January 2007

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

CONGRESSIONAL AGENDA
Net-Neutrality Bill Introduced
House Passes Bill to Implement More of 9/11 Panel's Suggestions
Tauke: Big Telecom Bill Unlikely in 2007-08
Congress off to Slow Start with Tech
Dingell Gives Up Investigations Chairmanship

TELECOM
AT&T Rivals Contest Merger Rule's Impact
Venezuelan Plan Shakes Investors

DIGITAL CONTENT
Digital Media: The Next Frontier for Media Reform
Electronics Guru Takes Stand For Copyright Reform
Broadband video-to-TV trend seen roiling business models

POLICYMAKERS
Tomlinson, Broadcast Board Chairman Asks for Replacement
CPB, BBG Nominations

QUICKLY -- The media aren't the enemy in Iraq;=20
Newspapers Set To Jointly Sell Ads on Web Sites;=20
Diversity Hiring Returns as Topic in '07 for Ad=20
Industry; What News Was 1/31-1/5

CONGRESSIONAL AGENDA

NET-NEUTRALITY BILL INTRODUCED
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Sens. Byron Dorgan (D-ND) and Olympia Snowe=20
(R-Maine) introduced a bipartisan bill Tuesday=20
that would ban cable operators, phone companies=20
and other providers of broadband Internet access=20
from engaging in discriminatory management of=20
their networks to the commercial disadvantage of=20
Web-based providers of content and applications.=20
The Dorgan-Snowe bill resumes the so-called=20
network-neutrality debate after major=20
telecommunications legislation collapsed in the=20
Senate last year over whether it was necessary to=20
protect Internet giants like Microsoft, Google,=20
Yahoo! and eBay and their customers from=20
potentially discriminatory conduct, such as the=20
intentional blocking or slowdown of unaffiliated=20
services that hadn't paid to use additional=20
network capacity. Such discrimination would=20
=93fundamentally change the way the Internet has=20
operated and threatens to derail the democratic=20
nature of the Internet,=94 Sen Dorgan said in a=20
prepared statement with Sen Snowe. Sens Dorgan=20
and Snowe said the bill would require broadband=20
providers to "operate the network in a=20
nondiscriminatory manner, but [they] would remain=20
free to manage the network to protect the=20
security of the network or to offer different=20
levels of broadband connection to users." In=20
another provision, the bill would mandate that=20
consumers have the right to purchase a=20
"stand-alone broadband connection that is not=20
bundled with cable, phone or=20
voice-over-Internet-protocol service." In=20
addition to Dorgan and Snowe, co-sponsors include=20
Sens John Kerry (D-MA), Barbara Boxer (D-CA), Tom=20
Harkin (D-IA), Patrick Leahy (D-VT), Hillary=20
Clinton (D-NY), and Barack Obama (D-IL).
http://www.multichannel.com/article/CA6405766.html?display=3DBreaking+News
* Read the bill: http://dorgan.senate.gov/documents/newsroom/net_neutrality=
.pdf
* See Dorgan/Snowe press release:=20
http://dorgan.senate.gov/newsroom/record.cfm?id=3D267332
* Dorgan, Snowe Introduce Net Neutrality Bill
http://www.broadcastingcable.com/article/CA6405757?title=3DArticle&space...
c=3Dnews
* Net neutrality proposal revived in Senate
http://news.com.com/Net+neutrality+proposal+revived+in+Senate/2100-1028_...
148751.html?tag=3Dnefd.top
* Congress to Take Up Net=92s Future
http://www.nytimes.com/2007/01/10/washington/10net.html

Reaction --
* Free Press/Consumers Union/Consumer Federation of America
"We applaud Senators Dorgan and Snowe for=20
reigniting the essential Net Neutrality debate on=20
Capitol Hill. Their continuing commitment will=20
help make competitive and affordable broadband=20
services a central issue in the 110th Congress.=20
Our elected officials now must act to keep the=20
Internet free of gatekeepers who would destroy=20
this revolutionary platform for free speech and=20
economic innovation. The American public has an=20
overwhelming interest in seeing this bill pass=20
into law, ensuring that the online marketplace of=20
ideas remains open and vibrant."
http://www.freepress.net/press/release.php?id=3D199
* Common Cause
"The Internet has revolutionized citizen=20
engagement in their democracy,=94 Pingree said.=20
=93Millions of Americans go online to get political=20
news, to engage with candidates=92 campaigns, and=20
to communicate with their elected leaders. This=20
revolution was able to happen because of net=20
neutrality, one of the Internet=92s longest=20
standing principles. Net neutrality ensures that=20
our Internet will remain open, free and competitive -- and must be preserve=
d."
* AT&T
"We continue to believe that net-neutrality=20
regulations are unwarranted and remain hopeful=20
that lawmakers will pivot their efforts toward=20
support of a national priority to deploy more=20
advanced broadband to more Americans more quickly."
* Verizon
"Net Neutrality =AD better named Net Regulation =AD=20
is trying to solve a problem that doesn't exist."
* National Cable & Telecommunications Association
"We continue to believe that regulation of the=20
Internet is unnecessary and will only stifle the=20
investment, innovation and creativity that has=20
been the hallmark of today's dynamic broadband marketplace."
http://www.ncta.com/ContentView.aspx?hidenavlink=3Dtrue&type=3Dreltyp2&c...
entId=3D3765
* Hands Off the Internet
"It=92s disappointing that Sens. Snowe and Dorgan=20
would introduce essentially the same bill to=20
regulate the Internet that went down to such=20
decisive defeat in Congress last June."
* FreedomWorks
"Common sense tells us that if it ain=92t broke don't fix it."

HOUSE PASSES BILL TO IMPLEMENT MORE 9/11 PANEL'S SUGGESTIONS
[SOURCE: Washington Post, AUTHOR: Spencer S. Hsu]
In a lopsided vote that masked underlying=20
divisions, House Democrats approved legislation=20
yesterday to implement many of the remaining=20
recommendations of the Sept. 11 commission even=20
as portions of the sprawling package faced=20
immediate problems in the Senate. Voting 299 to=20
128, congressional Democrats, backed by scores of=20
Republicans, delivered on a key part of their=20
"100 hours" agenda. The nearly 300-page=20
anti-terrorism measure sets new mandates to=20
scrutinize air- and ship-borne cargo, send more=20
federal aid to areas at the greatest risk of=20
terrorism, improve emergency communications,=20
fight nuclear proliferation overseas, and=20
strengthen a civil liberties watchdog board.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/09/AR200701...
1064.html
(requires registration)
* House votes to enact more 9/11 panel points
http://www.latimes.com/news/printedition/asection/la-na-homeland10jan10,...
39481.story?coll=3Dla-news-a_section
* The Future White House Counselor as 9/11 Panelist
Fred F. Fielding, who President Bush named as=20
White House counselor on Monday, served on the Sept 11 commission.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/09/AR200701...
1498.html
* Yes, we can be safer
http://www.usatoday.com/printedition/news/20070110/oppose10.art.htm

TAUKE: BIG TELECOM BILL UNLIKELY IN 2007-08
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
"I frankly think it is unlikely that there will=20
be a telecom act. There may be some narrower=20
measures that move through, but I don't see the=20
dynamics in place for a comprehensive telecom=20
bill," Verizon executive vice president of public=20
affairs, policy and communications Tom Tauke said=20
on a panel at the International Consumer=20
Electronics Show. Verizon, he said, was in a=20
better position today than one year ago, when it=20
was pursuing a telecommunications bill, because=20
several states had enacted statewide cable=20
franchising and the Federal Communications=20
Commission adopted rules giving local cable=20
regulators just 90 days to act on Verizon's=20
cable-entry applications. "There is no compelling=20
issue, no compelling need for a communications=20
reform," he added. Amazon.com VP of global public=20
policy Paul Misener disagreed, predicting that a=20
bill would pass with Internet-nondiscrimination=20
provisions as the centerpiece of the legislation.
http://www.multichannel.com/article/CA6406011.html?display=3DBreaking+News

CONGRESS OFF TO SLOW START WITH TECH
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
When newly empowered Democrats in the U.S. House=20
of Representatives launch into their much-touted=20
100-hours agenda on Tuesday, don't expect to see=20
much in the way of issues important to the=20
high-tech industry. Elevating the minimum wage,=20
urging stem-cell research, and ushering in lower=20
prescription drug prices are on the initial=20
calendar. But hot-button topics such as rewriting=20
patent law, encouraging broadband availability,=20
protecting Net neutrality, and upping the skilled=20
worker visas so beloved by high-tech companies=20
aren't foremost priorities yet. The issues' early=20
absence shouldn't be taken as a sign of things to come, Democratic aides sa=
id.
http://news.com.com/Congress+off+to+slow+start+with+tech/2100-1028_3-614...
2.html?tag=3Dhtml.alert

DINGELL GIVES UP INVESTIGATIONS CHAIRMANSHIP
[SOURCE: US News & World Reports, AUTHOR: Danielle Knight]
Because of past changes in Democratic Caucus=20
rules, one of the House's warhorses, Rep. John=20
Dingell (D-MI), chair of the House Commerce=20
Committee, will not head the subcommittee on=20
oversight and investigations, which had been one=20
of his passions when he led the full panel for 14=20
years in the 1980s and early 1990s. Instead, Rep=20
Dingell is backing Rep. Bart Stupak (D-MI), who=20
was ranking member on the oversight subcommittee=20
last Congress. Rep Stupak will likely be ratified=20
as subcommittee chair this week. There was=20
speculation that Rep Dingell might again chair=20
both the committee and subcommittee at the same=20
time, as he did from 1981 to 1995. But in 1994=20
Democrats changed their rules and prohibited=20
lawmakers from chairing both the main committee=20
and the subcommittees in order to discourage=20
lawmakers from monopolizing too much power. Rep=20
Dingell was well known for his thorough=20
investigations and his infamous Dingell-grams,=20
which requested detailed information from=20
agencies on environmental and energy polices, among other things.
http://www.usnews.com/usnews/news/articles/070108/8dingell.htm?s_cid=3Dr...
site1

TELECOM

AT&T RIVALS CONTEST MERGER RULE'S IMPACT
[SOURCE: Technology Daily 1/5, AUTHOR: David Hatch]
As the dust settles on the FCC's approval of the=20
AT&T, BellSouth merger, some large and mid-sized=20
local telephone competitors to the company are=20
complaining that one condition imposes "backdoor"=20
requirements on them. At issue is a restriction=20
stipulating that the new AT&T reduce its=20
special-access rates, the discounted fees it=20
offers wholesale business customers. In order for=20
companies such as Qwest Communications=20
International and Verizon Communications to take=20
advantage of the discounts, they must offer=20
similar services at the same reduced fees as=20
AT&T, according to the condition. "Any effort by=20
AT&T, BellSouth to bind the commission to accept=20
its proposed discriminatory tariff is null, void=20
and to no effect," Robert Connelly, the vice=20
president and deputy general counsel at Qwest,=20
wrote in a Jan. 4 letter to the agency. He=20
threatened possible legal action, stating that if=20
the new AT&T files a "discriminatory" tariff for=20
special access rates, "legal processes can=20
prevent the illegal conduct from actually coming=20
to fruition." A source noted that impacted=20
companies have several options. They can appeal=20
the soon-to-be-released merger order at the FCC=20
or in federal court, or challenge tariff changes=20
that the merged company will file with the agency.
http://www.njtelecomupdate.com/lenya/telco/live/tb-EEHK1168372952775.html

VENEZUELAN PLAN SHAKES INVESTORS
[SOURCE: New York Times, AUTHOR: Simon Romero and Clifford Krauss]
Verizon Communications had been looking to=20
lighten its exposure to Latin America for some=20
time when it struck a deal in April to sell=20
investments in three properties in Puerto Rico,=20
the Dominican Republic and Venezuela. Now, it=20
probably wishes it had disconnected its Latin=20
lines even sooner. The company could possibly=20
lose up to several hundred million dollars,=20
thanks to President Hugo Ch=E1vez of Venezuela, who=20
threatened to nationalize the country=92s main=20
telephone and electricity companies. Investors=20
reacted with alarm here and in markets in the=20
United States and throughout Latin America on=20
Tuesday as they measured the impact of the plan=20
by Mr. Ch=E1vez to nationalize crucial areas of the=20
economy. Memories of past nationalizations during=20
another turbulent era, in places like Cuba and=20
Chile, helped drive down the Caracas stock=20
exchange=92s main index by almost 19 percent.
http://www.nytimes.com/2007/01/10/business/worldbusiness/10venezuela.html
(requires registration)
* Venezuela Inc.=92s Hostile Takeover
[SOURCE: New York Times, AUTHOR: Editorial Staff]
President Hugo Ch=E1vez of Venezuela -- the very=20
portrait of a modern Latin American strongman --=20
is not content to exercise near-total political=20
and military control of his country. Now he is=20
tightening his grip on the Venezuelan economy.=20
That=92s bad news for foreign investors, but even=20
more so for the Venezuelan people who will have=20
to pay the price for an economy plagued by=20
increasing inefficiency and corruption.
http://www.nytimes.com/2007/01/10/opinion/10wed2.html
(requires registration)
* Chavez's Economic Plans Set Latin Markets Reeling
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/09/AR200701...
1717.html
* Venezuela's Leap Backward
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/09/AR200701...
1456.html
* Venezuelan stocks dive after Chavez calls for nationalization
http://www.usatoday.com/printedition/money/20070110/venezeula10.art.htm

DIGITAL CONTENT

DIGITAL MEDIA: THE NEXT FRONTIER FOR MEDIA REFORM
[SOURCE: AlterNet, AUTHOR: Jeff Chester, Center for Digital Democracy]
[Commentary] On Friday, several thousand U.S.=20
media activists will converge in Memphis to=20
attend the Free Press group's "National=20
Conference for Media Reform." Much of the=20
conference is focused on current and upcoming=20
public policy battles designed to help make this=20
country's media system more democratic. Right now=20
there is greater interest in media policy than we=20
have seen since the 1960s. Among the key concerns=20
is fighting against the Federal Communications=20
Commission's current plan to permit greater=20
consolidation of our nation's newspapers and=20
broadcast stations; battling Congress over the=20
broadband Internet (network neutrality); and=20
highlighting the lack of ownership of media=20
outlets by women and people of color. These are=20
important topics, but the real action it requires=20
must take place outside of the D.C. beltway. Our=20
most urgent task is to proactively intervene to=20
shape -- on behalf of progressive values -- the=20
emerging commercial digital communications=20
system. This will require a strategic=20
intervention to create sustainable "new media"=20
services that help harness the power of digital=20
media to better promote social justice. Our=20
digital media system will have the capability to=20
help "define" political and social "reality" for=20
the majority of Americans. Unless progressives=20
can seriously "program" the new media -- in every=20
community and across the nation -- we will face=20
even greater obstacles promoting our agendas.
http://www.alternet.org/mediaculture/46504/

ELECTRONICS GURU TAKES STAND FOR COPYRIGHT REFORM
[SOURCE: Technology Daily 1/8, AUTHOR: Andrew Noyes]
The dean of the consumer electronics sector, Gary=20
Shapiro, used his opening keynote at the Consumer=20
Electronics Show on Monday to promote "fair use"=20
of copyrighted content for technology users and=20
the Digital Freedom campaign that he helped=20
launch last year. The initiative to oppose=20
"crippling restrictions" on individuals'=20
technology rights, unveiled in October, was met=20
with opposition from the content industry. The=20
project has a major presence at CES this week.=20
For two decades, Shapiro and his team have fought=20
legislative proposals that would "restrict, tax,=20
ban and hobble" technologies, he said. Those=20
efforts have been successful, but innovators=20
still face "debilitating lawsuits" as consumers=20
and venture capitalists remain worried about the=20
legal limits of new products and services, he said.
http://www.njtelecomupdate.com/lenya/telco/live/tb-NPMN1168373148302.html

BROADBAND VIDEO-TO-TV TREND SEEN ROILING BUSINESS MODELS
[SOURCE: Reuters, AUTHOR: Kenneth Li]
A wave of new technologies that link home=20
computers to televisions could threaten=20
traditional media distribution methods as=20
consumer interest in online video entertainment=20
continues to grow. At the Consumer Electronics=20
Show in Las Vegas this week, electronics=20
manufacturers from Sony Corp. to start-ups such=20
as Sling Media unveiled a raft of new products to=20
allow consumers to play Internet videos, or media=20
files stored on PCs, directly on their TV=20
screens. Bridging that PC-to-TV gap would open up=20
new distribution potential for media content=20
providers, but would also challenge traditional=20
distribution channels and strategies, such as=20
cable TV's much-vaunted video on demand services.
http://today.reuters.com/News/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2007-01-09T221854Z_01_N09261865_RTRUKOC_0_US-ELECTRONICS-SHOW-PCTV.xml&=
WTmodLoc=3DTechNewsHome_C2_technologyNews-1

POLICYMAKERS

BROADCAST BOARD CHAIRMAN ASKS FOR REPLACEMENT
[SOURCE: Washington Post, AUTHOR: Paul Farhi]
The chairman of the agency that oversees Voice of=20
America and other government broadcasts to=20
foreign countries said yesterday he would not=20
seek renomination, likely ending a series of=20
ethical controversies that have clouded his=20
tenure. Kenneth Y. Tomlinson asked President Bush=20
not to submit his name for reconfirmation as=20
chairman of the Broadcasting Board of Governors,=20
which runs VOA, Radio Free Europe and Alhurra,=20
the pan-Arabic satellite TV channel funded by the=20
United States. "I have concluded that it would be=20
far more constructive to write a book on my=20
experiences rather than to seek to continue=20
government service," Tomlinson wrote.=20
"Accordingly, I ask that you nominate another=20
person to serve as chairman of this board." The=20
letter was something of a formality. With the=20
Democrats controlling the Senate, Tomlinson -- a=20
longtime Republican colleague of White House=20
adviser Karl Rove -- would have faced long odds=20
of confirmation. He has been under fire at least=20
twice in the past 18 months for his performance in two appointed jobs.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/09/AR200701...
1491.html
(requires registration)

CPB, BBG NOMINATIONS
[SOURCE: White House]
President Bush has requested the Senate confirm=20
two recent recess appointments to full terms --=20
Warren Bell, of California, to be a Member of the=20
Board of Directors of the Corporation for Public=20
Broadcasting for a term expiring January 31, 2012=20
and Mark McKinnon, of Texas, to be a Member of=20
the Broadcasting Board of Governors for a term=20
expiring August 13, 2009. The President has also=20
renominated D. Jeffrey Hirschberg, of Wisconsin,=20
to be a Member of the Broadcasting Board of=20
Governors for a term expiring August 13, 2007. (Reappointment)
http://www.whitehouse.gov/news/releases/2007/01/20070109-5.html

QUICKLY

THE MEDIA AREN'T THE ENEMY IN IRAQ
[SOURCE: Los Angeles Times, AUTHOR: Max Boot]
[Commentary] If we wind up losing the war in=20
Iraq, as now appears likely (though not=20
inevitable), many conservatives know who to=20
blame: the press, or, in blogger-speak, the MSM=20
(mainstream news media). Just as it did during=20
the Vietnam War, a myth is likely to develop in=20
which America's valiant fighting men and women=20
were stabbed in the back by unpatriotic, even=20
treasonous, reporters. If you wanted to figure=20
out what was happening over the last four years,=20
you would have been infinitely better off paying=20
attention to their writing than to what the=20
president or his top generals were saying. If we=20
fail to achieve our goals in Iraq -- which the=20
administration defines as a "unified, stable,=20
democratic and secure nation" -- it won't be the=20
fault of the ink-stained wretches or even their=20
blow-dried TV counterparts. To argue otherwise=20
deflects blame from those who deserve it, in the=20
upper echelons of the administration and the=20
armed forces. Perhaps that's the point.
http://www.latimes.com/news/printedition/asection/la-oe-boot10jan10,1,43...
64.column?coll=3Dla-news-a_section
(requires registration)

NEWSPAPERS SET TO JOINTLY SELL ADS ON WEB SITES
[SOURCE: Wall Street Journal, AUTHOR: Julia Angwin julia.angwin( at )wsj.com]
The nation's three largest newspaper publishers=20
are gearing up to sell advertising jointly on=20
their newspapers' Web sites, believing their=20
survival depends on seizing new online revenue.=20
Gannett Co., McClatchy Co. and Tribune Co. are=20
planning to offer advertisers one-stop shopping=20
for display ads on Internet sites. The goal is to=20
attract big advertisers such as car makers and=20
phone companies that want to reach a nationwide=20
online audience but don't want the hassle of=20
negotiating ad deals with each company or=20
newspaper. The joint effort, code-named "Open=20
Network," marks a big new bid to win back=20
advertisers that are defecting in droves to the=20
Web. Currently, national advertisers buy the bulk=20
of their online display ads -- banners and boxes=20
-- from big portals such as Yahoo Inc., Time=20
Warner Inc.'s AOL or Microsoft Corp.'s MSN. Yahoo=20
has announced plans to work with seven other=20
newspaper publishers to build a similar=20
one-stop-shopping spot for advertisers. Google=20
Inc. has also reaped a bonanza with advertising=20
links that appear next to search results. The=20
three newspaper companies, known in the industry=20
as GMT, are likely to each contribute 10% of=20
their online-advertising space to the network,=20
according to people familiar with the situation.=20
They hope to announce something early this year,=20
although the deal isn't finalized and could still fall apart.
http://online.wsj.com/article/SB116840247170572327.html?mod=3Dtodays_us_...
e_one
(requires subscription)

DIVERSITY HIRING RETURNS AS TOPIC IN '07 FOR AD INDUSTRY
[SOURCE: AdAge, AUTHOR: Lisa Sanders]
The advertising industry can add Democratic=20
politicians and civil rights leaders, along with=20
the New York City Commission on Human Rights, to=20
those scrutinizing its efforts to diversify its=20
work force and use more minority-owned suppliers.
http://adage.com/article?article_id=3D114175

WHAT NEWS WAS 1/31-1/5
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
The changing of the political guard in=20
Washington, the death of a president and the=20
hanging of a dictator were enough to overshadow=20
the war in Iraq in the American news media last=20
week, according to the inaugural edition of the=20
PEJ News Coverage Index. In the first week of=20
2007=97December 31 to January 5=97the top story was=20
the official takeover by new Democratic=20
Congressional leadership, which made up 15% of=20
the overall newshole. That was followed by the=20
death and state funeral of Gerald R. Ford (12%).=20
The debate over U.S. Iraq policy finished third=20
at 9%. By week=92s end, it edged out the execution=20
of Saddam Hussein at 8%, a story made bigger by=20
the subsequent fallout over the taunting by his=20
guards. Events on the ground in Iraq was the=20
fifth biggest story at 4%, dominated by the=20
announcement that the U.S. death toll had passed=20
the 3,000 mark. In another week, that grim=20
milestone by itself might have pushed the=20
bloodshed in Iraq toward the top of the list.=20
That busy news agenda was also enough to knock=20
off the list what otherwise might have been top=20
stories, such as the snowstorm in the Rockies and=20
the Ethiopian military assault on Islamists in=20
Somalia, an event with far-reaching implications=20
for U.S. policy. Somalia made the top-five list=20
only online, and the snowstorm only on network TV.
http://www.journalism.org/node/3563
--------------------------------------------------------------
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.
--------------------------------------------------------------