "I can't pledge=20
that forever, but don't see anything that would=20
impact that in the foreseeable future," Whitacre=20
replied. "How long is the foreseeable future?"=20
Rep Markey asked. "I can't make a pledge for any=20
specific length of time," Whitacre answered. "I=20
can't give you a specific number of days or=20
years. I really don't foresee it." Less than=20
seven months after the SBC-AT&T merger was=20
finalized in November, rates are now going up in=20
the form of higher minimum usage fees. If you're=20
an AT&T long-distance customer and you don't make=20
a lot of calls, there's a good chance your=20
monthly bill will be going up as a result of=20
these new "minimum usage" fees. AT&T says on its=20
Web site that long-distance customers "enjoy=20
great rates usually with a small or no monthly=20
plan fee." It says it needs to charge (or in some=20
cases increase) monthly minimum usage fees "in=20
order to keep these rates low and still recover=20
our costs of providing basic service." Industry=20
analysts and consumer advocates say this just=20
doesn't ring true. "Carrier costs are not going=20
up to provide long-distance service," said Lisa=20
Pierce, a vice president at Forrester Research=20
who specializes in telecom issues. "If anything,=20
the cost has been coming down."
http://www.sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2006/06/07/BUGD3J8U44...
TL&feed=3Drss.dlazarus
See also:
* AT&T/Bell South to Public: We Don't Have to=20
Pay Attention to the Public Interest, Just the Corporate Bottom Line
http://www.democraticmedia.org/news/washingtonwatch/AT&TBS.html

QUICKLY

NEW WEB SITE TO SIMPLIFY PUBLIC-INTEREST SEARCHES
[SOURCE: Washington Post, AUTHOR: Arshad Mohammed]
One Economy Corp., a nonprofit group that seeks=20
to bring the benefits of broadband Internet=20
access to the poor, today will announce plans to=20
create a public-interest Web site with easily=20
accessible information about public safety,=20
emergency services, education, health and=20
economic opportunities. The project, to be called=20
the Public Internet Channel, reflects One=20
Economy's belief that much of the content on the=20
Internet is not easy to find or presented in=20
simple, digestible ways, particularly for those who are not Web-savvy.
http://www.washingtonpost.com/wp-dyn/content/article/2006/06/07/AR200606...
2283.html
(requires registration)

2 CHARGED IN SCHEME SAID TO DEFRAUD INTERNET PHONE PROVIDERS
[SOURCE: New York Times, AUTHOR: Ken Belson & Tom Zeller]
Federal authorities yesterday arrested a Miami=20
man who they said made more than $1 million in a=20
hacking scheme involving the resale of Internet=20
telephone service. The suspect is accused of=20
surreptitiously routing calls through the lines=20
of legitimate Internet phone companies, saddling=20
them with the expense of carrying the traffic=20
while he pocketed the connection fees from=20
customers. A second man was arrested in=20
Washington State, and charged with aiding in the=20
scheme. The case, representing an elaborate new=20
form of Internet hacking, raises fresh questions=20
about the security of phone traffic over largely unregulated networks.
http://www.nytimes.com/2006/06/08/technology/08voice.html
(requires registration)
* Arrests Reveal Vulnerability Of Web Phone Service to Fraud
http://online.wsj.com/article/SB114971242327274079.html?mod=3Dtodays_us_...
ketplace
* Who's Watching Internet-Phone Services?
http://online.wsj.com/article/SB114972853482574428.html?mod=3Dtodays_us_...
sonal_journal

NTIA SEEKS PUBLIC COMMENT ON CREATION OF SPECTRUM SHARING INNOVATION TEST-B=
ED
[SOURCE: National Telecommunications and Information Administration]
The Commerce Department called for public comment=20
on a proposed spectrum sharing test bed to=20
explore innovative ways to make more intensive=20
use of the nation=92s airwaves and promote=20
continued economic growth and national security.=20
The test bed proposal, a key recommendation of=20
President Bush=92s Spectrum Policy Initiative,=20
would enable federal and non-federal users of=20
spectrum to test ideas on new ways to share the=20
finite radio spectrum. The department=92s National=20
Telecommunications and Information=20
Administration, in a notice to be published in=20
the Federal Register, will invite parties to file=20
comments on issues related to establishing the=20
Spectrum Sharing Innovation test bed. These=20
issues include identification of technologies and=20
services; establishment of processes, principles=20
and guidelines; identification of candidate=20
frequency band (s); and activation, termination=20
and evaluation of the test bed. The Federal=20
Communications Commission also is soliciting=20
public comment on issues related to the test bed=20
through a separate public notice. As part of the=20
test bed, NTIA and the FCC will each identify=20
approximately 10 MHz of spectrum. The Test-Bed=20
will build on the successful sharing arrangements=20
between federal and non-federal users at 5GHz and=20
in the 70, 80, and 90 GHz bands and will drive=20
future innovation and the expansion of sharing to=20
benefit government and commercial users. Two=20
years after establishment of the test bed, NTIA=20
and the FCC will develop reports outlining the=20
results and suggesting appropriate procedures for=20
expanding the test bed as appropriate.
http://www.ntia.doc.gov/ntiahome/press/2006/specshare_060706.htm

MORE DOCTORS CAN USE COMPUTERS, GAPS REMAIN
[SOURCE: Reuters, AUTHOR: Susan Heavey]
U.S. doctors increasingly have access to=20
computers to look up information on their=20
patients, but more than half still don't have=20
digital health records or the ability to write=20
electronic prescriptions, a study released on=20
Wednesday found. Twenty-two percent of doctors=20
surveyed by the Center for Studying Health System=20
Change last year had access to electronic=20
prescription tools compared with 11 percent in=20
2001. About half can use computers to access=20
notes on their patients or exchange data with=20
other doctors, up from about 37 percent and 41=20
percent, respectively, four years earlier.=20
"Despite substantial growth rates ... many=20
physicians still lack access to practice-based=20
clinical information technology (IT)," said study=20
co-author Marie Reed, who manages data for the=20
independent policy research group.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-06-07T210421Z_01_N07219465_RTRUKOC_0_US-TECHNOLOGY.xml

ECHOSTAR CONVERTS TV'S TO ONE DISH
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Echostar has told the FCC that the company has=20
now moved all of its local TV station offerings=20
onto one dish. In November 2004, Congress gave=20
the satellite company 18 months to stop requiring=20
some subs to install two dishes in order to=20
receive all their local TV stations.
http://www.broadcastingcable.com/article/CA6341942?display=3DBreaking+News

CHINA NET USERS MIFFED AT GOOGLE ACCESS ISSUES
[SOURCE: Reuters]
China's Web surfers have complained of problems=20
opening Google's main search engine Web site in=20
the latest bout of Internet access problems afflicting foreign Internet sit=
es.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-06-07T213522Z_01_PEK199183_RTRUKOC_0_US-CHINA-GOOGLE.xml
--------------------------------------------------------------
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.
--------------------------------------------------------------