July 2006

IN THE COURTS
Judge Balks at Closure of AT&T, Verizon Mergers
Judge Rejects Customer Suit Over Records From AT&T

GOVERNMENT & COMMUNICATIONS
White House Sticks To Wiretap Argument
Blank Check to Spy
House Passes a Bill for First Responder Protocol

TELEVISION
Small Cable Ops Seek RSN Aid
Adelphia, Bondholders Reach Deal
TiVo Is Watching When You Don't Watch, and It Tattles

INTERNET
Internet gambling bill seen delayed in Senate
Cry Bias, and Let Slip the Blogs of War
Does your PC have a good rep?

PEOPLE. PEOPLE WHO DO TELECOM POLICY...
Kerry Plays All Sides In Telecom Debate
Clark to Head Center for Public Integrity Media Project
Chessen Returns to FCC

IN THE COURTS

JUDGE BALKS AT CLOSURE OF AT&T, VERIZON MERGERS
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
U.S. District Judge Emmet Sullivan on Tuesday said he can't sign off
on the mergers of SBC and AT&T and of Verizon and MCI until he gets
more information. Judge Sullivan has formally asked the government
and the phone companies to submit "any materials" that show why the
agreements reached between the Justice Department and the
telecommunications companies satisfy the "public interest"
requirements of a 1974 federal antitrust law called the Tunney Act.
Federal judges picked up additional authority in such proceedings in
2004, when Congress made changes to the Tunney Act. The law now says
judges "shall" --rather than "may," as in the previous
statute--evaluate the effectiveness of consent decrees and whether
those decrees will protect the public interest. Judges are also
supposed to consider the impact of the deal on "competition in the
relevant market or markets." Justice Department Attorney Claude Scott
said the government would attempt to distill the "millions" of
documents scrutinized during their reviews of the mergers into a few
affidavits for the judge. The judge's actions drew praise from
Jeannine Kenney, senior policy analyst for the advocacy group
Consumers Union. She said in a statement issued jointly with Comptel
that the court "sent the encouraging message that it will carefully
scrutinize, not merely rubberstamp, these merger agreements." Judge
Sullivan gave the government until Aug. 7 to file the supporting
documents with the court. Then the outside groups will have 10 days
to respond to those filings, and the government will have 10
additional days to file its own response.
http://news.com.com/Judge+balks+at+closure+of+AT38T%2C+Verizon+mergers/2...
* Judge Seeks More Data On 2 Telecom Deals
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/25/AR200607...

JUDGE REJECTS CUSTOMER SUIT OVER RECORDS FROM AT&T
[SOURCE: New York Times, AUTHOR: Adam Liptak]
A federal judge in Chicago dismissed a class-action lawsuit yesterday
against AT&T that claimed it had illegally given information about
its customers to the National Security Agency. The judge, Matthew F.
Kennelly, based his ruling on the state secrets privilege, which can
bar suits that would disclose information harmful to national
security. The ruling is at first blush at odds with a decision last
week by a federal judge in San Francisco. That judge, Vaughn R.
Walker, allowed a similar suit against AT&T to proceed
notwithstanding the state secrets privilege. But the two decisions
can be reconciled, Judge Kennelly wrote. The Chicago case concerns
records of phone calls, including when they were placed, how long
they lasted and the phone numbers involved. The San Francisco case,
by contrast, mainly concerns an N.S.A. program aimed not at a vast
sweep of customers' records but at the contents of a more limited
number of communications. Because the Bush administration has
confirmed the existence of such targeted wiretapping, the San
Francisco suit could proceed without running afoul of the state
secrets privilege, Judge Walker ruled last week. ''The government has
opened the door for judicial inquiry," he wrote, "by publicly
confirming and denying material information about its monitoring of
communications content." In his decision yesterday, Judge Kennelly
said there had been no comparable confirmation by the government or
AT&T of "the existence or nonexistence of AT&T's claimed record
turnover." He refused to rely on news accounts of the program as
proof of its existence and noted that "no executive branch official
has officially confirmed or denied the existence of any program to
obtain large quantities of customer telephone records." The case was
brought by the journalist Studs Terkel, five other individual
plaintiffs and the American Civil Liberties Union of Illinois. They
argued that the program violated a federal law that forbids the
disclosure of some customer records to the government, and they
sought a court order to stop it.
http://www.nytimes.com/2006/07/26/us/26nsa.html
(requires registration)
* Judge Dismisses Lawsuit On AT& T Data Handover
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/25/AR200607...

GOVERNMENT & COMMUNICATIONS

WHITE HOUSE STICKS TO WIRETAP ARGUMENT
[SOURCE: Wall Street Journal, AUTHOR: Ben Winograd benjamin.winograd( at )wsj.com]
Despite high-profile legal losses and complaints about failures to
consult with lawmakers, the Bush administration is sticking to its
core post-9/11 legal argument: that the Constitution and a
congressional resolution passed after the terror attacks grant the
president almost unlimited power to protect the country. Responding
to congressional inquiries, administration lawyers have defended a
warrantless surveillance program viewed by some as in doubt after a
recent Supreme Court decision barring special military commissions to
try enemy combatants. In letters to Congress, administration lawyers
wrote that the high court's decision -- which rejected arguments
similar to those used to defend the National Security Agency program
-- didn't affect its legal analysis. The release of the letters came
as Sen. Arlen Specter (R-PA) announced a bill, drafted in
negotiations with the White House, to amend the Foreign Intelligence
Surveillance Act, the law critics say President Bush violated by
authorizing the program. While Sen Specter has said the legislation
-- to be considered today by the Senate Judiciary Committee --
wouldn't affect the president's legal footing, many scholars called
it an attempt to retroactively validate the administration's position.
http://online.wsj.com/article/SB115387657574417328.html?mod=todays_us_pa...
(requires subscription)

BLANK CHECK TO SPY
[SOURCE: Washington Post, AUTHOR: Editorial Staff]
[Commentary] Today the Senate Judiciary Committee will hold a
hearing on modernizing the Foreign Intelligence Surveillance Act
(FISA), the 1978 law that regulates domestic wiretapping and
searches. The hearing is an effort on the part of committee Chairman
Arlen Specter to move along his very dangerous bill -- negotiated
with the White House -- to put the National Security Agency's
domestic surveillance program before the federal courts. No matter
how adamantly Sen Specter denies that his bill would give Congress's
blessing to domestic spying outside of FISA's strictures, it does so
explicitly and unambiguously. Several better ideas are already out
there, from legislators who, unlike Sen Specter, have actually been
briefed on the NSA program.
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/25/AR200607...
(requires registration)
* "Modernizing" FISA is Dangerous, Premature: CDT Testimony
A movement to "modernize" the Foreign Intelligence Surveillance Act
(FISA) could give the White House carte blanche to conduct
warrantless surveillance on Americans without any judicial oversight.
In testimony Wednesday before the Senate Judiciary Committee, CDT
Policy Director Jim Dempsey will again urge lawmakers to probe the
full extent of the President's domestic surveillance program before
making any attempt to change FISA. CDT has criticized a proposed
legislative compromise between the White House and Judiciary Chairman
Arlen Specter (R-PA) as being an unreasonable capitulation to the
administration's demands.
http://www.cdt.org/testimony/20060725fisa.pdf

HOUSE PASSES A BILL FOR FIRST RESPONDER PROTOCOL
[SOURCE: Los Angeles Times]
The House voted 414 to 2 to approve a bill aimed at improving
communication among police, firefighters and emergency crews. If
enacted, supporters say, the measure could help fix a common problem:
emergency workers hampered by incompatible radio systems. The bill
would require state and local governments to develop guidelines among
first responders to be eligible for federal Homeland Security grants.
http://www.latimes.com/news/printedition/asection/la-na-briefs26.1jul26,...
(requires registration)

TELEVISION

SMALL CABLE OPS SEEK RSN AID
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC's key condition on Comcast/Time Warner's purchase of Adelphia
was protecting access to regional sports networks through an
arbitration process, calling the home team games "must-have"
programming the withholding of which would be detrimental to the
competitiveness of competing multichannel video providers. That
condition was based on one imposed by the FCC on News Corp.'s
purchase of satellite operator DirecTV's. As part of that DirecTV
condition, News Corp. is required to allow a "bargaining agent," in
this case the National Cable Television Cooperative, to represent
smaller cable operators in carriage negotiations. News Corp.
recognizes them as a bargaining agent, says NCTC, but won't free
smaller cable operators from their confidentiality agreements so they
can give NCTC information it says it needs to bargain collectively
for them. In a five-page letter to FCC Chairman Kevin Martin, NCTC
asked for clarification that cable operators can disclose that
information. It also wanted clarification that if an operators
contract with and RSN expires during negotiations, it is still
permitted to carry the disputed RSN during the negotiation and any
arbitration period.
http://www.broadcastingcable.com/article/CA6356272?display=Breaking+News
* NCTC Seeks FCC Help with Fox
http://www.multichannel.com/article/CA6356277.html?display=Breaking+News

ADELPHIA, BONDHOLDERS REACH DEAL
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
After more than four years in what has often been a contentious
battle, Adelphia Communications said late Monday that it has reached
agreement with at least some of its dissident bondholders, bringing
the cable company a step closer to shutting the books once and for
all on its bankruptcy saga. The latest development centers on the
distribution of the money that will come in from the asset sale to
Time warner and Comcast. According to Adelphia, several of its
bondholders, unsecured creditors and several individual creditors
have agreed to a distribution formula. Its pre-petition bank lenders
and some bondholders have not signed off on the agreement.
http://www.multichannel.com/article/CA6356025.html?display=Breaking+News

TIVO IS WATCHING WHEN YOU DON'T WATCH, AND IT TATTLES
[SOURCE: New York Times, AUTHOR: Saul Hansell]
TiVo is starting a research division to sell data about how its 4.4
million users watch -- or don't watch -- commercials. The service is
based on an analysis of the second-by-second viewing patterns of a
nightly sample of 20,000 TiVo users, whose recorders report back to
TiVo on what was watched and when. On average, TiVo has found that
its users spend nearly half of their television time watching
programs recorded earlier. And viewers of those recorded shows skip
about 70 percent of the commercials. But TiVo says that at a more
detailed level there are wide variations in the numbers. The new
research service, which is intended mainly for advertisers, could
help them understand how to get more people to watch recorded
commercials, like changing the content of ads or running them during
certain kinds of programming.
http://www.nytimes.com/2006/07/26/technology/26adco.html
(requires registration)
* TiVo to Examine How Viewers Watch Ads With DVRs
http://online.wsj.com/article/SB115387592161517309.html?mod=todays_us_ma...
(requires subscription)
* New TiVo service to measure its ad-zapping fallout
http://www.usatoday.com/printedition/money/20060726/1b_tivo26.art.htm

INTERNET

INTERNET GAMBLING BILL SEEN DELAYED IN SENATE
[SOURCE: Reuters, AUTHOR: Tom Ferraro]
A bill to outlaw most forms of Internet gambling appears unlikely to
win U.S. Senate passage before senators begin a month-long recess on
August 4. Two Republican leadership aides said backers of the
legislation were trying to build support for it and resolve
differences as the Senate focuses on other legislative matters and
gets ready for a summer break. The bill was not among the priorities
outlined by Senate Majority Leader Bill Frist (R-TN) during a session
with reporters on Tuesday in which he laid out measures he hopes to
wrap up before the August vacation. Among the priorities listed by
Frist were passage of an energy and defense appropriations bills and
possibly a military construction appropriations bill and an extension
of the estate tax repeal.
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID...

CRY BIAS, AND LET SLIP THE BLOGS OF WAR
[SOURCE: Wall Street Journal, AUTHOR: Mike Spector mike.spector( at )wsj.com]
Hundreds of US troops and veterans are blogging world-wide, and many
focused on a common enemy: journalists. Military bloggers, or
"milbloggers" as they call themselves, contend that they are uniquely
qualified to comment on events in armed conflicts. Many milbloggers
also argue that the mainstream media tends to overplay negative
stories and play down positive military developments. For many of
these blogs "the sole purpose is to counteract the media." There have
always been at least some soldiers who have wanted to go to battle
against Big Media. Some in the military blamed coverage of the
Vietnam War for turning American public opinion against it. What's
changed? The Internet now allows frustrated soldiers and veterans to
voice their opinions and be heard instantly and globally.
http://online.wsj.com/article/SB115388005621517421.html?mod=todays_us_ma...
(requires subscription)

DOES YOUR PC HAVE A GOOD REP? TO SEND E-MAIL, IT BETTER
[SOURCE: C-Net|News.com, AUTHOR: Joris Evers]
Nearly all of the Internet-connected computers that send e-mail are
controlled by spammers, according to companies that track e-mail
reputations. Less than 1 percent of systems that send e-mail can be
deemed a good citizen of the Internet, according to Return Path, a
company that compiles e-mail reputation data. Return Path collects
data on 20 million Internet Protocol addresses that send e-mail. Of
the 20 million IP addresses that send e-mail and are tracked by
Return Path, only 0.9 percent have earned a reputation score that
will allow their e-mails to be delivered to Return Path clients, the
company said. About 2.5 percent encounter problems such as spam traps
or having garnered too many complaints. But 96.7 percent score so
badly that the sending computer is likely to be a hacked PC, the
company said. Spam makes up almost 75 percent of all messages sent today
http://news.com.com/Does+your+PC+have+a+good+rep+To+send+e-mail%2C+it+be...

PEOPLE. PEOPLE WHO DO TELECOM POLICY...

KERRY PLAYS ALL SIDES IN TELECOM DEBATE
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
The 2008 Presidential election must have begun as we're already
learning a contender is a waffler. Sen. John Kerry (D-MA) has been
aligned with the interests of each major communications industry
segment -- Bell telephone companies, cable operators and Internet
players -- at various times during the attempt to rewrite
telecommunications law this Congress. But at last month's Senate
Commerce Committee vote on the issue, he returned to his roots and
took actions aligned with the cable television industry. Except for
the prickly subject of network neutrality, Sen Kerry sided with cable
interests -- and against those of Bell companies, broadcasters and
local government officials -- on core votes and amendments. The cable
industry has been the most generous industry toward Sen Kerry in his
career, according to an analysis of Federal Election Commission donor
data. But despite more than $2.4 million in career support from
there, Sen Kerry's leanings on communications legislation have not
always been clear. Kerry aides say the former presidential nominee
does not favor any industry. "Senator Kerry's number one concern is
consumers, and he always puts competition and the public interest
first," spokeswoman April Boyd said.
http://www.njtelecomupdate.com/lenya/telco/live/tb-QVPT1153849982959.html
* Cable Has Been Kind To Sen. Kerry
http://www.njtelecomupdate.com/lenya/telco/live/tb-IVXK1153850288261.html

CLARK TO HEAD CENTER FOR PUBLIC INTEGRITY MEDIA PROJECT
[SOURCE: Drew Clark]
National Journal reporter Drew Clark will be joining the Center for
Public Integrity on August 14 to lead its global media and
telecommunications project, "Well Connected." Clark will assume
direction of a project that has been funded by the Ford Foundation
for the past three years and has received awards from the
Investigative Reporters and Editors, the Online News Association and
USC Annenberg School for Communications, and the Society of
Professional Journalists. The scope of Clark's work will range from
Net neutrality to media ownership, from Hollywood's anti-piracy
"broadcast flag" to telephone access charges set by state public
utility commissions. The goal of the "Well Connected" project is to
provide the most comprehensive reporting on the business and
legislative influences behind our nation's information networks.
Prior to his time at the National Journal Group, Clark covered
business, politics, society and law for a variety of newspapers,
magazines and Web sites, including the San Francisco Chronicle and
the Mail and Guardian of Johannesburg, South Africa. He graduated
from Swarthmore College, and from the Columbia Graduate School of
Journalism in New York City, and is the recipient of several journalism awards.
http://www.drewclark.com/2006/07/acclaimed-reporter-to-head-centers.shtml

CHESSEN RETURNS TO FCC
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
On Monday, Rick Chessen returned to the Federal Communications
Commission after leaving the agency last November to join former FCC
Media Bureau chief Ken Ferree at law firm Sheppard, Mullin, Richter &
Hampton. He'll return to the Media Bureau now run by Donna Gregg.
http://www.multichannel.com/article/CA6356267.html?display=Breaking+News
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