November 2006

** Headlines is off tomorrow -- catch us at=20
Friday's FCC Consumer Advisory Committee meeting. **
http://www.benton.org/index.php?q=3Dnode/3701

INTERNET/BROADBAND
FCC backs Airline's free Wi-Fi at Logan Airport
FCC Meeting for November 3... It Just Keeps Getting Stranger
House Dems Urge AT&T Merger Vote
Why Citizen Movements Are Citizen Driven
McCurry Warns Dems About Net Neutrality
U.N. delegates: English isn't good enough
Improving ICANN Transparency Will Take Time
Cuba: We're forced to 'finance' the Internet

MEDIA OWNERSHIP
Unfettered Ownership Carries Consequences
Why Newspapers Will Lose On Media Cross-Ownership -- Again
DOJ: Entercom Can Buy 15 if it Sells Three
Two Investor Groups Offer Bids for Tribune

MEDIA & ELECTIONS
On Election Night, Networks Plan to Proceed With Caution
Elections rake in big bucks for media outlets

QUICKLY -- Air America on Ad Blacklist?=20
NCTA: =93Integration Ban=94 Could Jeopardize Digital=20
TV Transition; Only Four Percent of TV Viewing=20
Recorded; Get airline miles for looking at ads

INTERNET/BROADBAND

FCC BACK'S AIRLINE'S FREE WI-FI AT LOGAN AIRPORT
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
Continental Airlines won a battle to offer=20
high-speed Internet service in its frequent flier=20
club at Boston Logan International Airport, the=20
U.S. Federal Communications Commission ruled on=20
Wednesday. The FCC ruled against the=20
Massachusetts Port Authority, or Massport, which=20
ordered airlines in 2005 to unplug their wireless=20
and wireline high-speed Internet services in=20
their lounges and instead use the airport's=20
fee-based system. "Today's decision ensures that=20
the Wi-Fi bands remain free and open to=20
travelers, who can make productive use of their=20
time while waiting to catch their next flight in=20
an airport," FCC Commissioner Michael Copps said=20
in a statement. A spokeswoman for MassPort said=20
the airport had not decided if it would appeal the ruling.
http://today.reuters.com/news/articlenews.aspx?type=3DtechnologyNews&sto...
D=3D2006-11-01T203930Z_01_N01368524_RTRUKOC_0_US-AIRLINES-BROADBAND-FCC.xml=
&WTmodLoc=3DTechNewsHome_C2_technologyNews-3
* Petition for Declaratory Ruling Regarding the=20
Over-the-Air Reception Devices (OTARD) Rules
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-157A1.doc
* Commissioner Copps:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-157A2.doc
* Commissioner Adelstein: "Today we strike a=20
victory for the WiFi revolution in the cradle of=20
the American Revolution. The WiFi movement=20
embodies the spirit of American freedom, and in=20
our action we say "don't tread on me." The=20
movement has been one of the great=20
telecommunications success stories because it=20
enables American consumers and businesses to=20
offer and receive broadband services at the most=20
local levels - at any time, in any place."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-157A3.doc
* FCC: Boston airport can't block airline's Wi-Fi
http://news.com.com/FCC+Boston+airport+cant+block+airlines+Wi-Fi/2100-73...
3-6131618.html?tag=3Dnefd.top
* Media Access Project press release:
"Today's decision goes well beyond free Wi-Fi in=20
airports. It provides a powerful affirmation to=20
the community wireless movement in the United=20
States by protecting the rights of users to=20
operate Wi-Fi access points and other unlicensed=20
devices whether or not a landlord has an=20
exclusive arrangement with a provider."
http://www.mediaaccess.org/press/continental%20ruling.pdf
* Big Win For Community Wireless At FCC
[SOURCE: Tales from the Sausage Factory, AUTHOR: Harold feld]
[Commentary] Key holdings in the FCC's Logan=20
Airport decision: 1) OTARD Definitely Applies to=20
Part 15 =93Unlicensed=94 Devices. 2) The FCC provided=20
clarification of the =93public safety exception=94=20
and made important statements about the=20
distinction between unlicensed and licensed=20
spectrum. 3) The FCC explicitly held that it's=20
Section 303 licensing authority applies to 'unlicensed' spectrum.
http://www.wetmachine.com/totsf/item/628

FCC MEETING FOR NOVEMBER 3... IT JUST KEEPS GETTING STRANGER
[SOURCE: Tales from the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] The FCC has issued the agenda for=20
it's November 3 meeting. Gone is the proposed=20
Notice of Inquiry on Network Neutrality. And a=20
number of non-merger related items have popped up=20
instead. Meanwhile, the trade press report a hot=20
and heavy debate around forcing AT&T to divest=20
wireless spectrum to create a real competitor.=20
What is extremely interesting to note is the=20
absence of the proposed Notice of Inquiry (=93NOI=94)=20
on Network Neutrality. This item was a compromise=20
proposal by FCC Chairman Kevin Martin to move Net=20
Neutrality out of a =93merger specific=94 review and=20
out into a general =93industry rulemaking.=94=20
Apparently, FCC Commissioners Michael Copps and=20
Jonathan Adelstein made it clear that they would=20
not agree to any sort of Network Neutrality NOI=20
as a substitute for merger conditions. So, will=20
the merger really be approved on Friday? Not=20
likely. It is a complicated proposal made more so=20
by a proposal to require AT&T to divest its 2.3=20
GHz and 2.5 GHz spectrum licenses. Stay tuned.
http://www.wetmachine.com/totsf/item/626

HOUSE DEMS URGE AT&T MERGER VOTE
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
A total of 26 House Democrats sent a letter=20
Wednesday urging the Federal Communications=20
Commission to wrap up its review of AT&T=92s $81=20
billion merger with BellSouth. =93While we urge you=20
to consider all the merits of the proposed=20
merger, timely review of the merger will expedite=20
the implementation of the commitment AT&T has=20
made to broadband deployment and significantly=20
enhance our constituents=92 access to affordable=20
broadband services, benefiting both their lives=20
and our nation=92s prosperity,=94 the letter said.=20
Among those signing the letter were Reps. Jane=20
Harmon (D-Calif.), Bart Stupak (D-Mich.) and Gene Green (D-Texas).
http://www.multichannel.com/article/CA6387647.html?display=3DBreaking+News

WHY CITIZEN MOVEMENTS ARE CITIZEN DRIVEN
[SOURCE: Public Knowledge, AUTHOR: Harold Feld, Media Access Project]
[Commentary] Microsoft is one of the biggest=20
supporters of Net neutrality and a member of the=20
It's Our Net coalition. But Microsoft has a=20
temporary hiatus from the coalition after the=20
groups asked the FCC to make Net Neutrality a=20
condition of the AT&T-BellSouth merger. Microsoft=20
has a corporate policy against opposing other=20
people=92s mergers -- particularly mergers=20
involving large potential customers. This is why=20
=93you can't outsource citizenship.=94 It is nice to=20
have big companies like Microsoft on the side of=20
public interest advocates, but, at the end of the=20
day, a corporation does what is in the=20
corporation's best interests. That=92s not a=20
criticism. It=92s a fact of life. Feld concludes:=20
"If you expect companies to save your bacon and=20
defend your rights, think again. And if you=20
expect the network neutrality movement to vanish=20
if the telcos and tech companies manage to cut=20
some kind of deal, think again. What has put=20
Network Neutrality on the policy map has been=20
people getting together and reminding their=20
elected representatives that they work for us.=20
And if we are going to win this fight in the long=20
hall, we need to remember that."
http://www.publicknowledge.org/node/703

MCCURRY WARNS DEMS ABOUT NETWORK NEUTRALITY
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Former Clinton White House press secretary Mike=20
McCurry said Tuesday that Democrats should think=20
twice before using possible control of Congress=20
next year to impose network-neutrality=20
requirements on cable and phone broadband-access=20
providers. =93I worry that not enough Democrats=20
really have thought hard about what it would mean=20
to be the party that introduced the first complex=20
regulatory scheme to the Internet,=94 McCurry said=20
at an Internet-policy debate here hosted by the=20
Northern Virginia Technology Council. The=20
imposition of net-neutrality requirements --=20
which would likely stop cable and phone companies=20
from demanding cash from Web-based companies for=20
priority delivery of their content -- would=20
result in a victory by the =93Lamont-Feingold wing=20
of the party, which is in some ways deeply=20
hostile to business=94 over moderate Democrats who=20
have reached out to business interests for=20
support, McCurry said. Alan Davidson, Google=92s=20
Washington counsel, disagreed: =93It may be=20
convenient to try to paint this as a highly=20
partisan issue embraced by the liberal left, but=20
I don't think that=92s really an accurate=20
description,=94 Davidson said. =93Our belief is that=20
openness and competition on the Internet is a=20
value that=92s shared by Republicans and Democrats.=20
Google, Yahoo!, Amazon, Microsoft -- the broad=20
coalition of companies that are working for Net=20
Neutrality -- we are not hostile to capitalism.=20
We are pro-big business, pro-business.=94
http://www.multichannel.com/article/CA6387052.html?display=3DBreaking+News

UN DELEGATES: ENGLISH ISN'T GOOD ENOUGH
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
When the pioneering engineers who invented the=20
Internet began crafting the modern domain name=20
system, they came up with a rule that was=20
reasonable at the time: Domains must use only=20
English-language characters. A November 1983=20
specification proposed that domain names would=20
have "only letters, digits and hyphen"--which=20
meant that Cyrillic, Arabic, kanji or Chinese=20
letters and characters could not be used in=20
domains. Not even diacritical marks employed in=20
German, French and Spanish were permitted. On=20
Wednesday, delegates to a United Nations summit=20
complained that the ASCII-only choice was=20
representative of an Internet culture that is far=20
too English-centric and that fails to respect=20
other languages. "This new society leaves people=20
isolated, marginalized," said Adama Samass=E9kou, a=20
former Mali government official who is the=20
president of the African Academy of Languages. "I=20
think the digital divide is not as important as=20
the linguistic divide. And that's the one we=20
should be bridging in order to guarantee the=20
democratic governance of the Internet."
http://news.com.com/U.N.+delegates+English+isnt+good+enough/2100-1028_3-...
1394.html?tag=3Dnl
* Care urged with language domain names
The Internet Corporation for Assigned Names and=20
Numbers, or ICANN, warned Wednesday that a=20
mistake in a creating more Web addresses using=20
non-Latin letters could "permanently break the Internet."
http://hosted.ap.org/dynamic/stories/U/UN_INTERNET_GOVERNANCE?SITE=3DMAQ...
SECTION=3DHOME&TEMPLATE=3DDEFAULT

IMPROVING ICANN TRANSPARENCY WILL TAKE TIME
[SOURCE: Center for Democracy & Technology]
The Internet Corporation for Assigned Names and=20
Numbers (ICANN) should devote significant time=20
and resources to the challenge of improving the=20
transparency and accountability of its=20
decision-making processes. In preliminary=20
comments this week, CDT praised ICANN for=20
launching an inquiry into how to build greater=20
transparency and accountability into its=20
operations, but urged the organization not to=20
rush a process designed to fix one of its=20
longest-standing problems. ICANN had initially=20
sought to implement new procedures by December=20
2006, and is now targeting March 2007, which may=20
leave insufficient time to fully study the=20
problem and develop a satisfactory solution.=20
CDT's preliminary comments offer several=20
recommendations for shining more daylight on ICANN's activities.
CDT Comments to ICANN: http://www.cdt.org/standards/20061101icanncomments.p=
df

CUBA: WE'RE FORCED TO 'FINANCE' THE INTERNET
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
A Cuba government official told a United Nations=20
summit that the U.S. government was to blame for=20
the poor Internet access that its citizens enjoy.=20
Juan Fernandez, a Cuban government official in=20
the Commission of Electronic Commerce, on=20
Wednesday assailed the U.S. government's economic=20
embargo and argued that, as a result, poorer=20
countries are "financing" the Internet.=20
Fernandez's only problem was that a longtime=20
Internet engineer and researcher was present and=20
challenged those claims. Bill Woodcock, research=20
director of the nonprofit Packet Clearing House=20
who has set up Internet exchange points in Latin=20
America and other developing nations, replied by=20
saying that the Cuban government's problems stem=20
from its own telecommunications monopoly and its official censorship polici=
es.
http://news.com.com/Cuba+Were+forced+to+finance+the+Internet/2100-1028_3...
31854.html?tag=3Dnefd.top

MEDIA OWNERSHIP

UNFETTERED OWNERSHIP CARRIES CONSEQUENCES
[SOURCE: TVWeek, AUTHOR: FCC Commissioner Jonathan S. Adelstein]
[Commentary] Earlier this month in Los Angeles,=20
the Federal Communications Commission held the=20
first of six full-commission public hearings on=20
our broadcast media ownership rules. As an FCC=20
Commissioner, the writer is obligated to review=20
and, if necessary, modify the current rules to=20
ensure that they promote competition, localism=20
and diversity. He concludes, "The FCC's review of=20
the broadcast media ownership rules is about our=20
democracy, which doesn't appear on corporate=20
balance sheets. Media companies do not have a=20
right to own more radio and TV stations than they=20
need to affirmatively promote localism,=20
competition and diversity to the fullest extent.=20
Wall Street demands a good return on its media=20
investments. Our job on the FCC is to demand a=20
good return to the public, as well, in exchange=20
for the free use of the airwaves."
http://www.tvweek.com/article.cms?articleId=3D30789http://www.tvweek.com/=
article.cms?articleId=3D30789
(requires free registration)

WHY NEWSPAPERS WILL LOSE ON MEDIA CROSS-OWNERSHIP -- AGAIN
[SOURCE: Editor&Publisher, AUTHOR: Mark Fitzgerald]
[Commentary] Even though lifting the ban on=20
broadcast-newspaper crossownership makes a lot of=20
sense, don't bet it'll happen. Prospects were a=20
lot better in 2003 when an energetic FCC=20
chairman, Michael Powell, opposed the ban and had=20
a majority ready to vote with him. But the=20
newspaper then shot itself in the foot and is=20
likely to do it again. How? By treating this as=20
an inside-the-beltway issue. "It's only a little=20
exaggeration to say that newspapers and=20
television imposed a blackout on the issue,=20
writing almost nothing about the impending rule=20
changes until the very eve of the vote." In the=20
FCC's 2006 proceeding, the public is filing=20
thousands of comments opposing lifting the ban.=20
But how much is the press covering the position=20
of the newspaper industry? How much is the=20
industry engaging in public debate? "Newspapers=20
and network television shamed themselves three=20
years ago by telling the public little or nothing=20
about media rule change that were in the works.=20
It wasn't a failure of journalism, so much as a=20
willful dereliction of duty to democracy."=20
Fitzgerald concludes: "The industry seems to have=20
convinced itself that it need not convince the=20
public about the rightness of its case, so long=20
as it can convince three out of five FCC=20
commissioners. That hasn't worked before, and I'm=20
betting it won't work this time around, either."
http://www.mediainfo.com/eandp/columns/newspaperbeat_display.jsp?vnu_con...
t_id=3D1003345647

DOJ: ENTERCOM CAN BUY 15 IF IT SELLS THREE
[SOURCE: MediaWeek, AUTHOR: Katy Bachman]
The Department of Justice has greenlighted=20
Entercom Communications=92 proposed acquisition of=20
15 CBS Radio stations in four markets for $262=20
million as long as Entercom sells three stations=20
in Rochester, N.Y. Entercom told the DOJ it would=20
sell CBS Radio=92s WRMM-FM, WZNE-FM and its own=20
WFKL-FM within three months. Prior to the=20
announced sale, Entercom owned four radio=20
stations in Rochester. With the CBS stations,=20
Entercom would own eight stations, accounting for=20
more than 57 percent of the radio advertising=20
revenue in the market, the subject of the DOJ=92s investigation.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
5554

TWO INVESTOR GROUPS OFFER BIDS FOR TRIBUNE COMPANY
[SOURCE: Associated Press]
Two investor groups have submitted preliminary,=20
nonbinding bids for Tribune Co. One group=20
consists of Fort Worth-based Texas Pacific Group=20
and Boston-based Thomas H. Lee Partners. Another=20
bid by Boston-based Bain Capital was also=20
submitted. Tribune=92s holdings include the Chicago=20
Tribune, the Los Angeles Times, the Chicago Cubs,=20
WGN-TV and several other media outlets.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003345553
* Tribune Quietly Opens Door to Sale of Individual Assets
The Tribune Company said privately yesterday that=20
it would open its auction to bids for its=20
individual assets, not just for the company as a=20
whole, according to people involved in the=20
auction. The shift in strategy makes local=20
ownership of papers like The Los Angeles Times,=20
Newsday and The Hartford Courant, among other=20
properties, more of a possibility than it had initially been.
http://www.nytimes.com/2006/11/02/business/media/02tribune.html?_r=3D1&o...
=3Dslogin
* Tribune draws unexciting bids for firm, seeks offers for units
http://www.latimes.com/business/printedition/la-fi-tribune2nov02,1,24816...
story?coll=3Dla-headlines-pe-business

MEDIA & ELECTIONS

ON ELECTION NIGHT, NETWORKS PLAN TO PROCEED WITH CAUTION
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
A look at how television news is preparing to=20
cover election results next week. The biggest=20
behind-the-scenes change in network coverage=20
involves what has been dubbed the Quarantine=20
Room. Determined to avoid a rerun of recent=20
years, when its exit polls leaked out by early=20
afternoon to the Drudge Report, Slate and other=20
Web sites, a media consortium is allowing two=20
people from each of the networks and the=20
Associated Press entree to a windowless room in=20
New York. All cellphones, laptops and BlackBerrys=20
will be confiscated. The designated staffers will=20
pore over the exit polls but will not be allowed=20
to communicate with their offices until 5 p.m.
http://www.washingtonpost.com/wp-dyn/content/article/2006/11/01/AR200611...
3434.html
(requires registration)

ELECTIONS RAKE IN BIG BUCKS FOR MEDIA OUTLETS
[SOURCE: USAToday, AUTHOR: David Lieberman]
There's a bonanza for media companies in this=20
year's unusually large array of hotly contested=20
election campaigns: Candidates and activists will=20
end up spending a record $3.1 billion getting=20
their messages out. The total is 14.5% higher=20
than 2004, even though that year included more=20
than $1 billion for the presidential race. But=20
this year political spending is up in 90% of the=20
USA's 210 media markets. Those seeing the biggest=20
percentage increases are Cedar Rapids, Davenport,=20
Ottumwa and Sioux City =97 Iowa communities with=20
contentious House races -- and Lansing, Mich.=20
About half of the total dollars go to broadcast=20
TV, followed by direct mail, which accounts for 23%.
http://www.usatoday.com/printedition/money/20061102/1b_polspend02.art.htm
* $2 Billion in Political Ad Spending for 2006 Beats Record, Projections
http://www.tvweek.com/news.cms?newsId=3D11001

QUICKLY

AIR AMERICA ON AD BLACKLIST?
[SOURCE: Fairness and Accuracy in Reporting]
An internal memo from ABC Radio Networks to its=20
affiliates reveals scores of powerful sponsors=20
have a standing order that their commercials=20
never be placed on syndicated Air America=20
programming that airs on ABC affiliates. The=20
list, totaling 90 advertisers, includes some of=20
largest and most well-known corporations=20
advertising in the U.S.: Wal-Mart, GE, Exxon=20
Mobil, Microsoft, Bank of America, Fed-Ex, Visa,=20
Allstate, McDonald's, Sony and Johnson & Johnson.=20
The U.S. Postal Service and the U.S. Navy are=20
also listed as advertisers who don't want their=20
commercials to air on Air America.
http://www.fair.org/index.php?page=3D2983%20

NCTA ADVISES FEDERAL GOVERNMENT THAT "INTEGRATION=20
BAN" COULD JEOPARDIZE THE 2009 US DIGITAL TV TRANSITION
[SOURCE: National Cable & Telecommunications Association press release]
National Cable & Telecommunications Association=20
(NCTA) President & CEO Kyle McSlarrow today urged=20
the U.S. Department of Commerce and Federal=20
Communication Commission (FCC) to support a cable=20
industry waiver of the =93Integration Ban,=94 a=20
costly and unnecessary rule that could endanger=20
the nation=92s long-anticipated transition from=20
analog to digital television. McSlarrow=20
highlighted the concerns in a letter addressed to=20
U.S. Department of Commerce Secretary Carlos=20
Gutierrez, Acting Assistant Secretary of Commerce=20
for Communications and Information John Kneuer,=20
FCC Chairman Kevin Martin and FCC Commissioners=20
Adelstein, Copps, McDowell and Tate. NCTA filed a=20
waiver with the FCC in August requesting deferral=20
of the Integration Ban until a new downloadable=20
security technology is deployed by cable=20
operators, or December 31, 2009 if downloadable=20
security is not deployed by then.
http://www.ncta.com/ContentView.aspx?hidenavlink=3Dtrue&type=3Dreltyp1&c...
entId=3D3636

ONLY FOUR PERCENT OF TV VIEWING RECORDED
[SOURCE: MediaPostPublications, AUTHOR: Jack Loechner]
About 12% of all US households now have a Digital=20
Video Recorder (DVR) and 60 percent of all=20
digital cable subscribers have used=20
Video-on-Demand (VOD). But according to new=20
consumer research from Leichtman Research Group,=20
less than 4% of all TV viewing in the US today is=20
of recorded DVR programs or on-Demand viewing --=20
up from about 2% a year ago. 62% of DVR=20
subscribers, and 64% of VOD users, say that they=20
usually watch recorded or on-Demand programs when=20
there is no regularly scheduled TV on that they=20
want to watch. On-Demand TV services, says LRG,=20
have made major strides in the past year, and=20
these trends will continue. By the end of 2010=20
over 50 million households will have a DVR and=20
about 42 million will have access to VOD from their cable provider.
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.showTo...
sArticle&art_type=3D8

STARTING SOON, COMPANIES WILL 'PAY' YOU AIRLINE MILES TO LOOK AT THEIR ADS
[SOURCE: USAToday, AUTHOR: Laura Petrecca]
On Wednesday, Web start-up e-Miles introduced a=20
venture that lets consumers earn miles on Delta,=20
Continental, Northwest and US Airways by watching=20
ads online and answering follow-up questions=20
about those messages. About 14 advertisers,=20
including 1-800-Flowers.com and Hilton Hotels,=20
have signed on to the service, which launches in January.
http://www.usatoday.com/printedition/money/20061102/ad_miles.art.htm
--------------------------------------------------------------
...and we're outta here. Have a great weekend. See ya Monday.
--------------------------------------------------------------
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.
--------------------------------------------------------------