December 2006

The last working men and woman in Washington, the=20
fab five FCC commissioners, are meeting today to=20
make decisions on, most notably, cable=20
competition. Since there's only reruns on TV this=20
week, check out the meeting live at=20
http://www.fcc.gov/realaudio/ Starts at 9:30am (eastern).

TELECOM/CABLE
Phone Firms Await FCC on Cable Ruling
McSlarrow: Martin a Micromanager
AT&T/BellSouth Merger Faces Onerous Conditions
Barton Wants FCC to Move Forward with AT&T/Bell South Merger
Michigan Broadcasters Praise Franchise Reform

QUICKLY -- A Dose of Reality TV for Congress;=20
Effort to limit commercials may be revived; YouTube journalism

TELECOM/CABLE

PHONE FIRMS AWAIT FCC ON CABLE RULING
[SOURCE: Washington Post, AUTHOR: Alan Sipress]
Telephone companies could get a major boost today=20
in their efforts to penetrate the cable=20
television market when the Federal Communications=20
Commission considers a measure that would give=20
state and local officials less latitude in=20
awarding cable franchises. FCC Chairman Kevin J.=20
Martin, a leading advocate of the rule, has=20
argued that government officials often stymie=20
competition by delaying decisions on awarding=20
cable franchises to telephone companies and by=20
imposing exorbitant fees and conditions. As a=20
result, cable operators often have been able to=20
maintain a virtual monopoly on television=20
services, resulting in steadily increasing prices=20
for consumers, according to Martin. Though the=20
draft proposal will not be made public until=20
today, it has already drawn sharp criticism from=20
cable companies -- which argue that it would=20
unfairly penalize them -- and local and state=20
officials, who balk at efforts to curtail their=20
authority in awarding franchises.
http://www.washingtonpost.com/wp-dyn/content/article/2006/12/19/AR200612...
1429.html
(requires registration)
* FCC vote could speed up telco TV
http://news.com.com/FCC+vote+could+speed+up+telco+TV/2100-1037_3-6144945...
ml?tag=3Dnefd.lede

MCSLARROW: MARTIN A MICROMANAGER
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Federal Communications Commission Chairman Kevin=20
Martin supports a regulatory agenda for the cable=20
industry that's at odds with his otherwise=20
free-market outlook for telecommunications,=20
National Cable & Telecommunications Association=20
President Kyle McSlarrow said Tuesday. =93What I=20
see, when you put all of those dots together, is=20
an agenda that really represents one of the most=20
sweeping regulatory examples of government=20
micromanagement. I have to say I am puzzled by=20
that,=94 McSlarrow said in a year-end conference=20
call with journalists. The =93dots,=94 as McSlarrow=20
called them, referred to Chairman Martin=92s=20
support for the a la carte sale of cable=20
channels; mandatory carriage of TV stations=92=20
digital-multicast services; public access to=20
cable-programming contracts; and=20
phone-company-friendly terms on entering cable=20
markets. =93As I survey that last couple of years,=20
I just think there is a disconnect when I think=20
about the FCC and the agenda -- the disconnect=20
between the rhetoric of free markets and=20
deregulation and the reality of the types of=20
proposals that are being proffered by the=20
leadership of the commission,=94 McSlarrow said.=20
Asked why Martin has problems with cable,=20
McSlarrow replied: =93You'd have to ask him. All I=20
can say is that I just think there is a=20
fundamental misunderstanding of what actually our=20
industry is doing. It=92s almost like they are moving through a time warp.=
=94
http://www.multichannel.com/article/CA6401350.html?display=3DBreaking+News
* McSlarrow: FCC Stuck in a Time Warp
http://www.broadcastingcable.com/article/CA6401206?display=3DBreaking+News
* NCTA's McSlarrow Blasts FCC on Cable Issues
http://www.tvweek.com/news.cms?newsId=3D11253

AT&T/BELLSOUTH MERGER FACES ONEROUS CONDITIONS
[SOURCE: Financial Times, AUTHOR: Stephanie Kirchgaessner]
AT&T=92s $68bn takeover of BellSouth will face a=20
tough political climate in Washington in 2007=20
when Democrats take control of the Congress,=20
virtually ensuring that the former Ma Bell will=20
have to agree to harsher conditions. The=20
possibility that the telecoms mega-merger would=20
be approved by the Federal Communications=20
Commission before the end of this year appeared=20
to disintegrate on Monday after Robert McDowell,=20
a Republican commissioner at the FCC, said he=20
would abstain from deadlocked negotiations over=20
the transaction at the regulatory agency. The=20
decision marks the beginning of what is likely to=20
be a difficult period for Kevin Martin, FCC=20
chairman and a savvy political operator who has,=20
until now, faced few serious hurdles on his=20
agenda. Among other issues, Mr Martin will=20
probably be forced to defend the FCC=92s future=20
decision on the AT&T deal and separate=20
deliberations on media ownership limits before=20
Democratic lawmakers next year. With Commissioner=20
McDowell out of the game, AT&T will be forced to=20
succumb to at least some of the demands of the=20
FCC=92s two Democratic commissioners, who are=20
expected to have the backing of the new=20
Democratic majority in the Congress on issues=20
ranging from net neutrality to =93special access=94=20
price freezes, covering competitors=92 access to its network.
http://www.ft.com/cms/s/cff8bf82-8f8d-11db-9ba3-0000779e2340.html
(requires subscription)

BARTON WANTS FCC TO MOVE FORWARD WITH AT&T/BELLSOUTH MERGER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Outgoing House Commerce Committee Chairman Joe=20
Barton (R-TX) wants the FCC to get on with=20
approving the AT&T/Bell South merger--and without=20
any general conditions. In a statement he said he=20
was confident Commissioner Robert McDowell's=20
decision would have been fair, and now that he=20
had decided not to vote on the merger the four=20
commissioners need to put the pedal to the metal.=20
He says the merger will create video and=20
broadband competition and urged the commission to=20
"bring its review to a close rather than delay these consumer benefits."
http://www.broadcastingcable.com/article/CA6401511.html?display=3DBreaki...
News

MICHIGAN BROADCASTERS PRAISE FRANCHISE REFORM
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Michigan Association of Broadcasters is=20
calling the Michigan video franchising bill that=20
passed Dec. 12 a big victory, particularly given=20
a provision that prevents their signal from being=20
converted to lower resolution. MAB has been=20
supporting the bill, which helps telcos get into=20
the video and broadband business by standardizing=20
the franchise process, saying it creates another=20
outlet for its TV station signals. But it is=20
particularly pleased with a provision that=20
prevents new franchisees from downgrading a=20
broadcast signal. MAB says it is the first such=20
protection of the broadcast signal in a state franchise reform bill.
http://www.broadcastingcable.com/article/CA6401462.html?display=3DBreaki...
News

QUICKLY

A DOSE OF REALITY TV FOR CONGRESS
[SOURCE: New York Times, AUTHOR: Editorial Staff]
[Commentary] If Democratic leaders truly want to=20
put some nip into the new Congress, they should=20
finally free up television coverage of floor=20
debates so citizens can see the unvarnished state=20
of the people=92s forum. Current TV restrictions=20
allow only static head-on shots of whoever has=20
the floor, lending chamber proceedings all the=20
excitement of a postage stamp. The speaker=92s=20
office has been wary of allowing free-ranging=20
cameras since coverage was permitted 28 years=20
ago. Visitors to the chamber galleries can=20
plainly see scenes denied to TV watchers --=20
sideline wheeling and dealing; the representative=20
more interested in the newspaper than the debate;=20
the senator nodding off, understandably perhaps;=20
and the near-empty chamber surrounding the orator=20
speaking for the stationary camera. That=92s the=20
reality of politics. Americans should be allowed to see it on TV.
http://www.nytimes.com/2006/12/20/opinion/20wed4.html
(requires registration)
* Eyes on Congress
[Commentary] "Politicians should not be editing=20
coverage of themselves. C-SPAN has proved itself=20
to be an indefatigable and impeccably nonpartisan=20
documentarian of our democracy in Washington. Its=20
cameras and technicians should be doing this job."
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2006...
/19/EDGOULJ65M1.DTL

EFFORT TO LIMIT COMMERCIALS MAY BE REVIVED
[SOURCE: San Francisco Chronicle, AUTHOR: George Raine]
An alarming growth in the rate of overweight=20
children and the political sea change in Congress=20
make it likely that lawmakers will consider=20
restricting the marketing of food to kids. With a=20
briefcase full of warnings about the mushrooming=20
childhood obesity rate, Sen. Tom Harkin (D-Iowa)=20
will become the chairman of the Senate=20
Agriculture, Nutrition and Forestry Committee=20
next month. He is expected to use the position to=20
argue, as he did in a 2004 speech, that "the=20
marketing of junk food, especially to kids, is=20
out of control.'' Sen Harkin introduced a bill=20
that year that would have restored the authority=20
of the Federal Trade Commission to regulate the=20
marketing of foods and beverages to children=20
younger than 18. To do so, the FTC would have to=20
find evidence that consumption of certain foods=20
is detrimental to the health of children. The bill stalled in committee.
http://www.sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2006/12/20/KIDSADS.TMP

YOUTUBE JOURNALISM
[SOURCE: Los Angeles Times, AUTHOR: Mois=E9s Na=EDm, Foreign Policy Magazi=
ne]
[Commentary] Welcome to the "YouTube effect." It=20
is the phenomenon whereby video clips, often=20
produced by individuals acting on their own, are=20
rapidly disseminated worldwide on websites such=20
as YouTube and Google Video. YouTube has 34=20
million monthly visitors, and 65,000 new videos=20
are posted every day. Most are frivolous,=20
produced by and for the teenagers who make up the=20
majority of the site's visitors. But some are=20
serious. YouTube includes videos posted by=20
terrorists, human rights groups and U.S. soldiers=20
in Iraq. Some are clips of incidents that have=20
political consequences or document important=20
trends, such as global warming, illegal=20
immigration and corruption. Some videos reveal=20
truths. Others spread propaganda and outright=20
lies. YouTube is a mixed blessing: It is now=20
harder to know what to believe. The good news is=20
that the YouTube effect is already creating a=20
strong demand for reliable guides =97 individuals,=20
institutions and technologies =97 that we can trust=20
to help us sort facts from lies online. The=20
millions of bloggers who are constantly watching,=20
fact-checking and exposing mistakes are a=20
powerful example of "the wisdom of crowds" being=20
assisted by a technology that is as open and omnipresent as we are.
http://www.latimes.com/news/printedition/asection/la-oe-naim20dec20,1,21...
15.story?coll=3Dla-news-a_section
(requires registration)
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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.
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