July 2006

** Hey, who knew it would be so hard to fly out=20
of Chicago on a stormy July afternoon? So, you=20
get Headlines today after all. Catch the FCC's=20
Consumer Advisory Committee meeting today at http://www.fcc.gov/realaudio/ =
**

TELECOM LEGISLATION
Barton sees Murky Future for Telco Bill
Congress must act now to protect Internet freedom and innovation
Net neutrality is really net not-so-neutral
Christian Coalition Ramps Up Effort On Behalf Of 'Net Neutrality' Plan

MORE LEGISLATION
Frist seeks swift action on Web gambling
Politicos push to update Cold War-era alert system
Ed tech scores Senate victory
Surveillance Bill Meets Resistance in Senate

IN THE COURTS
Judge refuses to drop spying suit against AT&T
AT&T Connecticut Franchise Fight Heads to Court

CHILDREN & MEDIA
Brownback Doesn't Back Kids Marketing Mandates
Copps: Push for Kids Compromise

MEDIA OWNERSHIP
Kerry, Obama Call on FCC to Address Media Ownership Diversity

QUICKLY -- Wireless phones cheaper for rural=20
areas; Podcasting Politicians; Top-Secret World=20
Loses Blogger; A Secret the Media Kept; CPB Names=20
Vincent Curren COO; Broadcast Upfront Holds=20
Steady At $ 8.4 Billion; AT&T Bets Its Brand Is=20
More Than Nostalgia; AT&T, start-up team in=20
citywide Wi-Fi bid; NBC Bets Its Viewers Pay=20
Attention; Native American Television Shoots For=20
Media Launch; Net Neutrality is Good Comedy -- Again and Again

TELECOM LEGISLATION

HOUSE'S BARTON SEES MURKY FUTURE FOR TELCO BILL
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
The prospects of passing legislation this year=20
that would help telephone companies more quickly=20
get licenses to offer television service are=20
"murky," House Commerce Committee Chairman Joe=20
Barton (R-TX) said Thursday. Last month the House=20
passed a Barton-sponsored bill that would enable=20
telephone carriers like AT&T to apply for a=20
national license to offer subscription cable=20
television service. But a similar bill, sponsored=20
by Senate Commerce Committee Chairman Ted Stevens=20
(R-Alaska) may stall in the Senate because it=20
does not have the 60 votes needed to end debate=20
and vote on the legislation. "The outlook is=20
murky," Rep. Barton told the Electronic=20
Industries Alliance. Still, he noted "there are=20
over 50 votes for the bill" in the Senate. Rep=20
Barton also said that lawmakers would return to=20
Washington after the November congressional=20
elections so there would be additional time to=20
work on the legislation. After his speech he said=20
the chances of getting a bill passed were 50-50.=20
"I think if he (Stevens) can get a bill to the=20
floor, we jump up to 80-20 or even higher that=20
we'll get a bill," Rep Barton, chairman of the=20
House Commerce Committee, told reporters. Any=20
differences between the House and Senate measures=20
would have to be worked out in a conference of=20
lawmakers and Rep Barton predicted many=20
provisions in the broader Senate legislation would be dropped.
http://today.reuters.com/news/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2006-07-20T155200Z_01_N20441219_RTRUKOC_0_US-TELECOMS-CONGRESS.xml&archi=
ved=3DFalse

CONGRESS MUST ACT NOW TO PROTECT INTERNET FREEDOM AND INNOVATION
[SOURCE: The Hill, AUTHOR: Rep. Lois Capps (D-CA)]
[Commentary] An important task facing Congress as=20
we assemble our to-do list for July is addressing=20
the question of =93network neutrality.=94 For good=20
reasons, net neutrality has become a major focus=20
in the debate on the legislation to grant=20
national video licenses to telecommunications=20
companies. Network neutrality refers to the=20
principle underlying the development of the=20
Internet, essentially ensuring that all data=20
traveling across the network is treated in a=20
nondiscriminatory manner. For businesses, civic=20
organizations or alumni associations, that means=20
selling a product, announcing an initiative or=20
organizing an event is as easy as setting up a=20
website that is accessible to anyone with an=20
Internet connection. For the consumer, it means=20
easy access to an ever-expanding array of=20
services, products and information of their=20
choosing. Network neutrality serves as the=20
Internet=92s nondiscrimination policy and is=20
similar to policies that ensure large phone=20
companies like Verizon and BellSouth have to=20
connect calls from Sprint or T-Mobile with the=20
same speed and accuracy that they would for their=20
own calls. Since its inception, this powerful=20
medium has flourished as an engine for economic=20
growth and political activism under the rules of=20
equal access to the Internet. Congress needs to=20
address this issue before, not after, the phone=20
and cable companies fundamentally change the=20
nature of the Internet. We have all seen the=20
dynamic change that it has brought to our country=20
and, indeed, the world. Congress shouldn't just=20
sit by and watch network neutrality and the vibrancy of the Internet slip a=
way.
http://www.hillnews.com/thehill/export/TheHill/News/Frontpage/071906/ss_...
ps.html

NET NEUTRALITY IS REALLY NET NOT-SO-NEUTRAL
[SOURCE: The Hill, AUTHOR: Rep. Marsha Blackburn (R-TN)]
[Commentary] The success of this relatively new=20
medium is in no small part due to the hands-off=20
approach government has taken when it comes to=20
regulation and taxation. The Internet has proved=20
once and for all that free markets work best.=20
Like always though, some see a free market and=20
experience an urge to impose government=20
regulation. Today there is a push on Capitol Hill=20
to have government take a bigger role in the=20
Internet=92s basic functioning. That ought to=20
concern all of us. Any effort to impose new=20
regulations on the Internet should be cause for a=20
serious study of the potential ramifications. We=20
all know that when it comes to regulations=20
government has repeatedly failed to follow the=20
old maxim that says, =93If it ain't broke, don't=20
fix it.=94 Once enacted, regulations almost always=20
have unintended consequences and are virtually=20
impossible to repeal. That=92s why the concept of=20
net neutrality has prompted such debate over the=20
past weeks. The stakes are enormous when you=20
begin tinkering with a resource millions upon=20
millions of Americans depend on every day. It=20
would be irresponsible for Congress to regulate=20
blindly, but that appears to be what some are=20
asking us to do with net neutrality. Sometimes=20
it=92s more responsible not to act. Congress ought=20
to continue exercising its oversight authority,=20
and the Commerce Committee should monitor the=20
functioning of the Internet, but we must resist=20
interfering as much as possible. Over the past=20
months we've worked to address the serious online=20
sexual-predator problem that presents a=20
discernible threat to the Internet and American=20
families. It should be clear that we have enough=20
real challenges ahead without Congress leaping to=20
create solutions for problems that may not actually exist.
http://thehill.com/thehill/export/TheHill/News/Frontpage/071906/ss_black...
n.html

CHRISTIAN COALITION RAMPS UP EFFORT ON BEHALF OF 'NET NEUTRALITY' PLAN
[SOURCE: Technology Daily, AUTHOR: David Hatch]
The Christian Coalition will play a critical role=20
in trying to generate needed Republican support=20
for a controversial network neutrality amendment=20
sponsored by Sens. Olympia Snowe (R-Maine) and=20
Byron Dorgan (D-ND). The Christian Coalition has=20
50 state organizations. It is worried that if the=20
Internet is divided into faster and slower lanes=20
-- as envisioned by AT&T, Verizon Communications=20
and other major companies -- it might have=20
difficulty reaching its 3 million members. In=20
August, the group will target about 20=20
conservative Republican legislators -- using=20
grassroots efforts such as letters, phone calls,=20
e-mails and participation in town hall meetings,=20
to build support for strict neutrality=20
safeguards. The group will focus its campaign on=20
lawmakers who are not members of Senate Commerce=20
panel, such as Sen. Lindsey Graham (R-SC).=20
Meanwhile, one source said Snowe is targeting=20
moderate Republicans -- including her Maine=20
colleague, Sen. Susan Collins, and Sen. Lincoln=20
Chafee of Rhode Island -- in seeking support for the net neutrality plan.
http://www.njtelecomupdate.com/lenya/telco/live/tb-LEWX1153417556554.html

MORE LEGISLATION

FRIST SEEKS SWIFT ACTION ON WEB GAMBLING
[SOURCE: Reuters]
A bill to ban Internet gambling faces opposition=20
in the U.S. Senate, but backers still hope to win=20
passage of it within a few weeks, a top aide to=20
U.S. Senate Majority Leader Bill Frist said on=20
Thursday. "We are trying to get something done=20
before the August recess," set to begin on August=20
4, said Eric Ueland, Frist's chief of staff.=20
Earlier on Thursday, another Frist aide said=20
lawmakers were still working on the bill, but=20
would not be able to vote on it before the Senate=20
heads off for its month-long vacation. Ueland=20
rejected that characterization, saying Frist had=20
not given up on getting a vote before the August=20
recess. The Senate bill is virtually identical to=20
legislation overwhelmingly approved earlier in=20
July by the U.S. House of Representatives. It=20
would prohibit most forms of Internet gambling=20
and make it illegal for banks and credit card=20
companies to make payments to online gambling=20
sites. The Republican-backed bill has been=20
criticized by some as an election-year appeal to=20
the party's conservative base. Supporters of a=20
crackdown on Internet gambling say legislation is=20
needed to clarify that a 1961 federal law banning=20
sports betting also covers an array of online gambling.
http://today.reuters.com/news/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2006-07-20T192306Z_01_N202313_RTRUKOC_0_US-LEISURE-GAMBLING-SENATE.xml&a=
rchived=3DFalse

POLITICOS PUSH TO UPDATE COLD WAR-ERA ALERT SYSTEM
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
In an age of omnipresent cell phone, Internet and=20
BlackBerry users, why does the government rely=20
primarily on analog television and radio to beam=20
its national emergency alerts? Politicians asked=20
that question -- and urged support for=20
legislation aimed at expanding the Cold War-era=20
system -- at a. House of Representatives=20
subcommittee hearing Thursday. The hearing=20
focused primarily on the Warning, Alert and=20
Response Network, or WARN, Act, which was=20
formally proposed last week by Reps John Shimkus=20
(R-IL) and Albert Wynn (D-MD). That bill calls=20
for government and the private sector to devise a=20
"voluntary" national alert system capable of=20
transmitting messages "across the greatest=20
possible variety of communications technologies,"=20
including wireless devices and the Internet. The=20
existing system, first deployed by President=20
Harry Truman in 1951 with the intention of=20
warning Americans about impending nuclear=20
threats, requires national presidential alerts to=20
be transmitted through analog radio, television=20
and cable systems. Now called the Emergency Alert=20
System, or EAS, it is also available for use by=20
state and local governments on a voluntary basis.=20
The idea of expanding the warnings to other media=20
appears to have escalated in popularity since=20
Hurricane Katrina and the communications bungles=20
that occurred during the storm. Last November,=20
the FCC issued rules requiring that digital=20
television, cable and audio broadcasters and=20
satellite radio operators also deliver the=20
alerts, beginning Dec. 31, 2006. Satellite=20
television providers must meet that requirement=20
by May 31, 2007. The FCC itself is still=20
contemplating whether the current structure of=20
the EAS remains the best way to get the word out=20
and is reviewing public comments on whether to=20
deploy a new type of system, such as a satellite=20
or Internet-based mechanism, Julius Knapp, acting=20
chief of the FCC's Office of Engineering and=20
Technology, told the politicians. A recent=20
executive order from President Bush and a report=20
by an independent FCC panel reviewing=20
communications during Katrina have also called=20
for improvements. The WARN Act, for its part,=20
would not explicitly require the messages to be=20
sent to devices like cell phones and e-mail=20
accounts, because "voluntary, incentive=20
market-based competitive products (do) a better=20
job of encouraging full deployment," Rep Shimkus=20
said. Instead, details would be worked out by a=20
new government office and a working group=20
composed of federal, state and local government=20
representatives and experts from industries=20
related to the system. That working group would=20
have a year from the law's passage to recommend=20
guidelines, technological standards and other=20
protocols, for any new alert systems.
http://news.com.com/Politicos+push+to+update+Cold+War-era+alert+system/2...
-1028_3-6096561.html?tag=3Dnefd.top
* Katrina Exposed Deadly Flaws in Public Alert=20
System; Bipartisan Backing Grows to Add Mobile Phones, E-mail
http://energycommerce.house.gov/108/News/07202006_2000.htm
* Hearing info: Shimkus-Wynn Bill, Expanding Emergency Alert System
http://energycommerce.house.gov/108/Hearings/07202006hearing1998/hearing...
** See also
[SOURCE: Prometheus Radio Project]
"It has been five years since the House of=20
Representatives' Subcommittee on=20
Telecommunications has heard testimony about the=20
essential service that low power FM (LPFM) radio=20
provides to churches, schools, community groups,=20
and to towns and cities across America. Today=20
Sara Allen, an experienced engineer who has built=20
radio stations from New Mexico to Florida spoke=20
before the Subcommittee on the unique service=20
that LPFM stations provide when hurricanes and=20
other natural disasters take communications=20
systems offline. Across the Gulf Coast and in=20
countless other situations across the country,=20
locally owned, volunteer-run community radio=20
stations like LPFMs have been the difference=20
between life and death, safety and danger for=20
local communities. As Ms. Allen brought to the=20
attention of the Subcommittee, stations like=20
WQRZ-LP, a low power station in Bay St. Louis,=20
Mississippi, were perfectly placed to give=20
neighborhood-by-neighborhood coverage of the=20
damage of Hurricanes Katrina and Rita, and to=20
help those communities know exactly how to=20
interface with local and federal safety and=20
health officials after the storms. But these=20
stations are few and far between -- limited from=20
thousands more towns and neighborhoods by an=20
out-of-date law limiting low power radio to=20
small, remote communities. With the WARN act,=20
Congress has the opportunity to expand the=20
national EAS infrastructure to reach millions of=20
Americans at risk from a lack of local=20
information about emergencies. If Congress moved=20
to expand low power FM radio to thousands more=20
towns and cities across this country, these=20
communities would enjoy a reliable and=20
well-understood local technology when disaster struck."
http://www.prometheusradio.org/

ED TECH SCORES SENATE VICTORY
[SOURCE: eSchoolNews]
Advocates of educational technology received=20
encouraging news July 18 as members of the=20
influential Senate Labor-HHS-Education=20
Appropriations Subcommittee voted to level-fund=20
the Enhancing Education Through Technology=20
block-grant program, the largest single source of=20
ed-tech funding in the federal budget, at $272=20
million. The move comes after House lawmakers=20
followed President Bush's proposal in voting to=20
kill the program in the coming fiscal year.=20
Though the program's fate is by no means=20
guaranteed, the move leaves open the door for EETT to return in 2007.
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D6449

SURVEILLANCE BILL MEETS RESISTANCE IN SENATE
[SOURCE: Washington Post, AUTHOR: Dan Eggen]
A Senate surveillance bill personally negotiated=20
by President Bush and Vice President Cheney ran=20
into immediate trouble this week, as Democrats=20
and other critics attacked the proposal while key=20
GOP leaders in the House endorsed a different=20
bill on the same topic. The Senate legislation,=20
drafted during negotiations between the White=20
House and Sen. Arlen Specter (R-PA), would allow=20
the administration to submit the National=20
Security Agency's warrantless surveillance=20
program to a secret intelligence court for review=20
of its legality. The proposal was billed as a=20
rare and noteworthy compromise by the=20
administration when unveiled last week. But the=20
legislation quickly came under attack from=20
Democrats and many national security experts, who=20
said it would actually give the government=20
greater powers to spy on Americans without court=20
oversight. A competing bill introduced by Rep.=20
Heather A. Wilson (R-NM) was endorsed this week=20
by two key House GOP leaders: Peter Hoekstra=20
(MI), the intelligence committee chairman, and F.=20
James Sensenbrenner Jr. (WI), head of the=20
Judiciary Committee. Sen Specter, chairman of the=20
Senate Judiciary Committee, canceled a markup=20
session for his proposal that had been scheduled=20
for yesterday. He announced instead plans instead=20
for a full committee hearing Wednesday on the=20
Foreign Intelligence Surveillance Act (FISA), the=20
1978 statute at the center of the debate. The=20
developments add to the uncertainty surrounding=20
the eavesdropping program, which allows the NSA=20
to intercept telephone calls and e-mails between=20
the United States and locations overseas without=20
court approval if one of the parties is suspected of links to terrorism.
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/20/AR200607...
1708.html
(requires registration)

IN THE COURTS

JUDGE REFUSES TO DROP SPYING SUIT AGAINST AT&T
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
U.S. District Judge Vaughn Walker in San=20
Francisco rejected on Thursday both the U.S.=20
government's and AT&T's requests to dismiss a=20
class action suit accusing the telephone giant of=20
assisting the National Security Agency in a=20
sweeping, allegedly illegal terrorist=20
surveillance program. "Because of the public=20
disclosures by the government and AT&T, the court=20
cannot conclude that merely maintaining this=20
action creates a 'reasonable danger' of harming=20
national security," Judge Walker wrote in a=20
72-page order. The judge also dealt a blow to=20
AT&T's request to dismiss the case on three=20
separate grounds. The Electronic Frontier=20
Foundation, a San Francisco-based civil liberties=20
group, filed the suit in January, charging that=20
AT&T had opened up its telecommunications=20
facilities to the NSA for use in spying on the=20
phone calls and e-mails of "millions of ordinary=20
Americans." Such a practice violates free speech=20
and privacy rights spelled out by the U.S.=20
Constitution and also runs afoul of federal=20
wiretapping law, the EFF claims. Judge Walker's=20
ruling on Thursday "vindicates the privacy and=20
security rights of every citizen in the United=20
States," said Robert Fram, an attorney with the=20
law firm Heller Ehrman, which assisted the EFF in=20
the case. EFF staff attorney Kevin Bankston said=20
in a conference call that the organization was=20
"very happy" with the ruling and was prepared to=20
go ahead with the process of discovery, or=20
gathering relevant pretrial documents.
http://news.com.com/Judge+refuses+to+drop+spying+suit+against+AT38T/2100...
28_3-6096637.html?tag=3Dnefd.lede
* Judge Declines to Dismiss Privacy Suit Against AT&T
http://www.nytimes.com/2006/07/21/washington/21data.html
* Judge Denies AT&T, U.S. Motion To Dismiss Domestic-Spying Case
http://online.wsj.com/article/SB115342628067612772.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* Judge Declines to Dismiss Lawsuit Against AT&T
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/20/AR200607...
1792.html
* U.S. Loses Bid to Dismiss AT&T Surveillance Suit
http://www.latimes.com/news/printedition/asection/la-fi-att21jul21,1,783...
8.story?coll=3Dla-news-a_section

AT&T CONNECTICUT FRANCHISE FIGHT HEADS TO COURT
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
The top agency representing consumers in the=20
state of Connecticut joined the New England Cable=20
Telecommunications Association to challenge the=20
action of another state agency, the Department of=20
Public Utility Control, which ruled last month=20
that AT&T does not need a franchise to provide=20
cable service. The federal lawsuit, filed July 19=20
in the U.S. District Court for the District of=20
Connecticut in New Haven, asked the court to=20
declare that a video provider supplying=20
programming prescheduled by that company does not=20
meet the definition of an "interactive on-demand=20
service provider." This is AT&T's preferred=20
definition of its planned=20
Internet-protocol-delivered U-verse video=20
service. The state's Office of Consumer Counsel=20
and NECTA asked the court to declare that the=20
product meets the federal definition of a cable=20
service and, therefore, to require AT&T to obtain=20
a franchise. If the court rules in the=20
plaintiff's favor, the suit would undo the June 7 action by the DPUC.
http://www.multichannel.com/article/CA6355023.html?display=3DBreaking+News

CHILDREN & MEDIA

BROWNBACK DOESN'T BACK KIDS MARKETING MANDATES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senator Sam Brownback, whose bill boosting FCC=20
indecency fines was recently passed into law,=20
says he is not prepared for Congress to mandate a=20
crackdown on food marketing to kids. At a=20
Washington conference on food marketing to=20
children, sponsored by Children Now, the Kansas=20
Republican said Thursday he preferred to hold=20
hearings and to meet with the advertising and=20
food industries to talk about ways everybody=20
could work together to address the issue of TV's=20
impact on kids. He said he had been talking=20
recently with a top Disney executive about ways=20
to make TV choice less about government action=20
and more about consumer empowerment through=20
mechanisms to screen out unwanted programming, or=20
let it all in, he added. What Sen Brownback was=20
willing to push hard for is additional science to=20
study the affects on the brain of different kinds=20
of TV programming. While he called for more hard=20
science, he said he had some anecdotal evidence.=20
Sen Brownback adopted two children, one who had=20
watched a lot of TV, and the other who hadn't.=20
The TV watcher is tough to get away from the set, he said.
http://www.broadcastingcable.com/article/CA6355015.html?display=3DBreaki...
News

COPPS: PUSH FOR KIDS COMPROMISE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
At a Children Now conference in Washington, FCC=20
Commissioner Michael Copps called for a push the=20
get the Commission to adopt the compromise kids=20
DTV rules now before it. The FCC passed kids DTV=20
rules in 2004. They extend broadcast and cable=20
kids ad limits to digital TV and set restrictions=20
on Web links in kids shows, both in analog and=20
digital. But a court fight held up the rules=20
until both sides struck a deal that Commissioner=20
Copps says is now stuck at the FCC. Commissioner=20
Copps had some harsh words for the media. After=20
the caveat that TV's power can be used for great=20
and good, it is all too often commercial-laden,=20
sex and violence drive "kiddie litter." He said=20
that kids are too often seen as commodities to be=20
trafficked in, and said that as the lines between=20
ad and entertainment blur, the more pernicious=20
their effect can be. He also pitched the crowd,=20
heavy with kids TV activists, to pressure the FCC=20
to address the issue of interactive links in TV=20
shows and to set some guidelines on that passage=20
from the protected world of broadcast to a 'net=20
bazaar bereft of any rules. And last, he=20
identified media concentration as the root of at=20
least some of the potential evil, saying the FCC=20
should be pushed into holding a hearing=20
specifically on the effects of concentration on=20
kids programming as part of its ownership review.
http://www.broadcastingcable.com/article/CA6355051?display=3DBreaking+News

MEDIA OWNERSHIP

KERRY, OBAMA CALL ON FCC TO ADDRESS MEDIA OWNERSHIP DIVERSITY
[SOURCE: U.S. Newswire/press release]
Senators John Kerry (D- MA) and Barack Obama=20
(D-IL) called on the Federal Communications=20
Commission (FCC) to immediately address the=20
issues of minority, women and small business=20
media ownership before taking up a second review=20
of wider media ownership rules. In June 2004, the=20
FCC issued a public notice seeking comment on=20
ways to increase the number of minorities, women=20
and small businesses who own media outlets. There=20
has been no movement on this proceeding since.=20
Senator Kerry and Senator Bill Nelson (D- Fla.)=20
were successful in attaching an amendment to the=20
massive telecommunications reform bill recently=20
considered by the Senate Commerce Committee=20
requiring the FCC to move forward with its=20
proceeding to expand media ownership diversity.=20
In a letter to FCC Chairman Kevin Martin, Kerry=20
and Obama requested that the agency address the=20
issue now and not wait for the telecommunications=20
bill to become law. "We urge prompt completion of=20
the proceeding and...urge you to complete the=20
proceeding before consideration of broader media=20
consolidation issues begins in earnest," Kerry=20
and Obama wrote. "The goals of promoting=20
minority, women, and small business ownership in=20
the communications industry are set forth in the=20
Communications Act of 1934. ...Ensuring that such=20
directives are accomplished is important to=20
achieving a diverse media, particularly in an era=20
of increased media concentration." "Two years ago=20
the FCC publicly committed itself to increasing=20
minority, women and small business ownership, but=20
they haven't moved an inch," said Kerry, top=20
Democrat on the Committee on Small Business and=20
Entrepreneurship and member of the Commerce=20
Committee. "Further delay won't level the playing=20
field for minority, women and small businesses=20
trying to compete in the media industry. The=20
diverse voices in our country should be in the=20
game, not left on the sidelines."
http://releases.usnewswire.com/GetRelease.asp?id=3D69549

QUICKLY

WIRELESS PHONES CHEAPER FOR RURAL AREAS, STUDY SAYS
[SOURCE: Chicago Tribune, AUTHOR: Jon Van jvan( at )tribune.com]
Rural phone-service subsidies are so bloated and=20
inefficient that providing wireless or even=20
satellite phones is cheaper, an economic analysis=20
prepared for a senior citizen advocacy group=20
suggested Wednesday. Taxes to support the=20
universal service fund, which is intended to pay=20
for higher costs of serving rural areas, are=20
growing so fast as to force some low-income=20
citizens to drop current phone service, said=20
Thomas Hazlett, a George Mason University=20
economist who prepared the analysis for the=20
Seniors Coalition. "It's perverse when shifting=20
tax money around for the universal service fund=20
results in more people leaving the network than=20
joining it," said Hazlett. Totaling more than $7=20
billion a year, universal service outlays have=20
nearly tripled in the past decade. The fund is=20
now financed by a tax of more than 10 percent on=20
long-distance phone service, but the Federal=20
Communications Commission is looking for new revenue sources.
http://www.chicagotribune.com/business/chi-0607200172jul20,1,5769160.sto...
coll=3Dchi-business-hed=20

CAMPAIGN 08 PREVIEW: PODCASTING POLITICIANS
[SOURCE: Los Angeles Times, AUTHOR: Mark Z. Barabak]
In 2004 it was blogging. What will be the next=20
techie breakthrough for getting in touch with=20
voters? In technology, there is Moore's Law, the=20
notion that computing power doubles about every=20
18 months. Politics has a rough equivalent, with=20
every election bringing some heralded innovation=20
that transforms the way campaigns are fought and=20
contests are won. The "blast fax" -- or ability=20
to send a printed page to hundreds of recipients=20
at a time -- was a big deal in the 1980s, before=20
e-mail. Websites, once a campaign novelty, are=20
ubiquitous today. Ditto candidate blogs. In the=20
latest creative wrinkle, politicians are=20
podcasting =97 White House hopefuls Gen. Wesley K.=20
Clark, John Edwards and Sen. Bill Frist are among=20
those regularly offering their downloadable=20
ruminations -- and turning up on Flickr, MySpace,=20
YouTube and other photo- and video-sharing=20
Internet sites. Cable companies are pitching=20
politics on demand after trial runs in Colorado's=20
2004 U.S. Senate race and the 2005 governor's=20
race in New Jersey, which allowed voters to order=20
free clips of the candidates discussing issues.=20
Within a few years, it may be possible to target=20
cable TV spots -- this ad intended for older=20
voters, that one for renters -- the way=20
customized mailers are now routed to selected=20
homes. And though cellphone technology is still=20
in its political infancy, some campaigns are=20
already using text messaging to get out the vote,=20
recruit volunteers or lure prospects to their=20
websites, which feature all manner of interactive=20
links. The fundamentals of politics haven't=20
changed. Even promoters of the most razzle-dazzle=20
technology say a successful candidate has to be=20
likable, offer a message with broad resonance and=20
show up in ads. There needs to be "a coherent=20
vision," said Democratic strategist Doug=20
Hattaway. "People aren't just dopes, sitting in=20
front of their TVs or computers waiting to give=20
some Pavlovian response." But even the basics=20
have to be recalibrated when invention changes=20
the way people live -- as quickly, it often seems, as the click of a mouse.
http://www.latimes.com/news/printedition/asection/la-na-fragment21jul21,...
004386.story?coll=3Dla-news-a_section
(requires registration)

TOP-SECRET WORLD LOSES BLOGGER
[SOURCE: Washington Post, AUTHOR: Dana Priest]
Christine Axsmith, a software contractor for the=20
CIA, considered her blog a success within the=20
select circle of people who could actually access=20
it. Only people with top-secret security=20
clearances could read her musings, which were=20
posted on Intelink, the intelligence community's=20
classified intranet. Writing as Covert=20
Communications, CC for short, she opined in her=20
online journal on such national security=20
conundrums as stagflation, the war of ideas in=20
the Middle East and -- in her most popular post=20
-- bad food in the CIA cafeteria. But the=20
hundreds of blog readers who responded to her=20
irreverent entries with titles such as "Morale=20
Equals Food" won't be joining her ever again. On=20
July 13, after she posted her views on torture=20
and the Geneva Conventions, her blog was taken=20
down and her security badge was revoked. On=20
Monday, Axsmith was terminated by her employer,=20
BAE Systems, which was helping the CIA test=20
software. As a traveler in the classified=20
blogosphere, Axsmith was not alone. Hundreds of=20
blog posts appear on Intelink. The CIA says blogs=20
and other electronic tools are used by people=20
working on the same issue to exchange information=20
and ideas. CIA spokesman Paul Gimigliano declined=20
to comment on Axsmith's case but said the policy=20
on blogs is that "postings should relate directly=20
to the official business of the author and=20
readers of the site, and that managers should be=20
informed of online projects that use government=20
resources. CIA expects contractors to do the work they are paid to do."
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/20/AR200607...
1816.html
(requires registration)

A SECRET THE MEDIA KEPT
[SOURCE: Washington Post, AUTHOR: Michael J. Berlin, Boston University]
[Commentary] Today, as news media have revealed=20
secret programs of the Bush administration, the=20
questions are being asked: Can journalists keep a=20
secret? Should they? Are news media capable of=20
drawing the line between revelations that would=20
be too damaging to national security interests=20
and those necessary to safeguard American=20
democracy and constitutionally protected rights?=20
Toward the end of 1979, hundreds of American and=20
Canadian journalists and news organizations got=20
hold of a dynamite news story that would have=20
made personal reputations and careers and sent=20
circulation or broadcast ratings soaring. The=20
facts were confirmed, unassailably. Any one of=20
these reporters could have had the scoop of a=20
lifetime. And yet not one reporter, newspaper,=20
network or newsletter ran with the story until=20
given permission to do so (all at once) by the=20
governments involved. No court or governmental=20
threat of retribution forced them to do so. It=20
was all voluntary. Islamic militants stormed and=20
occupied the U.S. Embassy compound in Tehran and=20
took hostage the more than 70 Americans there.=20
But six American officials happened to be outside=20
the compound, elsewhere in the Iranian capital,=20
at the time of the takeover. The militants never=20
realized that some Americans were missing; they=20
were being sheltered by Canadian diplomats in=20
Tehran, who were risking their own safety to=20
protect them. The Canada-hostage story proves=20
that reporters and news organizations can be=20
trusted, en masse, to make the right call on=20
security information they uncover. And neither=20
Iranian officials nor Iranian news media got wind=20
of it. Do I think that a thousand reporters could=20
be trusted today to make the same call that we=20
did in 1979? I wonder. Even back then, there was=20
the fear that some rogue reporter would ignore=20
the pleas and go with the story. In today's=20
journalism world, I fear that some blogger or=20
counterculture ideologue using journalism as a=20
political tool rather than as a mechanism for=20
dispensing straight information, would make the=20
wrong call. I hope I'm wrong about that.
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/20/AR200607...
1632.html
(requires registration)

CPB NAMES VINCENT CURREN COO
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Vincent Curren will replace departed Corporation=20
for Public Broadcasting COO Ken Ferree. Curren is=20
currently CPB's senior vice president, radio. He=20
oversees the Corporation's radio operations,=20
including the Public Radio Public Service=20
Competitive Funds, which supports new strands of=20
national programming and helps stations increase=20
their public service. He also is responsible for=20
policy development around public radio's use of=20
new technologies to better serve its listeners,=20
and for CPB's Radio Community Service Grant=20
program. Curren is the former general manager of=20
WXPN in Philadelphia, the non-commercial station=20
of the year for six consecutive years, which he=20
joined in 1987. He has served as assistant=20
manager for programming and operations (through=20
1991), assistant station manager for business=20
affairs (through 1994), and assistant station=20
manager for development (through 1996), and has=20
been general manager since 1996. WXPN offers a=20
diverse mix of contemporary music styles and=20
original programming, including World Caf=E9=AE,=20
which is heard on some 150 public radio stations=20
nationwide. Curren's innovations at WXPN include=20
creation of a CD-of-the-Month Club and the =93Live=20
at the World Caf=E9=94 sampler discs, which together=20
raise more than $500,000 annually. He=20
dramatically increased listener support while=20
decreasing time spent on on-air fund-raising. He=20
directed the launch of Kids Corner, an=20
award-winning mix of music and talk for children,=20
and was deeply involved in the creation of World=20
Caf=E9. Until joining CPB, Curren chaired the=20
Station Resource Group, of which he has been a=20
member of the board since 1998. He was the vice=20
chairman of the Development Exchange, where he=20
served as a board member since 1996, and former=20
treasurer from 1998 until 2001. From 1981 until=20
1986, he was a member of the Broadband=20
Telecommunications Regulatory Board, which=20
advised the elected Common Council of the city of=20
Madison, Wisconsin on cable television regulation=20
matters. Curren graduated from the State=20
University of New York at Buffalo in 1972, and=20
received a master's in organizational dynamics=20
from the University of Pennsylvania in 2000.
http://www.broadcastingcable.com/article/CA6355066.html?display=3DBreaki...
News
* See bio at http://www.cpb.org/aboutcpb/leadership/executives/curren.html

BROADCAST UPFRONT HOLDS STEADY AT $ 8.4 BILLION
[SOURCE: Media Daily news, AUTHOR: David Goetzl]
In a report released Wednesday, Merrill Lynch's=20
Jessica Reif Cohen said the final tally for this=20
year's six broadcast TV networks' upfront sales=20
were $ 8.41 billion -- a 1 percent decline from a=20
year ago. Overall for the Big 4 networks, Reif=20
Cohen said they increased volume by 2 percent.=20
Credit the increases at ABC and Fox, since CBS=20
and NBC pulled in the same numbers as a year ago.=20
The increases were also in line with season=20
ratings' performances, as Fox and ABC saw jumps=20
in the key 18-to-49 demo in regularly scheduled=20
programming. Fox also benefited from a commanding lead in the 18-to-34 demo.
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.san&s=...
5782&Nid=3D21844&p=3D368626

AT&T BETS ITS BRAND IS MORE THAN NOSTALGIA
[SOURCE: New York Times, AUTHOR: Ken Belson]
These days, executives at AT&T are betting=20
heavily on a brand resurgence. When SBC=20
Communications bought AT&T last year, SBC=20
promptly took the AT&T name. And if its pending=20
purchase of BellSouth is approved, as expected,=20
by the end of the year, AT&T plans to rename that=20
company as well as Cingular, which they jointly=20
own. The rebranding campaign is no mere nostalgia=20
trip. Despite its warts, AT&T is still the most=20
recognizable name in the phone business. Like=20
Verizon and other telecommunications companies,=20
AT&T is also selling bundles of services and=20
wants to have a single brand for all its=20
products. =93The BellSouth and Cingular names are=20
not just at the iconic level globally,=94 the vice=20
president for advertising at AT&T, Wendy Clark,=20
said. =93When you have an integrated solution, the=20
nomenclature of wireless and wireline will become=20
blurred to the point where you need a single=20
brand. It=92s about one-stop shopping.=94 Like AT&T=20
-- which now has annual sales of about $66=20
billion -- the effort to rebrand Cingular and=20
BellSouth will be extensive, and not without=20
risks. BellSouth operates in nine states in the=20
Southeast, where it has 20 million local phone=20
lines. Cingular has 2,300 stores and an=20
industry-leading 57.3 million subscribers.
http://www.nytimes.com/2006/07/21/business/21adco.html
(requires registration)

AT&T, START-UP TEAM IN CITYWIDE WI-FI BID
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
AT&T has submitted a proposal with Wi-Fi start-up=20
MetroFi to build a citywide network in Riverside,=20
Calif. The companies submitted a proposal to=20
build and operate the wireless broadband network=20
on Friday. The proposed network would provide=20
free Internet access throughout the city with=20
download speeds of 500Kbps and upload speeds of=20
256Kbps. In exchange for free access, the company=20
will include a persistent advertisement on every=20
Web page. According to the proposal, MetroFi=20
would build the entire Wi-Fi network and operate=20
it throughout the 65 square miles of the city=20
that will be blanketed with Wi-Fi. In addition to=20
the free service, AT&T has proposed offering a=20
paid service to Riverside residents. If the=20
MetroFi/AT&T proposal is accepted by the city,=20
residents will be able to subscribe to a 1Mbps=20
download broadband service for roughly $19.95 per=20
month. Cities across the country are turning to=20
Wi-Fi, a wireless Internet access technology that=20
uses unlicensed radio spectrum, as an affordable=20
way to add another broadband alternative to their=20
communities. Some cities, such as Baltimore,=20
Philadelphia and San Francisco, are hoping to=20
bridge the digital divide between rich and poor=20
by allowing a third party to use the city's=20
utility poles to deploy radios for transmitting=20
wireless broadband signals throughout the city.
http://news.com.com/AT38T%2C+start-up+team+in+citywide+Wi-Fi+bid/2100-10...
3-6096822.html?tag=3Dnefd.top

NBC BETS ITS VIEWERS PAY ATTENTION
[SOURCE: Wall Street Journal, AUTHOR: Brian=20
Steinberg brian.steinberg( at )wsj.com]
NBC is out to show its programming is more than=20
just video wallpaper. The General Electric-owned=20
network has struck a deal with Toyota Motor that=20
requires the network to demonstrate that its=20
viewers have paid attention and are able to=20
recall particular details about a TV show, such=20
as its storyline. NBC is making the commitment in=20
addition to giving Toyota a standard=20
minimum-audience guarantee that relies on Nielsen=20
Media Research TV ratings for proof. To=20
demonstrate viewer attention -- or audience=20
"engagement" -- both NBC and Toyota will use data=20
from IAG Research, a New York firm that measures=20
viewers' response to TV programs, ads and product=20
placements. Should certain agreed-upon parts of=20
NBC's program schedule not meet the guarantees,=20
the TV network would give Toyota additional=20
"make-good" advertising time, or put more Toyota=20
ads in shows that are garnering better=20
attentiveness from audiences, says Marianne=20
Gambelli, executive vice president, sales and=20
marketing, for NBC Universal. Networks routinely=20
offer "make-goods" when shows fail to meet=20
guaranteed audience levels. The deal highlights=20
how TV outlets are taking steps to retain ad=20
dollars in the face of increasing competition=20
from other media such as the Internet. It also=20
shows how advertisers are looking for new ways to=20
measure the value of TV advertising, conscious=20
that consumer response to certain types of Web advertising is easier to tra=
ck.
http://online.wsj.com/article/SB115344810209713289.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

NATIVE AMERICAN TELEVISION SHOOTS FOR MEDIA LAUNCH
[SOURCE: Media daily news, AUTHOR: David Goetzl]
Native American Television is trying to raise the=20
estimated $4 million it would take to launch a=20
media operation with a radio, Web, and cable=20
television network targeting Native Americans.=20
The group has a potentially wealthy donor base in=20
Indian tribes that have been successful with=20
casino operations. The target audience is=20
modest--about 3 million Native Americans,=20
although NATV officials are hopeful the programming will have broader appea=
l.
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.san&s=...
5786&Nid=3D21844&p=3D368626

NET NEUTRALITY IS GOOD COMEDY -- AGAIN AND AGAIN
http://www.savetheinternet.com/blog/2006/07/20/daily-show-revisits-net-n...
rality/
--------------------------------------------------------------
...and we're outta here. have a great weekend.
--------------------------------------------------------------
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.
--------------------------------------------------------------