November 2006

GAO Chief Sends Long Wish List to the New Congress

GAO CHIEF SENDS LONG WISH LIST TO THE NEW CONGRESS
[SOURCE: Washington Post, AUTHOR: Stephen Barr]

Shrink Globally, Slash Locally?

AT THE INQUIRER, SHRINK GLOBALLY, SLASH LOCALLY?
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]

Cell, TV towers pose risk for birds

CELL, TV TOWERS POSE RISK FOR BIRDS
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera]

CDT Releases "Lame Duck" Internet Watch List

CDT RELEASES "LAM DUCK" INTERNET WATCH LIST
[SOURCE: Center for Democracy and Technology]

Murdoch Makes Gains in Italian Media Market

MURDOCH MAKES GAINS IN ITALIAN MEDIA MARKET
[SOURCE: New York Times, AUTHOR: Peter Kieffer]

Benton's Communications-related Headlines For Monday November 27, 2006

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

NEWS FROM THE FCC
Economic Studies to Be Conducted As Part of Media Ownership Rules Review
FCC Picks Ownership Studies; Copps Takes Aim
Closed Captioning Rules
FCC Seeks Comment Regarding Possible Revision or Elimination of Rules
Heavy incoming on AT&T/BellSouth merger
Rural Health Care Website Launched

BROADCASTING
Two Years And Counting
A New Leader at a Voice Long Familiar to Listeners
A Lone Sponsor for a Longer =91Nightly News=92

INDECENCY REGULATION
Indecency Court Challenges Begin
Peacock Pecks At Indecency Reg Underpinnings
CBS Says FCC Stacks Indecency Enforcement Deck
Hollywood Hammers FCC
ABC Drops Profanity Challenge

INTERNET/BROADBAND
Network Neutrality could Hobble Initiative
The Air Is Free, and Sometimes So Are the Phone Calls That Borrow It
Web Tool Said to Offer Way Past the Government Censor
In a Different Race, TV Web Sites Win

QUICKLY -- CDT Releases "Lame Duck" Internet=20
Watch List; GAO Chief Sends Long Wish List to the=20
New Congress; Shrink Globally, Slash Locally?;=20
Cell, TV towers pose risk for birds; Murdoch=20
Makes Gains in Italian Media Market

NEWS FROM THE FCC

ECONOMIC STUDIES TO BE CONDUCTED AS PART OF MEDIA OWNERSHIP RULES REVIEW
[SOURCE: Federal Communications Commission]
The Commission will be conducting 10 economic=20
studies as part of its review of its media=20
ownership rules. Each of these studies will be peer reviewed.
Study 1: How People Get News and Information:=20
This study will survey consumers about their use=20
of media. It will identify consumers' primary,=20
secondary, and tertiary sources of news and=20
information; whether these sources change=20
depending upon the time of day or day of the=20
week; and the frequency with which consumers=20
access these sources. Author: Nielsen
Study 2: Ownership Structure and Robustness of=20
Media: This study will describe the ownership=20
structure and robustness of current media,=20
including broadcast television, cable television,=20
satellite television, broadcast radio, satellite=20
radio, newspapers, and the Internet. The=20
information gathered concerning the current media=20
marketplace will be compared to the state of the=20
media marketplace when the Commission last=20
reviewed its ownership rules in the years=20
2002-2003. Authors: C. Anthony Bush, Kiran=20
Duwadi, Scott Roberts, and Andrew Wise, FCC=20=09
Study 3: Effect of Ownership Structure and=20
Robustness on the Quantity and Quality of TV=20
Programming: This study will analyze the effect=20
of ownership structure and robustness (as=20
described in Study 2) on various measures of the=20
quantity and the quality of different types of TV=20
programming, including local news and public=20
affairs, minority programming, children's=20
programming, family programming, religious=20
programming, and violent and indecent content.=20
Author: Gregory Crawford, University of Arizona
Study 4: News Operations: This study will collect=20
data on the size and scope of the news operations=20
of radio and television stations and=20
newspapers. It will also analyze the=20
relationship between the nature of the news=20
operations and market characteristics, including=20
ownership structure and robustness.=20
Authors: Kenneth Lynch, Daniel Shiman, and Craig Stroup, FCC
Study 5: Station Ownership and Programming in=20
Radio: This study will use station-level data to=20
examine how ownership structure affects the=20
programming and audience of radio stations. Author: Tasneem Chipty, CRAI
Study 6: News Coverage of Cross-Owned Newspapers=20
and Television Stations: This study will examine=20
the effect of newspaper cross-ownership on=20
television news coverage using matched pairs of=20
cross-owned and non-cross-owned television=20
stations. Author: Jeffrey Milyo, University of Missouri
Study 7 & 8: Minority Ownership: These two=20
studies will examine levels of minority ownership=20
of media companies and barriers to=20
entry. Authors: Arie Bersteanu and Paul=20
Ellickson, Duke University/Authors: Allen=20
Hammond, Santa Clara University and Barbara=20
O'Connor, California State University, Sacramento
Study 9: Vertical Integration: This study will=20
examine levels of vertical integration in the=20
media industry. Author: Austan Goolsbee, University of Chicago
Study 10: Radio Industry Review: Trends in=20
Ownership, Format, and Finance: This study will=20
update a study done during our last review of the=20
media ownership rules. That study was titled=20
"Radio Industry Review 2002: Trends in Ownership,=20
Format, and Finance." Author: George Williams, FCC
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-268606A1.doc

FCC PICKS OWNERSHIP STUDIES; COPPS TAKES AIM
[SOURCE: Broadcasting&Cable 11/22, AUTHOR: John Eggerton]
The FCC has picked the 10 economic studies it=20
will conduct as part of its review of media=20
ownership rules, though the process didn't sit=20
well with Commissioner Michael Copps. Each study=20
will get peer review before being submitted. Peer=20
review or no, Commissioner Copps saw the same=20
potential problems as last time, saying the=20
studies raise more questions than answers: "How=20
were the contractors selected for the outside=20
projects? How much money is being spent on each=20
project -- and on the projects=20
collectively? What kind of peer review process=20
is envisioned? Why are the topics so generalized=20
rather than being targeted to more specific=20
questions? When the majority of the previous FCC=20
voted to loosen the ownership rules in 2003, a=20
federal court took them to task for inadequate=20
justification of their handiwork. My hope has=20
been that the Commission would not head off on=20
the same tangent again -- especially at a time=20
when many people already doubt the credibility of the research we do."
http://www.broadcastingcable.com/article/CA6394503.html?display=3DBreaki...
News
* Commissioner Copps
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-268611A1.doc
* Commissioner Adelstein: "Today's unilateral=20
release of this Public Notice on the eve of the=20
Thanksgiving holiday ultimately undermines the=20
public's confidence by raising more questions=20
than it answers. The legitimacy of the studies=20
is directly correlated to the transparency of the=20
process undertaken to develop the studies and=20
select the authors. The descriptions of the=20
studies are scant, lacking any sense of the=20
Commission's expectations for scope, proposed=20
methodology and data sources. In certain=20
instances, the truncated period of time to=20
complete the studies is an ingredient for a study=20
that doesn't engender public faith and=20
confidence. The release of this deficient Public=20
Notice is unfortunate given the importance of=20
these studies in evaluating the impact of media=20
ownership on the American public."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-268616A1.doc
* FCC Ownership Review Sparks Controversy
http://www.tvweek.com/news.cms?newsId=3D11114
(requires free registration)
* More turmoil at FCC over media ownership studies
http://www.lasarletter.net/drupal/node/239

FCC CLOSED CAPTIONING RULES
[SOURCE: Federal Communications Commission 11/21]
On November 7, 2006, the Consumer and=20
Governmental Affairs Bureau (Bureau) placed on=20
public notice 494 petitions requesting exemption=20
from the closed captioning requirements for their=20
programs. Each petitioner claims that compliance=20
with the closed captioning requirements would=20
impose an undue burden. Comments on and=20
oppositions to petitions listed in the November 7=20
Public Notice now are due no later than March 27,=20
2007. The FCC also established a 40-day period=20
for the filing of replies to these comments and oppositions.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-2329A1.doc
* Closed captioning fight at FCC continues
[SOURCE: Lasar's Letter on the FCC 11/26, AUTHOR: Matthew Lasar]
http://www.lasarletter.net/drupal/node/244

FCC SEEKS COMMENT REGARDING POSSIBLE REVISION OR ELIMINATION OF RULES
[SOURCE: Federal Communications Commission]
The FCC announced a plan for the review of rules=20
adopted by the agency in calendar year 1996 which=20
have, or might have, a significant economic=20
impact on a substantial number of small entities.=20
The purpose of the review is to determine whether=20
such rules should be continued without change, or=20
should be amended or rescinded, consistent with=20
the stated objectives to minimize any significant=20
economic impact of such rules upon a substantial=20
number of small entities. The FCC will consider=20
the following factors: a) the continued need for=20
the rule; b) the nature of complaints or comments=20
received concerning the rule from the public; c)=20
the complexity of the rule; d) the extent to=20
which the rule overlaps, duplicates, or conflicts=20
with other Federal rules and, to the extent=20
feasible, with State and local governmental=20
rules; and e) the length of time since the rule=20
has been evaluated or the degree to which=20
technology, economic conditions, or other factors=20
have changed in the area affected by the rule.=20
The Commission is inviting public comment on these rules.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-1863A1.doc

HEAVY INCOMING ON AT&T/BELLSOUTH MERGER
[SOURCE: Lasar's Letter on the FCC 11/24, AUTHOR: Matthew Lasar]
The Federal Communications Commission may be=20
deadlocked 2-2 on AT&T's proposed buyout of=20
BellSouth, but nobody is taking any chances.=20
Interested networking companies, non-profits,=20
trade associations, and city governments kept the=20
ears of the agency's Commissioners and staff busy=20
on the matter close to the eve of Thanksgiving.
http://www.lasarletter.net/drupal/node/242

RURAL HEALTH CARE PILOT PROGRAM WEBSITE
[SOURCE: Federal Communications Commission]
The FCC has launched a website=20
(http://www.fcc.gov/cgb/rural/rhcp.html) that=20
provides a consolidated source of information=20
about the FCC's recently announced Rural Health=20
Care Pilot Program. The website includes the=20
Order adopting the pilot program and the=20
accompanying news release, a PDF slide=20
presentation giving an overview of the program,=20
and frequently asked questions (FAQs). The FCC's=20
pilot program is an enhanced funding initiative=20
intended to help public and non-profit health=20
care providers construct state- and region-wide=20
broadband networks to provide telehealth and=20
telemedicine services throughout the nation. The=20
program will fund up to 85% of the costs of=20
constructing those networks, as well as the costs=20
of advanced telecommunications and information=20
services that will ride over these networks. If=20
selected, up to 85% of the cost of connecting to=20
Internet2, a dedicated nationwide backbone, may=20
also be funded by the pilot program.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-268591A1.doc

BROADCASTING

TWO YEARS AND COUNTING
[SOURCE: Broadcasting&Cable, AUTHOR: Glen Dickson and John Eggerton]
The eventual success of high-definition=20
television (HDTV) rides on the country's=20
conversion to digital TV (DTV). Last December,=20
when Congress voted to set Feb. 17, 2009, as the=20
hard date for turning off analog TV broadcasts=20
and completing the switch to DTV in the U.S., it=20
set a finish line for the long slog that has been=20
the digital transition. But local broadcasters,=20
network executives and Beltway insiders all say=20
the home stretch of this marathon will be a steep=20
climb. Most large broadcasting groups are=20
confident that they will make the=20
analog-to-digital deadline, but some smaller=20
stations remain a question mark. Regardless of=20
size and capacity, it'll be a fight for=20
everybody, with every legal or commission=20
decision or deadline facing a host of technical=20
roadblocks. And if too many stations are not=20
ready to pull the plug in February 2009, look for=20
legislators to move the finish line rather than=20
face the wrath of constituents, particularly if=20
consumer-friendly Democrats are still in charge.=20
With varying levels of attention given to legal=20
and logistic issues in this uphill battle, there=20
is a danger in forgetting arguably the most=20
important group needing conversion to HD: the=20
American public. Consumer education about the DTV=20
transition hardly appears to be a thumbtack on=20
the national map. A lot of Americans still don't=20
realize they're going to need a new TV set or=20
converter come February 2009. Congress has=20
allocated a paltry $5 million to the cause, but=20
HDTV-policy maker Dick Wiley expects the industry=20
to step up. He predicts the National Association=20
of Broadcasters will name a VP for digital=20
transition and that NAB President David Rehr will =93run this like a campai=
gn.=94
http://www.broadcastingcable.com/article/CA6394584.html?display=3DFeature
* Wiley Defined Hi-Def
A Q&A with former FCC Chairman Dick Wiley, a=20
driving force behind the transition to digital television.
http://www.broadcastingcable.com/article/CA6394598.html?display=3DNews

A NEW LEADER AT A VOICE LONG FAMILIAR TO LISTENERS
[SOURCE: New York Times, AUTHOR: Doreen Carvajal]
For generations of listeners, the Voice of=20
America and its crackling international shortwave=20
broadcasts are memories of huddling around=20
radios, listening to accounts of the Allied=20
landing on Normandy or the toppling of the Berlin=20
Wall. Today, the network=92s headlines are=20
delivered on mobile phone news alerts, satellite=20
television programs or Internet Webcasts. But the=20
Voice of America, the 64-year-old international=20
broadcasting service of the United States=20
government, is still searching for relevance in=20
an increasingly fierce market as rivals from=20
commercial networks and public broadcasters=20
compete for listeners. Last month, the service =97=20
which reaches about 115 million people weekly in=20
44 languages =97 received fresh leadership with the=20
appointment of Danforth W. Austin as director,=20
succeeding David S. Jackson, a former Time=20
magazine foreign correspondent. Austin, 60, is,=20
among other things, a former chief executive of=20
Ottaway Newspapers, a community newspaper=20
subsidiary of Dow Jones. He was named to the post=20
by the Broadcasting Board of Governors, a=20
politically appointed group led by Kenneth Y.=20
Tomlinson, a former chairman of the Corporation=20
for Public Broadcasting. Austin, who has worked=20
outside the United States on short-term reporting=20
assignments but essentially served in corporate=20
posts, said the notion of taking over the Voice=20
of America was =93not on my radar screen.=94 His=20
plans for the network at this early stage are=20
largely vague and general, beyond trying to make=20
sure that it is responsive to its audiences.
http://www.nytimes.com/2006/11/27/business/media/27voice.html
(requires registration)

A LONE SPONSOR FOR A LONGER 'NIGHTLY NEWS'
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
A week from tonight, viewers of the =93NBC Nightly=20
News With Brian Williams=94 will be able to watch=20
more news =97 and fewer commercials =97 as a result=20
of a sponsorship deal with the Philips=20
Electronics North America Corporation. The=20
sponsorship is part of a weeklong, $2 million=20
agreement between Philips and the NBC Universal=20
division of General Electric that includes=20
=93Today,=94 two cable shows and a feature on NBC=92s=20
digital weather channel. The deal is the latest=20
element in a campaign that seeks to drive home=20
the Philips advertising theme =93sense and=20
simplicity.=94 =93By taking the interruptions out,=94=20
said Eric M. Plaskonos, director for brand=20
communications at Philips, =93it=92s our=20
demonstration of the gift of simplicity.=94 Philips=20
will be the only national advertiser during the=20
=93Nightly News=94 broadcast, Mr. Plaskonos said,=20
running three commercials that will total one=20
minute and 15 seconds. A typical =93Nightly News=94=20
carries 14 national commercials totaling seven=20
minutes. NBC News plans to add one or more longer=20
segments to the newscast to take advantage of the reduced commercial load.
http://www.nytimes.com/2006/11/27/business/media/27nbc.html
(requires registration)

INDECENCY REGULATION

INDECENCY COURT CHALLENGES BEGIN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The broadcast networks, with the exception of=20
ABC, are taking aim at the Federal Communications=20
Commission's stepped-up=20
indecency/profanity-enforcement regime, beginning=20
the court battle that could wind up with the=20
Supreme Court getting another crack at the=20
Commission's code. The ammunition was a series of=20
opening briefs in networks' court challenges to=20
four profanity rulings the FCC issued last March,=20
though it has since rescinded those against CBS=20
and ABC while upholding two against Fox's=20
Billboard Music Awards. For its part, the FCC=20
continued to paint networks and programmers as=20
hedonists who curse like sailors. "By continuing=20
to argue that it is okay to say the f-word and=20
the s-word on television whenever it wants," the=20
FCC said in response to the flood of court=20
filings, "Hollywood is demonstrating once again=20
how out of touch it is with the American people.=20
We believe there should be some limits on what=20
can be shown on television when children are likely to be watching."
http://www.broadcastingcable.com/article/CA6394596.html?display=3DNews

PEACOCK PECKS AT INDECENCY REG UNDERPINNINGS
[SOURCE: Broadcasting&Cable 11/22, AUTHOR: John Eggerton]
NBC has taken aim at the FCC's indecency=20
enforcement regime and powers, arguing that the=20
combination of the V-chip and ratings system is a=20
more narrowly tailored means of giving parents=20
control over content than the FCC's current=20
daytime ban. When NBC broke with its years-long=20
policy of not using the TV ratings descriptors,=20
it was viewed as a major step toward a challenge=20
of FCC indecency enforcement regulation, with the=20
networks able to make the argument that since=20
they were all using the ratings system and all=20
new TV's had to have a v-chip, the FCC's policy=20
was too broad. NBC also argues that FCC exceeded=20
its authority by extending its profanity rules to=20
cover fleeting expletives, or even non-fleeting=20
ones that do not have a religious component --=20
i.e. blasphemy. That was one of several arguments=20
the network made in an extensive brief to the=20
Second Circuit Court of Appeals in New York. That=20
court is hearing a challenge by the=20
networks--except ABC--to the FCC's four profanity=20
rulings of last March. NBC took a broad swipe at=20
the underpinnings of the FCC's entire indecency=20
enforcement regime while it was at it, saying=20
that the Pacifica decision's foundation in the=20
"special" nature of broadcasting had been eroded=20
and that it is "far more restrictive than=20
necessary" to protect children from content their=20
parents don't want them to see or hear.
http://www.broadcastingcable.com/article/CA6394564.html?display=3DBreaki...
News

CBS SAYS FCC STACKS INDECENCY ENFORCEMENT DECK
[SOURCE: Broadcasting&Cable 11/22, AUTHOR: John Eggerton]
CBS has told a federal appeals court that the=20
FCC's crackdown on broadcast profanity is=20
unjustified, unconstitutional, arbitrary and=20
capricious, saying the FCC should return to a=20
more First Amendment-friendly approach to=20
indecency enforcement. The Commission initially=20
ruled that CBS' The Early Show's broadcast of the=20
word "bullshitter" violated FCC restrictions on=20
indecency and profanity, part of a package of=20
four profanity rulings. CBS asserts that the show=20
was a news program, which has a higher threshold=20
for indecency and profanity findings. CBS also=20
argues that the FCC has for 30 years taken a=20
cautious approach to indecency regulation to=20
"avoid conflict with the First Amendment." Now,=20
it says, it has abandoned its long-established=20
policy of not cracking down on "fleeting,=20
isolated or unintended expletives" that it argues=20
was the "cornerstone" of that restrained policy.=20
"The FCC's adoption of what amounts to a=20
zero-tolerance approach is a direct repudiation=20
of governing constitutional principles." CBS=20
argues that the FCC's approach "ignores the=20
significant technological and legal developments=20
since the Supreme Court last considered the issue=20
in 1978." It also argues that the commission has=20
no evidence that the broadcasts it found indecent=20
and profane were patently offensive when measured=20
against a national community standard, its effort=20
to unilaterally declare that to be the case notwithstanding.
http://www.broadcastingcable.com/article/CA6394506.html?display=3DBreaki...
News

HOLLYWOOD HAMMERS FCC
[SOURCE: Broadcasting&Cable 11/22, AUTHOR: John Eggerton]
The Center for Creative Voices in Media, which=20
represents a host of TV programmers including=20
writers, producers and actors, told the court=20
that the FCC has created an "unworkable,=20
inconsistent, and confusing indecency regime,=20
with vague and arbitrary standards." The Center=20
called the FCC's indecency complaint process=20
"wrought with abuse," and that its new approach=20
to fleeting profanities was done without a=20
reasoned explanation. It said the result is that=20
TV content creators have been stifled with=20
economic as well as creative consequences.=20
Adapting one of the group's arguments against=20
media consolidation, the center argued that the,=20
"general public also faces the loss of its=20
expectation to receive diverse expression."
http://www.broadcastingcable.com/article/CA6394369.html?display=3DBreaki...
News

ABC DROPS PROFANITY CHALLENGE
[SOURCE: Broadcasting&Cable 11/21, AUTHOR: John Eggerton]
ABC has pulled out of the court challenge to four=20
FCC profanity decisions pending the finality of=20
the FCC's decision to rescind its indecency=20
finding against ABC's NYPD Blue. In a letter to=20
the U.S. Court of Appeals for the Second Circuit=20
Tuesday, ABC said that since the FCC's Nov. 6=20
order on remand from the court vacated the=20
portions of its decision concerning NYPD Blue, it=20
would not be filing a brief in the case or participate in oral argument.
http://www.broadcastingcable.com/article/CA6394045?display=3DBreaking+News

INTERNET/BROADBAND

NETWORK NEUTRALITY COULD HOBBLE INITIATIVE
[SOURCE: San Jose Mercury News, AUTHOR: Brent=20
Wilkes, League of United Latin American Citizens]
[Commentary] Rather than expanding Internet=20
opportunities, network neutrality could sharply=20
curtail them. They would slow down growth of new=20
competitive broadband services by outlawing the=20
ability of an entrepreneur to raise needed=20
capital for a new wireless broadband network by=20
partnering with an Internet content provider.=20
Experts predict that Internet data traffic will=20
increase 500-fold by 2020 as demand increases for=20
multimedia applications. Bernstein Research and=20
other investment advisers estimate that deploying=20
ultra-high-speed networks capable of handling=20
this traffic will require an investment of up to=20
$400 billion. But investors won't invest,=20
innovators won't partner and new services won't=20
emerge, if the government mandates that incumbent=20
Internet bigwigs be guaranteed the same business=20
arrangements, at no cost to them, regardless of=20
the inherent value of the service they seek to=20
bring to the market. Regulatory restraint has=20
fostered the growth of today's Internet, and it=20
should govern in the development of tomorrow's=20
Internet as well. We don't need sweeping new=20
government regulation when there's not a=20
scintilla of evidence that market forces won't=20
keep the Internet as open and accessible to=20
diverse viewpoints as it has always been. Policy=20
makers need to be especially careful not to pass=20
new regulations at the behest of powerful=20
corporations that may have unintended=20
consequences for the American consumer and choke=20
the entrepreneurial energy so fundamental to the=20
growth and vibrancy of the Internet.
http://www.mercurynews.com/mld/mercurynews/news/opinion/16106404.htm

THE AIR IS FREE, AND SOMETIMES SO ARE THE PHONE CALLS THAT BORROW IT
[SOURCE: New York Times, AUTHOR: Matt Richtel]
Several new devices allow users to make free or=20
low-cost phone calls over the Internet. They are=20
designed to take advantage of the hundreds of=20
thousands of wireless access points deployed in=20
cafes, parks, businesses and, most important,=20
homes. The technology=92s advocates say that as=20
long as people are paying for high-speed Wi-Fi=20
access in their homes, they should be able to use=20
it as a conduit for inexpensive calls and an=20
alternative to traditional phone service. But, in=20
a twist that raises some tricky ethical and legal=20
questions, the phones can also be used on the go,=20
piggybacking on whatever access points happen to be open and available.
http://www.nytimes.com/2006/11/27/technology/27wifi.html
(requires registration)

WEB TOOL SAID TO OFFER WAY PAST GOVERNMENT CENSOR
[SOURCE: New York Times, AUTHOR: Christopher Mason]
A look at what some say is the most advanced tool=20
yet in allowing Internet users to circumvent=20
government censorship of the Web. The program,=20
called psiphon (pronounced =93SY-fon=94), will be=20
released on Dec. 1 in response to growing=20
Internet censorship that is pushing citizens in=20
restrictive countries to pursue more elaborate=20
and sophisticated programs to gain access to=20
Western news sites, blogs and other censored=20
material. Psiphon is downloaded by a person in an=20
uncensored country (psiphon.civisec.org), turning=20
that person=92s computer into an access point.=20
Someone in a restricted-access country can then=20
log into that computer through an encrypted=20
connection and using it as a proxy, gain access=20
to censored sites. The program=92s designers say=20
there is no evidence on the user=92s computer of=20
having viewed censored material once they erase=20
their Internet history after each use. The=20
software is part of a broader effort to live up=20
to the initial hopes human rights activists had=20
that the Internet would provide unprecedented=20
freedom of expression for those living in restrictive countries.
http://www.nytimes.com/2006/11/27/technology/27censorship.html
(requires registration)

IN A DIFFERENT RACE, TV WEB SITES WIN
[SOURCE: New York Times, AUTHOR: Katharine Seelye]
There were winners on Election Day other than the=20
Democrats. In the race for best media coverage,=20
the winners were television Web sites, according=20
to a report by the Project for Excellence in=20
Journalism, which followed 32 different outlets,=20
including newspaper Web sites, television=20
programs, blogs, magazine Web sites and=20
aggregators like Google and Yahoo. The Web sites=20
of both network and cable television delivered=20
results quickly, allowing users to dig as deeply=20
as they wanted into exit poll information and=20
interactive maps with reports on hundreds of=20
races. The posting of once-privileged exit polls,=20
which the networks pay for, and the linking with=20
state boards of election for county-by-county=20
results are changing the election-night equation=20
between media organizations and consumers, the=20
report said. =93The exit poll may be more important=20
today, not less, since users are probing that=20
information directly, functioning as their own=20
editors going state by state, looking for=20
demographic information, late deciders and more,=94=20
the report said. The report noted that television=20
Web sites did well in part because the exit poll=20
data was reliable. If that data were misleading,=20
however, as it has been in recent years, all news=20
organizations would be vulnerable.
http://www.nytimes.com/2006/11/27/business/media/27election.html
(requires registration)

QUICKLY

CDT RELEASES "LAM DUCK" INTERNET WATCH LIST
[SOURCE: Center for Democracy and Technology]
Last week, CDT issued a special lame duck edition=20
of its "Internet Watch List," which identifies=20
seven legislative efforts that threaten the=20
Internet and fundamental civil liberties in the=20
waning days of the 109th Congress. Unfortunately,=20
bills that would greatly expand the authority to=20
wiretap innocent Americans, stifle socially=20
valuable speech online, and limit access to=20
worthwhile social networking tools remain very=20
much in play despite the short legislative=20
calendar. CDT is urging lawmakers, journalists=20
and activists to remain vigilant to ensure that=20
none of these misguided measures become law.
Internet Watch List - Lame Duck Edition:=20
http://www.cdt.org/legislation/2006watchlameduck.php
Press Release: http://www.cdt.org/press/20061120press-lameduck.php

GAO CHIEF SENDS LONG WISH LIST TO THE NEW CONGRESS
[SOURCE: Washington Post, AUTHOR: Stephen Barr]
If the next Congress follows through on=20
Democratic leadership promises to conduct=20
aggressive oversight of the government, a to-do=20
list will be waiting, courtesy of Comptroller=20
General David M. Walker, the head of the=20
Government Accountability Office. For the first=20
time, Walker has sent congressional leaders a=20
letter pointing to areas where he thinks=20
oversight is needed. His list, drawn from years=20
of research by the watchdog agency, is intended=20
to give Congress "a jump-start on your planning,"=20
he said. "We cannot afford to continue business=20
as usual in Washington, given our current deficit=20
and growing long-term fiscal challenges," Walker=20
said in the letter, sent this month. In addition,=20
Walker wrote, most of the government's policies=20
and programs "are based on conditions that=20
existed decades ago," suggesting that it is time=20
for "a fundamental review, reprioritization and=20
re-engineering of the base of government." Walker=20
lists 36 topics for investigation and oversight=20
hearings, and many of them involve daunting=20
political issues, such as Social Security and=20
Medicare, immigration policy, and the costs and=20
benefits of environmental and energy policies.=20
Some of his recommendations touch on how federal=20
employees conduct the government's business and deliver services to the pub=
lic.
http://www.washingtonpost.com/wp-dyn/content/article/2006/11/26/AR200611...
0785.html
(requires registration)
* Suggested Areas for Oversight for the 110th Congress. GAO-07-235R
http://www.gao.gov/cgi-bin/getrpt?GAO-07-235R

AT THE INQUIRER, SHRINK GLOBALLY, SLASH LOCALLY?
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
Brian Tierney, a onetime critic of the=20
Philadelphia Inquirer who wound up buying the=20
paper, is determined to take his new property in=20
a different direction. "We don't need a Jerusalem=20
bureau," he says. "What we need are more people=20
in the South Jersey bureau." But six months after=20
this advertising and public relations executive=20
gained control of a once-proud newspaper that=20
routinely ranked among the country's top 10, he=20
is considering layoffs of as much as 30 percent=20
of an already reduced newsroom staff. That would=20
mean even fewer journalists covering those New=20
Jersey suburbs and just about everywhere else,=20
deepening the sense of gloom at a paper that=20
racked up 18 Pulitzer Prizes between 1975 and 1997.
http://www.washingtonpost.com/wp-dyn/content/article/2006/11/26/AR200611...
1018.html
(requires registration)

CELL, TV TOWERS POSE RISK FOR BIRDS
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera]
Is the pursuit of fewer dropped calls leading to=20
more dropping birds? The lights atop=20
communications towers that warn pilots to stay=20
away can have a come-hither effect on birds --=20
killing millions of migrating warblers, thrushes=20
and other species every year. During bad weather,=20
birds can mistake tower lights for the stars they=20
use to navigate. They will circle a tower as if=20
in a trance, often until they crash into the=20
structure, its guy wires or other birds.=20
Sometimes disoriented birds simply plummet to the=20
ground from exhaustion. The fatally hypnotic=20
effect of warning beacons on birds is not a new=20
phenomenon; early lighthouses attracted swarms of=20
birds. But as towers proliferate to accommodate=20
an ever-growing number of mobile phones and other=20
devices, conservationists say bird deaths are=20
climbing. "We're talking about estimates of=20
millions of birds dying because of these towers,"=20
said Paul Schmidt, assistant director for the=20
migratory bird program at the U.S. Fish and=20
Wildlife Service, which has pegged the annual=20
deaths at 4 million to 50 million. Spurred by=20
environmental groups, the Federal Communications=20
Commission announced this month that it was=20
considering new tower regulations. The agency is=20
asking for more data about the effect of a=20
tower's height and the use of steadying guy=20
wires. And the commission is proposing that new=20
and modified towers use more expensive white=20
strobe lights instead of the steadily burning red ones now on most towers.
http://www.latimes.com/news/printedition/front/la-fi-birds27nov27,1,7636...
.story?coll=3Dla-headlines-frontpage
(requires registration)

MURDOCH MAKES GAINS IN ITALIAN MEDIA MARKET
[SOURCE: New York Times, AUTHOR: Peter Kieffer]
A proposed new media law in Italy could weaken=20
Silvio Berlusconi's long-held lock on Italian=20
television, and in the process help Rupert=20
Murdoch, the chairman and chief executive of the=20
News Corporation, which owns Sky Italia, Italy=92s=20
sole satellite provider. Last month, the=20
government floated a new conflict of interest law=20
(explicitly targeting Mr. Berlusconi) and the new=20
media law, which would put a 45 percent ceiling=20
on advertising for any one broadcaster. The media=20
law would also force the state-run broadcaster,=20
RAI, and Mediaset, the media division of=20
Fininvest, to transfer one of their analog=20
channels to digital within fifteen months,=20
freeing up two channels for new investors. A=20
recent analysis by IT Media predicted that Sky=20
Italia was positioned to benefit most by the new=20
law. The report said Sky could earn an additional=20
28 million euros ($37 million) a year from its=20
implementation. Mediaset, meanwhile, could lose=20
up to 103 million euros ($135 million) a year in earnings, the report said.
http://www.nytimes.com/2006/11/27/business/worldbusiness/27skyitalia.html
(requires registration)
--------------------------------------------------------------
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.
--------------------------------------------------------------

FCC Chairman Kevin Martin's 2nd Term

FCC CHAIRMAN KEVIN MARTIN'S 2ND TERM
[SOURCE: Benton Foundation]

FCC Chairman Kevin Martin's 2nd Term

On November 16, 2006, the US Senate confirmed Federal Communications Commission Chairman Kevin Martin for a second term as commissioner and chairman. The new term is to end in 2011.

Since June 1, 2006, Chairman Martin has been working with a full, five-member Commission. He’s stated that he proud of his balanced approach to policy -- eliminating economic regulations while protecting consumers and preserving broader social goals -- in a bi-partisan, collegial manner. As Martin approaches a second term as FCC Chairman, what will be his policy approach on key issues like encouraging broadband penetration, Network Neutrality, and media ownership?

Below is a look at what Chairman Martin has told Congress and the public about his priorities at the Commission.

Broadband

Chairman Martin has identified encouraging the deployment of broadband infrastructure as one of his top priorities. He told Congress that high-speed Internet connections have grown 400% since he became a FCC Commissioner in 2001.

The goal here, as stated by President George Bush during the 2004 campaign season, is to “have universal affordable access for broadband technology by the year 2007.” As the 2007 deadline approaches, Chairman Martin has a daunting challenge on his hands. Nearly one-tenth of all US households have no broadband provider at all. And only 25 percent of U.S. adults in rural areas have broadband services in their homes, reflecting too few choices, unaffordable prices, and limited (or lack of) service availability.

As the deadlines quickly approaches, Chairman Martin appears to be trying to move the finish line. While commenting on a recently adopted order, Chairman Martin said, "By encouraging the development of new technologies… we can best achieve the President’s goal of universal broadband by the end of 2007.”

In a recent op-ed in the Washington Post, fellow FCC Commissioner Michael Copps wrote that America's record in expanding broadband communication is so poor that it should be viewed as an outrage by every consumer and businessperson in the country. He wrote that it is a lack of competition that is holding America back.

Chairman Martin believes that the US broadband market is competitive, however. He told Congress that because telephone companies and cable companies are trying to acquire new customers, they are actively competing in the broadband market today. These providers are competing aggressively against each other to win customers by offering price promotions, improved customer service, and new services. The increase in broadband speeds is just one reflection of this intense competition. He sited a recent Pew study that found the price of broadband service has also dropped in the past two years. Moreover, he said that the Commission supported policies that encourage multiple broadband competitors.

Commissioner Copps noted that the Commission seems to be trying to ignore that the country is falling behind other nations in broadband penetration. He highlighted that the FCC still defines broadband as 200 kilobits per second, assumes that if one person in a Zip code area has access to broadband then everyone does and fails to gather any data on pricing.

Chairman Martin plans to initiate a rulemaking that asks questions about how the Commission can obtain more specific information about the availability of broadband in specific geographic areas and how the FCC can combine its data with those collected at the state level or by other public sources. Martin also plans an inquiry into “whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion.” In this Notice, the Commission would seek comment on all aspects of broadband availability, including price and bandwidth speeds. Between these two proceedings, Chairman Martin told Congress, “it is my hope that the Commission will solicit the information necessary to better assess the competitive progress in the broadband market.”

Network Neutrality

Network Neutrality (or Net Neutrality) was a hot button issue as Congress debated broad telecommunications reform in 2005 and 2006. With prospects of passing a major telecommunication bill dimmed for some months, the policy focus has returned to the FCC.

In August 2005, the FCC adopted a policy statement on the regulation of broadband networks. The statement includes four principles. To encourage broadband deployment and preserve and promote the open and interconnected nature of the public Internet consumers are entitled to:

  • Access the lawful Internet content of their choice.
  • Run applications and use services of their choice, subject to the needs of law enforcement.
  • Connect their choice of legal devices that do not harm the network.
  • Competition among network providers, application and service providers, and content providers.

Collectively these four principles have come to be known as “Network Neutrality.” When adopting the principles, the FCC explicitly indicated that they are not enforceable rules. Net neutrality advocates argue that the FCC should be given new authority to enforce these principles and to preserve the fundamental openness that has been the hallmark of the Internet – largely based on these principles. They also argue for a fifth principle ensuring nondiscrimination. Broadband providers argue that there isn’t a problem that needs fixing, that the FCC already has sufficient authority, and that any new statutory language would amount to regulating the Internet.

During his confirmation, Chairman Martin assured senators that the Commission has authority to adopt broadband consumer protection requirements guided by the policy of the United States to promote the continued development of the Internet; preserve the vibrant and competitive free market that presently exists for the Internet; and encourage the deployment of technologies which maximize user control over what information is received by users of the Internet.

Chairman Martin was asked if he believes that Internet end-users should be entitled to receive service from each broadband access provider in a manner that does not discriminate in the carriage and treatment of Internet traffic based on the source, destination, or ownership of such traffic. His answer was noncommittal instead saying, “[N]etwork providers should have the ability to offer consumers different speeds of service and plans with different quality of service guarantees. Some consumers are willing to pay more for a faster speed or higher quality of service. I should also note that traffic prioritization already occurs today. For example, voice is prioritized over data traffic, and video is prioritized over other data traffic.”

Media Ownership

In July 2006, the FCC opened a new proceeding examining its rules governing media ownership. The proceeding is controversial in no small part because the U.S. Court of Appeals for the Third Circuit in Prometheus v. FCC stayed and remanded several media ownership rules that the Commission had adopted in 2003. Chairman Martin has acknowledged the importance of the proceeding: “The media touches almost every aspect of our lives. We are dependent upon it for our news, our information and our entertainment. Indeed, the opportunity to express diverse viewpoints lies at the heart of our democracy.”

Members of Congress and others have been highly critical of the FCC’s process in this proceeding. They note that the FCC has yet to conclude open proceedings examining the effects of media ownership consolidation on localism and diversity – nor has the Commission addressed specific concerns about the dearth of ownership of media outlets by minorities and women.

In August, the Minority Media & Telecommunications Council (MMTC) asked the FCC to withdraw its proposed review of media ownership rules and start again, saying it has failed to specifically address several key issues: 1) its "failure" to identify specific minority ownership proposals remanded by the Philadelphia Federal Appeals court; 2) failure to seek comment on what constitutes a socially or economically disadvantaged business; and 3) not spelling out a "central legal basis for minority ownership relief," which MMTC says should be preventing market entry barriers.

Additionally, the public still does not know 1) if the Commission will rule on all media ownership rules in concert, 2) who will conduct the independent studies or how they will be chosen, 3) which cities will host public forums on media consolidation, and 4) how or why research -- that supported preserving the media ownership rules -- was suppressed by the Commission.

At a recent public hearing in Los Angeles (CA) Martin stated, “It's important that the process be open and transparent.” He has committed to consider all the rules in concert as the Commission conducts hearings and independent studies and to “ensuring that the public is fully informed and has the opportunity to comment and actively participate in this proceeding.” During his confirmation, Chairman Martin outlined for Congress how other concerns will be addressed.

  • The comments in the Commission’s localism proceeding will be incorporated into the current media ownership proceeding. Moreover, the FCC’s Media Bureau is preparing a summary of these comments.
  • Martin said he has proposed to consolidate the diversity proceeding with its review of the media ownership rules in order to ensure full consideration of the diversity issue with the media ownership proceeding. In June 2004, the Commission sought comment on “constitutionally permissible ways to further the mandates… to identify and eliminate market entry barriers for small telecommunications businesses… and further opportunities in the allocation of spectrum-based services for small businesses and businesses owned by women and minorities.” And, at the request of petitioners, Martin has also proposed that the Commission request further comment more specifically on minority ownership issues.
  • Chairman Martin also noted that Commission is seeking comment on the recommendations of the Diversity Federal Advisory Committee.
  • Martin has promised that localism, diversity and minority ownership will be the focus of several independent studies the FCC will commission as well as topics for public hearings the FCC plans to hold around the country. The research on minority ownership, for example, is to examine levels of minority ownership of media. The study also will investigate potential barriers to entry for minority owners.

The FCC and Congress

As Chairman Martin addresses each of these issues, he will also be dealing with oversight from a Democratically-controlled Congress. As he moves forward, he may have to answer to Congressional inquiries on a number of fronts including: 1) Why has the US fallen behind in broadband penetration? 2) Why hasn’t the FCC opened a Net Neutrality rulemaking proceeding based on its adopted principles? and 3) Why was Commission-conducted media ownership research suppressed?