November 2006

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

GOVERNMENT & COMMUNICATIONS
A Crack in the Stone Wall

NETWORK NEUTRALITY
'Network Neutrality' Controversy Arises In Michigan Video Bill Debate
No Slam Dunk for Net Neutrality

POLICYMAKERS
FCC Briefing for Investors Criticized

INTERNET/BROADBAND
Study: Americans feel Strongly about Social Ties Online, Too
Young favor Internet over TV
Google CEO calls Net key to White House

MEDIA OWNERSHIP
Philly Papers' Owner Pessimistic About Deal With Largest Union
Houghton Mifflin agrees to buyout

JOURNALISM
Late-Night Newscasts See Big Drop In Viewers

COMPUTERS THEN AND NOW
Early Astronomical =91Computer=92 Found to Be Technically Complex
For $150, Laptop Stirs a Big Debate

GOVERNMENT & COMMUNICATIONS

A CRACK IN THE STONE WALL
[SOURCE: New York Times, AUTHOR: Editorial Staff]
[Commentary] It was one of the more outrageous=20
moments in the story of the Bush administration=92s=20
illegal domestic wiretapping. Almost a year ago,=20
Congressional Democrats called for a review of=20
the Justice Department=92s role in the program. But=20
the department investigators assigned to do the=20
job were unable to proceed because the White=20
House, at President Bush=92s personal direction,=20
refused to give them the necessary security=20
clearance. Now the president, for reasons we=20
can't help thinking might have something to do=20
with this month=92s elections, has changed his=20
mind. The White House will give Justice=20
Department inspectors the required clearance, and=20
a review will go forward. That=92s all to the good,=20
as long as the investigation is not intended to=20
pre-empt any efforts by the new Democratic=20
majority to conduct its own Congressional review=20
of the wiretap program. The Justice Department=20
inquiry will hardly do the full job. The question=20
of the wiretap program=92s constitutionality is now=20
making its way through the courts and should=20
ultimately be decided by the Supreme Court.=20
Congress should not be satisfied with the Justice=20
Dept=92s very limited investigation. It should=20
mount its own independent inquiry into how the=20
war on terror, and American civil liberties, are=20
being affected by an eavesdropping program about=20
which we have been told so little.
http://www.nytimes.com/2006/11/30/opinion/30thu1.html
(requires registration)

NETWORK NEUTRALITY

'NETWORK NEUTRALITY' CONTROVERSY ARISES IN MICHIGAN VIDEO BILL DEBATE
[SOURCE: Technology Daily 11/28, AUTHOR: Michael Martinez]
Opponents of a measure in Michigan to overhaul=20
the state's video franchising rules have thrown a=20
new wrinkle into their argument. Debate over the=20
measure now has shifted to how it would allow=20
high-speed Internet operators to treat online=20
content. Discussion over so-called network=20
neutrality provisions to ensure equal treatment=20
of similar content has derailed a federal=20
telecommunications bill this year. But this is=20
the first time network neutrality has become a=20
major issue at the state level. Over the past=20
year, California, Indiana, Kansas, New Jersey,=20
North Carolina, South Carolina, Texas and=20
Virginia all have enacted laws to ease the=20
entrance into the video services market. Large=20
telephone companies pushing new video offerings=20
have lobbied hard for such measures, most of=20
which allow them to bypass localities completely=20
by negotiating statewide franchises. Earlier this=20
month, the Michigan House overwhelmingly approved=20
a bill to that end -- but it might meet more=20
resistance in the Senate. Democrats regained=20
control of the state House this month but fell a=20
few seats short seizing the state Senate. A=20
coalition of opposition groups Tuesday held a=20
rally in Lansing to urge Michigan lawmakers not=20
to act on the measure, H.B. 6456, during the state's post-election session.
http://www.njtelecomupdate.com/lenya/telco/live/tb-FGMX1164763240180.html
* Google, Michigan Protesters Lobby For 'Net Neutrality'
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.san&s=...
1794&Nid=3D25451&p=3D368626
* MI Video-Franchise Bill Draws Beltway Lobbyist Fire
http://www.telecomweb.com/tnd/20539.html

NO SLAM DUNK FOR NET NEUTRALITY
[SOURCE: TPM Cafe, AUTHOR: Art Brodsky, Public Knowledge]
[Commentary] It=92s getting down to the end of this=20
Congressional session, and any number of=20
commentators are bemoaning the fact that telecom=20
legislation has been stuffed, in large part, due=20
to the opposition of those favoring Net=20
Neutrality. That=92s fine. The bills that were up=20
for consideration this year had some good things,=20
but tremendous flaws as well, and shouldn't have=20
been considered in a hurry. At the same time,=20
though, we shouldn't rush to any conclusions=20
about how the issue will play out next year, when=20
the Democrats take over Congress. Some people are=20
saying the Bell companies won't want to pursue=20
telecom legislation because they will work=20
through the states to get what they want. Others=20
are saying that Net Neutrality, the idea that=20
telephone and cable companies can't make special=20
deals to favor transmission of some content over=20
other content, will have a great chance next year=20
with the Democrats in charge. The best prediction=20
is somewhere in the middle, in part because some=20
of the factors involved aren't yet known and in=20
part because some of the old politics is still in play.
http://tpmcafe.com/blog/specialguests/2006/nov/28/no_slam_dunk_for_net_n...
rality_with_apologies_to_george_tenet

POLICYMAKERS

FCC BRIEFING FOR INVESTORS CRITICIZED
[SOURCE: MyNetscape/Associated Press]
With federal regulators deadlocked on what may=20
prove to be the largest telecommunications merger=20
in history, news about progress on the deal has=20
become scarce and highly coveted. So the small=20
group of clients of Banc of America Securities=20
LLC were privileged Wednesday to get an exclusive=20
briefing from top-ranking staff of the Federal=20
Communications Commission at hotel a block away=20
from agency headquarters. The meeting was=20
described as "timely" in a brief item in=20
Communications Daily, the telecommunications=20
industry newsletter, with "topics including the=20
AT&T/BellSouth merger and net neutrality pending=20
at the Commission." The meeting, however, was not=20
open to the public or the media -- it was for=20
Banc of America "clients only." When a reporter=20
from The Associated Press walked into the meeting=20
room during a lunch break, he was escorted out by=20
Banc of America Securities' managing director=20
David W. Barden. The FCC has been criticized in=20
the past by public interest groups for its cozy=20
relationship with industry, and Wednesday's=20
episode was particularly disturbing, said Andrew=20
Jay Schwartzman, president and CEO of the Media=20
Access Project, a public interest law firm. "When=20
public officials are speaking privately,=20
expressing things to influential investors, that=20
they are unwilling to share with the rest of the=20
public, taxpayers have a right to be upset," he=20
said. "What do they have to say that they can't=20
say to everyone else?" A bank spokesman declined to comment.
http://my.netscape.com/corewidgets/news/story.psp?cat=3D50700&id=3D20061...
18580001687469
Also at: http://www.tvnewsday.com/articles/2006/11/29/daily.10/
* See a related article:
Regulatory Event Risk Headlines Fitch's U.S. Telecom Outlook for 2007
[SOURCE: Fitch Ratings press release]
http://biz.yahoo.com/bw/061129/20061129005554.html?.v=3D1

INTERNET/BROADBAND

STUDY: AMERICANS FEEL STRONGLY ABOUT SOCIAL TIES ONLINE, TOO
[SOURCE: C-Net|News.com, AUTHOR: Stefanie Olsen]
For many people, membership to virtual=20
communities can be just as important as=20
real-world social ties, according to a new study.=20
An estimated 43 percent of Americans who belong=20
to online communities say they feel just as=20
strongly about their virtual worlds as their=20
real-world counterparts, according to the USC=20
Annenberg Digital Future Project, which released=20
findings Wednesday of its sixth-annual report=20
examining the Web's impact on society. The=20
findings seem to be in accordance with the ease=20
of meeting new friends online. According to=20
people polled by researchers at the Center for=20
the Digital Future at the USC Annenberg School,=20
they met an average of 1.6 new friends per year=20
in real-world settings with whom they originally=20
met online. Those surveyed also met an average of=20
4.65 friends who remained virtual pals only. In=20
addition, more than 40 percent of Internet users=20
said that the Web helps them stay in touch with more friends and family.
http://news.com.com/Study+Americans+feel+strongly+about+social+ties+onli...
2C+too/2100-1026_3-6139422.html?tag=3Dnefd.top
* 2007 Digital Future Report
http://www.digitalcenter.org/pages/current_report.asp?intGlobalId=3D19

YOUNG FAVOR INTERNET OVER TV
[SOURCE: Reuters]
The rise of high-speed Internet and the explosion=20
in online video content is fueling a widespread=20
decline in the number of people watching=20
television according to a worldwide study by=20
Ofcom. On average around one-third of consumers=20
with broadband access watch less television since=20
going online the findings, which sampled a=20
thousand people in each country, concluded.=20
Alongside tech-savvy younger generations watching=20
traditional TV channels on their PC or laptop,=20
instant messaging, blogging, social networking=20
sites such as MySpace and user generated content=20
sites including YouTube are driving more and more=20
to ditch old fashioned sit-and-watch viewing=20
habits. Aided by the increased choice on-line,=20
users are switching off the television and=20
changing the way they consume media by tailoring=20
what they watch to their personal tastes.
http://today.reuters.com/news/articlenews.aspx?type=3DinternetNews&storyID=
=3D2006-11-29T170608Z_01_L29478017_RTRUKOC_0_US-INTERNET-TELEVISION.xml&WTm=
odLoc=3DInternetNewsHome_C2_internetNews-2

GOOGLE CEO CALLS NET KEY TO WHITE HOUSE
[SOURCE: Reuters]
Google's chief executive offered some advice on=20
Wednesday to Republicans looking ahead to the=20
2008 presidential contest: make better use of the=20
Internet's electioneering power if you want to=20
win next time. "The ones that take advantage of=20
this most effectively will be the ones that will=20
be the winners of the next election," Google=20
Chief Executive Eric Schmidt told Republican=20
governors gathered in Miami. He offered a few=20
examples of how the Internet, especially video=20
file-sharing sites like Google's newly acquired=20
YouTube, had changed the political landscape by=20
enabling anyone to disseminate information widely and instantly.
http://news.com.com/Google+CEO+calls+Net+key+to+White+House/2100-1028_3-...
9518.html?tag=3Dnefd.top

MEDIA OWNERSHIP

PHILLY PAPERS' OWNER PESSIMISTIC ABOUT DEAL WITH LARGEST UNION
[SOURCE: Associated Press]
The owner of Philadelphia's two largest daily=20
newspapers expressed doubt Wednesday that an=20
agreement with the papers' largest union could be=20
reached before its contract expires at midnight=20
Thursday, as editorial employees make=20
preparations to go on strike. "We remain=20
optimistic that we will be able to reach=20
agreements by our November 30, 2006 deadline with=20
all of our unions but the Guild," Philadelphia=20
Media Holdings told employees at The Philadelphia=20
Inquirer and Philadelphia Daily News in a memo.=20
Stu Bykofsky, a spokesman for the Newspaper Guild=20
of Greater Philadelphia, said: "I don't think that's a good sign."
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003466012

HOUGHTON MIFFLIN AGREES TO BUYOUT
[SOURCE: Associated Press]
Houghton Mifflin Co. on Wednesday agreed to a=20
nearly $1.8-billion buyout that would pair a=20
venerable name in textbook publishing with=20
Riverdeep Inc., a smaller firm whose strength is=20
educational software. By joining Houghton's=20
paper-and-ink business with Riverdeep's software,=20
the newly formed venture hopes to better position=20
itself against larger rivals Pearson, McGraw-Hill=20
Cos. and Harcourt Education. Barry O'Callaghan,=20
Riverdeep's chief executive, said the deal sought=20
to "capitalize on the convergence of print and=20
digital education platforms" and help Riverdeep=20
draw strength from Houghton's larger sales force.=20
Riverdeep's popular educational software brands=20
include Reader Rabbit, Carmen Sandiego and=20
Cluefinders. The deal would create a company with=20
more than $1.4 billion in revenue =97 most of it=20
from Houghton, which has about 3,500 employees.=20
Riverdeep has 300 workers. Houghton, the=20
fourth-largest U.S. textbook publisher, traces=20
its origins to 1832. It was home to early=20
American authors such as Ralph Waldo Emerson and=20
Henry David Thoreau, as well as J.R.R. Tolkien.
http://www.latimes.com/business/printedition/la-fi-houghton30nov30,1,463...
4.story?coll=3Dla-headlines-pe-business
* Sold: Houghton Mifflin
http://www.forbes.com/markets/bonds/2006/11/29/houghton-mifflin-rivergro...
markets-equity-cx_mk_1129markets08.html

JOURNALISM

LATE-NIGHT NEWSCASTS SEE BIG DROP IN VIEWERS
[SOURCE: Washington Post, AUTHOR: John Maynard]
A precipitous decline in late prime-time=20
viewership took its toll on 11 p.m. weeknight=20
newscasts, according to Nielsen figures for TV's=20
November "sweeps" period that concluded=20
yesterday. In Washington (DC), all three local=20
stations that have network programming after 10=20
p.m. -- WRC (Channel 4), WJLA (Channel 7), WUSA=20
(Channel 9) -- saw late-newscast viewership=20
plummet by more than 10 percent compared with=20
last year. Total weekday viewers at 11 p.m. fell=20
from 463,000 last November to 382,000 at those=20
stations -- a decline of nearly 20 percent. The=20
stations were hurt in no small part by the sharp=20
decrease in ratings among the network lead-in=20
shows; at 10:45 p.m., local weekday viewership=20
fell by more than 25 percent (from 673,000 to 505,000).
http://www.washingtonpost.com/wp-dyn/content/article/2006/11/29/AR200611...
1553.html
(requires registration)

COMPUTERS THEN AND NOW

EARLY ASTRONOMICAL 'COMPUTER' FOUND TO BE TECHNICALLY COMPLEX
[SOURCE: New York Times, AUTHOR: John Noble Wilford]
A century ago, pieces of a strange mechanism with=20
bronze gears and dials were recovered from an=20
ancient shipwreck off the coast of Greece.=20
Historians of science concluded that this was an=20
instrument that calculated and illustrated=20
astronomical information, particularly phases of=20
the Moon and planetary motions, in the second=20
century B.C. The instrument, the Antikythera=20
Mechanism, sometimes called the world=92s first=20
computer, has now been examined with the latest=20
in high-resolution imaging systems and=20
three-dimensional X-ray tomography. A team of=20
British, Greek and American researchers=20
deciphered inscriptions and reconstructed the=20
gear functions, revealing =93an unexpected degree=20
of technical sophistication for the period,=94 it=20
said. The researchers, led by the mathematician=20
and filmmaker Tony Freeth and the astronomer Mike=20
G. Edmunds, both of the University of Cardiff,=20
Wales, are reporting their results today in the=20
journal Nature. They said their findings showed=20
that the inscriptions related to lunar-solar=20
motions, and the gears were a representation of=20
the irregularities of the Moon=92s orbital course,=20
as theorized by the astronomer Hipparchos. They=20
established the date of the mechanism at 150-100=20
B.C. The hand-operated mechanism, presumably used=20
in preparing calendars for planting and=20
harvesting and fixing religious festivals, had at=20
least 30, possibly 37, hand-cut bronze=20
gear-wheels, the researchers said. A pin-and-slot=20
device connecting two gear-wheels induced=20
variations in the representation of lunar motions=20
according to the Hipparchos model of the Moon=92s elliptical orbit around E=
arth.
http://www.nytimes.com/2006/11/30/science/30compute.html
(requires registration)
* Ancient machine opened the heavens
http://www.latimes.com/news/printedition/front/la-sci-calculator30nov30,...
716113.story?coll=3Dla-headlines-frontpage

FOR $150, THIRD-WORLD LAPTOP STIRS A BIG DEBATE
[SOURCE: New York Times, AUTHOR: John Markoff]
One Laptop Per Child, the nonprofit project aimed=20
at producing inexpensive computers, has won over=20
many skeptics over the last two and a half years.=20
Five countries -- Argentina, Brazil, Libya,=20
Nigeria and Thailand -- have made tentative=20
commitments to put the computers into the hands=20
of millions of students, with production in=20
Taiwan expected to begin by mid-2007. That has=20
not prevented the effort, conceived by Nicholas=20
Negroponte, a prominent computer researcher, from=20
becoming the focal point of a debate over the=20
value of computers to both learning and economic=20
development. The detractors include two computer=20
industry giants, Intel and Microsoft, pushing=20
alternative approaches. Intel has developed a=20
$400 laptop aimed at schools as well as an=20
education program that focuses on teachers=20
instead of students. And Bill Gates, Microsoft=92s=20
chairman and a leading philanthropist for the=20
third world, has questioned whether the concept=20
is =93just taking what we do in the rich world=94 and=20
assuming that that is something good for the=20
developing world, too. Negroponte, the founding=20
director of the M.I.T. Media Laboratory, said he=20
was amused by the attention his little machine=20
was getting. It is not the first time he has been=20
challenged for proclaiming technology=92s promise.=20
The idea is also that children can take on much=20
of the responsibility for maintaining the=20
systems, rather than relying on or creating bureaucracies to do so.
http://www.nytimes.com/2006/11/30/technology/30laptop.html?hp&ex=3D11649...
00&en=3D65317907d3a0f6d7&ei=3D5094&partner=3Dhomepage
(requires registration)
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Communications-related Headlines is a free online=20
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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.
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