December 2006

The Headlines staff has taken a job as back-up elf at Macy's for the
remainder of the year and, therefore, will be unable to provide you,
our dedicated readers, with our Headline service from December 23 to
January 1. We'll be back on January 2. We wish everyone
communications-filled holidays!

MEDIA & ELECTIONS
D.C. Circuit Weakens Campaign Ad Regs

JOURNALISM
Media-Sourcing Debate on Deck at Capitol

OWNERSHIP
AT&T, Bell South Downplay Delisting Notice
AT&T must face lawsuit by MediaOne executives
FCC Schedules Comments in Clear Channel Deal

QUICKLY -- Milwaukee Sues AT&T Over U-verse; Bloggers Must Disclose
Sponsored Posts; EarthLink rolls out citywide Wi-Fi in New Orleans;
Top 10 ed-tech stories of 2006; The David Brugger Grassroots Advocacy Award

REACTION TO FCC'S VIDEO FRANCHISING DECISION
Consumers Union, Alliance for Community Media, National League of
Cities, NATOA,
NCTA, ACA, TIA, NAB

MEDIA & ELECTIONS

DC CIRCUIT WEAKENS CAMPAIGN AD REGS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a decision that could free up even more campaign money for
broadcasters [Yeah! Another reason to believe in Christmas!], a
three-judge panel of the D.C. Court of Appeals has ruled that
regulations prohibiting electioneering communications in the run-up
to general federal elections and primaries do not necessarily apply
to ads that mention candidates. That could pave the way for more
campaign TV and radio advertising from unions and corporations [yes,
those underrepresented organizations that our campaign laws need to
protect]. The Supreme Court had upheld the Bipartisan Campaign Reform
Act (BCRA) of 2002's authority to regulate electioneering
communications, so-called advocacy ads that expressly advocate the
election of a particular candidate. But it had left open the question
of whether those regulations applied to ads that, even though they
mentioned a candidate, were found to be promoting an issue rather
than a candidate.
http://www.broadcastingcable.com/article/CA6402213.html?display=Breaking...
* Court Overturns Limits on Political Ads, Part of the Campaign Finance Law
http://www.nytimes.com/2006/12/22/washington/22campaign.html
* Issue Advocacy Ads May Run During an Election, Three-Judge Court Rules
http://www.washingtonpost.com/wp-dyn/content/article/2006/12/21/AR200612...
* Judges lift restriction on ads near elections
http://www.usatoday.com/printedition/news/20061222/a_capcol22.art.htm
* Ruling weakens law's limits on corporate political ads
http://www.latimes.com/news/printedition/asection/la-na-ads22dec22,1,692...
* Ruling May Allow Room for Campaign TV and Radio Ad From
Corporations and Unions
http://www.broadcastingcable.com/article/CA6402220.html?display=Breaking...

JOURNALISM

MEDIA-SOURCING DEBATE ON DECK AT CAPITOL
[SOURCE: Wall Street Journal, AUTHOR: Jess Bravin jess.bravin( at )wsj.com
and Sarah Ellison]
The Bush administration is increasingly at odds with some Republicans
over its efforts to make journalists reveal confidential sources. The
controversy is reaching a flashpoint in San Francisco, where the
Justice Department is expected to file papers today urging that two
San Francisco Chronicle reporters face jail if they refuse to reveal
their source for confidential grand-jury proceedings concerning
baseball slugger Barry Bonds's alleged use of steroids. The issue
also is expected to re-emerge on Capitol Hill next year, where two
influential Republicans, Sen. Richard Lugar and Rep. Mike Pence, both
of Indiana, plan to reintroduce legislation limiting the government's
power to force journalists to disclose confidential sources. Many
Democrats, whose party will control Congress next year, also support
extending protection to reporters' sources and are expected to
co-sponsor the legislation. Currently, all states except Wyoming have
passed laws or issued court rulings that provide some level of
protection for reporters' confidential sources or notes from
subpoenas, says Marv Johnson, a legislative counsel with the American
Civil Liberties Union in Washington. The rationale for the so-called
shield laws is that society benefits from aggressive news reporting,
a value embodied in the First Amendment. Giving prosecutors or other
litigants access to reporters' sources could transform journalists
into investigators for the government or private parties, media
advocates say, potentially exposing sources to retaliation and
thereby impeding public access to news of possible wrongdoing or
questionable activities.
http://online.wsj.com/article/SB116674758240357303.html?mod=todays_us_ma...
(requires subscription)

OWNERSHIP

AT&T, BELLSOUTH DOWNPLAY DELISTING NOTICE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
According to a source at a New York Stock Exchange member company,
the exchange released a delisting notice to member companies Thursday
morning indicating that the merger of AT&T and Bell South could close
Friday. Spokesmen for both companies were downplaying the notice,
saying that they did not ask for it and that "nothing's happening." A
second notice was sent soon after, amending the first to say the
merger would close Dec. 22 "at the earliest," rather than it "would
close," and adding the caveat: "subject to FCC approval." The
Exchange usually sends out such notices after being contacted by
company executives, according to the source. In the stock-for-stock
deal, Bell South's ticker symbol will have to be delisted once it is
approved, but both companies said they didn't ask the notice be sent.
http://www.broadcastingcable.com/article/CA6402059.html?display=Breaking...

AT&T MUST FACE LAWSUIT BY MEDIAONE EXECUTIVES
[SOURCE: Bloomberg News]
AT&T, the largest U.S. telephone company, must face a lawsuit by
former MediaOne Group Inc. executives who say a buyout reduced the
value of their stock options, a judge ruled. The executives,
including ex-MediaOne Chief Executive Charles Lillis, can go to trial
to press claims that they lost millions in the fallout from AT&T's
2000 takeover of the cable company, Delaware Chancery Court Judge
Stephen Lamb ruled.
http://www.latimes.com/business/printedition/la-fi-briefs22.1dec22,1,462...
(requires registration)

FCC SCHEDULES COMMENTS IN CLEAR CHANNEL DEAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC has scheduled the comment period for the application by radio
and TV group owner Clear Channel to take the company private, which
won't be completed until February at the earliest. The FCC says it
will accept comments or petitions to deny the deal through Jan. 19,
with responses to those comments Feb. 1, then replies from the other
side Feb. 13.
http://www.broadcastingcable.com/article/CA6402114.html?title=Article&sp...

QUICKLY

MILWAUKEE SUES AT&T OVER U-VERSE
[SOURCE: Multichannel News]
The city of Milwaukee filed a federal lawsuit against AT&T Wednesday
seeking to force the telco to negotiate a cable-franchise agreement
for its U-verse TV Internet-protocol-TV service. The city wants AT&T
to make the same annual payment incumbent cable operator Time Warner
Cable makes under terms of its franchise.
http://www.multichannel.com/article/CA6401959.html?display=Breaking+News

BLOGGERS MUST DISCLOSE SPONSORED POSTS
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
A company that helps advertisers connect with bloggers willing to
write about their products for payment will now require disclosures
amid criticism and a regulatory threat. Before this week, advertisers
were barred by PayPerPost Inc. from telling bloggers they can't
disclose the sponsorship, but bloggers were able to decide on their
own whether or not to do so. Under the new policy, bloggers must
disclose that they are accepting payment, either in the write-up or
in a general disclosure policy on the blogger's Web journal.
http://hosted.ap.org/dynamic/stories/T/TECHBIT_BLOG_DISCLOSURES?SITE=VTB...

EARTHLINK ROLLS OUT MORE CITYWIDE WI-FI
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
EarthLink turned on two more of its Wi-Fi cities this week. On
Tuesday, the Internet service provider announced that Milpitas,
Calif., had begun offering service over its new citywide Wi-Fi
network built by EarthLink. And on Thursday, New Orleans turned on
its citywide Wi-Fi network. EarthLink, which has had to rely on cable
and DSL (digital subscriber line) networks to deliver broadband
service to consumers, is using Wi-Fi, an unlicensed radio frequency
technology, as an affordable way to build its own broadband
infrastructure. Over the past year, the company has won bids to
blanket eight cities with Wi-Fi, including high-profile projects in
Philadelphia and San Francisco. In June it launched its first network
in Anaheim, Calif. In New Orleans, the 20-square-mile Wi-Fi mesh
network covers parts of Orleans Parish, which was devastated by last
year's Hurricane Katrina. In an effort to help rebuild New Orleans,
EarthLink is providing a free tier of service--available up to 300
kilobits per second--for residents and businesses throughout the
coverage area. Consumers can access the free tier by logging on to
the Web site https://featherwifi.netthrough the Wi-Fi access software
embedded in their computer.
http://news.com.com/EarthLink+rolls+out+more+citywide+Wi-Fi/2100-7351_3-...

TOP TEN ED-TECH STORIES OF 2006
[SOURCE: eSchool News]
Those top ten lists are popping up everywhere already. Across the
nation in 2006, educators sought out new policies to deal with the
problems posed by social-networking web sites and other emerging
online tools. In Washington, voters ushered in a new Democratic
Congress with plans to overhaul President Bush's landmark No Child
Left Behind Act; and in classrooms from coast to coast, educators
continued their search for new educational technology solutions
destined to prepare today's students for the challenges of a new
century. In this two-part retrospective, the editors of eSchool News
count down what they believe to be the top educational technology
issues from 2006 -- many of which no doubt will continue to make
headlines in the coming year. Topics include: cell phones, video
games, social networking websites, online learning, disaster
planning, and the changes the year's elections will bring.
http://www.eschoolnews.com/news/showstoryts.cfm?Articleid=6743
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=6745

CALL FOR NOMINATIONS -- THE DAVID J BRUGGER GRASSROOTS ADVOCACY AWARD
[SOURCE: Association of Public Television Stations ]
The David J. Brugger Grassroots Advocacy Award seeks to enshrine the
invaluable contribution that citizen activists can and do make to
preserve and grow the institution of Public Broadcasting. The award
honors lay persons (non-Public Broadcasting professionals), that
advocate for Public Broadcasting before Congress, and organize other
citizens to join in that advocacy effort. No other national award
specifically honors the vital link in which citizens engage other
citizens on behalf of advocacy. Nominations for the 2007 David J.
Brugger Grassroots Advocacy Award are being accepted now. For a
nomination form and additional information about award eligibility,
visit the URL below.
http://www.apts.org/events/capitolhillday/Award_Information.cfm

REACTION TO FCC'S VIDEO FRANCHISING DECISION
(see recap of all the coverage of this story at
http://www.benton.org/index.php?q=node/4331)

* Consumer Group Says FCC Move on Video Competition Risky Without
Assurances that Cable Rates Will Fall, Decision Does More Harm Than Good
Consumers Union called the Federal Communications Commission's
decision today to let phone companies begin offering video services
without adhering to basic consumer protection requirements a risky
move based on only flimsy evidence that consumers will actually
benefit from the move. "Consumers are ill-served by the Commission's
decision to let phone companies pick and choose which neighborhoods
will get more choice for cable service and which will be left with
only their monopoly cable provider, facing both rate hikes and no
hope of any alternative," said Jeannine Kenney, senior policy analyst
with Consumers Union. "Unless consumers receive assurances from both
the FCC and the Bells that cable rates will actually decline for all
customers in a market after phone companies begin offering service,
FCC's decision may do more harm than good."
http://www.hearusnow.org/other/newsroom/tvradiocable/consumersunionsaysf...

* FCC Attacks PEG Funding, Community Media, Congressional Authority
[SOURCE: Alliance for Community Media]
Executive Director Anthony Riddle: "The telephone industry could not
get a law passed through the 535 legislators answerable to the
public. So they anointed a "Super Legislature" where they only
needed three unelected regulators to pass a law. Congress should act
quickly to limit the power of activist regulators. The FCC should
react to Congress. Congress should not have to react to the FCC.
This order will end up losing in court. It is an unconscionable
waste of the millions of tax-payers' dollars which will be wasted on
legal fees. The majority of the FCC are mistaking chaos and thuggery
for a coherent national communications policy. It will not result in
competition, but even more media consolidation. The FCC, in the
spirit of Christmas, has given the biggest gift of all to the giant
telephone companies while the children of our cities and towns get a
lump of coal in their torn stockings."
http://www.alliancecm.org/blog.php

* FCC Decision on Video Franchising is Detrimental for Local Government
[SOURCE: National League of Cities]
Don Borut, Executive Director, National League of Cities: "We are
confounded by today's decision by the Federal Communications
Commission (FCC) that would systematically block the ability of local
governments to protect their citizens, local assets and revenues. It
is not in the best interest of America's taxpaying public; it is not
in the best interest of our citizens who own the public rights of
way; it is not in the best interest of the widest number of
consumers, who, depending on where they live or how much they are
willing to spend, may be shut out from the most up-to-date technology
by companies seeking to service only the most well-to-do
neighborhoods. The cities and towns represented by NLC have urged
fairness in the effort to reform telecommunications policy. That did
not happen today."
http://www.nlc.org/Newsroom/Press_Room/13105.cfm

* NATOA Responds to FCC Vote on Jurisdiction and Franchising Authority
[SOURCE: National Association of Telecommunications Officers and Advisors]
NATOA's Executive Director, Libby Beaty, responded to the news of the
vote: "Today the FCC played Scrooge to local governments when they
changed the agency from a regulatory to a legislative
body. Unfortunately, unlike Scrooge, it's highly unlikely the FCC
will see the error of its way absent court or Congressional
intervention. We will look forward to providing them both
opportunities." We will respond to the entirety of the Commission's
order when it is released and available for thorough review.
http://www.natoa.org/

* NCTA Statement
Kyle McSlarrow, President & CEO, National Cable & Telecommunications
Association: "The FCC's pricing survey fails to account for the
benefits of bundled pricing, its favorable impact on cable prices,
and the greatly increased value of cable services in a digital
world. Ignoring these factors makes the pricing survey obsolete on
arrival and an unsound basis for policy decisions. On today's
decision on video franchising, it appears that the FCC pared back
some of the more troubling proposals that had been floated in recent
days. The Commission made crystal clear that its order isn't a
license for AT&T to ignore the franchising process and operate under
different rules from its competitors. In addition, the Commission
stepped back from pre-empting all state franchising laws, many of
which have acknowledged the value to consumers of a level playing
field for all competitors. We appreciate the FCC's commitment to
complete action within six months on a further notice to address
regulatory parity. But the simple fact is that today's order doesn't
provide a level playing field, a concept that has been universally
supported up until now at federal, state, and local levels. We don't
believe the Commission has the legal authority to establish separate
regimes for incumbents and new entrants in today's highly competitive
marketplace."
http://www.ncta.com/ContentView.aspx?hidenavlink=true&type=reltyp2&conte...

* ACA's Polka: Martin Misguided
[SOURCE: Multichannel News]
American Cable Association CEO Matthew M. Polka had plenty to say
about the Federal Communications Commission's decision on cable rates
and local franchising. On cable rates, Polka said, "The answer is
very simple. Who controls the rates of the content on cable,
satellite and telco video today? Not the operators, but the
media-conglomerate programmers, whose rates and increases far exceed
the data reported by the FCC on cable rates. Why are satellite's
rates the same or higher than cable's? Why did [Verizon
Communications' FiOS TV] just announce a 7.6% increase for January?"
On video franchising, Polka said, "These new rules upset the balance
of competition, take authority away from local governments and give
the Bell companies a free pass on serving all subscribers in a
market. Through these rules, the FCC is ratifying the red-lining
practice of building out service in only the wealthiest areas."
http://www.multichannel.com/article/CA6402183.html?display=Breaking+News

* TIA Commends FCC's Decision to Facilitate Entry into the Video
Services Market
The Telecommunications Industry Association has long urged the FCC to
impose uniform requirements on local franchise authorities (LFAs) to
minimize the adverse effects of the existing local franchise process.
TIA believes the commission's decision today is consistent with its
momentum toward a deregulatory framework necessary to increase
broadband deployment to all Americans.
http://www.tiaonline.org/business/media/press_releases/2006/PR-122.cfm

* NAB Statement
National Association of Broadcasters Executive Vice President of
Media Relations Dennis Wharton: "NAB salutes the FCC for taking
decisive action to increase much needed competition to cable
monopolies. With today's action, the Commission has delivered a
holiday treat for cable customers who will now have a choice and the
ability to avoid rate hikes that run two to four times the annual
rate of inflation."
http://www.nab.org/AM/Template.cfm?Section=News_Room&CONTENTID=7542&TEMP...
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...and we are outta here. Thanks for subscribing. Happy Holidays and
see you in the New Year!
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Communications-related Headlines is a free online news summary
service provided by the Benton Foundation (www.benton.org). Posted
Monday through Friday, this service provides updates on important
industry developments, policy issues, and other related news events.
While the summaries are factually accurate, their often informal tone
does not always represent the tone of the original articles.
Headlines are compiled by Kevin Taglang headlines( at )benton.org -- we
welcome your comments.
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