January 2007

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POLICYMAKERS
Martin Promises Localism Study Before Ownership Moves
Congress to Take a Close Look at FCC
Davis: Congress Might Spend More on Converter Boxes
Sununu Preparing Bill on FCC Tech Mandates
Martin names New Media & International Bureau Chiefs
Bloomberg says Law Hurts Emergency Radio Efforts

GOVERNMENT & COMMUNICATIONS
House Bill Backs Additional Reforms From 9/11 Report
Government: Out of our mail
Ch=E1vez Moves to Nationalize Telecommunications
Reins Off, French Retailers Rush to Buy TV Time
Stern Likes His New Censor: Himself

MEDIA OWNERSHIP
White knights for red-ink media

BROADCASTING
PTC Takes Closer Look at Violence
NAB Fields DTV Public Education Team

QUICKLY -- Mediacom Requests a Second Look from=20
FCC; Sprint Nextel to Lay Off 5,000 Workers;=20
Revolving Door Offers Info on Lobbying &=20
Government Service; Phone companies in Brazil=20
blocking YouTube; Tribune Foundation Gives Out $187,500 in Journalism Grants

POLICYMAKERS

MARTIN PROMISES LOCALISM STUDY BEFORE OWNERSHIP MOVES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
FCC Chairman Kevin Martin has told a group of=20
Senate Commerce Committee members that the FCC=20
will complete its localism proceeding and release=20
a report before completing its court- and=20
congressionally mandated review of media=20
ownership rules. Chairman Martin said after the=20
media ownership review was launched on June 21 of=20
last year that he would incorporate the localism=20
proceeding "fully" into the "record" of the=20
ownership proceeding. But legislators were=20
worried that meant only the comments submitted so=20
far rather than continuing on with the separate=20
proceeding to conclusion and a report. Chairman=20
Martin said the localism proceeding would not be=20
consolidated into the other proceeding, but that=20
summaries of comments and testimony would and, in=20
any event, the proceeding's results would precede=20
any action on new media ownership rules. In=20
response to a letter from Senators, Chairman=20
Martin also said that "all" relevant reports and=20
drafts of media ownership-related studies=20
"identified by the commission staff" had now been=20
posted on the FCC's Web Site. Lawyers for the=20
Institute for Public Representation might take=20
issue with that characterization. In the FCC's=20
response to a FOIA request for all ownership=20
studies and drafts, the FCC said it was not=20
releasing two studies "which provide an overview=20
of the record developed to date in the localism=20
proceeding," invoking the deliberative process=20
privilege. The localism proceeding was opened by=20
former FCC Chairman Michael Powell in 2003.
http://www.broadcastingcable.com/article/CA6405574?display=3DBreaking+News
* FCC Agrees to Complete Localism Study
http://www.tvnewsday.com/link/?id=3D9409
(requires free registration)

CONGRESS TO TAKE A CLOSE LOOK AT FCC
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Senate Commerce Committee has scheduled an=20
FCC oversight hearing among its first three of=20
the new Congress. The full-committee hearing will=20
be February 1, 2007 at 10 a.m. The House Commerce=20
Committee also plans to take a hard look at the=20
FCC, according to one member of the new Democratic majority there.
http://www.broadcastingcable.com/article/CA6405430.html?display=3DBreaki...
News
* See Senate Commerce Committee press release:
http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.D...
il&PressRelease_id=3D248715&Month=3D1&Year=3D2007

DAVIS: CONGRESS MIGHT SPEND MORE ON CONVERTER BOXES
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
The new Democratic Congress might "double or=20
triple" the $1.5 billion already earmarked to=20
assist consumers who want to purchase converter=20
boxes to keep analog-TV sets running after=20
completion of the government-mandated transition=20
to digital-broadcast TV Feb. 17, 2009, Rep. Tom=20
Davis (R-VA) said Monday at the 40th=20
International Consumer Electronics Show.=20
Increasing spending on converter boxes could cut=20
into the $10 billion in revenue expected from the=20
auction of 60 megahertz of spectrum that analog=20
TV stations are expected to surrender after going to all-digital transmissi=
on.
http://www.multichannel.com/article/CA6405492.html?display=3DBreaking+News

SUNUNU PREPARING BILL ON FCC TECH MANDATES
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Sen. John Sununu (R-NH) is preparing legislation=20
that would ban the Federal Communications=20
Commission from imposing technology mandates on=20
media and telecommunications companies under the=20
agency's jurisdiction. Sen Sununu, who didn't say=20
when he would unveil the bill, said in a prepared=20
statement Monday that it would mirror an=20
amendment he placed in a Senate=20
telecommunications bill that died last year over=20
the scope of regulatory protections for Google,=20
Yahoo! and eBay in the face of discriminatory=20
conduct by providers of high-speed-Internet=20
access, such as cable and phone companies. In the=20
statement, Sen Sununu didn't say whether his=20
legislation would stop the FCC from ordering=20
cable companies to rely on the CableCARD in all=20
newly issued set-top boxes after July 1. He did=20
say that the ban would apply to the broadcast=20
flag, an anti-piracy technology for over-the-air=20
digital television. A federal court struck down the FCC's broadcast-flag ru=
les.
http://www.multichannel.com/article/CA6405159.html?display=3DBreaking+News

MARTIN NAMES NEW MEDIA & INTERNATIONAL BUREAU CHIEFS
[SOURCE: Federal Communications Commission]
Federal Communications Commission Chairman Kevin=20
Martin announced his intention to appoint Monica=20
Desai as the Media Bureau Chief, Helen Domenici=20
as the International Bureau Chief and Donna Gregg=20
will serve as Senior Policy Advisor to the=20
Ambassador, United States Representative to the=20
World Radiocommunication Conference. 1) Monica=20
Shah Desai has served as chief of the Consumer=20
and Governmental Affairs Bureau since April=20
2005. She has worked at the Commission since=20
1999 in a variety of capacities. She previously=20
served as an interim legal advisor to then=20
Commissioner Martin on spectrum and international=20
issues, and has also had responsibility for=20
various common carrier and media issues. 2) For=20
the past five years, Helen Domenici has worked at=20
the Office of Science and Technology Policy=20
(OSTP) in the Executive Office of the President=20
as Assistant Director for Telecommunications and=20
Information Technology. In this role, she has=20
helped develop strategies and coordinate domestic=20
and international with respect to=20
telecommunications, broadband, spectrum, and=20
Internet issues for the White House. Prior to=20
joining OSTP, Helen served as a Policy Analyst=20
for more than four years at the Federal=20
Communications Commission (FCC) in the=20
International Bureau actively shaping policies=20
with respect to telecommunications, the Internet,=20
and broadband matters with special focus on=20
infrastructure-related issues. 3) Donna Coleman=20
Gregg has been Chief of the Media Bureau. Prior=20
to joining the Bureau in 2005, she spent most of=20
her career in private law practice, having been a=20
partner with Wiley Rein & Fielding and with Dow=20
Lohnes & Albertson, where she specialized in=20
communications and media law issues. In recent=20
years she also served as Vice President of Legal=20
and Regulatory Affairs and General Counsel of the=20
Corporation for Public Broadcasting and as a=20
Senior Lecturing Fellow in Telecommunications Law=20
and Policy at Duke University School of Law.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269373A1.doc

WHAT'S THE FREQUENCY, CONGRESS? NYC SAYS LAW HURTS RADIO EFFORTS
[SOURCE: Associated Press, AUTHOR: Devlin Barrett]
New York Mayor Michael Bloomberg urged Congress=20
on Monday to scrap a rule on emergency radio=20
transmissions that he argues hurts his city,=20
which has invested millions of dollars in=20
upgrading police and fire communications since=20
the 2001 terror attacks. Mayor Bloomberg was due=20
to testify before a Senate panel about the issue=20
of emergency communications on Tuesday, a week=20
after a federal report gave the city good -- but=20
not great -- grades on its emergency radio=20
systems. Ahead of the hearing on implementing the=20
recommendations of the 9/11 Commission, Bloomberg=20
sent a letter Monday to new Majority Leader Harry=20
Reid (D-NV), arguing that Congress cut his city=20
out of a $1 billion fund for upgrading emergency=20
radio systems. At issue is what frequency=20
state-of-the-art police and fire radios should=20
use. A $1 billion federal fund is aimed at cities=20
that use spectrums in the 700s megahertz range,=20
while New York has spent years building up its=20
system in the 400s range, which corresponds to=20
the UHF television channel 16 frequency. The=20
technological standoff between the city and=20
Congress comes as the new Democratic majority is=20
pushing for implementation of outstanding=20
recommendations from the now-defunct 9/11=20
Commission, among them improved emergency radio=20
systems and more money for big cities'=20
anti-terror programs. Bloomberg, in his letter,=20
argued Congress should change the law to help=20
fund his city's 400 MHz range improvements, since=20
the Federal Communications Commission in 1995=20
gave the city a waiver to use the UHF channel 16=20
spectrum, which the mayor said "works well for=20
New York City given its unique size, density and=20
in-building and underground coverage needs."=20
Experts say signals in the 400 MHz range tend to=20
travel farther and penetrate deeper through=20
structures than the higher 700 MHz range, a major=20
issue in a city of towering skyscrapers and=20
underground subway tunnels. Bloomberg argued that=20
if the requirement stays on the books, the city=20
may have to spend even more money to switch again to the 700 MHz range.
http://ny.metro.us/metro/local/ap/NY_Emergency_Communications.html

GOVERNMENT & COMMUNICATIONS

HOUSE BILL BACKS ADDITIONAL REFORMS FROM 9/11 REPORT
[SOURCE: Washington Post, AUTHOR: Dan Eggen and Spencer S. Hsu]
House Democrats announced legislation yesterday=20
aimed at implementing many of the remaining=20
reforms suggested by the Sept. 11 commission,=20
including calls for more thorough cargo=20
screening, better emergency communications and=20
more money for cities at the highest risk of=20
terrorist attack. Noting that the commission=20
called for a significant expansion of resources=20
for international broadcasting and promotion of=20
democracy, the bill calls for a "surge capacity"=20
of additional funding "to support United States=20
foreign policy objectives during a crisis=20
abroad." While the House considers its=20
legislation, the Senate's homeland security panel=20
plans to hold a hearing today on the status of=20
commission recommendations and expects to vote on=20
a bill by the end of the month, said a=20
spokeswoman for the committee's chairman, Sen. Joseph I. Lieberman (I-CT).
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/08/AR200701...
1623.html
(requires registration)

GOVERNMENT: OUT OF OUR MAIL
[SOURCE: San Francisco Chronicle, AUTHOR: Editorial Staff]
[Commentary] In yet another power grab that=20
whittles away our rights without a plausible=20
justification, President Bush has given the=20
government expanded authority to read our mail.=20
This White House has long signaled that it will=20
do what it wants in the name of national=20
security, laws be damned. It has reserved the=20
government's right to detain and even torture=20
suspects without due process, and has asserted=20
for itself wide latitude to electronically=20
eavesdrop on Americans without obtaining search=20
warrants. So perhaps it should surprise no one=20
that Bush would add a "signing statement" to a=20
postal-reform bill passed by Congress that=20
suggests the new law allows the opening of mail=20
that would be "otherwise sealed against=20
inspection" for broadly defined security=20
purposes. However, history has shown the=20
potential for government abuses in the absence of=20
strong mail-privacy laws. Bush continues to roll=20
back the clock -- and the Constitution -- with his signing statements.
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2007...
/08/EDGRTNDNES1.DTL

CHAVEZ MOVES TO NATIONALIZE TELECOMMUNICATIONS
[SOURCE: New York Times, AUTHOR: Simon Romero]
President Hugo Ch=E1vez signaled a vigorous new=20
effort to assert greater control over Venezuela=92s=20
economy on Monday by announcing plans to=20
nationalize companies in the telecommunications=20
and electricity industries. President Ch=E1vez, who=20
will be sworn in Wednesday to another six-year=20
term, announced his plans at the swearing-in of=20
his new cabinet to a cheering crowd of=20
supporters, sending a chilling message to foreign=20
investors. American corporations, including=20
Verizon Communications, have large stakes in=20
Venezuela=92s largest telecommunications company,=20
CANTV, and its biggest publicly traded=20
electricity company, Electricidad de Caracas.=20
=93Let it be nationalized,=94 President Ch=E1vez said=20
of CANTV. =93All that was privatized, let it be nationalized.=94
http://www.nytimes.com/2007/01/09/world/americas/09venezuela.html?hp&ex=...
168405200&en=3De83b939b4b6b8bb1&ei=3D5094&partner=3Dhomepage
(requires registration)
* Ch=E1vez Sets Plans for Nationalization
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/08/AR200701...
1668.html
* Venezuela's Chavez: Nationalize electricity, phones
http://www.usatoday.com/printedition/money/20070109/venezeula09.art.htm
* Chavez speeds pace toward socialism
http://www.latimes.com/news/printedition/asection/la-fg-chavez9jan09,1,1...
527.story?coll=3Dla-news-a_section

REINS OFF, FRENCH RETAILERS RUSH TO BUY TV TIME
[SOURCE: New York Times, AUTHOR: Eric Pfanner]
France may never be a nation of shopkeepers, but=20
on television, at least, the country=92s retailers=20
are no longer getting a frosty reception. In a=20
significant loosening of one of the most=20
restrictive marketing regulations in Europe, a=20
French ban on television advertising by=20
supermarkets, department stores, hypermarkets and=20
other merchants expired at the end of 2006.=20
Retailers responded like shoppers rushing toward=20
an after-Christmas sale. On TF1, the most-watched=20
TV channel in France, merchants monopolized all=20
11 spots during the first commercial break of=20
2007, only minutes after midnight. For New Year=92s=20
Day, retailers placed 119 ads on major national=20
TV channels, a quarter of all advertising on=20
those channels, according to TNS Media=20
Intelligence. The ban was intended to safeguard=20
ad revenue for French local newspapers, and to=20
protect small retailers that feared the effects=20
of nationwide ad campaigns by big chains. In=20
2004, the European Commission forced France to=20
drop the restriction on retailers, though a ban=20
on television advertising of films, intended to=20
protect local movie producers from Hollywood=92s=20
marketing budgets, remains in place for now.
http://www.nytimes.com/2007/01/09/business/media/09adco.html
(requires registration)

STERN LIKES HIS NEW CENSOR: HIMSELF
[SOURCE: New York Times, AUTHOR: Jacques Steinberg]
Howard Stern, who today marks his first=20
anniversary on satellite radio, wasted little=20
time over that period before setting off on an=20
expedition deep into the wild, forested=20
territories of a medium patrolled by neither the=20
Federal Communications Commission nor,=20
apparently, his own employer. Listeners who have=20
paid $12.95 a month to hear him on Sirius=20
Satellite Radio have been treated to uncensored=20
aural experiences. Fans who, upon hearing scenes=20
described to them, have been seized by a desire=20
to see what=92s going on can do so too, for an=20
additional $9.99 to $13.99 a month via Mr.=20
Stern=92s on-demand television channel, which is=20
available on many cable and satellite television=20
systems. But one does not need to see Mr.=20
Stern to hear him talk freely about topics that=20
once drew Mr. Stern steep FCC fines -- punctuated=20
with locker-room language so colorful that it might make George Carlin blus=
h.
http://www.nytimes.com/2007/01/09/arts/09ster.html
(requires registration)

MEDIA OWNERSHIP

WHITE KNIGHTS FOR RED-INK MEDIA
[SOURCE: The Christian Science Monitor, AUTHOR:=20
Dante Chinni, Project for Excellence in Journalism]
[Commentary] The newspaper industry is looking=20
for a savior. After years of falling circulation,=20
slumping ad revenue growth, and stumbling stock=20
prices, we are now at that scene in the movie=20
where things are heading south and everyone is=20
wondering if and when a hero will show up. And=20
while heroes are in relatively short supply these=20
days, some in the industry think they might have=20
found a white knight in local ownership. The=20
storyline goes something like this: A wealthy=20
pillar of the community buys the local paper,=20
makes quality his goal, grows the staff, and=20
brings back readers. But local owners may still=20
have to borrow money, and industry experts say=20
banks and other financial institutions who can=20
invest elsewhere won't lend big sums in the name=20
of charity. Also, local ownership may entail more=20
local conflicts of interest and sacred cows -=20
after all that's what it means to be a member of=20
the community. And the limited resources of local=20
owners could be a problem, too. They may not be=20
as able to ride out regional economic swings as a=20
chain might. The truth is there are good and bad=20
owners in the newspaper industry among the big=20
corporations and local individuals out there. And=20
yes, a good one that wants to invest in quality=20
can make all the difference. But the newspaper=20
industry's problems at this point are a tangled=20
mess. They range from Internet competition to=20
sprawling metropolitan areas that are almost=20
impossible to cover properly to the demise of=20
local stores that used to buy ads. So no matter=20
what anyone wishes, lone heroes riding in to save=20
the day are likely to remain the stuff of matinees, not newsrooms.
http://www.csmonitor.com/2007/0109/p09s02-codc.html

BROADCASTING

PTC TAKES CLOSER LOOK AT VIOLENCE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Under the new president Tim Winter, the Parent=20
Television Council is drawing a bead on TV=20
violence. Saying there is a "widespread consensus=20
that television violence is a significant=20
problem," the PTC said Monday it would release a=20
study on January 10 that looks at primetime=20
broadcast TV violence. The study is almost sure=20
to show that TV violence and gore has become more=20
graphic in the last few years, especially given=20
the success of forensic detective and medical=20
shows. The FCC has yet to release an overdue TV=20
violence study that has been several years in the making.
http://www.broadcastingcable.com/article/CA6405186?display=3DBreaking+News
* PTC Takes Aim at Television Violence
http://www.tvnewsday.com/articles/2007/01/08/daily.14/

NAB FIELDS DTV PUBLIC EDUCATION TEAM
[SOURCE: tvnewsday, AUTHOR: Kim McAvoy]
The National Association of Broadcasters said=20
today that it has hired the former spokesman for=20
the National Republican Congressional Committee=20
to spearhead the association's campaign to inform=20
the public about the broadcasters' transition=20
from analog to digital broadcasting. Jonathan=20
Collegio will lead a four-person team as vice=20
president, digital television transition. The=20
other member of the team=97also newly hired=97include=20
Myra Dandridge, Shermaze Ingram and Lale Mamaux.=20
Prior to the NRCC, Collegio worked a deputy chief=20
of staff for Rep. Patrick McHenry (R-N.C.) and=20
communications director for the Goli Ameri for=20
Congress campaign in 2004. In addition to his=20
work inside the Beltway, Collegio spent a year as=20
associate producer for News 12 New Jersey, a=20
cable news network. He holds a bachelor's degree=20
from the University of Oregon and a master's degree from Rutgers University.
http://www.tvnewsday.com/articles/2007/01/08/daily.16/
* NAB Names DTV Transition Team
http://www.broadcastingcable.com/article/CA6405308?display=3DBreaking+News

QUICKLY

MEDIACOM REQUESTS A SECOND LOOK FROM FCC
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
Three days after being forced to drop 22 Sinclair=20
Broadcast Group TV stations in 12 states from its=20
cable systems, Mediacom Communications took=20
action. First, it asked the whole Federal=20
Communications Commissions to take a second look=20
at its complaint that Sinclair wasn't fairly=20
negotiating retransmission rights. Second, it=20
gave out free antennas. According to the Des=20
Moines Register, the 4,000 antennas -- needed in=20
order to watch Fox affiliate KDSM-TV -- quickly=20
ran out, but more are being made available.
http://www.tvweek.com/news.cms?newsId=3D11328
(requires free registration)
* Mediacom vs. Sinclair: The Battle Continues
http://www.broadcastingcable.com/article/CA6405335.html?display=3DBreaki...
News

SPRINT NEXTEL ANNOUNCES PLAN TO LAY OFF 5,000 WORKERS
[SOURCE: Washington Post, AUTHOR: Charles Babington and Kim Hart]
Sprint Nextel, still losing cellphone customers=20
despite changes in management and operations,=20
plans to lay off about 5,000 employees in the=20
coming months. The company suffered a net loss of=20
about 300,000 wireless subscribers in the last=20
quarter of 2006, said company officials, who=20
projected lower sales for 2007 than analysts had=20
anticipated. Most of the planned layoffs will be=20
completed by early April, they said, and will be=20
spread throughout the company. Sprint, the=20
nation's third-largest wireless carrier, has about 64,600 employees.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/08/AR200701...
1048.html
(requires registration)

AN ONLINE GUIDE TO FAST-MOVING POWER BROKERS
[SOURCE: Washington Post, AUTHOR: Elizabeth Williamson]
Revolving Door --=20
http://www.opensecrets.org/revolving -- can find=20
anyone whose r=E9sum=E9 includes government service=20
and lobbying, legal or public affairs work.=20
Search for a name or a former employer, or click=20
on an administration or an agency, a lawmaker or=20
a committee, and a stable of past staffers drops=20
down for your sleuthing or lunching pleasure.=20
Lists of big hitters, top agencies and firms=20
along the left side of the site help the=20
uninitiated. Revolving Door was created by the=20
Center for Responsive Politics, a group that has=20
expanded its activities beyond tracking campaign=20
finance into operating a Web-based money and=20
politics clearinghouse. It's paid for by the=20
Sunlight Foundation, which sponsors activities=20
that use technology to illuminate the power web of Washington.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/08/AR200701...
1464.html
(requires registration)
-- In related article see --
* Bundles of Influence
The checks that lobbyists collect matter more than the ones they sign.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/08/AR200701...
1440.html

PHONE COMPANIES IN BRAZIL BLOCKING YOUTUBE
[SOURCE: Reuters]
Telecommunications companies in Brazil began=20
blocking access to YouTube on Monday after a=20
Brazilian model sued to get the popular video=20
sharing service to remove footage of her having sex from its Web site.
http://today.reuters.com/News/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2007-01-09T003628Z_01_N08418109_RTRUKOC_0_US-BRAZIL-SEX-YOUTUBE.xml&WTm=
odLoc=3DTechNewsHome_C1_%5bFeed%5d-3

CHICAGO TRIBUNE FOUNDATION GIVES $187, 500 IN JOURNALISM GRANTS
[SOURCE: Editor&Publisher]
During its quarterly meeting in December, The=20
Chicago Tribune Foundation's board of directors=20
gave the green light on $187,500 in funding for a=20
variety of journalism groups. The grants support=20
organizations that advance the skills of=20
journalists and uphold the rights and principles=20
of journalists. See list of supported orgs at the URL below.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003529239
--------------------------------------------------------------
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.
--------------------------------------------------------------