December 2006

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REGULATORS
Markey, Dingell Probe Possible McDowell Vote
FCC's McDowell Touts Free Markets to Analysts
Black Legislators Back Light Regulatory Touch
Convergence Poses Challenges for Communications Regulators

MEDIA OWNERSHIP
Dorgan Asks FCC to Complete the Process
Media ownership changes are 'DOA'
Local TV Still the No. 1 News Source
Mexico's Newest TV Drama Is a Bid to Block a Third Broadcaster

QUICKLY -- AT&T: We don't need no stinking fiber-to-the-home; Video
News Release Lobby Continues to Pressure FCC; Disabled deprived of
access to many top Web sites; Writers Guild is criticized for
contract tactic; $150 Laptops to Get Rival in Brazil; Culture Shock
on Capitol Hill: House to Work 5 Days a Week

REGULATORS

MARKEY, DINGELL PROBE POSSIBLE MCDOWELL VOTE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The future chairman of the House Commerce Committee and
Telecommunications Subcommittee John Dingell (D- MI) and Ed Markey
(D- MA) have asked the FCC's General Counsel to provide a laundry
list of information on how he will decide whether or not to give FCC
Commissioner Robert McDowell the go-ahead to vote on the AT&T/Bell
South merger; they want to be briefed in detail on the "basis on
which you will make this critical decision." In addition to the
answers to numerous questions about the process, the two legislators
want some documentation about prior resolutions of potential
conflicts of interest, and a list of the lengths of FCC telecom
merger reviews since the 1996 passage of the revised Telecommunications Act.
http://www.broadcastingcable.com/article/CA6397509?title=Article&spacede...
* See the Dingell/Markey letter:
http://broadcastingcable.com/contents/pdf/DOC015.pdf

FCC'S MCDOWELL TOUTS FREE MARKETS TO ANALYSTS
[SOURCE: TVWeek, AUTHOR: Michele Greppi]
The "twin cornerstones" of democracy are free markets and free reign
for ideas, Federal Communications Commission Commissioner Robert
McDowell told Wall Street analysts attending the annual Credit Suisse
Media and Telecom Week conference. When it comes to regulation of an
industry, "rarely do we do as good a job as you do," he told the
representatives of the private sector. The new wave of technologies
delivering communication, information and entertainment "has become
the new wave of democracy," and the delivery pipes "are getting
fatter and faster," Mr. McDowell. "Never have consumers been so
empowered." Commissioner McDowell said wireless technology "may be
more disruptive than the Internet," and that companies have the
choices of feeling threatened or changing and prospering. He cited
the light regulatory hand that will apply to businesses using the
analog spectrum or underutilized spectrum known as white space, which
will be auctioned off as part of the TV industry's mandatory switch
to digital in February 2009. Commissioner McDowell said that when
confronted with evidence of marketplace failures, he favors remedies
that "are narrowly tailored and sunsetted."
http://www.tvweek.com/news.cms?newsId=11174
(requires free registration)
* McDowell Cool to 'A La Carte' for Cable
Commissioner McDowell said he didn't see a compelling need for cable
TV operators to sell channels individually. We're in an 'a la carte'
world already," Commissioner McDowell said. Noting that his children
were shocked at the idea of having to wait until 8 p.m. to watch a
certain show, McDowell said that viewers are becoming increasingly
accustomed to exercising greater choice over viewing shows. "There's
a lot of pasta being thrown against the wall" by media companies as
they experiment with offerings of video-on-demand, or VOD, services
and other novel ways of distributing programming, he said. Broadcast
networks now make shows available streaming over the Internet or
through downloads on Apple Computer Inc.'s iTunes service, and CBS
Corp. is also releasing TV clips through the YouTube video-sharing
service, which was recently acquired by Internet search leader
Google. "For now, we can just watch," Commissioner McDowell said of
the issue of cable operators offering channels individually.
http://biz.yahoo.com/ap/061205/fcc_cable_a_la_carte.html?.v=1

BLACK LEGISLATORS BACK LIGHT REGULATORY TOUCH
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Black Caucus of State Legislators has come out against
"mandated network neutrality," arguing that it would "impede future
capital investments in the U.S. braodband infrastructure." The
legislators argue that the FCC's principles outlining basic Internet
access freedoms are sufficient safeguards and are preferable to
giving the FCC the power to "proactively intervene" in the broadband
Internet marketplace. They are also concerned that tough net
neutrality laws would slow the rollout of broadband and raise cost to
the end user, exacerbating a digital divide that impacts the minority
community. NBCSL made its feelings known in a resolution adopted at
its annual meeting in Jackson, Miss., over the weekend and being sent
to the White House.
http://www.broadcastingcable.com/article/CA6397438.html?display=Breaking...

CONVERGENCE POSES CHALLENGES FOR COMMUNICATIONS REGULATORS
[SOURCE: Drew Clark]
[Commentary] The convergence of telecommunications and media is
posing problem for communications regulators all over the world, and
many of them swapped stories here about the best way to cope with
rapid technological change. Most government panelists participating
in two morning sessions at the International Telecommunications
Union's Telecom World conference here agreed on the need for a
unified communications authority. But they differed after whether
competition policy could prove adequate to dealing with issues of
telecommunications and media. In other words, would the need for
communications regulation fade over time?
http://www.drewclark.com/2006/12/convergence-poses-challenges-for.shtml

MEDIA OWNERSHIP

DORGAN ASKS FCC TO COMPLETE THE PROCESS
[SOURCE: Broadcasting&Cable]
Senator Byron Dorgan (D-ND) has asked FCC Chairman Kevin Martin to
make sure the Commission completes its localism proceedings --
including holding more meetings -- and issues a public report before
rewriting media ownership rules. He was joined by a handful of
Democratic and Republican colleagues on the Senate Commerce Committee
-- Barbara Boxer (D-CA), Maria Cantwell (D-WA), John Kerry (D-MA),
Frank Lautenberg (D-NJ), Bill Nelson (D-FL), Mark Pryor (D-AR), and
Olympia Snowe (R-Maine) and Trent Lott (R-MS). Senators are concerned
that Chairman Martin is planning to just fold filed comments in the
localism proceeding into the current media ownership proceeding
without continuing on with the separate proceeding to conclusion and
a report. They also say the FCC has held only two of a planned six
hearings related to the localism proceeding and they want it to
complete those as well. The localism proceeding was opened by former
FCC Chairman Michael Powell in 2003.
http://www.broadcastingcable.com/article/CA6397482.html?display=Breaking...
* See Sen Dorgan press release:
http://dorgan.senate.gov/newsroom/record.cfm?id=266333

MEDIA OWNERSHIP CHANGES ARE 'DOA'
[SOURCE: Reuters, AUTHOR: Robert MacMillan]
[Commentary] Belo Chief Executive Robert Decherd, a traditional
supporter of relaxing rules that restrict what kind of media
properties companies can own in the same market, now thinks rules
changes ain't happening any time soon. "The dose of realism is, if
anybody's banking on the rules changing in the next two years, I
would suggest they add a zero to the time frame," he said on the
sidelines at the show. "With the (2006 mid-term) election, it's DOA.
I mean, it's not going to happen," Decherd said. He noted that the
benefits touted by companies like Tribune and Media General are not
as hot as some people thought they would be anyway.
http://blogs.reuters.com/2006/12/06/media-ownership-changes-are-doa/

LOCAL TV STILL THE NUMBER 1 NEWS SOURCE
[SOURCE: TVWeek, AUTHOR: Michele Greppi]
Local TV is the No. 1 source of news and information among U.S.
television viewers, according to Frank N. Magid Associates' findings
in a national survey. The study, designed to learn how, how often and
why people use an assortment of media platforms, was co-authored by
Magid's director of strategic analysis Bryn Burns and senior
consultant Laura Clark. They sought information that could help the
stations that are Magid TV clients make decisions on how to position
themselves in what they call "today's multiscreen world." Many of the
findings contrast with some new-technology efforts undertaken by
stations. For example, new media offerings have yet to establish
their popularity. Streaming video stories, blogs and podcasts aren't
luring many people to stations' Web sites, according to the study.
Up-to-date text stories are. In addition, a significant number of
people are interested in going to a station's Web site to check out a
story they saw on a local newscast.
http://www.tvweek.com/article.cms?articleId=31077
(requires free registration)

MEXICO'S NEWEST TV DRAMA IS A BID TO BLOCK A THIRD BROADCASTER
[SOURCE: New York Times, AUTHOR: Elisabeth Malkin]
Mexico's two competing television companies, Televisa and TV Azteca,
have each chosen to focus on the high costs of medicines at the same
time. Their separate reporting comes to exactly the same conclusion.
The culprits who drive the prices so high are two pharmaceutical
distributors who together control 70 percent of the market. And both
news teams single out the same one for particular opprobrium: Grupo
Casa Saba, a $2 billion company controlled by the reclusive
octogenarian billionaire Isaac Saba Raffoul. What neither Televisa
nor TV Azteca mentions is that Mr. Saba has his eye on another
business: television. Mr. Saba is the Mexican partner of Telemundo,
the NBC Universal unit that is the No. 2 Spanish-language television
broadcaster in the United States. In September, Telemundo and another
company Mr. Saba owns, Grupo Xtra, formally requested a license for a
broadcast television network. Both Televisa and TV Azteca say that
their coverage is driven only by news judgment.
http://www.nytimes.com/2006/12/06/business/worldbusiness/06tele.html
(requires registration)

QUICKLY

AT&T SAYS WON'T NEED FIBER-TO-THE-HOME NETWORK
[SOURCE: Reuters]
AT&T shrugged off concerns on Tuesday that it would need to build a
more expensive, all-fiber network to handle an expected surge in
high-speed Internet and video traffic. AT&T is currently upgrading
its networks to deliver an Internet-based video service called
U-Verse to compete with cable companies. But unlike No. 2 player
Verizon Communications, which is launching a similar service by
building a "fiber to the home" network, it is making use of existing
copper lines to save costs. "Our view at this point is that we're not
going to have go 'fiber to the home.' We're pleased with the
bandwidth that we're seeing over copper," Chief Financial Officer
Richard Lindner told a Credit Suisse conference. "On average, at this
point, we're producing about 25 megabits (per second). But in many
many locations, we're producing substantially more than that." Some
analysts have said AT&T's method is more efficient, while others have
said it would need to upgrade its network again when more consumers
start to watch high-definition channels and download movies,
requiring increased bandwidth.
http://today.reuters.com/News/newsArticle.aspx?type=internetNews&storyID...

VIDEO NEWS RELEASE LOBBY CONTINUES TO PRESSURE FCC
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
An alliance of Video News Release (VNR) groups has fired off a second
rebuttal to the Center for Media and Democracy's (CMD) campaign
against undisclosed "fake news" sponsorship. A public filing from the
National Association of Broadcast Communicators [NABC] objects to
efforts by CMD to "manipulate and distort the [Federal
Communications] Commission's sponsorship identification
requirements," as the lobby puts it. NABC claims that FCC rules do
not state that all VNRs must disclose their sponsor. They also argue
that producers have no connection to the way in which a VNR is
broadcast, therefore they are exempt from disclosing information
about their revenue. Though NABC says that it "appreciates the
Commission's need to ensure compliance with its sponsorship
identification requirements," in its latest statement filed with the
FCC on November 27th the group insists that FCC rules do not
specifically require all VNRs to be disclosed: "Sponsorship
identification is required only when a VNR: (1) raises controversial
issues of public importance, (2) discusses political matters, or (3)
involves the payment of money or other consideration to the
broadcaster as an inducement to include that material in a
broadcast," NABC says. NABC reasons that VNRs are provided to
broadcasters without charge or payment, thus they do not violate
payola statutes. Additionally, the allegedly non-controversial topics
that CMD lists - cosmetics, light bulbs, cereal, dog food, cold
remedies - do not require sponsorship IDs.
http://www.lasarletter.net/drupal/node/250

DISABLED DEPRIVED OF ACCESS TO MANY TOP WEB SITES
[SOURCE: Reuters, AUTHOR: Irwin Arieff]
Many Web sites around the world are beyond the reach of disabled
persons but could easily be improved to meet international
accessibility standards, a survey commissioned by the United Nations
found on Tuesday. While many sites have taken steps toward wider
accessibility, they need to do more to become fully available to
people who cannot use a computer mouse, have low-vision disabilities
or are blind. Among the most common problems encountered in the
survey were the use of a common scripting language called JavaScript
and of graphics unaccompanied by explanatory text
http://today.reuters.com/News/newsArticle.aspx?type=technologyNews&story...

WRITERS GUILD IS CRITICIZED FOR CONTRACT TACTIC
[SOURCE: Los Angeles Times, AUTHOR: Richard Verrier]
The guild representing Hollywood TV and film writers came under fire
Tuesday from a top entertainment union official who accused its
leaders of arrogance and incompetence for spurning studio overtures
to negotiate a new contract early. Thomas C. Short, president of the
International Alliance of Theatrical Stage Employees, the umbrella
group for an array of Hollywood craft unions, suggested that the
decision would fuel uncertainty and destabilize Hollywood's rank and file.
http://www.latimes.com/business/printedition/la-fi-writers6dec06,1,11770...
(requires registration)

$150 LAPTOPS TO GET RIVAL IN BRAZIL
[SOURCE: Associated Press, AUTHOR: Alan Clendenning]
Intel said Tuesday its diminutive low-cost laptop will be evaluated
in Brazil next year alongside a cheaper alternative from a nonprofit
group seeking to bring computers to poor children worldwide. The
company said it would donate 700 to 800 of the $400 "Classmate PCs"
to the government for a large evaluation in schools. Intel's laptop
is about half the size of a traditional laptop, weighs 2.9 pounds,
and has a seven-inch color screen. It has wireless Internet
capability and employs flash memory instead of a hard drive, but does
not include a CD or DVD player. Intel has already tested the
computers on a smaller scale with students and teachers. The deal to
test the Classmate PC comes after President Luiz Inacio Lula da Silva
last month received a prototype of a $150 laptop developed by the
U.S. nonprofit group One Laptop Per Child, which began at the
Massachusetts Institute of Technology's Media Lab. One Laptop Per
Child expects to sell several million devices to governments in
developing countries, beginning with Brazil, Nigeria, Libya,
Argentina and Thailand. Brazil has 187 million citizens, but tens of
millions don't have access to a computer or the Internet. Public
schools offer little or no computer training, and some don't even
have electricity. The Brazilian government wants to bridge the
divide, and President Silva believes laptops for children will
improve education.
http://hosted.ap.org/dynamic/stories/B/BRAZIL_CHEAP_LAPTOPS?SITE=ENCCOM&...

CULTURE SHOCK ON CAPITOL HILL: HOUSE TO WORK 5 DAYS A WEEK
[SOURCE: Washington Post, AUTHOR: Lyndsey Layton]
Forget the minimum wage. Or outsourcing jobs overseas. The labor
issue most on the minds of members of Congress yesterday was their
own: They will have to work five days a week starting in January.
Next year, members of the House will be expected in the Capitol for
votes each week by 6:30 p.m. Monday and will finish their business
about 2 p.m. Friday.
http://www.washingtonpost.com/wp-dyn/content/article/2006/12/05/AR200612...
(requires registration)
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While the summaries are factually accurate, their often informal tone
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