July 2006

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GOVERNMENT & COMMUNICATIONS
Bush blocked review of spy program: Gonzales
Lincoln Group Out of Military PR Contract
India Curtails Access to Blogs

LEGISLATION
Broadcasters Want Senators To Follow House Telecom Lead
Gambling bill in spotlight after industry arrests

MEDIA OWNERSHIP
Should the FCC Let Cable Companies Buy Spectrum Licenses?
Granite Unwinds Detroit/SF Station Deal
Televisa says could still make offer for Univision

QUICKLY -- Barton, Deal to Hold Retrans=20
Roundtable; Reps. Seek EchoStar Compromise;=20
Storytelling, not journalism, spurs most blogs

GOVERNMENT & COMMUNICATIONS

BUSH BLOCKED REVIEW OF SPY PROGRAM: GONZALES
[SOURCE: Reuters, AUTHOR: Thomas Ferraro]
President Bush prevented an investigation earlier=20
this year by Justice Department ethics lawyers of=20
his warrantless domestic spying program, Attorney=20
General Alberto Gonzales testified on Tuesday. AG=20
Gonzales told the Senate Judiciary Committee,=20
however, that he was confident the program's=20
constitutionality would be upheld in a proposed=20
review by a secret federal court. AG Gonzales=20
said President Bush refused to give the Justice=20
Department's Office of Professional=20
Responsibility access to the classified program=20
begun shortly after the September 11 attacks and=20
disclosed in December by The New York Times. The=20
office announced in May it was unable to conduct=20
an investigation into the role department lawyers=20
had in developing the National Security Agency's=20
eavesdropping program, which targets overseas=20
telephone calls and e-mails of Americans with=20
suspected terrorists ties. Committee Chairman=20
Arlen Specter (R-PA) asked AG Gonzales why=20
President Bush declined access, saying, "Many=20
other lawyers in the Department of Justice had=20
clearance. Why not OPR?" Noting the importance of=20
the program, AG Gonzales said: "The president of=20
the United States makes decisions about who is=20
ultimately given access." At the White House,=20
spokesman Tony Snow said since it is a highly=20
classified program, Bush approves all requests to=20
review it. "There were proper channels for doing=20
legal review, and in fact, a legal review was=20
done every 45 days, and the attorney general=20
himself was involved in it," Snow said. He told=20
reporters the Office of Professional=20
Responsibility, which investigates possible=20
ethical abuses by Justice Department lawyers, was=20
not the proper venue for conducting the review.
http://today.reuters.com/news/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2006-07-18T220048Z_01_N18427406_RTRUKOC_0_US-SECURITY-EAVESDROPPING.xml
* Bush Blocked Ethics Inquiry, Gonzales Says
http://www.nytimes.com/2006/07/19/washington/19gonzales.html
* Bush Blocked Bid to Examine Wiretap Program
http://online.wsj.com/article/SB115323628282709858.html?mod=3Dtodays_us_...
e_one
(requires subscription)
* Bush Thwarted Probe Into NSA Wiretapping
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/18/AR200607...
0601.html
* Bush barred probe of eavesdrop plan
http://www.usatoday.com/printedition/news/20060719/a_gonzales19.art.htm
* Bush Blocked Internal Justice Probe of Wiretaps
http://www.latimes.com/news/printedition/asection/la-na-legal19jul19,1,7...
653.story?coll=3Dla-news-a_section
* CDT Condemns Warrantless Surveillance "Compromise"
[SOURCE: Center for democracy & Technology]
A purported compromise between the White House=20
and Senate Judiciary Committee Chairman Arlen=20
Specter (R-Pa.) would legalize the=20
administration's shadowy warrantless domestic=20
surveillance programs and give the White House=20
broad new powers, while offering no protection=20
for innocent Americans. CDT will speak out=20
against the proposed law when Policy Director Jim=20
Dempsey testifies Wednesday before the House=20
Intelligence Committee. The proposed Specter=20
measure gives the administration blanket=20
authority to conduct whatever warrantless=20
surveillance programs it wishes, with no judicial oversight.
CDT Testimony: Warrantless Surveillance:=20
http://www.cdt.org/security/20060718fisa.pdf
* Proposed Surveillance Bill Would Sweep NSA Spying Programs Under the Rug
[SOURCE: Electronic Frontier Foundation]
Senate Judiciary Committee Chairman Arlen Specter=20
said today that he has negotiated a proposed bill=20
with the White House regarding the NSA's illegal=20
spying program. While the final bill is not=20
public, a draft of the bill obtained by the=20
Electronic Frontier Foundation (EFF) is a sham=20
compromise that would cut off meaningful legal=20
review=97sweeping current legal challenges out of=20
the traditional court system and failing to=20
require court review or congressional oversight=20
of any future surveillance programs. "This=20
so-called compromise bill is not a concession=20
from the White House=97it's a rubber stamp for any=20
future spying program dreamed up by the=20
executive," said EFF Staff Attorney Kevin=20
Bankston. "In essence, this bill threatens to=20
make court oversight of electronic surveillance=20
voluntary rather than mandatory."
http://www.eff.org/news/archives/2006_07.php#004824

LINCOLN GROUP OUT OF MILITARY PR CONTRACT
[SOURCE: Washington Post, AUTHOR: Griff Witte]
The U.S. military has removed two firms from a=20
psychological operations contract aimed at=20
influencing international public opinion,=20
including one District-based company that ran=20
into controversy last year for planting pro-U.S.=20
articles in Iraqi newspapers. The firms, plus a=20
third company that will retain the contract,=20
spent the past year developing prototypes for=20
radio and television spots intended for use in=20
Iraq and in other nations where the United States=20
is combating terrorism. Unlike the reports that=20
the District-based Lincoln Group distributed to=20
the Iraqi press -- which looked to be written by=20
independent Iraqi journalists -- the commander in=20
charge of the new spots said yesterday that he=20
wants their origins made clear. The contract for=20
the TV and radio spots is separate from the deal=20
under which the Lincoln Group distributed=20
articles from the U.S. military to Iraqi=20
newspapers. The newspaper contract was unaffected=20
by the change to the TV and radio contract. The=20
TV and radio contract, originally worth up to=20
$300 million over five years, had been held by=20
three firms since last year: the Lincoln Group;=20
San Diego-based Science Applications=20
International Corp.; and Arlington-based=20
SYColeman, a subsidiary of New York-based L-3=20
Communications Corp. But officials with the=20
military's Special Operations Command decided=20
this spring that they would be better off with=20
just one contractor. They exercised their option=20
to continue SYColeman's contract but not the=20
other two. Military officials say the decision=20
had nothing to do with last year's controversy over the Lincoln Group.
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/18/AR200607...
1372.html
(requires registration)

YOU WON'T READ IT HEAR FIRST: INDIA CURTAILS ACCESS TO BLOGS
[SOURCE: New York Times, AUTHOR: Somini Sengupta]
As India=92s financial capital, Mumbai, observed a=20
moment of silence on Tuesday to commemorate the=20
seven bombings of commuter trains seven days ago,=20
a blistering silence blanketed the Indian=20
blogosphere. For reasons yet to be articulated=20
by the authorities, the government has directed=20
local Internet service providers to block access=20
to a handful of Web sites that are hosts to=20
blogs, including the popular blogspot.com,=20
according to government officials and some of the=20
providers. The move has sown anger and confusion=20
among Indian bloggers, who accuse the government=20
of censorship and demand to know why their sites=20
have been jammed. Nilanjana Roy, a Delhi-based=20
writer who runs kitabkhana.blogspot.com, a=20
literary blog, called it =93a dangerous precedent.=20
You have a right to know what is being banned,=20
and why it=92s being banned,=94 she said. =93I can=20
understand if it=92s China or Iran or Saudi Arabia.=20
I'm truly appalled when it=92s my country doing=20
this.=94 The ban, which has come into effect in=20
recent days, means that people living in India=20
are, in theory, kept from reading anything that=20
appears on the blocked platforms, whether Indian=20
blogs or otherwise. But the ban seems far from=20
effective. Some Internet providers have blocked=20
access. Others have not, and many more blog=20
aficionados have figured out how to continue reading their favorite sites.
http://www.nytimes.com/2006/07/19/world/asia/19india.html
(requires registration)
* Indian Government Blocks Web Access
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/18/AR200607...
1369.html

LEGISLATION

BROADCASTERS WANT SENATORS TO FOLLOW HOUSE TELECOM LEAD
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
The National Association of Broadcasters says its=20
members stand to lose if the telecommunications=20
legislation that cleared the Senate Commerce=20
Committee late last month becomes law -- a=20
position that places yet another powerful=20
interest group against the expansive approach=20
taken by the Senate Commerce panel to overhauling=20
the nation's telecom laws. But because the=20
National Association of Broadcasters says its=20
members would gain from the narrower bill passed=20
by the House in early June, the NAB could become=20
an important player in pushing for a=20
"slimmed-down" version of communications=20
legislation. "The baseline House bill is great=20
for broadcasters because it offers the=20
opportunity for telephone companies to get into=20
video delivery," said NAB spokesman Dennis=20
Wharton. That provides "more competition to=20
cable, and telephone companies are willing to pay=20
retransmission consent," or cash fees for the=20
right to carry local broadcast signals, Wharton added.
http://www.njtelecomupdate.com/lenya/telco/live/tb-ISJP1153251856712.html

GAMBLING BILL IN SPOTLIGHT AFTER INDUSTRY ARRESTS
[SOURCE: Reuters, AUTHOR: Julie Vorman]
The indictment of BETonSPORTS executives for=20
racketeering should add momentum to U.S.=20
legislation that aims to ban broader types of=20
Internet gambling, two Republican backers said on=20
Tuesday. The House of Representatives=20
overwhelmingly approved a bill earlier this month=20
that would prohibit most forms of Internet=20
gambling and make it illegal for banks and credit=20
card companies to make payments to online=20
gambling sites. A similar bill is pending in the=20
Senate, where supporters are scrambling to win=20
passage before an August recess.
http://today.reuters.com/news/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2006-07-18T211302Z_01_N18248071_RTRUKOC_0_US-LEISURE-BETONSPORTS-CONGRES=
S.xml&archived=3DFalse
* Competitors Concerned After the Arrest of a=20
Major Figure in Internet Gambling
http://www.nytimes.com/2006/07/19/business/worldbusiness/19gamble.html

MEDIA OWNERSHIP

SHOULD THE FCC LET CABLE COMPANIES BUY SPECTRUM LICENSES?
[SOURCE: Public Knowledge, AUTHOR: Harold Feld, Media Access Project]
[Commentary] On August 9, the FCC will auction=20
prime spectrum cleared by of government users=20
last year by act of Congress. This =93advanced=20
wireless services=94 (AWS) auction will distribute=20
licenses in the much coveted range below 3 GHz=20
(two paired bands, 1.710-1.755 and 2.110-2.155)=20
and, as the name implies, the FCC will permit=20
licensees to offer any advanced service over=20
wireless. Mobile broadband, fixed point-to-point=20
broadband, enhanced =934G=94 mobile cellular=20
services, and just about anything else. The=20
auction has generated a lot of interest. It=92s=20
been about 10 years since the FCC made such a=20
good chunk of spectrum available, and it won't=20
come up again until the FCC gets ahold of the=20
returned television spectrum after the DTV=20
conversion. Over 200 bidders have applied=20
(although about 171 applications were somehow=20
complete and need to be redone ASAP) and the FCC=20
estimates the auction could make as much as $15=20
Billion. Feld is concerned that in addition to=20
the usual wireless operators like T-Mobile, the=20
major cable operators have also applied to bid=20
for licenses. Why concern? Isn't this good? After=20
all, the Center for American Progress Report=20
linked to above points out that the mobile phone=20
industry has become increasingly consolidated and=20
that incumbent wireless companies use auctions to=20
keep out competitors. Isn't getting giant=20
companies like Comcast that can go toe-to-toe=20
with the T-Mobile=92s of the world a good thing?=20
Other than Microsoft or some other tech company,=20
who else can outbid the incumbents on licenses?=20
That=92s the traditional FCC analysis. You look at=20
a specific market and don't worry about any=20
related markets. Cable companies don't offer=20
mobile phone service. They would be a new entrant=20
in mobile telephony. Sure, they have a lock on=20
pay video services and are the largest=20
residential broadband providers, but so what?=20
This isn't a competing video service, it=92s a=20
spectrum license. The problem with this analysis=20
is that it ignores the dark side of convergence.=20
The Commission expects AWS licensees to=20
potentially compete in broadband and video and=20
voice, the same markets that, thanks to=20
convergence, cable now occupies as either the=20
dominant incumbent (video), the largest provider=20
(residential broadband) or the top competitor.=20
Even on a simple level, every license acquired by=20
an incumbent cable operator (in its franchise=20
areas) is one less potential competitor in video, broadband and voice.
http://www.publicknowledge.org/node/538

GRANITE UNWINDS DETROIT/SF STATION DEAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Granite Broadcasting has halted plans to sell=20
television stations WMYD/Detroit and KBWB/San=20
Francisco. Granite had been trying to sell the=20
two stations to pay off debt, but reached an=20
agreement at the beginning of this month on a new=20
senior credit facility that would pay off the=20
interest payment that was due June 1. The company=20
was granted a grace period to, June 30. Once the=20
stations had not closed by then, Granite had the=20
option of backing out. Once it had the money in=20
hand to meat the debt payment, it made less since=20
to sell the Detroit station, which has the=20
MyNetworkTV affiliation and is seen as an asset.=20
KBWB is losing its WB affiliation in the fall and=20
is in a tougher situation. Four private-equity=20
firms, led by former Cox and Meredith executive=20
Kevin O=92Brien, were trying to buy the stations.=20
The FCC had approved the sale last week.
http://www.broadcastingcable.com/article/CA6354195?display=3DBreaking+News

TELEVISA SAYS COULD MAKE OFFER FOR UNIVISION
[SOURCE: Reuters, AUTHOR: Cyntia Barrera Diaz]
Mexican media giant Televisa on Tuesday said it=20
does not rule out a new takeover offer for U.S.=20
broadcaster Univision after losing a bidding war=20
over the company last month. Televisa suffered a=20
major blow to its U.S. plans when a group of=20
investors, including media mogul Haim Saban,=20
edged it out with a $12.3 billion bid for=20
Spanish-language broadcaster Univision Communications Inc.
http://today.reuters.com/news/newsArticle.aspx?type=3DtelevisionNews&sto...
D=3D2006-07-18T194752Z_01_N18416116_RTRIDST_0_TELEVISION-MEDIA-MEXICO-TELEV=
ISA-DC.XML
* Televisa May Make New Bid for Univision
http://www.latimes.com/business/printedition/la-fi-televisa19jul19,1,568...
2.story?coll=3Dla-headlines-pe-business

QUICKLY

BARTON, DEAL TO HOLD RETRANS ROUNDTABLE
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
House Commerce Committee Chairman Joe Barton=20
(R-Texas) is planning to hold a roundtable=20
discussion Thursday afternoon on carriage=20
negotiations between local TV stations and cable=20
and satellite TV operators, also known as=20
retransmission consent, according to industry=20
lobbyists. Rep Barton is expected to host the=20
session along with Rep Nathan Deal (R-GA), who in=20
April withdrew a retransmission-consent-reform=20
proposal -- which was not expected to pass -- in=20
exchange for a Barton-sponsored private industry=20
forum. Rep Deal has for years been concerned that=20
broadcasters have been abusing retransmission=20
consent to force cable to carry unwanted=20
nonbroadcast programming on the expanded-basic=20
tier, causing the package to swell in size and=20
price to the detriment of cable consumers. Rep=20
Barton agreed to hold the forum as a concession=20
to Rep Deal, who wanted to add=20
retransmission-consent provisions to Rep Barton=92s=20
telecommunications bill (H.R. 5252), which has=20
cable franchising reform as its centerpiece. Rep=20
Deal, who lacked a committee majority, never=20
offered his amendment. Among other things, the=20
Deal amendment would have allowed any cable or=20
DBS provider to seek arbitration to settle a=20
carriage dispute with a local TV station after a=20
90-day window of private bargaining. The TV=20
station, which could not pull its signal during=20
arbitration, had to be affiliated with at least=20
one cable network. The session, which is closed=20
to the media, is scheduled to begin at 4:30 p.m. and go for one hour.
http://www.multichannel.com/article/CA6354450.html?display=3DBreaking+News

REPS SEEK ECHOSTAR COMPROMISE
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
A few House lawmakers from rural districts are=20
trying to broker a compromise to ensure that more=20
than a half-million EchoStar Communications=20
subscribers continue to receive out-of-market=20
feeds of ABC, CBS, NBC and Fox programming. Under=20
a May Federal Appeals Court ruling, EchoStar is=20
facing an injunction that would deny it the right=20
to provide distant network signals to anyone in=20
the United States. As of April 2002, EchoStar=20
sold distant signals to 1.2 million customers,=20
and about one-half were legally ineligible to buy=20
the programming. But the court's ruling=20
apparently would also require denial of service=20
to the 600,000 customers who were legally=20
receiving the programming. The fate of EchoStar=92s=20
eligible subscribers has gained the attention of=20
Reps. Rick Boucher (D-VA), Chip Pickering=20
(R-Miss.) and Charles Bass (R-NH), who have asked=20
EchoStar and hundreds of network affiliates to reach a settlement.
http://www.multichannel.com/article/CA6354449.html?display=3DBreaking+News

STORYTELLING, NOT JOURNALISM, SPURS MOST BLOGS
[SOURCE: Reuters, AUTHOR: Robert MacMillan]
Many people see Web journals or "blogs" as=20
alternatives to the mainstream media, but most=20
Americans who run them do so as a hobby rather=20
than a vocation, according to a report released=20
on Wednesday. About 77 percent of blog authors,=20
or "bloggers," said they post to express=20
themselves creatively rather to get noticed or=20
paid, according to the report, released by the=20
Pew Internet & American Life Project. The report=20
also found that 37 percent of bloggers cited=20
their life and experiences as their primary=20
topic, while politics and government came in=20
second at 11 percent. Entertainment was the next=20
most-popular blog topic, with 7 percent, followed=20
by sports, at 6 percent and news at 5 percent.=20
Religion or spirituality was the aim of 2=20
percent. About 8 percent of Internet users, or 12=20
million American adults, keep a blog, Pew=20
estimated. Some 39 percent of U.S. Web users, or=20
57 million adults, read them, the researchers=20
said. More than half, or 54 percent, of bloggers are under age 30.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-07-19T083506Z_01_N18122033_RTRUKOC_0_US-MEDIA-BLOGS-SURVEY.xml&arc=
hived=3DFalse
--------------------------------------------------------------
Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
through Friday, this service provides updates on=20
important industry developments, policy issues,=20
and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
--------------------------------------------------------------