January 2007

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GOVERNMENT & COMMUNICATIONS
Attorney general mum on spy program court orders

CONGRESSIONAL AGENDA
Boucher: Three Telecom Issues To Rule Early Debate
Hold Off On Net Neutrality
Kucinich Could Revive Fairness Doctrine

FCC AGENDA
FCC Chief Stresses Broadband, Video
Martin Pitches Advertisers

TELECOM
Verizon Divestiture Sparks Complaints
AT&T Plans 'Unity' Strategy for Free Calls

OWNERSHIP
No Clear-Cut Path for Tribune's Board
NBC, Citadel Propose ION Media Privatization

QUICKLY -- Executive Order on Regulatory Planning and Review; A
clear, bubbling passion for watchdog journalism; Martin Urges
Arbitration in Mediacom-Sinclair Spat; Nets need to rethink biz;
Toledo Proposes Citywide Wireless Internet; Movie Ratings get a
Much-Needed Makeover; Teens' families sue MySpace for negligence

GOVERNMENT & COMMUNICATIONS

ATTORNEY GENERAL MUM ON SPY PROGRAM COURT ORDERS
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Attorney General Alberto Gonzales' appearance before the Senate
Judiciary Committee Thursday yielded little new information about the
Bush administration's sudden revelation that it would seek court
approval for its domestic eavesdropping activities. At a Department
of Justice oversight hearing scheduled before the government
announcement on Wednesday, Committee Chairman Patrick Leahy (D-VT)
and ranking Republican Arlen Specter (PA) said they were pleased to
hear that future activities associated with a controversial National
Security Agency operation known as the Terrorist Surveillance Program
would undergo review by judges on the secret Foreign Intelligence
Surveillance Court. But many critical questions about the scope and
content of the court orders remain unanswered, committee members said.
http://news.com.com/Attorney+general+mum+on+spy+program+court+orders/210...
* Gonzales defends Bush's revised domestic spying
http://today.reuters.com/News/newsArticle.aspx?type=politicsNews&storyID...
* Senators Demand Details on New Eavesdropping Rules
http://www.nytimes.com/2007/01/19/washington/19justice.html
* Bush's Wiretap Surrender
[Commentary] Handing more life-and-death power to unelected judges.
http://online.wsj.com/article/SB116917864875981188.html?mod=todays_us_op...
* Senators press Gonzales on delay in getting court OK on surveillance
http://www.usatoday.com/printedition/news/20070119/a_gonzales19.art.htm
* Wiretap review plan is still unclear
http://www.latimes.com/news/printedition/asection/la-na-nsa19jan19,1,455...

CONGRESSIONAL AGENDA

BOUCHER: THREE TELECOM ISSUES TO RULE EARLY DEBATE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Rep Rick Boucher (D-VA) says three telecom issues will dominate the
early debate in the new Congress, topped by network neutrality, local
governments offering competitive telecommunications services, and
"encouraging broadband providers -- perhaps requiring them -- to
offer standalone DSL." He also said a merger between DirecTV and
EchoStar might make sense, while a merger between XM and Sirius
satellite radio would probably have to be pitched as a hardship case
to overcome antitrust issues. He would not comment on the
appropriateness of any possible merger. On the issue of Network
Neutrality, which he called his first priority, Rep Boucher said he
opposed a two-lane model of the Internet which could put competing
video-streaming services at a disadvantage depending on if you were
on the slow lane or the fast lane, for which networks would charge
more. He said that "places innovation at risk." Rep Boucher says the
multichannel video market is about to get very competitive with telco
entry: "I think that if a merger between these two entities were
presented today and the market were judged, not just as satellite
providers taken in isolation but as multichannel video providers
taken as a whole, including cable and telco, the analysis at Justice
and the FCC on competition grounds could be very different."
http://www.broadcastingcable.com/article/CA6408353.html?display=Breaking...

HOLD OFF ON NET NEUTRALITY
[SOURCE: Washington Post, AUTHOR: Profs David Farber and Michael Katz]
[Commentary] Network Neutrality restrictions would prohibit
practices that could increase the value of the Internet for
customers. Blocking premium pricing in the name of neutrality might
have the unintended effect of blocking the premium services from
which customers would benefit. No one would propose that the U.S.
Postal Service be prohibited from offering Express Mail because a
"fast lane" mail service is "undemocratic." Yet some current
proposals would do exactly this for Internet services. We should wait
until there is a problem before rushing to enact solutions.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/18/AR200701...
(requires registration)

KUCINICH COULD REVIVE FAIRNESS DOCTRINE
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
Rep Dennis Kucinich (D-OH) will head the Domestic Policy panel of the
House Government Reform Committee. Even before that announcement was
made, Rep. Kucinich raised some eyebrows when he told a media reform
conference in Memphis that his panel would hold hearings on reviving
the Fairness Doctrine and on media ownership issues. The Fairness
Doctrine, adopted in 1949 by the FCC and generally abandoned during
the Reagan administration in the 1980s, required stations airing
information on controversial issues of public importance to offer
contrasting points of views. From the 1970s to the early 1980s it was
interpreted as also requiring stations that presented attacks or
criticism to seek out and provide equal time for the other side. Any
plans to revive it would likely spark a major fight with
broadcasters. Recently when President Bush announced his Iraq policy
in a prime-time speech, the Democratic Party response by Illinois
Sen. Richard Durbin wasn't aired by most broadcasters. The Fairness
Doctrine could have required broadcasters to air that response. An
aide to the congressman declined to confirm plans for hearings and
specifically whether any would be held on the Fairness Doctrine. She
said that while media issues will be a high priority, it won't be the
panel's only focus.
http://www.tvweek.com/news.cms?newsId=11418
(requires free registration)

FCC AGENDA

FCC CHIEF STRESSES BROADBAND, VIDEO
[SOURCE: Technology Daily 1/17, AUTHOR: David Hatch]
FCC Chairman Kevin Martin said that his goals for 2007 are to
increase wireless, high-speed Internet access and also competition in
video services. In a news conference, he also said broadband
deployment will remain a priority. Chairman Martin further said the
Commission will impose safeguards for communications consumers when
needed, such as privacy protections, access to 911 emergency service,
and limits on the fees that wireless carriers may charge for early
termination of cellular contracts. Chairman Martin said the
commission's goal continues to be a balance as it tries to remove
regulatory barriers to spur communications competition. He said
competition can address some existing problems but added that "the
commission won't be afraid to step in when the market isn't
addressing its needs." As for the universal service fund, which
subsidizes the cost of communications systems in rural and
underserved areas, Martin said the commission needs to address both
the contribution side of the fund and receipt side. He said it would
be helpful, but not necessary, to address inter-carrier compensation
at the same time. The phrase refers to the money that service
providers pay to use each other's lines in instances like completing
long-distance telephone calls.
http://www.njtelecomupdate.com/lenya/telco/live/tb-KUGP1169148957595.html

MARTIN PITCHES ADVERTISERS
[SOURCE: Federal Communications Commission]
FCC Chairman Kevin Martin spoke at the Association of National
Advertisers Advertising Law and Business Affairs Conference Thursday.
He repeated his calls for media companies, both broadcasters and
cable operators, to provide parents with more tools to help them
navigate the entertainment waters, particularly when it comes to
television. He asked for a return of the "family hour" on broadcast
TV and again made a pitch for "a la carte" pricing for pay TV
services. He made three points in favor of a la carte: "1) Providing
cable channels on a more a la carte basis would decrease the
uncertainty for advertisers and their clients about the viewership of
smaller cable networks not covered or not accurately covered by
Nielson. A la carte sales provide a much more accurate proxy for
viewership than sales of the large tier of which the small network is
currently one component. 2) If television programming is purchased a
la carte, advertisers on a particular channel will know more about
the characteristics of their potential audience. Knowing more about
the types of consumers that are watching a particular channel means
advertisers could target ads to the demographic composition of the
audience more effectively. 3) I do not believe overall television
viewing would decline -- and therefore advertisers would not be
harmed -- if consumers had more choice."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269594A1.doc
* Martin Pitches A La Carte to Advertisers
http://www.broadcastingcable.com/article/CA6408373?title=Article&spacede...

TELECOM

VERIZON DIVESTITURE SPARKS COMPLAINTS
[SOURCE: Technology Daily 1/17, AUTHOR: David Hatch]
Communications Workers of America President Larry Cohen on Wednesday
harshly criticized Verizon Communications for spinning off its
wireline operations in Maine, New Hampshire and Vermont and selling
them to FairPoint Communications. "They're really relegating those
states to the basement in terms of the Internet," he told reporters
during a teleconference. CWA is worried that FairPoint, which mostly
serves rural areas, does not have the capital for large-scale
investment in high-speed bandwidth. Verizon announced the deal with
FairPoint on Tuesday. Cohen complained that there is no public policy
to prevent Verizon and other large players from essentially
abandoning high-cost telecom lines in rural areas that are expensive
to upgrade. As a result, Verizon is sending the message that it's
"only about markets," he said, adding that the carrier is exploiting
the opportunity to "dump the lines, dump the customers" and rid
itself of rural obligations. CWA's members include employees at
Verizon, which Cohen acknowledged is "probably not going to be
delighted by our position." He made his remarks as Democratic
lawmakers prepare to boost FCC oversight with hearings next month in
both chambers. Congress also plans to take a fresh stab at
overhauling the nation's telecommunications laws later this year.
http://www.njtelecomupdate.com/lenya/telco/live/tb-WSWA1169154894146.html
* See "CWA Has Hard Questions about Verizon New England Deal"
http://www.cwa-union.org/news/cwa-netnewscast/page.jsp?itemID=28211246

AT&T PLANS 'UNITY STRATEGY FOR FREE CALLS
[SOURCE: New York Times, AUTHOR: Laurie Flynn]
Only weeks after closing its deal for BellSouth, AT&T is embarking on
an ambitious strategy to show customers the benefit of its owning 100
million phone lines. In an announcement expected today, AT&T will
introduce AT&T Unity, a pricing package that allows its cellular
customers to call any AT&T landline customer without incurring
additional usage fees or using their wireless minutes. While AT&T
wireless customers can already call each other free, the new plan
will extend the program on a large scale to landline customers,
enlarging what AT&T likes to call its "community."
http://www.nytimes.com/2007/01/19/business/19phone.html
(requires registration)

OWNERSHIP

NO CLEAR-CUT PATH FOR TRIBUNE'S BOARD
[SOURCE: New York Times, AUTHOR: Geraldine Fabrikant & Katharine Seelye]
When members of the Tribune Company board assemble this weekend to
review bids for the company, they will have a lot to consider but not
much to be happy about. The company received at least two firm bids
by Wednesday's deadline, one from the Los Angeles team of Eli Broad
and Ronald W. Burkle, and another from the Chandler family, the
company's largest shareholder. A third potential bidder, the Carlyle
Group, has expressed interest but only in Tribune's television group.
The company also owns 11 papers, including The Los Angeles Times.
None of the offers, made on Wednesday, had enough clout or sizzle to
generate much investor interest. Indeed, the offers from the
Chandlers and particularly from the Broad-Burkle team left investors
and analysts more confused than anything else. In one way, the result
of the auction could relieve some of the pressure on the company to
act because both bids came in so low.
http://www.nytimes.com/2007/01/19/business/media/19tribune.html
(requires registration)
* Tribune Bids Make Old Offer Look Sweet
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/18/AR200701...
* Tribune Bidders Chart Three Divergent Paths
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/18/AR200701...
* Two groups bid for media titan
http://www.usatoday.com/printedition/money/20070119/tribune19.art.htm
* Tribune board's difficult choice
http://www.latimes.com/business/printedition/la-fi-tribune19jan19,1,3527...

NBC, CITADEL PROPOSE ION MEDIA PRIVATIZATION
[SOURCE: Wall Street Journal]
NBC Universal and private-equity firm Citadel Investment Group
proposed a tender offer for ION Media Networks shares that would take
ION private. Under the agreement, valued at about $70.5 million,
Citadel would pay $1.41 for each ION share. Shares of the network
broadcaster, formerly known as Paxson Communications, climbed 40
cents, or 65%, to $1.02 as of 4 p.m. in American Stock Exchange
composite trading. A successful offer would give NBC Universal and
Citadel each about a 50% stake in ION, although NBC Universal
wouldn't have any voting control or appoint any board members. NBC
Universal currently has preferred stock in ION equal to about an 80%
ownership stake if converted into common shares, but it is prohibited
from exercising control over ION because of federal regulations
regarding TV-station ownership.
http://online.wsj.com/article/SB116918205493881333.html?mod=todays_us_ma...
(requires subscription)

QUICKLY

EXECUTIVE ORDER ON REGULATORY PLANNING AND REVIEW
[SOURCE: White House]
On Thursday, President Bush amended a Clinton-era Executive Order
(12866) on regulatory planning. The biggest change may be in
rewriting a section to read: "Each agency shall identify in writing
the specific market failure (such as externalities, market power,
lack of information) or other specific problem that it intends to
address (including, where applicable, the failures of public
institutions) that warrant new agency action, as well as assess the
significance of that problem, to enable assessment of whether any new
regulation is warranted." Originally that section read: "Each agency
shall identify the problem that it intends to address (including,
where applicable, the failures of private markets or public
institutions that warrant new agency action) as well as assess the
significance of that problem."
http://www.whitehouse.gov/news/releases/2007/01/20070118.html
* See the original Order at
http://govinfo.library.unt.edu/npr/library/direct/orders/2646.html

A CLEAR, BUBBLING PASSION FOR WATCHDOG JOURNALISM
[SOURCE: Seattle Times, AUTHOR: Editorial Staff]
[Commentary] Big corporations have been mistrusted since the heyday
of steel and rails. The wariness of large companies continued through
the oil and telephone industries. Media companies are the modern-day
standard. The National Conference for Media Reform has become the
place to channel efforts to break the media giants down to a human
scale. Hopefully, the Free Press will be able to build off such
momentum. It will be needed as the Federal Communications Commission
considers whether to loosen ownership restrictions on the press and
Congress weighs a much-needed network-neutrality law.
http://seattletimes.nwsource.com/html/editorialsopinion/2003529572_confe...

MARTIN URGES ARBITRATION IN MEDIACOM-SINCLAIR SPAT
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Federal Communications Commission Chairman Kevin Martin said
Wednesday that he supports binding arbitration to end the bitter
carriage dispute between Sinclair Broadcast Group and Mediacom Communications.
http://www.multichannel.com/article/CA6408350.html?display=Breaking+News

NETS NEED TO RETHINK BIZ
[SOURCE: Hollywood Reporter, AUTHOR: Kimberly Nordyke]
Comcast Entertainment Group president and CEO Ted Harbert told NATPE
attendees that the broadcast networks need to rethink their
traditional programming model. He pointed out that the networks are
spending hundreds of millions of dollars to make pilots that will be
presented as short clips to advertisers at the spring upfronts even
though "we know that buyers don't buy off clips, they have to watch
the shows." Harbert, who oversees E! Entertainment Television, Style
Network and G4, called it "silly" to keep working to fill a 22-hour
primetime schedule, saying that broadcast should take a page from
cable's book when it comes to scheduling. "There's no rule that says
they need to make that much television. We'll take a show and put it
on Sunday night and (repeat it) Tuesday night and Thursday night --
we call ourselves auto-TiVo: If you don't see it Sunday, you can see
it Thursday," he said. "A few broadcast networks are doing that,
taking Saturday night and repeating dramas, and people say, 'How can
you do that?' But they have to -- they aren't making money. (CBS
Corp.'s) Les (Moonves) is the only guy making money."
http://www.hollywoodreporter.com/hr/content_display/news/e3i331bb2483795...

TOLEDO PROPOSES CITYWIDE WIRELESS INTERNET
[SOURCE: Toledo Blade, AUTHOR: Tom Troy]
The city of Toledo could become the first major city in Ohio to have
wireless Internet access citywide under a proposal presented by Mayor
Carty Finkbeiner.
http://toledoblade.com/apps/pbcs.dll/article?AID=/20070118/NEWS16/701180...

MOVIE RATINGS GET MUCH-NEEDED MAKEOVER
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
[Commentary] The MPAA and the theater owners are taking the right
first steps by trying to improve the consistency and predictability
of the ratings.
http://www.latimes.com/news/printedition/opinion/la-ed-mpaa19jan19,1,749...
(requires registration)
See also --
* Reforms for Movie Ratings
http://www.nytimes.com/2007/01/19/opinion/19fri4.html

TEEN'S FAMILIES SUE MYSPACE FOR NEGLIGENCE
[SOURCE: Reuters]
The families of five teenaged girls who were sexually assaulted by
predators they met on MySpace, the popular Internet social network,
have sued owner News Corp. for negligence and fraud.
http://today.reuters.com/News/newsArticle.aspx?type=internetNews&storyID...
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...and we are outta here. Have a great weekend; consider sleeping in tomorrow.
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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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