January 2007

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NEWS FROM CONGRESS
Strategies For Telecom, 'Network Neutrality' Emerge
Hill Turf Fight May Hamper Markey on Telecom
Senate Commerce Committee Announces Subcommittees

INTERNET/BROADBAND
Net Neutrality Debaters Agree on AT&T "Extortion"
'LAT' Editor: Web Will Be 'Primary Vehicle' for News Delivery
China to surpass U.S. on Internet users

TELEVISION
Digital TV Bill Comes Up Short
ACM to Challenge FCC Video Franchising Decision
Verizon FiOS Triggering Cable Dereg
CBS: Let Market Decide Pay TV Carriage

CHILDREN & MEDIA
Kids' TV Faces New Net Restrictions
Remote Control
If it's rated 'R,' who brought all these children?

QUICKLY -- FCC Investigation Into Water Contest;=20
NYC Police Won't Use $140 Million Radio System;=20
War on terror's other front: cleaning up US pop=20
culture; Americans think downloading no big deal;=20
Judge Blocks Adelphia=92s Plan to Emerge From=20
Bankruptcy; Reality check: Unscripted TV a hit for L.A. economy

TODAY IN HISTORY -- 1961 President John F.=20
Kennedy held the first presidential news=20
conference carried live on radio and TV.
http://www.presidency.ucsb.edu/ws/index.php?pid=3D8533

NEWS FROM CONGRESS

STRATEGIES FOR TELECOM, 'NET NEUTRALITY EMERGE
[SOURCE: Technology Daily, AUTHOR: David Hatch]
The Senate Commerce Committee confirmed that=20
Chairman Daniel Inouye (D-Hawaii) will pursue a=20
series of small, targeted telecommunications=20
bills and not sweeping legislation. Some Capitol=20
Hill sources suggested that Chairman Inouye is=20
taking the approach to avoid the controversy that=20
stalled efforts by Sen Ted Stevens (R-Alaska),=20
last year's chairman, to pass a major telecom=20
bill. But another observer said Chairman Inouye=20
prefers the agility of the targeted approach as a=20
way to move quickly on urgent matters. Meanwhile,=20
there are rumblings that Rep. Edward Markey=20
(D-MA) is quietly planning a series of=20
"educational" and "exploratory" hearings on=20
network neutrality. The move could set the stage=20
for a renewed effort by Democrats to regulate=20
high-speed Internet services offered by telecom and cable giants.
http://www.njtelecomupdate.com/lenya/telco/live/tb-GKFH1169665973452.html
* Who's Who on Senate Commerce Committee
http://www.njtelecomupdate.com/lenya/telco/live/tb-WZMY1169666247456.html

HILL TURF FIGHT MAY HAMPER MARKEY ON TELECOM
[SOURCE: tvnewsday, AUTHOR: Kim McAvoy]
If House Speaker Nancy Pelosi (D-CA) and=20
Telecommunications Subcommittee Chairman Ed=20
Markey (D-MA) go through with plans to create a=20
new committee on climate change and energy=20
independence, than House Energy & Commerce=20
Committee Chairman John Dingell (D-MI) could=20
retaliate by underminining Rep Markey's telecom=20
initiatives. Any initiative that Markey=92s=20
subcommittee takes ultimately has to go through=20
Dingell=92s parent Energy and Commerce Committee.=20
Says one Hill insider, =93Dingell=92s got a long=20
memory. One day, there will be something that=20
Markey desperately needs and it will be very=20
difficult for him.=94 Indeed, there is one=20
unconfirmed report that Chairman Dingell has=20
already given his blessing to Congressman Mike=20
Doyle (D-PA), a senior Telecom Subcommittee=20
member, to work around Chairman Markey on telecom=20
issues. Broadcast lobbyists like the idea of a=20
less effective Chairman Markey. An old-fashioned=20
liberal, he is attuned to broadcasting=92s critics=20
and likely to favor heavy doses of regulation and=20
public interest obligations. Indeed, Rep Dingell=20
has sometimes helped broadcasters by curtailing=20
some of Rep Markey=92s more regulatory-minded=20
proposals. =93Now with this blood feud over=20
jurisdiction, the next time Markey does something=20
the industry doesn't like, I think the Dingell=20
people might be even more receptive to bopping=20
him back,=94 says one industry source.
http://www.tvnewsday.com/articles/2007/01/24/daily.2/

SENATE COMMERCE COMMITTEE ANNOUNCES SUBCOMMITTEES
[SOURCE: US Senate Commerce Committee]
Senators Daniel K. Inouye (D-Hawaii) and Ted=20
Stevens (R-Alaska), Chairman and Vice Chairman of=20
the Commerce, Science and Transportation=20
Committee today announced the Committee=92s=20
subcommittees and their chairs and ranking=20
members for the 110th Congress. Sen Inouye has=20
not reconstituted the Communications=20
Subcommittee. The Science, Technology, and=20
Innovation Subcommittee will be Chaired by Sen=20
John Kerry (D-Mass.); Sen John Ensign (R-Nev.) will be the Ranking Member.
http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.D...
il&PressRelease_id=3D248722&Month=3D1&Year=3D2007

INTERNET/BROADBAND

NET NEUTRALITY DEBATERS AGREE ON AT&T "EXTORTION"
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Gigi Sohn, president of Public Knowledge, backs a=20
recently introduced bill that would mandate net=20
neutrality and says the problem is not the=20
isolated instances of discrimination, which by=20
themselves would probably not justify regulation.=20
Instead, she said, it is the fact that 98% of the=20
broadband market is controlled by cable and=20
telcos, with 40% of households having no choice=20
in broadband provider. Network neutrality, she=20
said, is pro-competition regulation. She also=20
said broadcasters should be concerned about the=20
issue. If broadcasters transition to IPTV or=20
broadband delivery, they will fall under the=20
network neutrality regime. Sohn said that regime=20
would make it easier for them to distribute their=20
content now without worries of being discriminated against.
http://www.broadcastingcable.com/article/CA6409858.html?display=3DBreaki...
News

'LAT' EDITOR: WEB WILL BE 'PRIMARY VEHICLE' FOR NEWS DELIVERY
[SOURCE: Editor&Publisher]
Los Angeles Times editor James O'Shea outlined a=20
bold plan to increase traffic and revenue from=20
LATimes.com in the face of an increasingly=20
difficult economic climate for newspaper=20
publishers, and urged journalists to think of the=20
Web site as the newspaper's primary vehicle for=20
news. "We can't hide from the fact that smart=20
competitors such as Google and Craigslist are=20
stealing readers and advertisers from us through=20
innovative strategies that are undermining the=20
business model we've relied on for decades," said=20
O'Shea, whose remarks were published in their=20
entirety on the paper's Web site. He said today=20
that the Times will fully integrate its print and=20
online newsrooms, and named business editor Russ=20
Stanton to the new position of Special Editor for=20
Innovation. "Currently we have a newspaper staff=20
and an LATimes.com staff," he said. "No more.=20
From now on, there are no two staffs, there is=20
just one. And we will function as one. One of=20
Russ's first jobs will be to help set up that=20
newsroom." O'Shea also said that there would be=20
changes in the way the content in the print=20
edition would be viewed. Where Web stories and=20
blogs allow journalists an endless amount of=20
space to give readers in-depth accounts, he said=20
he wanted the physical paper to become "an even=20
stronger vehicle for tightly-written context,=20
analysis, interpretation and expertise."
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003536826
* 'LA Times' Staffers Greet Merged Newsroom With Cautious Enthusiasm
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003537239
* The Times shifts its focus to Web
http://www.latimes.com/business/printedition/la-fi-times25jan25,1,341396...
tory?coll=3Dla-headlines-pe-business

CHINA TO SURPASS US ON INTERNET USERS
[SOURCE: Associated Press]
China is on pace to surpass the United States=20
within two years as the nation with the most=20
Internet users. China's online population grew by=20
23.4 percent last year to 137 million people,=20
about 10 percent of its 1.3 billion population,=20
the China Internet Network Information Center=20
reported on its Web site. "We believe it will=20
take two years at most for China to overtake the=20
United States," the official China Daily=20
newspaper quoted an official of the agency, Wang=20
Enhai, as saying. About 210 million of the United=20
States' 300 million people are online, according=20
to the U.S. government. China would reach 210=20
million users in two years if it keeps up a 24 percent annual growth rate.
http://www.msnbc.msn.com/id/16785918/

TELEVISION

DIGITAL TV BILL COMES UP SHORT
[SOURCE: TVPredictions.com, AUTHOR: Phillip Swann]
[Commentary] Reps. Joe Barton (R-Texas), Dennis=20
Hastert (R-Illinois), and Fred Upton (R-Michigan)=20
have introduced legislation designed to help=20
educate consumers on the nation's transition to=20
Digital TV (see=20
http://www.benton.org/index.php?q=3Dnode/4586). The=20
new legislation aims at the right target -- the=20
government's need to educate consumers on the=20
transition from analog to digital. However, it=20
fails to provide the proper weapons: funding and=20
specifics. The federal government needs a=20
detailed DTV education plan, which includes a=20
major advertising campaign reaching TV viewers,=20
radio listeners and print and online readers. And=20
it needs the money to carry out that plan. The $5=20
million that's been approved thus far is=20
laughable. And so are the warning labels on=20
analog TVs. Do you really think people look at=20
warning labels? After all these years of warning=20
labels on cigarettes? They are ignored. The feds=20
also shouldn't count on the TV industry to do all=20
the heavy lifting. Congress passed the Digital TV=20
transition law -- it has the greatest=20
responsibility to ensure that it's properly implemented.
http://www.tvpredictions.com/dtveducation012307.htm

ACM TO CHALLENGE FCC VIDEO FRANCHISING DECISION
[SOURCE: Alliance for Community Media press release]
The Alliance for Community Media (ACM) and the=20
Alliance for Communications Democracy (ACD)=20
working with local government partners, National=20
Association of Telecommunications Officers and=20
Advisors (NATOA), National League of Cities=20
(NLC), and National Association of Counties=20
(NACo) announced that they have retained legal=20
counsel to challenge the FCC=92s recent Order=20
preempting local government control and authority=20
over cable franchises, compensation for public=20
property, community services and the availability=20
of consumer protection in local communities.=20
According to ACM Executive Director Anthony=20
Riddle, "We do not want to go to court, but we=20
cannot stand silent while giant corporations take=20
away the only voices our communities have --=20
Public, Education and Government Access=20
channels. We chose to stand with the cities and=20
towns and with our neighbors against these aggressive giants."
http://www.alliancecm.org/
http://www.alliancecm.org/uploaded_docs/Attorney_press_release.pdf

VERIZON FIOS TRIGGERING CABLE DEREG
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
The Federal Communications Commission Wednesday=20
released a batch of orders that removed local=20
price controls on basic-cable service, including=20
two cases that involved Cablevision Systems in=20
communities where Verizon Communications is=20
deploying its FiOS TV all-fiber 180-channel video=20
system. In the vast majority of cases, the FCC=20
has granted cable operators' =93petitions for=20
effective competition=94 based on satellite=20
competition. If EchoStar Communications=92 Dish=20
Network and DirecTV combined serve 15% of the=20
households in a franchise area, the local cable=20
incumbent is price deregulated. But Cablevision=20
sought relief in two New York communities --=20
Nyack and Hempstead -- based on a different=20
competition test that applies when the=20
terrestrial video provider is a local phone=20
company, also called a local-exchange carrier or=20
LEC. Under the so-called LEC test, all the cable=20
incumbent has to do is demonstrate that the phone=20
company has the capability and intent to compete=20
for video subscribers. However, the LEC test=20
doesn't have any subscriber-penetration=20
requirement. When the FCC grants a petition for=20
effective competition, regardless of the test=20
used, the local government loses authority to cap=20
the price of the basic tier, which all cable=20
subscribers must buy. In addition, cable=20
operators do not have to offer a uniform rate=20
structure and may require subscribers to purchase=20
any number of programming tiers before they may=20
access premium and pay-per-view offerings.
http://www.multichannel.com/article/CA6409873.html?display=3DBreaking+News

CBS: LET MARKET DECIDE PAY TV CARRIAGE
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
CBS lobbyists have been making the rounds at the=20
Federal Communications Commission urging=20
regulators to let the market solve carriage=20
disputes involving local TV stations and cable=20
operators, satellite providers and other pay TV=20
distributors. CBS is pitching a free-market=20
approach on the heels of Sinclair Broadcast=20
Group=92s decision Jan. 6 to pull 22 stations from=20
Mediacom Communications cable systems serving=20
700,000 subscribers in 13 states in one of the=20
toughest cable retransmission-consent fights in=20
many years. The unresolved clash between Sinclair=20
and Mediacom has involved the FCC, the federal=20
courts and some members of Congress.
http://www.multichannel.com/article/CA6409864.html?display=3DBreaking+News

CHILDREN & MEDIA
KIDS' TV FACES NEW NET RESTRICTIONS
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Under new FCC rules, during shows geared toward=20
children under 12, cable and broadcast operators=20
may not display addresses for Web sites that=20
contain any links to commercial content. The new=20
rules came about because regulators were=20
concerned that some broadcasters were using=20
children's programming as a billboard for=20
addresses to Web sites "established solely for=20
commercial purposes"--and thus sneaking around=20
federal law. Under the 1990 Children's Television=20
Act, every hour of children's programming may=20
contain only 10.5 minutes of advertising during=20
weekends and 12 minutes on weekdays. The nameless=20
example the FCC cited was a Web site address=20
displayed "in a crawl at the bottom of the=20
screen." In its view, "including the display=20
during program material converts that program=20
material into commercial matter, just as a host=20
telling children to race to their local toy store would."
http://news.com.com/Kids+TV+faces+new+Net+restrictions/2100-1028_3-61529...
html?tag=3Dnefd.top

REMOTE CONTROL
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
[Commentary] Armed with the latest studies=20
documenting a rise in televised mayhem, some=20
activists are pushing Congress to extend the=20
federal nanny state's purview to TV violence. The=20
networks' growing fascination with maiming,=20
killing and vivisecting may be lamentable, but=20
regulations to limit violence on over-the-air=20
television would be even less rational and=20
enforceable than the government's shifting=20
standards for indecency and profanity. Past the=20
First Amendment, there's two difficulties to=20
regulate violent content: 1) it's difficult to=20
define what constitutes violence, let alone what=20
is gratuitous or excessive and 2) it's hard to=20
see how a crackdown on broadcasters would do much=20
to protect kids when over-the-air stations=20
represent only one source of violent programming.=20
The best way to protect kids from inappropriate=20
fare on TV is for parents to monitor what they=20
watch. Better parental controls for filtering TV=20
are emerging, as is more useful information about=20
content. Instead of trying to make decisions for=20
Mom and Dad, the government should be pushing the=20
industry to provide more effective ways for them=20
to control what their kids are watching.
http://www.latimes.com/news/printedition/opinion/la-ed-violence25jan25,1...
60446.story?coll=3Dla-news-comment
(requires registration)

IF IT'S RATED 'R', WHO BROUGHT ALL THESE CHILDREN?
[SOURCE: The Christian Science Monitor, AUTHOR: Amanda Paulson]
The movie industry is considering adding a=20
specific admonishment to parents on the=20
unsuitability of the films for youngsters. The=20
exact wording has yet to be decided, but the=20
change is being made in response to "complaints=20
from people who go to R-rated movies and are=20
disturbed to see young children in there," says=20
Kori Bernards, a spokeswoman for the Motion=20
Picture Association of America (MPAA). The=20
admonishment is part of the industry's broader=20
plan, announced last week, to try to make the=20
rating system clearer and its process more=20
transparent. "Parents have life experience, kids=20
don't, and it's important to realize that the way=20
their child experiences [a movie] is very=20
different than the way they do," says Kimberly=20
Thompson, a health-policy professor at Harvard=20
and the director of the Kids Risk Project. She=20
encourages parents to seek information about a=20
movie ahead of time, and if they do allow their=20
child to see it, to watch it with them and=20
discuss it later. "Movies can give kids=20
experiences that may influence their attitudes,=20
perceptions, and behaviors, and it's important=20
for parents to talk about any content they're=20
experiencing," she says. For some parents,=20
though, making judgments about a movie's=20
appropriateness ahead of time can be a challenge.=20
Complaints about inconsistent standards =96 along=20
with pleas from filmmakers who are often=20
surprised by tough ratings =96 factored into the=20
proposed changes by the MPAA and the National=20
Association of Theatre Owners, which jointly run=20
the Classification and Ratings Administration (CARA) that assigns ratings.
http://www.csmonitor.com/2007/0125/p01s02-ussc.html

QUICKLY

FCC HEAD ORDERS INVESTIGATION INTO WATER CONTEST
[SOURCE: MSNBC]
FCC Chairman Kevin Martin on Wednesday ordered an=20
investigation into the radio station=20
water-drinking contest that preceded the death of=20
28-year-old Jennifer Strange. He made that=20
decision after receiving a letter from attorney=20
Roger Dreyer, who is representing Strange's=20
family. In the letter, Dreyer asks the FCC to=20
pull the license of radio station KDND. The=20
station fired 10 employees after Strange died=20
Jan. 12. She was among a group of contestants who=20
tried to win a Nintendo Wii gaming console by=20
seeing how much water they could drink without going to the bathroom.
http://www.msnbc.msn.com/id/16797941/

NYC POLICE WON'T USE $140 MILLION RADIO SYSTEM
[SOURCE: New York Times, AUTHOR: William Neuman]
For more than 10 years, the Metropolitan=20
Transportation Authority has been working to=20
correct a major hindrance to police work in the=20
subway system: a radio network that keeps transit=20
officers underground from talking with officers=20
patrolling the streets above. The goal was simple=20
but potentially revolutionary: replace an=20
antiquated radio system with a network that would=20
make it possible, for instance, for an officer=20
chasing a suspect down a subway stairway to radio=20
ahead to other officers. Last October, after=20
spending $140 million, the authority completed=20
the installation of the system citywide. But it=20
has not been turned on. That is because the=20
Police Department refuses to use it, saying the=20
new system is hobbled by widespread interference=20
that garbles communication and creates areas=20
where radios cannot receive properly. =93What you=20
get is distorted audio,=94 said Joseph Yurman, a=20
communications engineer for New York City=20
Transit. =93You can hear it, but it sounds as if=20
you=92re talking through a glass of water.=94 Fixing=20
the problem may require replacing new equipment=20
with more advanced components at a cost of up to=20
$20 million more. If all goes well and disputes=20
over which agency will pay for the changes can be=20
resolved, the police say the full system could be=20
turned on next year, some four years behind schedule.
http://www.nytimes.com/2007/01/25/nyregion/25radio.html?ref=3Dtodayspaper
(requires registration)

WAR ON TERROR'S OTHER FRONT: CLEANING UP US POP CULTURE
[SOURCE: The Christian Science Monitor, AUTHOR:=20
Dinesh D'Souza, Hoover Institution]
[Commentary] Anti-Americanism comes in different=20
varieties. The European kind emphasizes the=20
"evils" of "red" America: a shoot-first,=20
ask-questions-later cowboy in the White House,=20
and Bible- toting fundamentalists walking around=20
the corridors of power. The Muslim variety is=20
very different. Many Muslims point to the=20
"horrors" of "blue" America: homosexual marriage,=20
family breakdown, and a popular culture that is=20
trivial, materialistic, vulgar, and, in many=20
cases, morally repulsive. This latter view is=20
dangerously =96 and justifiably =96 common in many=20
traditional cultures across the globe. Because it=20
feeds their perception that American values are=20
inimical to their way of life, this attitude can=20
blossom into the kind of anti- American pathology=20
that partly fueled the 9/11 attacks. Any serious=20
effort to shore up American's security must=20
include steps to edify American culture. As=20
citizens, we should not hesitate to tell=20
traditional Muslims and others that there are=20
many of us who are working to reverse the tide of=20
cultural depravity in our society and around the=20
world. By proclaiming our allegiance to the=20
traditional values of Judeo-Christian society, we=20
can reduce the currents of anti-Americanism among=20
the Muslims, and thus undercut the appeal of=20
radical Islam to traditional Muslims around the world.
http://www.csmonitor.com/2007/0125/p09s01-coop.html

AMERICANS THINK DOWNLOADING NO BIG DEAL
[SOURCE: Reuters, AUTHOR: Etan Vlessing]
Most Americans regard the illegal downloading and=20
distributing of Hollywood movies as something on=20
par with minor parking offenses, according to a=20
report issued Wednesday. Only 40 percent of=20
Americans polled by Toronto-based Solutions=20
Research Group agreed that downloading=20
copyrighted movies on the Internet was a "very=20
serious offense." That compares with the 78=20
percent who said shoplifting a DVD from the local=20
video store was a very serious offense. The=20
survey found that 59 percent of Americans polled=20
considered "parking in a fire lane" a more=20
serious offense than movie downloading.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2007-01-25T090928Z_01_N25169626_RTRUKOC_0_US-PIRACT.xml&WTmodLoc=3DInter=
netNewsHome_C1_%5bFeed%5d-1

JUDGE BLOCKS ADELPHIA'S PLAN TO EMERGE FROM BANKRUPTCY
[SOURCE: Reuters]
A federal judge yesterday blocked the Adelphia=20
Communications Corporation, the cable television=20
company, from moving ahead with its $15 billion=20
plan to emerge from bankruptcy protection. Judge=20
Shira A. Scheindlin of United States District=20
Court in Manhattan granted a request by a=20
bondholder group to appeal the Jan. 3 order=20
approving the reorganization plan. The=20
bondholders have argued that the plan undervalues their claims.
http://www.nytimes.com/2007/01/25/business/media/25cable.html
(requires registration)

REALITY CHECK: UNSCRIPTED TV A HIT FOR LA ECONOMY
[SOURCE: Los Angeles Times, AUTHOR: Richard Verrier]
Reality has set in throughout Los Angeles. Camera=20
crews tracking the unscripted lives of car buffs,=20
geeky guys longing to date supermodels, wannabe=20
singers and aspiring tycoons are filling streets=20
and neighborhoods, turning the area into the=20
reality TV capital of the world. The trend will=20
be underscored today when local film officials=20
release statistics that show the number of days=20
spent shooting reality TV episodes in Los Angeles=20
soared 53% last year, accounting for about 40% of=20
all on-location TV production. All told, reality=20
film crews spent the equivalent of 8,397 days=20
filming here in 2006. The numbers show that=20
reality TV, for better or worse, has become an=20
increasingly important component of the Los=20
Angeles entertainment infrastructure, which=20
supports about 240,000 local jobs and contributes=20
an estimated $30 billion into the local economy.=20
Los Angeles economist Jack Kyser estimates at=20
least 30,000 local jobs are tied to reality=20
television. On a positive note, unscripted=20
programs have contributed to a larger boom in=20
local television production, which is helping=20
blunt job losses due to the luring of feature=20
films to other states that offer financial=20
incentives. Last year, on-location feature-film=20
production declined 7% from 2005 as more films=20
were drawn to such states as New Mexico, New York=20
and Louisiana. But reality shows don't pack the=20
same economic punch as scripted shows, which have=20
larger budgets, bigger crews and longer runs. A=20
typical one-hour drama that runs 22 episodes=20
costs close to $50 million, compared with about=20
$7 million spent on a 10-episode reality show.
http://www.latimes.com/business/printedition/la-fi-reality25jan25,1,4449...
.story?coll=3Dla-headlines-pe-business
(requires registration)
--------------------------------------------------------------
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.
--------------------------------------------------------------