July 2006

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For upcoming media policy events, see http://www.benton.org

TELECOM REFORM LEGISLATION
Senate Telecom Bill=92s Future Murky
Wyden Puts 'Hold' On Telecom Bill
Google says Bill could Spark Antitrust Fight
Net Neutrality, In the Eye of the Beholder
Verizon's TV Licensing may be only half the Fight

FCC AGENDA
As FCC Digs Into Ownership, Big Media No Longer Cares
Court Refuses to Delay August Wireless Auction
Phone Card Issuers Must Pay Access Fees

GOVERNMENT & COMMUNICATIONS
House To Media: Back Off
Lawmaker Sees Both Sides of Broadcast Legislation
Kentucky Bans Blogs in State Offices
Once-Powerful Malaysian Grumbles to Press He Controlled

QUICKLY -- EFF defends liberties in high-tech=20
world; Phone problems? Go online; Networks fall=20
behind in =91upfront' ad sales; The Internet Knows=20
What You'll Do Next; Tech firms venture deeper=20
into telecom; Angry Customers Shame Firms;=20
MySpace Pushes Public Service; Maryland Cell=20
Phone Tax; Paris Internet access plan

TELECOM REFORM LEGISLATION

SENATE TELECOM BILL'S MURKY FUTURE
[SOURCE: Multichannel News 6/28, AUTHOR: Ted Hearn]
The Communications, Consumer's Choice, and=20
Broadband Deployment Act of 2006, sponsored by=20
Senate Commerce Committee Chairman Ted Stevens=20
(R-Alaska), was approved by that Committee last=20
week, but its future is murky due to a bruising=20
battle over a Network Neutrality amendment that=20
split the panel largely along partisan=20
lines. Sen Stevens prevailed in keeping Internet=20
nondiscrimination language from the bill after a=20
Net Neutrality amendment failed on an 11-11 vote.=20
(Tie votes mean amendments fail.) But the price=20
of that victory might be that the full Senate=20
never considers the bill because it would need 60=20
votes to block a filibuster. The Senate has 55=20
Republicans, 44 Democrats and one independent.=20
=93If this amendment goes down, you can expect a=20
massive fight on your hands from a lot of folks,=20
not just in the Senate but in the country,=94 said=20
Sen. Barbara Boxer (D-CA) moments before the net=20
neutrality amendment's defeat. =93It=92s not going to=20
be pretty.=94 Sen. John Ensign (R-NV) said the=20
Senate had to avoid net neutrality provisions=20
because they would ultimately take down the=20
entire bill. As the Senate panel was wrapping up=20
its work, Sen Stevens was already talking about=20
paring back the bill and working with the=20
Judiciary Committee on crafting net neutrality=20
language from an antitrust law perspective.=20
=93We=92re going to have to take a good look at it=20
and see how we might slim it down,=94 he said,=20
optimistic that a bill of some kind can become=20
law this year. =93I do believe this bill should be=20
passed and I do believe we will get to the point where we will pass it.=94
http://www.multichannel.com/article/CA6348280.html?display=3DBreaking+News
* For more on the Communications, Consumer's=20
Choice, and Broadband Deployment Act of 2006 see:
http://www.benton.org/index.php?q=3Dnode/2173

WYDEN PUTS 'HOLD' ON TELECOM BILL
[SOURCE: Broadcasting&Cable 6/29, AUTHOR: John Eggerton]
Senator Ron Wyden (D-OR) has put a hold on the=20
video franchise/telecom reform bill that just=20
passed the Senate Commerce Committee. The hold=20
means that the bill could not be passed on=20
unanimous consent, which is without a Senate=20
floor vote and debate, but that is because to do=20
so all 100 Senators would have to approve of it.=20
By not approving of it, Sen Wyden automatically=20
takes that option off the table. But the hold,=20
which is a courtesy rather than a rule, anyway,=20
does not prevent the leadership from scheduling a=20
floor vote on the bill. But what might prevent=20
that floor time is not having the 60 votes to=20
block the filibuster Sen Wyden will likely=20
employ. The leadership has indicated to Commerce=20
Chairman Ted Stevens that he will need to line up=20
those 60 votes. Senator John Kerry (D-MA) has=20
indicated that Sen Stevens will not get the 60=20
votes without the addition of strong net=20
neutrality language. But Sen Stevens has said Net=20
Neutrality will be a poison pill, and has heard=20
as much from the House side, whose bill also does=20
not contain language expressly preventing=20
discrimination in the provision of Internet access.
http://www.broadcastingcable.com/article/CA6348408?display=3DBreaking+News
* Stopping the Big Giveaway - by John Kerry
[Commentary] "I voted against this lousy bill for=20
two reasons: because Net Neutrality and Internet=20
build-out are crucial to building a more modern=20
and fair Information Society, and both were pushed aside by the Republicans=
."
http://www.savetheinternet.com/blog/
* Blocking Telecom Could Become Campaign Issue
Senator Jim DeMint (R-SC) says the Republicans=20
may be able to make the telecom bill an election=20
issue if Democrats block the Senate=20
Commerce-passed version from a floor vote. He=20
says the bill is all about lowering cable rates.=20
"If our Democrat colleagues block brining it on=20
the floor for debate, it's just one more thing we=20
can talk about in the area of obstruction.... The=20
ability to move information around is so key to=20
competing in a global economy, I think we can=20
make it a campaign issue because it fits with a=20
lot of other things that have been blocked that=20
are really important to our future."
http://www.broadcastingcable.com/article/CA6348755?display=3DBreaking+News

GOOGLE SAYS BILL COULD SPARK ANTITRUST FIGHT
[SOURCE: Reuters 7/4]
Google warned on Tuesday it will not hesitate to=20
file antitrust complaints if high-speed Internet=20
providers abuse the market power they could=20
receive from Congress. The Senate Commerce=20
Committee last week approved sweeping=20
communications reform legislation that would make=20
it easier for telephone companies like AT&T to=20
offer subscription television to consumers. But=20
it narrowly rejected attempts by some lawmakers=20
to strengthen safeguards on Internet service,=20
which had pitted high-speed Internet, or=20
broadband, providers such as AT&T against=20
Internet content companies like Google. The=20
battle centered on whether broadband providers=20
can charge more to carry unaffiliated content or=20
to guarantee service quality, an issue called Net=20
neutrality. "If the legislators...insist on=20
neutrality, we will be happy. If they do not put=20
it in, we will be less happy but then we will=20
have to wait and see whether or not there=20
actually is any abuse," Vint Cerf, a Google vice=20
president and one of the pioneers of the=20
Internet, said Tuesday. "If we are not successful=20
in our arguments... then we will simply have to=20
wait until something bad happens and then we will=20
make known our case to the Department of=20
Justice's anti-trust division," he added.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-07-04T172951Z_01_L04777905_RTRUKOC_0_US-GOOGLE-NETNEUTRALITY.xml

TECH FACEOFF: NET NEUTRALITY, IN THE EYE OF THE BEHOLDER
[SOURCE: Washington Post 7/2, AUTHOR: Kim Hart and Sara Kehaulani Goo]
From Capitol Hill to Silicon Valley, it's become=20
one of the most controversial and confusing=20
topics to hit the tech industry this year:=20
network neutrality. The term is confusing, the ad=20
campaigns have further clouded the issue, and=20
it's no longer easy to tell who's for it and=20
who's not. Whatever becomes of the concept could=20
affect what you pay for connectivity, the sites=20
you'll have access to and the types of services=20
(think video, music and Internet phone offerings)=20
you'll be able to use. Net neutrality is the push=20
to prohibit a pay-for-speed Internet pricing=20
structure that the cable and phone companies --=20
those that provide high-speed Internet=20
connections -- have proposed. To better=20
understand it all, go back to the old=20
"information superhighway" analogy, where the=20
phone and cable lines that connect your computer=20
to the Web are the on-ramps to that highway.=20
Should the companies who built those on-ramps --=20
Verizon Communications Inc. and Comcast Corp. in=20
the Washington region -- be allowed to impose a=20
toll system that charges Web companies such as=20
Google Inc. a higher fee to reach your computer=20
faster than its competitors, such as Yahoo Inc.?=20
Is that the essence of a free-market system? Or=20
is it one that creates inequality on a road that=20
should have no tolls at all? The jury -- in this=20
case, Congress -- is still out.
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/01/AR200607...
0138.html
(requires registration)

VERIZON'S TV LICENSING MAY BE ONLY HALF THE FIGHT
[SOURCE: Reuters7/3, AUTHOR: Ritsuko Ando]
Verizon looks increasingly impatient to roll out=20
its Web-based television service nationwide,=20
suing a Maryland county last week for hampering=20
its entry, but getting licenses may only be half=20
the battle. Analysts say that while Verizon's=20
state-of-the-art fiber optic network allows=20
multiple channels of high-definition video and=20
faster downloading, the phone company must show=20
more proof that its multibillion-dollar=20
investment is worthwhile. Verizon will not say=20
how much it is spending on the Internet protocol=20
television service, named FiOS, on which it is=20
banking to win back customers lured away by cable=20
operators' "triple play" of Internet, phone and=20
video bundles. But analysts estimate Verizon is=20
spending around $700 to $1,000 per customer,=20
double the spending of rival phone company AT&T=20
Inc. and spooking shareholders. "The market hates=20
Verizon's level of capital expenditure, although=20
you could say it's a necessary evil," said Kent=20
Custer, an analyst at A.G. Edwards & Sons.=20
Verizon says its investment will pay off as=20
demand grows for high-quality video, speedy=20
downloading of movies and interactive television=20
and gaming -- in short, having more computer-like functions.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-07-04T143500Z_01_N03365424_RTRUKOC_0_US-VERIZON.xml&archived=3DFal=
se
* Verizon Sues Maryland County Over Franchise
http://www.broadcastingcable.com/article/CA6348655?display=3DBreaking+News

FCC AGENDA

AS FCC DIGS INTO MEDIA OWNERSHIP, BIG MEDIA NO LONGER CARES
[SOURCE: Washington Post 6/29, AUTHOR: Frank Ahrens]
When the government's attempt to relax media=20
ownership rules was defeated in court two years=20
ago, some hailed it as a victory against putting=20
too much power in the hands of too few media=20
lords. Now, the government is taking up the issue=20
again, but the media landscape is radically=20
different. Since 2003, the media giants have=20
greatly expanded their presence on the Internet,=20
buying successful Web sites or redoubling their=20
own efforts. The continued rollout of high-speed=20
Internet, the improvement in online content and=20
an explosion of handheld devices have combined to=20
give Big Media much greater reach and potentially=20
greater influence than it would have had, were=20
companies allowed to buy a few more television=20
stations each. But the times, technology and=20
media marketplace have changed so much since the=20
FCC began its ownership review last time, in=20
2002, that some of the same media giants that=20
lobbied for changes before -- such as Tribune Co.=20
-- may take little advantage of changes this time.
http://www.washingtonpost.com/wp-dyn/content/article/2006/06/28/AR200606...
2194.html
(requires registration)

COURT REFUSES TO DELAY AUGUST WIRELESS AUCTION
[SOURCE: Reuters 6/29, AUTHOR: Jeremy Pelofsky]
On Thursday, the U.S. Court of Appeals for the=20
Third Circuit refused o delay the August sale of=20
valuable wireless airwaves despite concerns=20
raised by some smaller carriers. Council Tree=20
Communications and others had sought a stay to=20
block the auction from starting until the court=20
could rule on Federal Communications Commission=20
regulations aimed at limiting eligibility for=20
discounts during the sale. The agency offers=20
discounts of up to 25 percent depending on a=20
company's financial position, a move that was=20
designed to encourage smaller entrepreneurial=20
companies to participate. However, some have=20
struck partnerships with national carriers. Small=20
bidders like Council Tree had worried the new=20
rules would make it difficult to get financing to=20
fund their bidding and thus barred from the=20
auction. But the Court ruled that the petitioners=20
failed to establish that they would suffer=20
irreparable harm without a delay and other=20
bidders have indicated a willingness to=20
participate despite the new restrictions. The FCC=20
is slated to begin auctioning the licenses for=20
advanced wireless services on August 9 in a sale=20
analysts have said could raise $8 billion to $15 billion.
http://today.reuters.com/news/newsarticle.aspx?type=3DtechnologyNews&sto...
d=3D2006-06-30T010731Z_01_N29261964_RTRUKOC_0_US-TELECOMS-WIRELESS-AUCTION.=
xml&src=3Drss

PHONE CARD USERS MUST PAY ACCESS FEES
[SOURCE: Dow Jones/ Associated Press 7/4]
The Federal Communications Commission has ruled=20
that issuers of prepaid calling cards must pay=20
connection fees and help subsidize phone service=20
in rural areas. AT&T will have to repay the $553=20
million in access fees -- charges paid to other=20
carriers to connect calls -- and Universal=20
Service Fund payments that its predecessor, then=20
known as the AT&T Corporation, had withheld on=20
phone calling cards. AT&T had argued that because=20
its cards offered enhancements like advertising,=20
the cards were information services exempt from=20
fees that apply to telecommunications services.=20
The Commission also said that providers of=20
prepaid calling cards cannot reduce payments by=20
classifying certain calls as Internet traffic.=20
Regulators said that calling cards that use=20
"Internet in the middle" technology must make=20
rural phone-subsidy contributions and pay access=20
fees. Any payments that were withheld must be=20
repaid, the Commission said. As for military=20
personnel, the commission said that prepaid=20
calling cards sold under a contract with the=20
Defense Department would be exempt from universal=20
service payments. The exemption "should help=20
ensure that our soldiers are able to obtain=20
calling cards at reduced prices," the FCC said.
http://www.nytimes.com/2006/07/04/business/04cards.html
(requires registration)
* FCC Order:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-79A1.doc
* Statement of Commissioner Adelstein
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-79A2.doc

GOVERNMENT & COMMUNICATIONS

HOUSE TO MEDIA: BACK OFF
[SOURCE: Broadcasting&Cable 6/30, AUTHOR: John Eggerton]
Following a heated debate, the Republican=20
majority in the House of Representatives sent a=20
message to the media Thursday night: If somebody=20
in the government discloses classified=20
intelligence programs like the terrorist=20
bank-records tracking program, don't report it.=20
By a vote of 227 to 183, the House passed a=20
resolution supporting the Bush administration=20
terrorist-tracking effort and effectively=20
condemning sources and the media outlets who=20
publicized the secret program. Democrats had=20
tried, but failed, to offer their own version=20
that also supported anti-terrorism efforts but=20
did not include what they suggested was a=20
valentine to the administration in the form of=20
unalloyed approval of the conduct of its=20
anti-terrorism effort. The resolution reads:=20
Resolved, That the House of Representatives...=20
expects the cooperation of all news media=20
organizations in protecting the lives of=20
Americans and the capability of the government to=20
identify, disrupt, and capture terrorists by not=20
disclosing classified intelligence programs such=20
as the Terrorist Finance Tracking Program.
http://www.broadcastingcable.com/article/CA6348788?display=3DBreaking+News

LAWMAKER SEES BOTH SIDES OF BROADCAST LEGISLATION
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera]
A look at Rep Greg Walden (R-OR). Since only one=20
House Republican opposed the recent increase in=20
broadcast indecency fines, it may be no surprise=20
he voted for the legislation, too. But Rep Walden=20
is the only broadcast license holder in Congress;=20
he owns and operates five small radio stations=20
and knows from experience just how easily the=20
wrong word can slip off the tongue and onto the=20
airwaves. Like many in the broadcasting industry,=20
Rep Walden has complained that indecency rulings=20
by the Federal Communications Commission have=20
been inconsistent. "I recognized that something=20
needed to be done, to have a little bigger hammer=20
for the FCC," Walden said. "So now my concern is=20
they don't overreact at the commission and start=20
issuing fines that just put broadcasters out of=20
business." Noting that many small-market radio=20
stations are worth less than the new maximum=20
fine, Rep Walden had inserted a provision into an=20
earlier version of the legislation that=20
encouraged the FCC to consider market size when=20
levying fines. But the provision didn't make it=20
into the final version signed into law by=20
President Bush. Still, having someone in Congress=20
who can convey those concerns is important to the=20
industry, said Dennis Wharton of the National=20
Association of Broadcasters. "They might not=20
listen to a lobbyist as much as they would=20
somebody who really understands the business as=20
an operator," Wharton said of lawmakers. "He=20
understands the business more than anybody."
http://www.latimes.com/business/printedition/la-fi-walden5jul05,1,753358...
tory?coll=3Dla-headlines-pe-business
(requires registration)

KENTUCKY BANS BLOGS IN STATE OFFICES
[SOURCE: The Christian Science Monitor, AUTHOR: Patrik Jonsson]
Kentucky Gov. Ernie Fletcher (R) has banned the=20
reading of many blogs by 34,000 state employees.=20
Bloggers claim the governor is violating their=20
free speech rights. But others see a more subtle=20
lesson in Kentucky's attempt to crack down on=20
desktop dawdling, including how much bosses=20
should do to restrict access to opinion sites -=20
and what blocking access to blogs might mean for=20
everything from esprit de corps to the bottom=20
line. "Whether in [private or public] workplaces,=20
are you going to create a culture of mutual trust=20
or a Big Brother 'we're watching your every move'=20
environment?" says Zachary Hummel, a workplace=20
attorney at Bryan Cave LLP in New York. "We now=20
have so much more ability to monitor what=20
employees do, the question becomes: How much of=20
that do we want to do?" Central to the=20
constitutional case is the question of whether=20
blogs enjoy the same First Amendment protections=20
as newspapers, which can be read on state=20
computers. Blogs, too, discuss local policy and=20
politics, and bloggers and state employees say=20
they are protected by the First Amendment.=20
"Government should defend the right of=20
conservatives and liberals to post opinions and=20
what [the Fletcher administration] is doing, we=20
believe, is using the government to hurt a=20
political web site because of its political=20
opinion," says Charles Wells, the head of the=20
Kentucky state employees' union. "The only ones=20
this information is offensive to is this administration," says Mr. Wells.
http://www.csmonitor.com/2006/0705/p03s03-uspo.html

ONCE-POWERFUL MALAYSIAN GRUMBLES TO PRESS HE CONTROLLED
[SOURCE: New York Times, AUTHOR: Seth Mydans]
Mahathir Mohamad, the man who dominated Malaysia=20
as prime minister for two decades, now can't seem=20
to get any ink when he criticizes the government.=20
Ignored or pushed deep into the back pages like=20
an inconvenient critic, he has turned to the=20
alternative Internet sites that are the refuge of=20
the powerless in Malaysia, sites he says he still=20
despises. "Where is the press freedom?" he=20
exclaimed recently, although he must know that it=20
remains pretty much where he left it when he=20
retired three years ago. "Broadcast what I have=20
to say," he told a forum in remarks that were=20
carried on the Internet. "What I say is not even=20
accurately published in the press." His surprise=20
comes as a surprise. For this master politician,=20
retirement seems to have been a refresher course=20
in elementary principles of government -- that=20
the man and the office are not the same, that=20
self-interest is the politician's compass and=20
that yes men do not always mean it when they say yes.
http://www.nytimes.com/2006/07/05/world/asia/05malaysia.html
(requires registration)

QUICKLY

EFF DEFENDS LIBERTIES IN HIGH-TECH WORLD
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
In March 1990, when few people had even heard of=20
the Internet, U.S. Secret Service agents raided=20
the Texas offices of a small board-game maker,=20
seizing computer equipment and reading customers'=20
e-mail stored on one machine. A group of online=20
pioneers already worried about how the nation's=20
laws were being applied to new technologies=20
became even more fearful and decided to=20
intervene. And thus the Electronic Frontier=20
Foundation was born -- 16 years ago this Monday=20
-- taking on the Secret Service as its first=20
case, one the EFF ultimately won when a judge=20
agreed that the government had no right to read=20
the e-mails or keep the equipment. Today, after=20
expanding into such areas as intellectual=20
property and moving its headquarters twice along=20
with its focus, the EFF is re-emphasizing its=20
roots of trying to limit government surveillance=20
of electronic communications, while keeping a=20
lookout for emerging threats even as the Internet=20
and digital technologies become mainstream. In=20
one of its highest-profile lawsuits to date, the=20
EFF has accused AT&T Inc. of illegally=20
cooperating with the National Security Agency to=20
make phone and Internet communications available=20
without warrants. "It's quite possibly the most=20
important privacy and free speech issue in the=20
21st century," said Kevin Bankston, an EFF staff=20
attorney formerly with the American Civil=20
Liberties Union. "We are trying to force the=20
government to follow the law. We are trying to=20
force the phone company to follow the law."
http://www.mercurynews.com/mld/mercurynews/business/technology/14965616.htm
* EFF prefers litigation to legislation
http://www.mercurynews.com/mld/mercurynews/business/technology/14965625.htm
* To learn more about EFF see http://www.eff.org/

PHONE PROBLEMS? GO ONLINE
[SOURCE: San Francisco Chronicle 6/30, AUTHOR: Ryan Kim]
Three months after killing a proposed=20
telecommunications bill of rights in favor of a=20
consumer education plan, the California Public=20
Utilities Commission presented the first phase of=20
its new program to the public Thursday. The PUC=20
unveiled a consumer Web site, CalPhoneInfo=20
(www.calphoneinfo.com), which provides a wide=20
array of consumer information on matters such as=20
billing, subscriptions, scams and services. The=20
Web site is presented in English and Spanish and=20
offers downloadable material in Chinese,=20
Vietnamese, Russian and eight other languages.=20
The commission also provided information about=20
its new Telecommunications Consumer Fraud Unit,=20
which will investigate customer complaints. (Its=20
toll-free telephone hot line is at (800)=20
649-7570.) PUC President Michael Peevey praised=20
the new initiative and the collaboration between=20
industry and community groups that helped bring it about.
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/c/a/2006/06/30/BUGJNJM...
1.DTL&type=3Dtech

NETWORKS FALL BEHIND IN 'UPFRONT' AS SALES
[SOURCE: USAToday, AUTHOR: David Lieberman and Laura Petrecca]
Executives at ABC, CBS, Fox, NBC and their new=20
siblings, CW and My Network TV, as a group are=20
uncharacteristically mum and apparently cheerless=20
as the advance ad sales period for the season=20
that begins in September is wrapping up below=20
last year's tally. The consensus among buyers and=20
sellers is that the six networks will end up=20
booking nearly $8.9 billion in the frenzied=20
=93upfront=94 period, which typically accounts for=20
about 75% of total prime-time ad sales. That's=20
down about 3.4% from last year, based on Morgan=20
Stanley's assessment of the 2005-06 market. This=20
year's drop may be even steeper than that number=20
suggests: Last year's figures don't include ABC's=20
sales for Monday Night Football =97 analysts=20
usually tally sports separately. But numbers=20
circulating this year factor in NBC's Sunday=20
Night Football. =93Buyers are in control,=94 says=20
John Moore, group media director of MediaHub, ad=20
agency Mullen's buying unit. =93The competitive=20
landscape is much, much different=94 from previous=20
years. There's less pressure for advertisers to=20
spend. They don't have to worry as much as they=20
did in previous years about free-spending=20
pharmaceutical or technology companies gobbling=20
up air time to introduce products. In addition,=20
=93for some product categories, like travel and=20
automotive, these aren't the best of times,=94 says=20
Brad Adgate, research director at Horizon Media.=20
=93Unfortunately, sometimes if the dollars aren't=20
there, one of the first things they cut is=20
marketing.=94 Advertisers also find it easier to=20
resist network efforts to stampede them into rich=20
deals as the number of alternative ad venues=20
grows. In addition to new media led by the=20
Internet, the average home got 96 channels in=20
2005, up 57% from 2000, according to Nielsen=20
Media Research. This year, the popularity of=20
digital video recorders has advertisers seriously=20
questioning the value of network ads. By year's=20
end, nearly 16% of all homes are expected to have=20
DVRs, which give viewers the power to easily fast-forward past the ads.
http://www.usatoday.com/printedition/money/20060705/upfront03.art.htm
* Please touch that dial (Remaking Ads for a TiVo World)
http://www.mercurynews.com/mld/mercurynews/business/technology/14958459.htm

THE INTERNET KNOWS WHAT YOU'LL DO NEXT
[SOURCE: New York Times, AUTHOR: David Leonhardt]
[Commentary] A few years back, a technology=20
writer named John Battelle began talking about=20
how the Internet had made it possible to predict=20
the future. When people went to the home page of=20
Google or Yahoo and entered a few words into a=20
search engine, what they were really doing, he=20
realized, was announcing their intentions. A few=20
weeks ago, Google took a big step toward making=20
the database of intentions visible to the world=20
by creating a product called Google Trends. It=20
allows you to check the relative popularity of=20
any search term, to look at how it has changed=20
over the last couple years and to see the cities=20
where the term is most popular. And it's totally=20
addictive. You can see, for example, that the=20
volume of Google searches would have done an=20
excellent job predicting this year's "American=20
Idol," with Taylor Hicks (the champion) being=20
searched more often than Katharine McPhee (second=20
place), who in turn was searched more often than=20
Elliot Yamin (third place). Then you can compare=20
Hillary Clinton and Al Gore and discover that she=20
was more popular than he for almost all of the=20
last two years, until he surged past her in April=20
and stayed there. It's the connection to=20
marketing that turns the database of intentions=20
from a curiosity into a real economic phenomenon.=20
For now, Google Trends is still a blunt tool. It=20
shows only graphs, not actual numbers, and its=20
data is always about a month out of date.
http://www.nytimes.com/2006/07/05/business/05leonhardt.html
(requires registration)

TECH FIRMS VENTURE DEEPER INTO TELECOM
[SOURCE: USAToday, AUTHOR: Michelle Kessler]
Tech companies such as Microsoft, Apple and eBay=20
are plunging deeper into the telecom business as=20
phones and phone systems become more like=20
computers. They're exploring many parts of the=20
industry, including hardware and software for=20
cell and landline phones. The market for one kind=20
of back-end phone gear alone is supposed to jump=20
from $2.7 billion in 2005 to $8.4 billion in=20
2010, says researcher In-Stat. But it's not easy,=20
because telecom companies have their own plans.
http://www.usatoday.com/printedition/money/20060705/1b_techphone05.art.htm

ANGRY CUSTOMERS USE WEB TO SHAME FIRMS
[SOURCE: Washington Post, AUTHOR: Kim Hart]
As angry clients increasingly turn to the=20
Internet to settle scores, companies, independent=20
retailers and everyday wrongdoers are learning=20
that consumers can have the last word -- and=20
often the last laugh. The Web has turned into a=20
place where shame and humiliation are sometimes=20
the strongest weapons in fighting scams and unfairness.
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/04/AR200607...
1119.html
(requires registration)

MYSPACE PUSHES PUBLIC SERVICE
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
MySpace.com, the social-networking site that=20
boasts 90 million members who are "friends" with=20
one another online, is trying to galvanize its=20
user base to get involved in public service. It=20
is doing so by sponsoring a contest, which begins=20
today, requesting submissions of 15- to 30-second=20
video public-service announcements encouraging=20
social activism. The winner will be featured in=20
Seventeen magazine, which is co-sponsoring the contest.
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/04/AR200607...
1016.html
(requires registration)

MARYLAND TAX COURT UPHOLDS CELL PHONE FEES
[SOURCE: Associated Press]
Two of Maryland's largest jurisdictions did not=20
overstep their authority by imposing cell phone=20
fees, the state tax court has ruled. The court=20
rejected an attempt by four wireless providers to=20
overturn Baltimore's $3.50 a month fee on cell=20
phones and land lines imposed in 2004, and=20
Montgomery County's $2 wireless fee imposed three=20
years ago. T-Mobile, Verizon Wireless, Sprint and=20
Cingular Wireless challenged the fees in February=20
2005, arguing that they were really sales taxes,=20
which only the state can impose.
http://www.mercurynews.com/mld/mercurynews/business/technology/14965456.htm

PARIS WANTS WIRELESS INTERNET ACCESS ACROSS CITY
[SOURCE: Reuters 7/4]
Paris wants blanket wireless Internet cover by=20
the end of 2007, helping to make it the most=20
connected capital city in the world, Mayor=20
Bertrand Delanoe said on Tuesday. Under a new=20
plan, the city hopes to set up 400 free WiFi=20
access points next year and allow Internet=20
service providers to install antennae on=20
strategically-located public property. The plan=20
also calls for slashing taxes on companies that=20
lay down fiber optic cables in a drive to have 80=20
percent of all buildings within the city=20
connected to so-called 'ultra-high speed' fiber=20
optic networks by 2010. License fees for fiber=20
optic cables already snaking through the city's=20
sewer system would be cut by 25 percent, and the=20
tax break would go up to 90 percent for the first=20
400 meters of new cables that branch out to=20
connect buildings currently lacking the=20
high-speed lines. The free wireless access points=20
-- to be located in parks, squares, libraries,=20
and public areas -- will be set up by private=20
firms that win contracts to be awarded in early=20
2007. The project will also experiment with free=20
WiFi access for an entire city quarter by the end of 2007.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-07-04T194550Z_01_B686624_RTRUKOC_0_US-FRANCE-PARIS-INTERNET.xml
--------------------------------------------------------------
Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
through Friday, this service provides updates on=20
important industry developments, policy issues,=20
and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
--------------------------------------------------------------