February 2007

The Senate Commerce Committee holds a hearing this morning, "The
Present and Future of Public Safety Communications." See
http://commerce.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&...
for a list of witnesses. For this and other upcoming media policy
events, see http://www.benton.org

EMERGENCY COMMUNICATIONS
Senators Debate Wireless Network For Safety Workers
If catastrophe strikes tomorrow, are we ready?

NEWS FROM FCC
Martin to Meet Privately with House GOP Panelists
NTCA: McDowell tells rural providers, 'Go wireless'

TELEVISION
Digital TV: Why the Federal Government Is Screwing It Up
Local TV's Online Revenues up 41% in 2006
Localism the Key to Station Survival
Baseball's proposed partnership with DirecTV would shut out many fans

INTERNET
Google and cable firms warn of risks from Web TV
Senator to propose surveillance of illegal images
GOP revives ISP-tracking legislation
Most U.S. advertisers now spending on new media
VeriSign Moves to Address an Internet Security Problem

http://www.benton.org/index.php?q=taxonomy/term/20DIGITAL CONTENT
Can Apple convince recording industry?
Working past Internet file-sharing frustration

QUICKLY -- Coalition submits specs for "white space" unlicensed
device; Bill Would Extend Campaign Speech IDs; ABC Announces
Presidential Candidate Debates; Telcos may face new anti-pretexting
regulations; Tribune 4Q Profit Soars; Murdoch Would Like JOA Between
His 'NY Post' and Tribune's 'Newsday'

EMERGENCY COMMUNICATIONS

SENATORS DEBATE WIRELESS NETWORK FOR SAFETY WORKERS
[SOURCE: Wall Street Journal, AUTHOR: Amol Sharma at
amol.sharma( at )wsj.com and Amy Schatz]
Emergency workers have long complained that their communications
systems are outdated and underfunded. Now, convinced that the federal
government alone can't answer their concerns, public-safety groups
are turning to commercial wireless companies for help. First
responders can't always communicate with each other during major
disasters because their telecom equipment is incompatible with that
of other agencies. What's more, much of the equipment is both
expensive and out of date: In some cases, police agencies are paying
$3,500 each for two-way radio devices. To improve communications
among emergency workers, Cyren Call, a company launched by Nextel
Communications founder Morgan O'Brien, has been lobbying feverishly
for a plan to involve the private sector in public-safety upgrades.
Under the plan, a slice of the radio spectrum would be reserved for
public-safety use and licensed to an entity called a Public Safety
Broadband Trust. A private bidder would be selected to manage the
creation of a broadband network shared by consumer cellphone users
and public-safety workers such as firemen and policemen; in an
emergency, public-safety users would take precedence. Small rural
operators would pay to build out the infrastructure; in exchange,
they would be able to offer services over frequencies they didn't
have to pay for. The new Congress is taking a hard look at the idea.
Republican presidential contender Sen. John McCain of Arizona
announced plans to introduce legislation that would take a similar
approach. Today, the Senate Commerce Committee is planning to hold a
hearing to consider it, and Senate staffers say it has support from
some top Democrats. But getting any legislation through a divided
Congress this year will be difficult, especially given the
controversy the plan is generating in the wireless industry. Critics
say it amounts to a corporate giveaway to Cyren Call. There are
better ways to go about improving public-safety communications, they
say, without setting aside valuable frequencies for public-safety use.
http://online.wsj.com/article/SB117089830395901706.html?mod=todays_us_ma...
(requires subscription)

IF CATASTROPHE STRIKES TOMORROW, ARE WE READY?
[SOURCE: C-Net|News.com, AUTHOR: Former NTIA Heads Michael D.
Gallagher and Larry Irving]
[Commentary] If a major catastrophe struck the United States today
our first responders would not have the communications capabilities
they need to save lives. Our federal, state and local public safety
officers lack "interoperability," the ability to communicate
effectively and efficiently across jurisdictions. Currently, in most
places in the United States, a state police unit cannot directly
communicate with a local sheriff. Nor can a county fire chief talk
directly to a local firefighting unit or to federal officials. We've
taken many important steps in recent months, and the pace is picking
up with recent DHS and FCC actions. Enacting the 9/11 recommendations
by Congress is also very encouraging. That said, it will take more of
the strong, consistent leadership we're seeing today to get us to
where we need to be: a safer country because those entrusted with
protecting us have the interoperable communications tools they need
to do their job.
http://news.com.com/If+catastrophe+strikes+tomorrow%2C+are+we+ready/2010...

NEWS FROM FCC

MARTIN TO MEET PRIVATELY WITH HOUSE GOP PANELISTS
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Federal Communications Commission Chairman Kevin Martin is scheduled
to meet privately with just GOP members of the House
Telecommunications Subcommittee two days before he and other FCC
commissioners are to testify in public before the
Democratic-controlled panel. Chairman Martin's session with the group
of House Republicans was contained in a Feb. 6 memo sent by Rep. Fred
Upton (R-MI) to his party colleagues on the panel. The memo invited
the lawmakers to meet with Chairman Martin Feb. 13 at 3 p.m. in the
Rayburn House Office Building without staff. Chairman Martin has been
meeting with House Democrats separately, and he agreed to meet with
House Republicans as a group at their request. A House Democratic
staff member with long tenure, however, couldn't recall a similar
meeting involving an FCC chairman and just one party from a
committee. "Chairman Martin meets with members of Congress on both
sides of aisle all of the time," FCC spokeswoman Tamara Lipper said.
"Chairman Dingell is also planning a Members' meeting with Chairman
Martin," said Jodi Seth, communications director of the House Energy
& Commerce Committee. "It's called an oversight hearing, and it's
open to the public."
http://www.multichannel.com/article/CA6414534.html?display=Breaking+News
* Republicans To Meet with Martin in Advance of Oversight Hearing
http://www.broadcastingcable.com/article/CA6414685.html?display=Breaking...

NCTA: MCDOWELL TELLS RURAL PROVIDERS, 'GO WIRELESS'
[SOURCE: TelephonyOnline, AUTHOR: Tim McElligott]
In his first formal presentation to an industry association, FCC
Commissioner Robert McDowell gave the following advice to members of
the National Telecommunications Cooperative Association at the
group's annual meeting: Take advantage of the upcoming 700 MHz
spectrum auction to arm yourself for the future. Warning the rural
industry that it is "on a collision course with disaster" primarily
due to a broken Universal Service Fund structure, Commissioner
McDowell said that while he and others are working to fix the USF and
address other important issues such as inter-carrier compensation,
competition that will pave the path to the future. "I believe in free
markets and that government should only step in where the free market
fails. And in rural America, it did," Commissioner McDowell said,
adding that it was right that the government stepped in and
established systems such as USF. He said goals for reform should
include slowing the growth of the fund, broadening the base of
contributors, reducing the contribution burden for all if possible,
ensuring competitive neutrality and eliminating fraud and abuse.
Commissioner McDowell said that the fund can't afford to finance
broadband connectivity under the current structure. "But there is
hope, and it's happening right now," he said. "Significantly more
Americans are adopting broadband every day."
http://telephonyonline.com/home/news/ntca_mcdowell_usf_020607/

TELEVISION

DIGITAL TV: WHY THE FEDERAL GOVERNMENT IS SCREWING IT UP
[SOURCE: TVPredictions.com, AUTHOR: Phillip Swann]
[Commentary] On February 17, 2009, the United States will switch from
analog to Digital TV signals. At that time, if you don't have a
Digital TV or a set-top converter box, you will not be able to watch
television. At this point, I have to predict that millions of
Americans indeed will be unable to get TV signals on that fateful day
because they either didn't buy a new set or they didn't understand
the need for a converter box. Why? Over and over again, the federal
government has demonstrated that it has no clue how it will persuade
consumers to switch to Digital TV. Even worse, there's evidence that
federal officials are not taking the issue seriously enough to get
the job done. If the government doesn't get serious -- and soon --
one of two things will happen: 1. Fearful that their constituents
will storm the gates when they suddenly can't watch TV on February
17, 2009, Congress will be forced to extend the deadline another year
or two. 2. The deadline will stay in place -- and millions of
consumers will lose their TV signals. The first option would be
messy. The second one could be nasty.
http://www.tvpredictions.com/dtvfeds020607.htm

LOCAL TV'S ONLINE REVENUES UP 41% IN 2006
[SOURCE: tvnewsday, AUTHOR: ]
The growth in local television's online advertising hit 41% in 2006
and the outlook for 2007 projects local online advertising to grow by
as much as 55% across local markets, according to a new survey
released by TVB. During 2006, local television stations sharpened
their focus on the Internet, increasing their online ad revenues to
$399 million. By the end of 2007, the report predicts, that figure
could hit $618 million. The survey shows that many stations are using
the Web as a publishing platform, taking aim at their newspaper and
yellow pages rivals by offering classified and directory advertising
and have gained nearly a point of share in the past year ("no small
feat in the high-growth environment of local online advertising," the
report says). Several stations captured more than 15 percent of all
locally spent online advertising in 2006. The survey showed that a
total of seven categories comprised half of all online ad categories,
and in particular, real estate, health, high-tech and automotive
dominated. The report recommends that local broadcasters: 1) rethink
the mass-media mentality with an eye toward viewing the Internet as a
mass of niches; 2) hire a dedicated sales force; 3) give strong
consideration to launching a real estate section; and 4) consider
spin-off sites that may not be branded to the station. "[W]hat was
once viewed as cotton candy now seems to be a vital nutritional
supplement to broadcasters' health."
http://www.tvnewsday.com/articles/2007/02/07/daily.13/
* For more see http://www.tvb.org

LOCALISM THE KEY TO STATION SURVIVAL
[SOURCE: tvnewsday, AUTHOR: Arthur Greenwald]
Call it "Localism 2.0" It's what TV stations need to focus on to grow
their business in the new media age. Barry Diller, CEO of
IAC/InterActiveCorp and chairman of Expedia said the television
business is going through revolutionary change, but he's confident
the basic model of telling stories will persist. An infinite number
of people can generate user-generated content, he said, but, in most
cases, only your closest friends may care. However, he said, there's
a relative handful of people who can create stories "that are so
compelling that a great many people want to watch them." Diller said
that he does not think that the audience is fragmenting, but that
it's migrating to new choices. Overall, he stressed, the audience is building.
http://www.tvnewsday.com/articles/2007/02/07/daily.12/

BASEBALL'S PROPOSED PARTNERSHIP WITH DIRECTV WOULD SHUT OUT MANY FANS
[SOURCE: USAToday, AUTHOR: Michael McCarthy]
Baseball fans potentially affected by Major League Baseball's
proposal to move its pay-per-view package exclusively to DirecTV are
voicing their frustration and unhappiness about the plan. Past Extra
Innings customers who don't have, can't get or won't get DirecTV are
crying foul. They note many housing developments and apartment
complexes ban satellite TV dishes. Potential DirecTV customers also
need a clear view of the Southern sky. If their view is blocked by
trees or buildings, they can't receive the DirecTV signal. "It's
terrible. People like me are going to be penalized," says David
MacGill, an 81-year-old retiree from Indianapolis. He says he has
gotten Extra Innings through his cable operator because his community
doesn't allow dishes. If the deal goes through, current or potential
Extra Innings customers have a fallback option: watching the games
via MLB.com's broadband service at $79 a year. Approximately 29
million U.S. homes have high-speed Internet connections, says the
National Cable & Telecommunications Association. (Pitchers and
catchers report in five days.)
http://www.usatoday.com/sports/baseball/2007-02-08-directv_x.htm?csp=34

INTERNET

GOOGLE AND CABLE FIRMS WARN OF RISKS FROM WEB TV
[SOURCE: Reuters, AUTHOR: Lucas van Grinsven]
New Internet TV services such as Joost and YouTube may bring the
global network to its knees, Internet companies said on Wednesday,
adding they are already investing heavily just to keep data flowing.
Google, which acquired online video sharing site YouTube last year,
said the Internet was not designed for TV. It even issued a warning
to companies that think they can start distributing mainstream TV
shows and movies on a global scale at broadcast quality over the
public Internet. "The Web infrastructure, and even Google's
(infrastructure) doesn't scale. It's not going to offer the quality
of service that consumers expect," Vincent Dureau, Google's head of
TV technology, said at the Cable Europe Congress. Google instead
offered to work together with cable operators to combine its
technology for searching for video and TV footage and its tailored
advertising with the cable networks' high-quality delivery of shows.
One cable chief executive, Duco Sickinghe from Belgian operator
Telenet, said it was "the best news of the day" to hear that Google
could not scale for video. Research group Gartner estimates that 60
percent of the Internet traffic that is uploaded from computers is
peer-to-peer traffic, mostly from consumers swapping films and TV
shows through select user groups and BitTorrent. (The research found
that 39% of Internet traffic is spam so just 1% of traffic was found
to be "productive work.")
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID...

SENATOR TO PROPOSE SURVEILLANCE OF ILLEGAL IMAGES
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
A forthcoming bill in the U.S. Senate lays the groundwork for a
national database of illegal images that Internet service providers
would use to automatically flag and report suspicious content to
police. The proposal, which Sen. John McCain is planning to introduce
on Wednesday, also would require ISPs and perhaps some Web sites to
alert the government of any illegal images of real or "cartoon"
minors. Failure to do would be punished by criminal penalties
including fines of up to $300,000.
http://news.com.com/Senator+to+propose+surveillance+of+illegal+images/21...

GOP REVIVES ISP-TRACKING LEGISLATION
[SOURCE: C-Net|News.com 2/6, AUTHOR: Declan McCullagh]
All Internet service providers would need to track their customers'
online activities to aid police in future investigations under
legislation introduced Tuesday as part of a Republican "law and order
agenda." Employees of any Internet provider who fail to store that
information face fines and prison terms of up to one year, the bill
says. The U.S. Justice Department could order the companies to store
those records forever.
http://news.com.com/GOP+revives+ISP-tracking+legislation/2100-1028_3-615...

MOST US ADVERTISERS NOW SPENDING ON NEW MEDIA: SURVEY
[SOURCE: Reuters]
Nearly 90 percent of all U.S. companies polled in a new study will
use part of their marketing budgets to advertise in new media like
video games or virtual communities. The survey by the American
Advertising Federation underscores the shift in advertising spending
away from television, magazines and, particularly, newspapers, which
have suffered badly from declining circulation as more media choices
have become available. More than 12 percent of respondents said they
would spend as much as 40 percent of their budget on experimentation
and new media, according to the survey released this week. About half
of the respondents picked newspapers as the media category most in
need of innovation, and indeed publishers have pressed to strengthen
their online presence with more content like blogs and video.
http://today.reuters.com/News/newsArticle.aspx?type=technologyNews&story...

VERISIGN MOVES TO ADDRESS AN INTERNET SECURITY PROBLEM
[SOURCE: New York Times, AUTHOR: John Markoff]
To keep up with the growing strains put on the Internet by both
legitimate users and online attackers, a Silicon Valley company is
undertaking a $100 million expansion of a crucial part of the system
that speeds Web users to their destinations. The company, VeriSign,
is a leader in networking infrastructure and manages registration for
the .com and .net Internet domains. It is among the stewards of an
international system of computer servers running programs that
translate domain names like google.com or wikipedia.org into numeric
addresses.
http://www.nytimes.com/2007/02/08/technology/08net.html
(requires registration)
* VeriSign to spend over $100M on upgrade
http://www.mercurynews.com/mld/mercurynews/business/technology/16648562.htm

http://www.benton.org/index.php?q=taxonomy/term/20DIGITAL CONTENT

CAN APPLE CONVINCE RECORDING INDUSTRY?
[SOURCE: USAToday, AUTHOR: Jefferson Graham]
Record labels have consistently rebuffed calls by digital music
executives to sell songs online without copy-protection restrictions.
But now that the CEO of the predominant online music retailer has
joined the chorus, will labels pay attention? "Apple is the
fourth-largest music retailer," says Phil Leigh, an analyst at Inside
Digital Media. "The labels have to listen. Jobs carries a lot of
weight." According to the NPD Group, Wal-Mart, Best Buy and Target
are the top three music retailers, followed by Apple, then Amazon.
But Ted Cohen, a former top executive at record label EMI, says DRM
is justified, because "we need to protect content." If Jobs is truly
serious about taking off restrictions, Cohen says, he should sell
Apple software without restrictions on how many people can use it,
and sell Disney and Pixar movies on iTunes without copy restrictions.
Jobs is Disney's biggest shareholder, and the former CEO of Pixar.
"Prove you're serious and take a bold stance," says Cohen.
"Otherwise, I find it all a bit disingenuous."
http://www.usatoday.com/printedition/money/20070208/2b_drm08.art.htm
* Fans, labels are split on unlocked music plan
http://www.latimes.com/business/printedition/la-fi-music8feb08,1,6406795...
* Music industry group fires back at Apple
http://www.mercurynews.com/mld/mercurynews/business/technology/16646518.htm
* A lock on the market
[Commentary] DRM systems hurt the people who actually pay for music
by making the tracks they download harder to use. The record labels
(and the Hollywood studios too) should stop trying to use DRM to give
people less than what they're used to getting when they buy songs and
concentrate instead on developing compelling new ways to discover and
enjoy music.
http://www.latimes.com/news/printedition/opinion/la-ed-jobs08feb08,1,428...

WORKING PAST INTERNET FILE-SHARING FRUSTRATING
[SOURCE: C-Net|News.com, AUTHOR: Les Ottolenghi, Intent MediaWorks]
[Commentary] Once media-hungry consumers get a taste of free music,
video and games through file sharing, there's no turning back. File
sharing offers consumers the complete package: rich media delivered
directly to their computers, phones and e-mail addresses at no
charge. Why would anyone want to return to a linear distribution
system that requires more effort, more money and more limitations?
The future of music is peer-to-peer file sharing. Consumers have
opted out of the old system, which they found cumbersome, slow and
expensive. They will never return.
http://news.com.com/Working+past+Internet+file-sharing+frustration/2010-...

QUICKLY

COALITION OF MEDIA FIRMS SUBMITS SPECS TO FCC FOR "WHITE SPACE"
UNLICENSED DEVICE
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
Representatives of six corporations met with the Federal
Communications Commission this week to discuss a "cognitive radio"
that will pick up broadband signals from "white space" -- unused TV
spectrum. The reps say that the radio, part of a new generation of
proposed "unlicensed devices," will not only match the success of
Wi-Fi, but surpass it. "Unlicensed devices operating in the TV band
will offer longer transmission ranges using the same power, less risk
of signal attenuation or harmful interference, and less power
consumption at the same range than Wi-Fi," the six companies told the
FCC. This "coalition," as they call themselves, consists of Dell,
Google, Hewlett-Packard, Intel, Microsoft, and Philips. They sent the
FCC a statement in support of the fledgling technology on January
31st, then followed up on Monday, February 5th with the specs for a
Microsoft built machine, to be tested by the agency's Office of
Engineering and Technology (OET).
http://www.lasarletter.net/drupal/node/330

BILL WOULD EXTEND CAMPAIGN SPEECH IDs
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Reps David Price (D-NC) and Michael Castle (R-Delaware) have
introduced a bill that would extend the "stand by your ad" provisions
in campaign speech law to the Internet and automated campaign phone
calls. The provision, which applies to radio and TV, is the one that
requires that tag line: "I am [candidates name here] and I approve
this advertisement" --or something similar--to be placed on TV and
radio spots for political candidates. Meredith McGehee of the
Campaign Legal Center applauded the introduction of the bill, which
is titled the Responsible Campaign Communications Act of 2007.
http://www.broadcastingcable.com/article/CA6414525.html?display=Breaking...

ABC ANNOUNCES PRESIDENTIAL CANDIDATE DEBATES
[SOURCE: Broadcasting&Cable]
ABC, working with local affiliate WMUR and the New Hampshire Union
Leader, will produce four presidential candidate debates in the
Granite State -- two in October 2007 and two in January 2008. ABC is
also producing two candidate forums in Iowa in August 2007 in
conjunction with ABC affiliate WOI TV Des Moines.
http://www.broadcastingcable.com/article/CA6414488?display=Breaking+News

TELCOS MAY FACE NEW ANTI-PRETEXTING REGULATIONS
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Under a new bill proposed in Congress, telephone companies would be
required to alert customers if their private records are improperly
accessed. The Consumer Telephone Records Protection Act, introduced
on Tuesday by Rep. Jay Inslee (D-Wash.) and Rep. Marsha Blackburn
(R-Tenn.), would also reiterate that it's unlawful for anyone to
obtain confidential information about others through fraudulent
means, popularly known as "pretexting."
http://news.com.com/Telcos+may+face+new+anti-pretexting+regulations/2100...

TRIBUNE 4Q PROFIT SOARS
[SOURCE: Associated Press, AUTHOR: ]
Tribune Co., which has been fielding offers for its newspaper and
broadcasting operations, said Thursday its fourth-quarter profit
surged 81 percent, benefiting from multiple gains and higher revenue.
Net income after paying preferred dividends jumped to $239.1 million,
or 99 cents per share, from $132.3 million, or 43 cents per share,
during the same period a year ago. The company's newspaper or
publishing division saw operating revenues rise 4 percent to $1.1
billion and operating profit increase 30 percent to $225 million.
While classified ad revenue was flat for the quarter, advertising
revenues as a whole rose 4 percent. Broadcasting and entertainment's
operating revenue gained 11 percent to $356 million. "Key factors
were improved results in broadcasting, strong interactive revenue
growth, and excellent expense control throughout the company,"
Chairman, President and Chief Executive Dennis FitzSimons said in a statement.
http://biz.yahoo.com/ap/070208/earns_tribune.html?.v=2

MURDOCH WOULD LIKE JOA BETWEEN HIS 'NY POST' AND TRIBUNE'S 'NEWSDAY'
[SOURCE: Editor&Publisher]
Confirming his interest in working with the Chandler family in its
bid for Tribune Co., News Corp. Chairman and CEO Rupert Murdoch said
Wednesday he would ultimately like to see a JOA (joint operating
agreement) between his New York Post and Tribune' s Newsday.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
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Communications-related Headlines is a free online news summary
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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
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