June 2006

A couple of items on next week's agenda: 1) a=20
discussion on parents and children's media=20
consumption and 2) the recommendations of the=20
FCC's panel on Katrina. For these and other=20
upcoming media policy events, see http://www.benton.org

FCC NEWS
McDowell Sworn in as FCC Commissioner
Campaign Legal Center to Martin: More DTV Localism
Coalition Urges Better Spectrum Management by FCC
FCC to Revise DE Rule Changes

INTERNET/BROADBAND
A Net Neutrality Metaphor
Regulating The Internet Not So New
Net Neutrality Toll-Road Plan Floated
EBay Issues 'Call To Action' On Network Neutrality Issue
Not-So Smart Mobs: The Wireless Industry War Against Net Neutrality

BROADCASTING
NAB, APTS Push Online DTV-Box Purchasing
Broadcast Gains Over Ad-Supported Cable

QUICKLY -- APTS Supports Passage of WARN Act; Time Warner Gives Up on Syner=
gy

FCC NEWS

MCDOWELL SWORN IN AS FCC COMMISSIONER
[SOURCE: Federal Communications Commission]
Malcolm McDowell -- check that -- Robert McDowell=20
was sworn in Thursday by Chairman Kevin Martin as=20
a member of the Federal Communications=20
Commission. Commissioner McDowell said, "I am=20
honored and humbled to be joining such a=20
distinguished group of commissioners as well as=20
the fine career public servants at the=20
FCC. There are many challenging issues facing=20
the Commission, and I am eager to begin working=20
on them with my fellow commissioners, with=20
Congress, and with the American people. I am=20
confident that our efforts will help bring the=20
most advanced and efficient communications=20
systems in the world to all American consumers."=20
Commissioner McDowell brings to the FCC nearly=20
sixteen years of private sector experiences in=20
the communications industry. Immediately prior to=20
joining the FCC, Commissioner McDowell was senior=20
vice president and assistant general counsel for=20
COMPTEL, an association representing competitive=20
facilities-based telecommunications service=20
providers, emerging VoIP providers, integrated=20
communications companies, and their supplier=20
partners, where he had responsibilities involving=20
advocacy efforts before Congress, the White House=20
and executive agencies. He has served on the=20
North American Numbering Council (NANC) and on=20
the board of directors of North American=20
Numbering Plan Billing and Collection, Inc.=20
(NBANC). Prior to joining COMPTEL in February=20
1999, McDowell served as the executive vice=20
president and general counsel of America's=20
Carriers Telecommunications Association (ACTA),=20
which merged with COMPTEL at that time.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-265742A1.doc
* McDowell Sworn In
http://www.broadcastingcable.com/article/CA6340356?display=3DBreaking+News

CAMPAIGN LEGAL CENTER TO MARTIN: MORE DTV LOCALISM
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
TV stations should not receive expanded=20
cable-carriage rights for their digital signals=20
unless the federal government requires them to=20
expand coverage of local civic-affairs and=20
election news, according to the Campaign Legal=20
Center. =93Our concern is that they get [multicast]=20
must-carry rights without doing anything more,=94=20
Meredith McGehee, policy director of the Campaign=20
Legal Center, said Thursday. The CLC is urging=20
the FCC to withhold expanding must-carry rights=20
if the agency is unwilling at the same time to=20
require digital-TV stations to air three hours=20
per week of programming dedicated to local=20
elections and community issues, such as local=20
environmental conditions. =93It would be everything=20
below your presidential race,=94 McGehee said,=20
referring to expanded local political coverage.=20
In talks with FCC Chairman Martin, McGehee said=20
he has agreed on the need for more=20
public-interest programming but has not endorsed hourly quotas.
http://www.multichannel.com/article/CA6340348.html?display=3DBreaking+News

COALITION URGES BETTER SPECTRUM MANAGEMENT BY FCC
[SOURCE: New America Foundation]
Thirteen groups have joined in comments at the=20
FCC concerning the future of the 902-928 MHz=20
unlicensed band, which has become very important=20
for community, municipal and commercial wireless=20
broadband deployments. Unlicensed users share=20
this band with companies licensed to provide a=20
=93Location and Monitoring Service=94 (M-LMS), and=20
these licensees are lobbying for increased=20
=93spectrum flexibility,=94 which may be detrimental=20
to unlicensed users. Currently, there are only=20
three major unlicensed bands: the 900 MHz, 2.4=20
GHz, and 5 GHz bands. The unlicensed spectrum in=20
the 900 MHz band is the smallest but is also=20
considered the most valuable. The M-LMS=20
licensees acquired their licenses in 1999 and=20
2001 for about $3 million. If they are=20
successful in their efforts, the value of their=20
rights could increase to as much as $7 billion.=20
The coalition's goals in these comments are 1) to=20
prevent M-LMS operators from gaining additional=20
rights at the expense of unlicensed users, 2) to=20
prevent the FCC from granting the M-LMS licensees=20
additional extensions on their missed=20
construction deadlines, and 3) to encourage the=20
FCC to not only recognize that M-LMS is a failed=20
service but also remove the M-LMS allocation from=20
the 902-928 MHz band, so unlicensed services can=20
make better use of it. The coalition includes the=20
New America Foundation, Media Access Project, the=20
Alliance For Community Media, the Center For=20
Digital Democracy, Common Cause the Consumer=20
Federation of America, Free Press, Public Knowledge and other groups.
http://www.newamerica.net/Download_Docs/pdfs/Doc_File_3091_1.pdf

FCC TO REVISE DE RULE CHANGES
[SOURCE: RCRWireless News, AUTHOR: Jeffrey Silva]
The Federal Communications Commission is expected=20
to issue a new ruling addressing controversial=20
changes to small business bidding rules ahead of=20
the scheduled Aug. 9 start of the advanced=20
wireless services auction, according to sources.=20
A move by the FCC is likely this week as the=20
agency can reconsider its own decision within 30=20
days of its publication in the Federal Register.=20
The DE ruling, published May 4 in the Federal=20
Register, is set to become effective June 5. The=20
FCC is under mounting pressure to rescind=20
revisions to small business=97or designated=20
entity=97bidding guidelines approved by the agency=20
on April 25, two weeks before the original=20
short-form application filing deadline. In that=20
decision, the agency declined against prohibiting=20
large wireless carriers from partnering with DEs=20
as it originally proposed. DEs are eligible for=20
bidding discounts up to 25 percent and other=20
benefits. Instead, the FCC extended restrictions=20
on DE license sales from five to 10 years and=20
made the new rule retroactive. The commission=20
also decided to deny benefits to any DE that=20
leases, resells or wholesales more than 50=20
percent of its spectrum capacity to others.
http://www.rcrnews.com/news.cms?newsId=3D26497

INTERNET/BROADBAND

A NET NEUTRALITY METAPHOR
[SOURCE: Public Knowledge, AUTHOR: Art Brodsky]
[Commentary] We may be as little as a week away=20
from a vote in the House on Net Neutrality. At=20
this point, it=92s uncertain whether there will be=20
a vote on a legitimate Net Neutrality amendment=20
to the bill (HR 5252) that passed the House=20
Commerce Committee. The telephone and cable=20
companies have been going all out to smooth the=20
way by proposing what appears at first to be a=20
reasonable policy, which, on further review,=20
doesn't hold up quite so well. Rachel Maddow on=20
her radio show recently used a nicely descriptive=20
phrase when talking about how politicians phase=20
in gradually policies they don't think would meet=20
with public approval if introduced all at once.=20
The phrase is =93boiling the frog.=94 The metaphor=20
goes like this: If you throw a frog into boiling=20
water, it will jump out. But if you put a frog in=20
warm water, and gradually raise the temperature,=20
it will become acclimated, until it becomes=20
cooked. Gross, but accurate. This is what the=20
telephone companies and their allies who sell=20
them equipment are doing. The metaphor was on=20
display last week when Verizon Executive Vice=20
President Tom Tauke testified before the Senate=20
Commerce Committee. Verizon is not trying to do=20
away with the current Internet, Tauke said.=20
(Water warm). Verizon argues we have had =93a real=20
change in the paradigm=94 in dealing with network=20
issues. (Water warmer.) Through its fiber=20
offering, Verizon will put three separate=20
channels into the consumer=92s home, one for the=20
Internet, one for video and one for whatever else=20
Verizon wants to use it for, through its =93virtual=20
private network.=94 (I feel those bubbles.) We want=20
to draw the distinction, Tauke said, between=20
offering Internet services and other access,=20
which would be services for which Verizon =93may=20
provide some unique arrangements.=94 (Rare, medium=20
or well done?) Let=92s be clear about what Congress=20
will create in telecommunications legislation.=20
There will be today=92s plain =93Internet access=94 and=20
this other, =93general access=94 service equipped=20
with =93unique arrangements.=94 That is a two-tiered=20
system, with the telephone or cable company in complete control.
http://www.publicknowledge.org/
* How Independent Artists Could Lose Their Independent Internet
http://www.voxunion.com/Independent_Artists_and_Independent_Internet.pdf

REGULATING THE INTERNET NOT SO NEW
[SOURCE: InternetNews.com, AUTHOR: Roy Mark]
"The Internet was regulated from the start," says=20
Amazon's Paul Misener . "[Until recently], there=20
was never a time when at least part of the=20
Internet wasn't heavily regulated." Misener is=20
quick to point out those Internet regulations=20
included mandated network neutrality. Now they do=20
not. So what happened? Brand X did. In 2002, the=20
Federal Communications Commission (FCC) ruled=20
that cable broadband providers are information=20
services and do not have to share their lines=20
with competing Internet service providers (ISPs).=20
The ruling prompted a Santa Monica, Calif.-based=20
ISP named Brand X to sue the FCC for open access=20
to cable lines. The case eventually went to the=20
Supreme Court, which last summer ruled the FCC=20
was within its regulatory authority to exempt=20
cable modems from common carrier obligations.=20
"The court did not say the FCC ruling was correct=20
or incorrect, only that it had the regulatory=20
discretion to make the ruling," Misener said. The=20
FCC then extended the same exemption from common=20
carrier regulations to telephone companies=20
offering broadband service. The two FCC rulings=20
had the practical effect of doing away with the=20
slew of regulations mandating network neutrality=20
that came out of the 1996 Telecommunications Act.=20
"We want to reinstate a part of the many rules=20
that used to govern access to the Internet,"=20
Misener said. "We want to blow up this one change=20
to give consumers a real choice."
http://www.internetnews.com/bus-news/article.php/3610281

NET NEUTRALITY TOLL-ROAD PLAN FLOATED
[SOURCE: IDG News Service, AUTHOR: Grant Gross]
The Information Technology and Innovation=20
Foundation (ITIF) released a plan this week that=20
would allow broadband providers to offer=20
exclusive, high-speed services to customers of=20
their choosing, but it would also guarantee a=20
level of broadband service that all Web companies=20
and customers could access without paying new=20
fees. The ITIF proposal attempts to bring a=20
"nonpartisan, objective and pragmatic" view to=20
the so-called net neutrality debate, said plan=20
co-author Rob Atkinson, president of ITIF.=20
"There's been a lot of name-calling and really an=20
unproductive kind of debate," he said. But a=20
spokesman for Public Knowledge, an online rights=20
advocacy group pushing for a net neutrality law,=20
said the ITIF plan mirrors what broadband=20
providers are currently proposing. Public=20
Knowledge and other net neutrality advocates have=20
opposed a two-tier Internet, and the ITIF plan=20
allows broadband carriers to put customers and=20
competitors in a slow lane, said Art Brodsky. The=20
ITIF proposal doesn't address a problem of too=20
few broadband providers available to most U.S.=20
residents and a temptation of broadband providers=20
to discriminate against competitors, he added.=20
"The whole point of this thing is we only have=20
two providers," Brodsky said. "On the whole, I=20
don't really think this is a third way."
http://www.infoworld.com/article/06/06/01/78867_HNtollroadneutrality_1.h...
?source=3Drss&url=3Dhttp://www.infoworld.com/article/06/06/01/78867_HNtollr=
oadneutrality_1.html

EBAY ISSUES 'CALL TO ACTION' ON NETWORK NEUTRALITY ISSUE
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
EBay Chief Executive Officer Meg Whitman issued a=20
"call to action" in an e-mail to many of the=20
online auctioneer's users, urging them to=20
"personally get involved in a debate in the U.S.=20
Congress" over network neutrality. In the e-mail,=20
Whitman said, "It might be hard to believe, but=20
lawmakers in Washington are seriously debating=20
whether consumers should be free to use the=20
Internet as they want in the future." She=20
continued, "The phone and cable companies now=20
control more than 95 percent of all Internet=20
access. These large corporations are spending=20
millions of dollars to promote legislation that=20
would divide the Internet into a two-tiered=20
system." EBay, the dominant online auction firm,=20
is one of seven big technology companies pushing=20
for strong network neutrality language to be=20
added to the bill updating video franchising=20
rules currently being considered by Congress. The=20
other companies are Amazon.com, Google,=20
InterActive, Microsoft, Yahoo and more recently Intel.
http://www.njtelecomupdate.com/lenya/telco/live/tb-ZYYJ1149182973636.html

NOT-SO SMART MOBS: THE WIRELESS INDUSTRY WAR AGAINST NET NEUTRALITY
[SOURCE: Center for Digital Democracy]
[Commentary] It=92s not just the biggest phone and=20
cable companies opposing a open Internet (net=20
neutrality). It=92s also the wireless industry --=20
including companies providing cellular and mobile=20
communications. One of the principal=20
characteristics of our expanding ubiquitous=20
digital media environment will be its reach -- on=20
the street, in transport, and everyplace else.=20
New forms of political action and cultural=20
expression could evolve if the U.S. can have a=20
non-discriminatory mobile environment. But that=92s=20
not what the CTIA-The Wireless Association wants.=20
They are opposing network neutrality safeguards.=20
In testimony before the Senate Commerce Committee=20
earlier this month, CTIA=92s chief Steve Largent=20
warned of =93many of the unintended consequences=20
that would flow from some of the Net Neutrality=20
regulations being considered [that] would have a=20
particularly negative impact on wireless=20
consumers.=94 What Largent really meant was that=20
the wireless industry hopes to impose the same=20
kind of toll booth regime for mobile=20
communications. In their vision, ads and content=20
supported by a McDonalds, P&G soap, Fox News or=20
Disney will have preferential access. CTIA=92s=20
board includes T-Mobile, Cingular (AT&T), Sprint=20
Nextel, Verizon Wireless and most of the key=20
manufacturers. As we mentioned in yesterday=92s=20
entry, CTIA is also a member of the anti-open=20
Internet group called netcompetition.org. (It=92s=20
time, by the way, we had a real anti-trust=20
investigation of the mobile industry). The united=20
front of cable, wireless phone and=20
wireless/mobile companies fighting against=20
network neutrality is a good example of why we=20
need serious policy safeguards (going beyond=20
network neutrality) to protect freedom of=20
communications in the U.S. Without such rules,=20
the civic potential of Howard Rheingold=92s Smart=20
Mobs will be thwarted by powerful commercial forces.
http://www.democraticmedia.org/jcblog/

BROADCASTING

NAB, APTS PUSH ONLINE DTV-BOX PURCHASING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Commercial and noncommercial broadcasters and=20
tech companies Thursday wrote the National=20
Telecommunications & Information Administration=20
advocating an Internet voucher system for=20
DTV-to-analog converters, which will insure their=20
analog-only viewers don't lose their TV signals.=20
In a letter to acting NTIA head John Kneuer, the=20
broadcasters argued that an online process=20
employing electronic debit cards rather than=20
paper vouchers would cut down on fraud. "While=20
the [Digital Television Transition and Public=20
Safety Act pf 2005] requires that the vouchers be=20
mailed to requesting households," they argue,=20
"nothing in the Act requires that the vouchers be=20
printed on paper. In fact, use of electronic=20
debit cards with unique identification numbers=20
that can be tracked to ensure protections against=20
fraud, would reduce fraud and would recognize the=20
reality of online consumer purchasing behavior."=20
The groups signing the letter, which included the=20
National Association of Broadcasters, Association=20
of Public Television Stations, Consumer=20
Electronics Association, Harris Corp., LG=20
Electronics, and the American Library=20
Association, also argued that the cost of the=20
consumer awareness campaign would "far exceed the=20
five million dollars." They called for a=20
"comprehensive, coordinated, and harmonized=20
national consumer effort," to begin "promptly,"=20
and expressed their willingness to "actively=20
participate in the task of formulating and=20
managing the consumer education efforts for a=20
successful digital television transition."
http://www.broadcastingcable.com/article/CA6340365?display=3DBreaking+News

TVB TOUTS CABLE EROSION, FINDS BROADCAST GAINED OVER AD-SUPPORTED CABLE
[SOURCE: Media Daily News, AUTHOR: Wayne Friedman]
Broadcast TV prime-time programming made audience=20
gains this past season over ad-supported cable=20
TV, said the Television Bureau of Advertising=20
(TVB). The TVB said broadcast inched up to a=20
combined Nielsen Media Research 35.75 prime-time=20
household rating over last season's 34.78 number.=20
This was nearly a 9 percent advantage over=20
ad-supported cable's 32.87 cumulative rating.=20
These numbers are based on Nielsen's=20
live-plus-same-day DVR viewing. The TVB looked at=20
60 plus cable networks for its research. In=20
addition, in the key adult 18-49 demographic,=20
broadcast TV moved up to a 20.36 combined rating,=20
improving from 19.50 the year before. Broadcast=20
TV still has a 31.7 percent rating advantage in=20
this demo over ad-supported cable TV. Broadcast=20
does even better with older demos. It delivered=20
an aggregate 22.85 prime-time adult 25-54 rating,=20
improving on last season's 21.89. The new number=20
now beats ad-supported cable's 16.71 rating by=20
36.7 percent. The TVB says the top 235 programs=20
among household viewers, the top 217 shows among=20
adult 25-54 viewers, and top 187 programs among=20
adult 18-49 viewers are broadcast shows.
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.showAr...
leHomePage&art_aid=3D44025

QUICKLY

APTS SUPPORTS PASSAGE OF WARN ACT
[SOURCE: Association of Public Television Stations press release]
On June 1, John Lawson, president and CEO of the=20
Association of Public Television Stations (APTS),=20
joined Senator Ted Stevens (R-AK), Chairman of=20
the Senate Commerce Committee, in urging=20
Congressional passage of the Warning, Alert, and=20
Response Network (WARN) Act. The legislation=20
meets some of the key communications challenges=20
exposed during Hurricane Katrina by establishing=20
a National Alert System capable of providing=20
emergency alerts to the public on a national,=20
regional, or local basis. APTS recently completed=20
the proof of performance of a Digital Emergency=20
Alert System. In a successful pilot project=20
between APTS and the Department of Homeland=20
Security, APTS demonstrated how digital public=20
television stations can act as a wireless network=20
capable of datacasting public alerts and warnings=20
during times of crisis. Local public television=20
stations=92 digital, congestion-free bandwidth can=20
form the backbone of a closed =93network of=20
networks=94 -- all relaying the alert messages in=20
digital form -- to enable public safety and=20
emergency management agencies to securely=20
transmit critical, time-sensitive information.=20
Lawson said: =93Our pilot project with DHS showed=20
that digital broadcasting to voluntary media and=20
telecommunications service providers improves and=20
enhances the ability of Federal, State, and local=20
governments to provide critical and lifesaving=20
emergency messaging to the nation.=94 Lawson=20
concluded: =93WARN recognizes the unique role that=20
local public television stations can play as the=20
=91dual use=92 backbone of a new public alert and warning system for the na=
tion."
http://www.apts.org/news/WARN-urge.cfm

AFTER YEARS OF PUSHING SYNERGY, TIME WARNER INC SAYS ENOUGH
[SOURCE: Wall Street Journal, AUTHOR: Matthew=20
Karnitschnig at matthew.karnitschnig( at )wsj.com]
"It's bull-." That's how Time Warner President=20
Jeffrey Bewkes assesses the synergy message his=20
predecessors preached to shareholders. This is an=20
unusual enough sentiment in a rapidly=20
consolidating corporate world, but for Time=20
Warner, it's a philosophical turnabout,=20
illustrating how the media industry has thrown=20
off the conventional wisdom of only a few years=20
ago. Other media companies such as Viacom and=20
Liberty Media have already broken themselves up.=20
Time Warner, currently the world's largest, has=20
stopped requiring that its units cooperate --=20
instead of "synergies," managers speak of=20
"adjacencies." It's also selling businesses that=20
don't make enough money. The re-evaluation was=20
driven in part by rapid changes in technology=20
that fed investor disquiet about the viability of=20
older and slower media giants. Innovations such=20
as digital-video recorders, online music sales=20
and user-generated content on the Internet have=20
contributed to a prolonged slump in stock-market=20
valuations. Time Warner and its peers were also=20
caught flat-footed by the emergence of new players such as Yahoo and Google.
http://online.wsj.com/article/SB114921801650969574.html?mod=3Dtodays_us_...
e_one
(requires subscription)
--------------------------------------------------------------
...and we're outta here. Have a great weekend. Hello Phil Nevin!
--------------------------------------------------------------
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.
--------------------------------------------------------------