June 2006

HOUSE AGENDA
House GOP Leaders Push Telco Vote
Sensenbrenner Tries, Tries Again
Martin sounds off on Net Neutrality and National Franchises
Net Neutrality: Big Guns Trade Fire
Who Helps Fund Heritage Foundation? AT&T and Verizon

FCC AGENDA
FCC to Study DTV=92s Analog Impact
McDowell Announces Staff, Will Vote on Media Ownership
Good Night and Good Luck
The FCC Thinks You Would Look Totally Hot in a Diaper
ACLU Raises Surveillance as Issue in Big Phone Merger
Consumer Groups Ask FCC to Reject AT&T, BellSouth Merger
Sprint Nextel Wants AT&T-BellSouth Conditions

QUICKLY -- Communication failures hampered London=20
bombing rescues; Study: Web is the No. 1 media;=20
Online Newspaper Ads Gaining Ground on Print; Ad=20
Firms Wait to Get TV Spots; Wi-Fi and the Cities;=20
The Man Who Invented Saturday Morning

HOUSE AGENDA

HOUSE GOP LEADERS PUSH TELCO VOTE
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
House Republican leaders are pressing forward=20
with the Bell company-led effort to pass=20
telecommunications legislation and have scheduled=20
H.R. 5252 for a vote that likely will take place=20
Friday, said leadership aides. House leadership=20
wants to avoid requiring members to vote on the=20
contentious issue of network neutrality,=20
congressional and industry sources say. Bell=20
companies have been tasked with generating=20
sufficient support against a network neutrality=20
amendment. The bill, which passed the House=20
Energy and Commerce Committee 42-12 on April 26,=20
would ease municipal video franchising rules that=20
have limited the Bell companies' ability to offer=20
nationwide video services. Opposition to the=20
franchising aspect comes from the cable industry=20
and municipalities. H.R. 5252 is the final one=20
scheduled for the week, and comes after a day of=20
uncontroversial items on Tuesday, and two=20
appropriations bills on Wednesday and Thursday.=20
If Bell advocates of the telecom measure are not=20
able to generate support against a neutrality=20
amendment, the measure could slip to next week,=20
said industry sources. But an aide to House=20
Majority Leader John Boehner, R-Ohio, said=20
leaders were going to proceed with an unusual=20
vote outside the chamber's normal work week. "We=20
will have a vote on Friday," said spokesman Kevin Madden.
http://www.njtelecomupdate.com/lenya/telco/live/tb-RUDJ1149532536938.html
* Internet key in telecommunication fight
http://www.mercurynews.com/mld/mercurynews/business/technology/14750683.htm

SENSENBRENNER TRIES, TRIES AGAIN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Judiciary Committee Chairman James Sensenbrenner=20
(R-WI) is still trying to get tougher=20
network-neutrality language into the House video=20
franchise bill. According to a top committee=20
staffer, he is still planning to introduce his=20
bill, which passed his own committee 20-13, as an=20
amendment on the House floor when the bill is=20
voted on, which is planned for sometime later=20
this week. Rep Sensenbrenner attempted to assert=20
jurisdiction over the bill, arguing that=20
questions about network control over the Internet=20
raise antitrust concerns that are in his=20
committee's wheelhouse. That effort failed, and=20
his amendment is not likely to survive, either,=20
even if it survives rules committee vetting on=20
germaneness. Now it looks like a vote on the=20
House bill won't happen until late this week,=20
according to a committee minority staffer, with a=20
rules committee meeting Wednesday on what amendments can be offered.
http://www.broadcastingcable.com/article/CA6341156?display=3DBreaking+News

FCC CHAIRMAN SOUNDS OFF ON NET NEUTRALITY AND NATIONAL FRANCHISE
[SOURCE: News.com, AUTHOR: Marguerite Reardon]
Speaking with Telecommunications Industry=20
Association President Matthew Flanigan, FCC=20
Chairman Kevin Martin said that enacting new laws=20
protecting Net neutrality would be premature. He=20
said that the commission has already adopted a=20
set of principles, which he feels are sufficient=20
to address the issue. "Consumers need to be able=20
to access content on the Internet unimpeded," he=20
said. "But at the same time, we understand=20
network operators may offer differentiated tiers=20
and differentiated speeds." He added that the=20
Commission hasn't seen any widespread abuse that=20
would justify making new laws. Chairman Martin=20
also talked about changes to the video franchise=20
rules to allow telephone companies to get=20
national franchises instead of negotiating with=20
every local government across the U.S. While=20
Martin said the Commission would support any new=20
laws passed by Congress, he also said that the=20
FCC is investigating whether it needs to add its=20
own rules to current laws, which prohibit local=20
municipalities from unreasonably denying=20
franchise applications. So far, the FCC has found=20
instances where some governments have sat on=20
franchise applications or put onerous conditions=20
on new entrants, he said. While he stopped short=20
of supporting a new national franchise law,=20
Chairman Martin said anything the Commission or=20
the government could do to increase competition=20
for TV service would be welcomed. He noted that=20
while other communications services, such as=20
broadband, cellular and long distance phone=20
services, have dropped in price over the past 10=20
years, cable rates have actually increased 80=20
percent. But in areas where an over-builder was=20
present to offer a similar wireline cable=20
service, prices and choice benefited consumers, he said.
http://news.com.com/2061-10785_3-6080314.html?part=3Drss&tag=3D6080314&s...
=3Dnews

NET NEUTRALITY: BIG GUNS TRADE FIRE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
On Monday, Microsoft sent a letter to House=20
members advising them to vote for a network=20
neutrality amendment to the national video=20
franchise bill, saying that decision "could=20
dictate whether or not the United States will=20
continue to lead the world in Internet-related=20
technologies, communications, content and=20
services over the next decade." Meanwhile,=20
academics, led by David Farber, former chief=20
technologist at the FCC and dubbed "grandfather"=20
of the Internet by net neutrality opponents,=20
argued that neutrality is not a plus in all=20
cases, citing traffic management, where=20
prioritizing is important: i.e. moving VoIP=20
faster than e-mail, or blocking viruses and spam.=20
They also argued that, if companies can't charge=20
more for security and speed, they might not be=20
able to provide key services that depend on those additional features.
http://www.broadcastingcable.com/article/CA6341184?display=3DBreaking+News
* Net Hypocrisy
Public Knowledge's Art Brodsky writes, "It is=20
ludicrous for the telephone companies and their=20
congressional allies, principally Republicans, to=20
fight against net neutrality on the basis of the=20
fraudulent don't regulate the Internet' mantra.=20
The industry has the gall to name one of their=20
propaganda sites, www.dontregulate.org, part of=20
the =93Hands Off the Internet=94 family=97brought to=20
you by the telephone and cable industries . All=20
of their other arguments hang from this one basic, misapplied concept."
http://www.tompaine.com/articles/2006/06/02/net_hypocrisy.php
* Protection needed for 'Net neutrality
Lincoln (NE) Journal Star says, "Congress should=20
pass legislation that protects network neutrality."
http://www.journalstar.com/articles/2006/06/05/editorial_main/doc448382a...
eb7189713293.txt
* Telecom giants threaten Net neutrality
Jacksonville (FL) Business Journal says, "Phone=20
and cable companies have begun to stir. They=20
don't want a marketplace of ideas. They don't=20
want the innovative, idea-rich laboratory of=20
speech, media, religion and thought that we know today. They want money."
http://jacksonville.bizjournals.com/jacksonville/stories/2006/06/05/edit...
al2.html

HEY! GUESS WHO HELPS FUND HERITAGE FOUNDATION? AT&T AND VERIZON
[SOURCE: Digital Destiny, AUTHOR: Jeff Chester]
[Commentary] Ready as always to weaken the public=20
interest potential of U.S. communications, James=20
L. Gattuso wrote a anti-network neutrality=20
=93Backgrounder=94 for the Heritage Foundation=20
(released June 2, 2006). Subtitled =93Will Congress=20
Neuter the Net?=94, the piece is a politically=20
timed missive designed to undermine the growing=20
pressure on Congress to enact network neutrality=20
safeguards. It contains the usual litany of=20
rationalizations and under-developed analysis=20
used by big cable and phone advocates to=20
criticize network neutrality. But notably missing=20
from Mr. Gatttuso=92s piece is any admission that=20
two of the Heritage Foundation=92s funders just=20
happen to be=ADyes, AT&T and Verizon. In its 2005=20
annual report, AT&T is listed as one of the few=20
=93premier associates.=94 Verizon is placed at=20
=93executive associates=94 status. It just so=20
happens, as you know, that AT&T and Verizon are=20
leading the charge against network neutrality=20
(and paying a lot for the work of many opposition=20
groups). Perhaps it was an oversight of Mr.=20
Gattuso. But such financial ties must be=20
identified (he should also have noted that=20
Professor Yoo, whom he frequently cites,=20
undertook a anti-network neutrality study funded by the cable lobby).
http://www.democraticmedia.org/jcblog/

FCC AGENDA

FCC TO STUDY DTV'S ANALOG IMPACT
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
The Federal Communications Commission is planning=20
to examine the obligations of cable operators to=20
ensure that consumers with analog-TV sets can=20
view digital signals of local TV stations, an=20
agency source said Monday. FCC chairman Kevin=20
Martin is trying to round up support to launch a=20
rulemaking that would establish federal policy=20
well before TV stations must cease analog=20
transmission Feb. 17, 2009, the source said.=20
Chairman Martin is hoping to launch the=20
rulemaking at the FCC=92s June 15 public meeting=20
and at the same the commission adopts rules that=20
would allow digital-TV stations to demand cable=20
carriage of every free programming services they=20
transmit. FCC rules currently require carriage of=20
just one signal per TV station. Broadcasters'=20
transition to digital could prove costly to cable=20
operators, depending on the substance of the FCC=92s rules.
http://www.multichannel.com/article/CA6341224.html?display=3DBreaking+News
* FCC's Martin Ready to Rumble
http://www.mediaweek.com/mw/news/networktv/article_display.jsp?vnu_conte...
id=3D1002612892

MCDOWELL ANNOUNCES STAFF, WILL VOTE ON MEDIA OWNERSHIP
[SOURCE: Federal Communications Commission]
FCC Commissioner Robert M. McDowell announced the=20
hiring of Dana Shaffer, Angela Giancarlo, and=20
Cristina Chou Pauz=E9 as Acting Legal Advisors.=20
Dana Brown Shaffer, Acting Wireline Advisor,=20
joined the FCC as Deputy Bureau Chief of the=20
Wireline Competition Bureau, and served as an=20
interim legal advisor to Commissioner Deborah=20
Taylor Tate. Angela Giancarlo, Acting Wireless=20
Advisor, recently served as Associate Chief for=20
Spectrum Policy in the Public Safety and Critical=20
Infrastructure Division of the Wireless=20
Telecommunications Bureau. Cristina Chou Pauz=E9,=20
Acting Media Advisor, joined the FCC as an=20
Associate Bureau Chief in the Media Bureau. Her=20
prior experience includes positions at Morrison &=20
Foerster's Washington DC office, the National=20
Telecommunications and Information Administration=20
at the U.S. Department of Commerce, and Teleglobe=20
USA Inc. Ms. Pauz=E9 received her JD from=20
Vanderbilt University School of Law and her AB=20
from Duke University. She served as a law clerk=20
to the Honorable John G. Heyburn II of the US=20
District Court for the Western District of Kentucky.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-265784A1.doc
* McDowell to Vote on Media Ownership
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
In one of his first official duties, Robert=20
McDowell, the Federal Communications Commission's=20
new Republican commissioner, is planning to vote=20
next week on a controversial proceeding to relax=20
agency media ownership restrictions, Dana Brown=20
Shaffer, his press liaison, said Monday. Ms.=20
Shaffer's remark is important because it=20
represents the first public confirmation that Mr.=20
McDowell plans to serve as the tie-breaking vote on the media ownership iss=
ue.
http://www.tvweek.com/news.cms?newsId=3D10123
(requires free registration)

GOOD NIGHT AND GOOD LUCK
[SOURCE: Houston Chronicle, AUTHOR: Editorial Staff]
[Commentary] Most Americans who care about things=20
such as energy want to know the facts. A new=20
study suggests that TV news might be the wrong=20
place to look. In the past 10 months, 77 stations=20
foisted off as news at least 36 videos paid for=20
and filmed by corporations. In their own way,=20
these faux news broadcasts are masterful pieces=20
of work. The videos expertly ape the tone, pacing=20
and structure of traditional news. Only near the=20
end, or slipped subtly into the "reporting," does=20
product placement occur -- pushing Cadillacs,=20
prescription-strength drugs or, in one case,=20
ethanol. The 36 VNRs studied represent only 1=20
percent of those produced nationwide last year.=20
Certainly, TV stations face crushing competitive=20
pressures to program more with smaller staffs.=20
And news businesses, whether print or TV, will=20
always make mistakes. What's so troubling about=20
the VNR plague, though, is the TV industry's=20
indifference to stopping it. The industry itself,=20
not a media watchdog group, should have been the=20
first to report the widespread corruption of the=20
news. It should have already examined, even=20
isolated, stations that were infected. Since that=20
hasn't happened, it is for the FCC to enforce=20
regulations it has too long overlooked. There's=20
nothing wrong with advertising, but viewers need=20
to show they won't put up with false pretenses.
http://www.chron.com/disp/story.mpl/editorial/3926021.html

THE FCC THINKS YOU WOULD LOOK TOTALLY HOT IN A DIAPER
[SOURCE: AdAge, AUTHOR: Simon Dumenco]
[Commentary] Does the FCC or anyone in particular=20
actually gain anything by placing all these=20
restrictions on what we watch? What criteria are=20
used? the problem with trying to parse the=20
behavior of the FCC is that, like much of what's=20
happened at the federal level the past few years,=20
logic is beside the point. Instead, politics is=20
the point. As are a faith-based agenda, a pro-Big=20
Media slant and shameless cronyism. Commissioner=20
Robert McDowell's appointment is a belated reward=20
for his having helped out the Bush-Cheney legal=20
team during the 2000 Florida presidential=20
election recount. But he is not only a=20
Bush-campaign crony, he's a telecom crony. In=20
other words, a telecom lobbyist is now regulating=20
telecoms! But who's driving the action on=20
indecent programming? Groups like the American=20
Family Association. "Those who would condescend=20
to the American public -- deciding that more and=20
more things are "dirty" and that everyone,=20
including grown men and women, must simply not be=20
allowed to watch or hear them under any=20
circumstances -- are often the ones with the most=20
pitiable psychosexual issues. We're paying=20
federal taxes, at least in theory, to protect us=20
against real threats like terrorism and the new=20
hurricane season. Not to have a bunch of=20
Church-Lady commissioners think up new ways to=20
infantalize us. In other words, beware of freaks=20
in Washington who fantasize about putting adults back in diapers."
http://www.adage.com/mediaworks/article?article_id=3D109634

ACLU RAISES SURVEILLANCE AS ISSUE IN BIG PHONE MERGER
[SOURCE: New York Times, AUTHOR: Ken Belson]
The American Civil Liberties Union asked the=20
Federal Communications Commission yesterday to=20
withhold approval of AT&T's acquisition of=20
BellSouth until it reviews allegations that the=20
companies gave customer records to the government=20
without warrants. In its filing, the ACLU. cited=20
a provision in the Telecommunications Act that=20
says that in considering a merger, the commission=20
must "weigh the public-interest harms of the=20
proposed transaction against the potential=20
public-interest benefits." The group said the FCC=20
should determine if AT&T and BellSouth handed=20
over phone records to the National Security=20
Agency's surveillance program and, if so, whether=20
that violated any privacy laws.
http://www.nytimes.com/2006/06/06/technology/06phone.html
(requires registration)

CONSUMER GROUPS ASK FCC TO REJECT AT&T, BELLSOUTH MERGER
[SOURCE: Consumers Union press release]
On Monday, Consumers Union, Consumer Federation=20
of America, Free Press and U.S. Public Interest=20
Research Group (U.S. PIRG) filed their petition=20
with the Federal Communications Commission to=20
deny AT&T's request to transfer the licenses and=20
authorizations held by BellSouth. "Congress and=20
federal regulators need to look carefully at the=20
lifeless 'competition' their flawed policies have=20
created and reject this merger," said Gene=20
Kimmelman, vice president for federal and=20
international affairs for Consumers Union. "The=20
government has been deceived before by promises=20
that somehow more concentration would produce=20
more choices and competition, when the result has=20
been just the opposite. It shouldn't be fooled=20
again." Kimmelman said that if the government=20
refuses to stand in the way of the recreation of=20
the old telephone monopoly, it should at least=20
require the merging companies to sell their=20
Cingular wireless business to create more=20
opportunities for competition between wireless and wireline services.
http://www.consumersunion.org/pub/core_telecom_and_utilities/003516.html
* Complete filing:
http://www.hearusnow.org/other/newsroom/phoneservices/consumergroupscomm...
sonattbellsouthmerger/
* Center for Digital Democracy filing:
http://www.democraticmedia.org/PDFs/ATTBellSouthPetitionToDeny.pdf

SPRINT NEXTEL WANTS AT&T-BELLSOUTH CONDITIONS
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Sprint Nextel Corp., which is partnering with=20
four cable operators in a wireless joint venture,=20
urged the Federal Communications Commission=20
Monday to impose conditions on AT&T=92s merger with=20
BellSouth Corp. in order to prevent the=20
combination from harming wireless-phone=20
competitors. Sprint Nextel said the $67 billion=20
merger would result in AT&T holding a dominant=20
position in the special-access market, which=20
includes high-capacity circuits that connect=20
cellular sites to switches. =93Sprint Nextel has no=20
alternative to BellSouth or AT&T for more than=20
99% of Sprint Nextel=92s PCS=20
[personal-communications-services] cell sites in=20
the BellSouth and AT&T service areas,=94 Sprint=20
Nextel said in an FCC filing. Merger conditions=20
were necessary because a combined AT&T-BellSouth=20
could use its special-access dominance to benefit=20
its phone subsidiary, Cingular Wireless, to the=20
detriment of wireless competitors, Sprint Nextel=20
said. Sprint Nextel called for various=20
conditions, including rate freezes and=20
reductions, asset divestment and reporting requirements.
http://www.multichannel.com/article/CA6341282.html?display=3DBreaking+News

QUICKLY

COMMUNICATION FAILURES HAMPERED LONDON BOMBING RESCUES
[SOURCE: C-Net|News.com, AUTHOR: Andy McCue]
A report on the July 7, 2005, London bombings has=20
said the lack of a digital radio network hampered=20
the efforts of emergency service rescue teams.=20
Noting that rescue teams were unable to=20
communicate properly between the sites of the=20
explosions underground, colleagues at ground=20
level and control rooms, the London Assembly's=20
July 7 Review Committee report said it is=20
"unacceptable" that the emergency services are=20
still not able to communicate by radio when they=20
are underground, 18 years after the official=20
inquiry into a fire at King's Cross station=20
recommended action to address the problem. The=20
report underscores the notion that there is no=20
point in having the technology to enable key=20
people to communicate with each other if the=20
relevant authorities do not make sure that the=20
right people are in possession of that technology.
http://news.com.com/Communication+failures+hampered+London+bombing+rescu...
2100-7348_3-6079889.html?tag=3Dhtml.alert

STUDY: WEB IS THE NO. 1 MEDIA
[SOURCE: C-Net|News.com, AUTHOR: Candace Lombardi ]
A new report from the Online Publishers=20
Association finds that Internet media is the=20
dominant at-work media and No. 2 in the home. The=20
Web also ranked as the No. 1 daytime media. A=20
conservative estimate from the study says 17=20
percent of overall media is consumed via the Internet.
http://news.com.com/Study+Web+is+the+No.+1+media/2100-1024_3-6080280.htm...
ag=3Dnefd.top

ONLINE NEWSPAPER ADS GAINING GROUND ON PRINT
[SOURCE: New York Times, AUTHOR: Julie Bosman]
According to estimates released on Friday by the=20
Newspaper Association of America, newspaper print=20
ad spending in the first three months of 2006=20
increased only 0.3 percent, to $10.5 billion,=20
over the corresponding period last year. At the=20
same time, spending for online advertising surged=20
35 percent. "I think the handwriting is kind of=20
on the wall that there is a large migration to=20
the Web," said Colby Atwood, a newspaper analyst=20
and a vice president at Borrell Associates.=20
"Increasing amounts of revenue and focus should=20
be on the online properties. This is a transition=20
that's taking place over several years here. It's=20
not happening overnight, but it's definitely happening."
http://www.nytimes.com/2006/06/06/business/media/06adco.html
(requires registration)

AD FIRMS WAIT TO GET TV SPOTS
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
Last June, the six broadcast networks took in=20
$9.1 billion in commitments for prime-time shows=20
for the current season. But this year, industry=20
experts predict that total will shrink by as much=20
as $500 million -- and not only because there=20
soon will be just five networks. "Advertisers are=20
holding money out of the market this year because=20
they want to experiment with other forms of=20
media," said Bill Cella, chief executive of ad=20
buying powerhouse Magna Global. "Last year it was=20
starting, and this year it's really happening."
http://www.latimes.com/business/printedition/la-fi-upfront6jun06,1,59504...
story?coll=3Dla-headlines-pe-business
(requires registration)

WI-FI AND THE CITIES
[SOURCE: New York Times, AUTHOR: Editorial Staff]
[Commentary] No fewer than 300 cities and towns=20
around the nation have taken wireless Internet=20
access, or Wi-Fi, to the people. San Francisco's=20
aim is to make the entire city a hot spot,=20
Chicago plans to blanket the city with access,=20
and large parts of Philadelphia are to go=20
wireless soon. But New York, which should be=20
leading the way, is dragging. A plan to offer=20
free Wi-Fi access in city parks has been moving=20
slowly, and a larger vision has yet to take=20
shape. The minimal goal should be free or=20
low-cost access in its densely populated, poor=20
neighborhoods in all the boroughs. That is where=20
cable and phone line options are out of financial=20
reach, and where education especially suffers as a result.
http://www.nytimes.com/2006/06/06/opinion/06tue3.html
(requires registration)

BERNARD LOOMIS -- THE MAN WHO INVENTED SATURDAY MORNING
[SOURCE: New York Times, AUTHOR: Douglas Martin]
Bernard Loomis, who had no toys as a child but=20
became a toy industry legend by using children's=20
television to turn Star Wars dolls, Strawberry=20
Shortcake and Care Bears into stupendous=20
successes, died on Friday. Mr. Loomis originated=20
the idea of producing television specials and=20
series that promoted toys as much as they=20
entertained. This reversed the suddenly quaint=20
notion that toy-selling followed the movie, book=20
or television program. His television special=20
featuring the character Strawberry Shortcake=20
"opened the way for what sometimes seemed to be=20
the transformation of children's television into=20
a promotional arm of the toy industry," David=20
Owen wrote in The Atlantic in 1986. Mr. Owen=20
included the article in a book of essays he=20
published in 1988. The title referred to Mr.=20
Loomis: "The Man Who Invented Saturday=20
Morning." Similarly, Mr. Loomis pioneered the=20
notion of selling lines of toys, not individual=20
products. That created the possibility of=20
concocting entire imaginary environments with=20
ever more products, as exemplified by the Barbie=20
doll, whose career he shepherded for a time.
http://www.nytimes.com/2006/06/06/business/06loomis.html
(requires registration)
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through Friday, this service provides updates on=20
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and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
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