November 2006

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

INTERNET/BROADBAND
Groups Urge Web Tracking Inquiry
Trash the national broadband plan
FCC to clarify rules for powerline broadband
Google gets antitrust nod for YouTube purchase
China: We don't censor the Internet. Really
U.N. blasts Cisco, others on China cooperation
Britain to regulate online gaming, opposes US ban

TELECOM
Cable and Phone Companies Compete, but Both Thrive
Groups Back Telecom Deal Without FCC Disclosures

BROADCASTING/SATELLITE
Wireless devices send mixed radio signals
The Not-So-Simple Life of Small-Market TV
Satellite Radio Is Asked to Pay More

JOURNALISM
Copley, To Protect 'San Diego Union-Trib,' Puts 7 Papers Up for Sale
Pentagon memo reveals launch of new PR war
Too many people are tuning out of the news
Citizen journalism=92s pied piper

INTERNET/BROADBAND

GROUPS URGE WEB TRACKING INQUIRY
[SOURCE: Wall Street Journal, AUTHOR: Christopher=20
Conkey christopher.conkey( at )wsj.com and Robert Guth]
The Center for Digital Democracy and the U.S.=20
Public Interest Research Group will today file a=20
complaint with the Federal Trade Commission=20
urging the agency to examine technologies used=20
by Microsoft and other online companies for=20
possible violations of consumer privacy. "The FTC=20
should long ago have sounded a very public=20
alarm," the complaint reads, "concerning the data=20
collection practices stemming from such fields as=20
Web analytics, online advertising networks,=20
behavioral targeting and [virtual reality media],=20
all of which threaten the privacy of the U.S.=20
public." While the filing highlighted Microsoft,=20
the software giant is a recent entry in an area=20
led by Google and Yahoo, which garner the=20
majority of their revenue from online=20
advertising. The vast amount of private=20
information collected by Internet companies was=20
spotlighted last year when the Justice Department=20
demanded that Google, Microsoft, Yahoo and Time=20
Warner's AOL unit supply information about=20
consumers' Web searches as part of a probe into=20
how to protect children from online pornography.=20
Google fought the department's action, arguing,=20
in part, that it would jeopardize its users'=20
private information. Ultimately a judge forced=20
Google to hand over a portion of the information.=20
Jeffrey Chester, the Center for Digital=20
Democracy's executive director, said he is=20
primarily concerned that consumers are=20
ill-informed about how closely they are monitored=20
when they surf the Web. Mr. Chester, whose=20
complaints to the FTC 10 years ago helped shape=20
the agency's view on how personally identifiable=20
information of children can be acquired online,=20
said he would like the FTC to push for=20
legislation that would lead to better disclosures=20
about data-sharing practices and force companies=20
to ask consumers if they are willing to allow=20
their Web activity to be shared with affiliates or marketers.
http://online.wsj.com/article/SB116235060894009808.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* See the filing at http://www.democraticmedia.org/PDFs/FTCadprivacy.pdf
* Group asks FTC to probe Web ads
http://www.usatoday.com/printedition/money/20061101/2b_privacy01.art.htm

TRASH THE NATIONAL BROADBAND PLAN
[SOURCE: InterGovWorld.com, AUTHOR: Johna Till Johnson, Network World]
[Commentary] Nationally mandated broadband is an=20
ineffective, topdown approach. Consider the=20
abysmal track record of the current federal=20
"national connectivity" initiative, the universal=20
service fund, which represents centralized=20
economic planning at its worst. There are much=20
better solutions to the problem of extending=20
broadband to the masses -- such as municipal=20
networks. More than 300 communities around the=20
country have, or are planning, wireless Internet=20
access, with roughly 100 live to date. These=20
services include free and low-cost access as well=20
as paid connectivity for those seeking=20
alternatives to the traditional telco or cable=20
services. All this without a lick of federal involvement.
http://www.intergovworld.com/article/99a98c8b0a01040801c7c7c30d83a2cb/pg...
tm

FCC TO CLARIFY RULES FOR POWERLINE BROADBAND
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
During its monthly meeting Friday, the Federal=20
Communications Commission is expected to clarify=20
any regulatory uncertainty that may surround=20
broadband over powerline technology. At the=20
meeting, the commission will vote on how to=20
classify the emerging technology, which allows=20
electric companies to provide high-speed Internet=20
access over the power grid. The commission will=20
likely classify BPL as an interstate information=20
service, rather than as a telecommunications=20
service, thus putting it on a level playing field=20
with DSL and cable modem services. Because=20
information services aren't regulated as heavily=20
as telecommunications services, classifying BPL=20
service as an information service is a positive=20
step. Last year, the FCC changed the=20
classification of DSL services to information=20
services after the U.S. Supreme Court upheld a=20
lower court's ruling that cable modem services=20
should be classified as information services.=20
Brett Kilbourne, counsel and director of=20
regulatory services for the United Power Line=20
Council, which represents the BPL industry, said=20
getting the classification from the FCC could=20
remove another hurdle for getting the services=20
widely deployed. "We just wanted to remove any=20
doubt that a utility company might have when=20
they're preparing to roll out a BPL service," he=20
said. "As the technology gets rolled out into the=20
mass market, it is important to get=20
clarification, especially for the investor-owned=20
power companies, which control about 90 percent=20
of the power in the U.S., but tend to be more conservative."
http://news.com.com/FCC+to+clarify+rules+for+powerline+broadband/2100-10...
3-6131274.html?tag=3Dnefd.top

GOOGLE GETS ANTITRUST NOT FOR YOUTUBE PURCHASE
[SOURCE: Reuters]
Google has received U.S. antitrust approval to=20
acquire video entertainment site YouTube, the=20
Federal Trade Commission said on Tuesday.
http://today.reuters.com/News/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-10-31T193446Z_01_WBT006138_RTRUKOC_0_US-YOUTUBE-ANTITRUST.xml&WTmod=
Loc=3DInternetNewsHome_C2_internetNews-1

CHINA: WE DON'T CENSOR THE INTERNET. REALLY
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
While many countries block off some Web sites,=20
China has long drawn heightened scrutiny because=20
of the breadth and sophistication of its Internet=20
censorship. Which is why it came as a surprise on=20
Tuesday when a Chinese government official=20
claimed at a United Nations summit here that no=20
Net censorship existed at all. The only problem:=20
Few cases of Net censorship are as carefully and=20
publicly documented as the Great Firewall of=20
China. A study by researchers at Harvard Law=20
School found 19,032 Web sites that were inaccessible inside China.
http://news.com.com/China+We+dont+censor+the+Internet.+Really/2100-1028_...
130970.html?tag=3Dhtml.alert
* China Web control stirs controversy at Internet forum
http://today.reuters.com/News/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-10-31T114645Z_01_L31424107_RTRUKOC_0_US-GREECE-INTERNET-CHINA.xml&=
WTmodLoc=3DTechNewsHome_C2_technologyNews-5

UN BLASTS CISCO, OTHERS ON CHINA COOPERATION
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
Delegates to a United Nations summit on Tuesday=20
assailed Google, Cisco Systems, Microsoft and=20
Yahoo for cooperating too closely with China,=20
suggesting that new global regulations of free=20
expression might be necessary. The three-hour=20
session on the second day of the summit returned=20
to long-standing questions that have drawn the=20
attention of human rights workers and the U.S.=20
Congress: Are companies responsible for what=20
customers do with their products? And is it wise=20
to have some international organization adopting=20
regulations governing Internet speech?
http://news.com.com/U.N.+blasts+Cisco%2C+others+on+China+cooperation/210...
028_3-6131010.html?tag=3Dhtml.alert
* Google, U.S. companies say products benefit Chinese, despite restrictions
http://hosted.ap.org/dynamic/stories/I/INTERNET_GOVERNANCE?SITE=3DPAREA&...
TION=3DHOME&TEMPLATE=3DDEFAULT

BRITAIN TO REGULATE ONLINE GAMBLING, OPPOSES US BAN
[SOURCE: Reuters, AUTHOR: Pete Harrison]
Britain unveiled plans on Tuesday to regulate=20
Internet gambling and said it opposed the U.S.=20
government's banning of the industry. However,=20
sports minister Richard Caborn told a news=20
conference that the government would not protect=20
UK online gaming executives from extradition=20
requests if they took Internet bets from=20
countries in which they were illegal. "People=20
have to abide by the laws of particular=20
countries," he said. "We will not acknowledge=20
people who operate illegally." Minister Caborn=20
was speaking at Ascot racecourse west of London=20
at a summit of 32 international delegates, which=20
aims to agree a framework of regulation to=20
protect consumers, prevent underage gambling and=20
gambling addiction. The United States declined to attend.
http://today.reuters.com/News/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-10-31T205702Z_01_L31274814_RTRUKOC_0_US-BRITAIN-GAMING.xml&WTmodLoc=
=3DInternetNewsHome_C2_internetNews-3
* Britain hosts officials from more than 30=20
nations to discuss ways to regulate Internet gaming
http://hosted.ap.org/dynamic/stories/O/ONLINE_GAMBLING?SITE=3DPAREA&SECT...
=3DHOME&TEMPLATE=3DDEFAULT

TELECOM

CABLE AND PHONE COMPANIES COMPETE, BUT BOTH THRIVE
[SOURCE: New York Times, AUTHOR: Ken Belson]
The four Bell companies -- AT&T, BellSouth, Qwest=20
Communications International and Verizon=20
Communications -- reported higher revenue and=20
profits, driven by mobile phone, broadband and=20
television products. Even Qwest, the weakest of=20
the four, said yesterday that it was on track to=20
report its first profitable year of operations,=20
excluding one-time gains. Things are equally=20
rosy, if not rosier, at Comcast, Time Warner=20
Cable and Cablevision, which have been signing up=20
hundreds of thousands of new customers for their=20
phone services. They have also enjoyed strong=20
demand for digital video players and other extra=20
services. No doubt, the Bell operating companies=20
have been losing traditional phone customers by=20
the fistful, and satellite companies and cable=20
companies have been taking customers from each=20
other. But as all of these companies sell a=20
greater variety of products, they can generate=20
more revenue even if their customer base shrinks.=20
=93Every type of communication service provider,=20
whether it=92s cable, satellite or phone companies,=20
are basically all in a big firefight,=94 said Arnie=20
Berman, the chief technology strategist at Cowen=20
& Company. =93But at the end of the day, you'll end=20
up with these companies having small numbers of=20
subscribers who will spend more per month."
http://www.nytimes.com/2006/11/01/business/media/01place.html
(requires registration)
* AT&T cable plan includes wireless
http://www.usatoday.com/printedition/money/20061101/3b_att01.art.htm

GROUPS BACK TELECOM DEAL WITHOUT FCC DISCLOSURES
[SOURCE: Technology Daily, AUTHOR: David Hatch]
Some nonprofits that back the AT&T, BellSouth=20
merger receive considerable funding from the=20
companies but do not disclose the ties in their=20
comments to the FCC. No disclosure is required,=20
but some observers think regulators should be=20
made fully aware of the connections. The League=20
of Latin American Citizens, which represents 46=20
million Latinos in the United States and Puerto=20
Rico, asked the FCC in an Oct. 24 letter to=20
green-light the transaction. But President Rosa=20
Rosales did not mention that the AT&T Foundation,=20
the company's philanthropic arm, gave $1.5=20
million to LULAC in June. Meanwhile, the National=20
Black Chamber of Commerce, which also urged the=20
FCC this week to approve the combination, lists=20
BellSouth and SBC Communications, now part of=20
AT&T, among its corporate partners. But that=20
connection is not mentioned in the Oct. 24 letter=20
that chamber President Harry Alford sent to the=20
agency. "The reason groups like this are highly=20
desirable as commenters is because they give off=20
the impression of being pro-consumer and=20
objective and nonpartisan," said Massie Ritsch,=20
spokesman for the Center for Responsive Politics.=20
While he believes that a principled organization=20
would not take a position it does not support, he=20
thinks the credibility of the groups would be=20
bolstered by revealing their affiliations.
http://www.njtelecomupdate.com/lenya/telco/live/tb-CNNO1162305455186.html

BROADCASTING/SATELLITE

WIRELESS DEVICES SEND MIXED RADIO SIGNALS
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera]
Wireless devices, called modulators, that people=20
use to listen to their portable satellite radio=20
receiver, iPod or other MP3 player through their=20
car radios, are sometimes so powerful that they=20
inadvertently send signals into nearby vehicles.=20
The interference has been a major problem for NPR=20
because many "plug-and-play" modulators come=20
preset to the 88.1 FM frequency, which is used by=20
36 NPR stations. Ken Stern, NPR's chief=20
executive, wrote to Federal Communications=20
Commission Chairman Kevin J. Martin on Oct. 12 to=20
ask for a technical review of the devices and for=20
a recall of any that transmit with too much=20
power. His recall request echoed one last summer=20
by the National Assn. of Broadcasters, which=20
complained that stations elsewhere on the dial=20
also experienced interference. Just how=20
widespread is the problem? Mike Starling, NPR's=20
chief technology officer, estimated that 3.4=20
million modulators were sold in 2005. "It looks=20
like it's such a huge problem we want to make=20
sure they pinpoint the most likely source =85 and=20
hopefully recall the ones that are still in the=20
marketplace," Starling said of the FCC. The FCC is reviewing the matter.
http://www.latimes.com/business/printedition/la-fi-spectrum1nov01,1,6851...
.story?coll=3Dla-headlines-pe-business
(requires registration)

THE NOT-SO-SIMPLE LIFE OF SMALL-MARKET TV
[SOURCE: tvnewsday]
A Q&A with Liz Burns, head of the small=20
family-owned TV group, Morgan Murphy Stations=20
which owns four network-affiliated stations: KXLY=20
Spokane, Wash. (ABC, DMA 77); WISC Madison, Wis.=20
(CBS, DMA 85); KVEW/KAPP=20
Yakima-Pasco-Richland-Kennewik, Wash. (ABC, DMA=20
125) and WKBT La Crosse-Eau Claire, Wis. (CBS,=20
DMA 127). She talks about the transition to=20
digital TV, media ownership rules, "virtual=20
duopolies," multicast must carry, indecency regulation and more.
http://www.tvnewsday.com/articles/2006/10/31/daily.3/

SATELLITE RADIO IS ASKED TO PAY MORE
[SOURCE: Washington Post, AUTHOR: Chris Kirkham]
A music industry group is asking XM Satellite=20
Holdings and Sirius Satellite Radio to pay at=20
least 10 percent of their revenues for the right=20
to play songs over their networks. Unlike=20
land-based radio stations, which pay royalties=20
only to songwriters and music publishers, federal=20
law requires satellite radio, digital cable and=20
Internet companies that broadcast music to pay=20
the artists and record companies. The two=20
subscription satellite radio companies have been=20
paying about 6.5 to 7 percent, analysts estimate,=20
although the figures are not publicly disclosed.=20
That agreement expires at the end of this year,=20
and the Copyright Royalty Board, an arm of the=20
Library of Congress, will determine the rates the=20
companies pay for the next six years.
http://www.washingtonpost.com/wp-dyn/content/article/2006/10/31/AR200610...
1283.html
(requires registration)

JOURNALISM

COPLEY, TO PROTECT 'SAN DIEGO UNION-TRIB,' PUTS 7 PAPERS UP FOR SALE
[SOURCE: Associated Press]
The Copley Press Inc., parent company of the San=20
Diego Union-Tribune, announced Tuesday that it is=20
exploring possible sales, mergers or other=20
strategic alternatives for its seven newspapers=20
in Ohio and Illinois. Copley's Illinois=20
newspapers are published in Springfield, Lincoln,=20
Peoria and Galesburg. In Ohio, the company's=20
newspapers are in Canton, Massillon and Dover/New=20
Philadelphia. Copley is a privately held company=20
based in La Jolla, where it publishes the=20
Union-Tribune, the 21st largest daily newspaper, which it will retain.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003319477

PENTAGON MEMO REVEALS LAUNCH OF NEW PR WAR
[SOURCE: Associated Press, AUTHOR: Lolita Baldor]
The Pentagon is buttressing its public relations=20
staff and starting an operation akin to a=20
political campaign war room as Defense Secretary=20
Donald H. Rumsfeld faces intensifying criticism=20
over the Iraq war. Dorrance Smith, assistant=20
secretary of defense for public affairs, said new=20
teams of people will "develop messages" for the=20
24-hour news cycle and "correct the record." The=20
plan would focus more resources on so-called new=20
media, such as the Internet and Weblogs. It would=20
also include new workers to book civilian and=20
military guests on television and radio shows.
http://www.chron.com/disp/story.mpl/front/4297464.html

TOO MANY PEOPLE ARE TUNING OUT OF THE NEWS
[SOURCE: Financial Times, AUTHOR: Richard Lambert]
[Commentary] The traditional news media in the US=20
are in a state of turmoil. Some of the biggest=20
newspaper chains =96 first Knight Ridder and now=20
Tribune Company =96 have put themselves up for=20
sale. Network news broadcasters are slashing=20
their budgets, the latest and most savage example=20
being the cuts heralded by NBC Universal two=20
weeks ago. No wonder there is a siege mentality=20
in newsrooms around the land. Investors seem to=20
be concluding that this is an industry with no=20
future. As is often the case, though, the mood=20
swing has gone too far -- these are still very=20
profitable businesses. The US newspaper industry=20
boasts daily sales of 55m copies, profit margins=20
well into double digits and strong cash flows.=20
There are indications that the long-term decline=20
in readership may have stabilized in recent years=20
and most people use the Internet as a supplement,=20
rather than a substitute, for newsprint. So the=20
big question is not whether the traditional news=20
media will continue to exist in the foreseeable=20
future. Most of them clearly will. But what kind=20
of service will they provide to the public as=20
they adapt their business model -- and with it=20
their editorial content -- to a much more=20
competitive environment? In today=92s competitive=20
environment, what commercial interest would a=20
news publisher have in seeking to interest a=20
poorly educated and uninterested person in what=20
is happening in the world? And will market=20
forces, left to themselves, be enough to support=20
that vital component of democracy -- an informed citizenry?
http://www.ft.com/cms/s/fb8dcfce-6905-11db-b4c2-0000779e2340.html
(requires subscription)

CITIZEN JOURNALISM'S PIED PIPER
[SOURCE: CommonWealth Magazine, AUTHOR: Dan Kennedy]
From Berkeley to Harvard, Dan Gillmor tries to=20
bring the new media into being, without bringing down the old.
http://www.massinc.org/index.php?id=3D591&pub_id=3D2001&bypass=3D1
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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.
--------------------------------------------------------------