February 2007

FCC Commissioners appear before the Senate=20
Commerce Committee this morning -- check=20
http://commerce.senate.gov/public/index.cfm?FuseAction=3DHearings.Hearin...
earing_ID=3D1809=20
for a webcast. For this and other upcoming media=20
policy events, see http://www.benton.org

NEWS FROM THE WHITE HOUSE
White House to Release Details on Eavesdropping
Court Urged to Rule on Eavesdropping Program
Revisiting Bush's Broadband Goals

NEWS FROM CONGRESS
New Questions for Senate Commerce Committee Oversight Hearings
Martin: Competitors Need Must-Have Cable Nets
House FCC Oversight Hearing Scheduled for Feb. 15
Network Neutrality, Broadband Taxes top House Tech Agenda
Sens. Push FCC on Sinclair-Mediacom
Kerry to Question Proposed DirecTV-MLB Deal
Security Officials Decry Gaps In Emergency Communications

NEWS FROM THE FCC
Initial Settlement Proposal for Radio Payola: $10 Million
FCC Releases Data on High Speed Services for Internet Access
FCC Releases Data on Local Telephone Competition

QUICKLY -- Turner Broadcasting "Regrets" Boston=20
Security Scare; FTC: Consumers Must Be Able To=20
Uninstall Copy Protection; Chandlers Extend=20
Tribune Offer; Telecommuting as energy saver

NEWS FROM THE WHITE HOUSE

WHITE HOUSE TO RELEASE DETAILS ON EAVESDROPPING
[SOURCE: New York Times, AUTHOR: Mark Mazzetti]
Bowing to bipartisan pressure from lawmakers, the=20
Justice Department announced Wednesday that it=20
was turning over to select members of Congress=20
secret documents detailing the National Security=20
Agency=92s domestic eavesdropping program. The Bush=20
Administration recently announced it had agreed=20
to put the NSA program under the authority of the=20
Foreign Intelligence Surveillance Court and that=20
the secret court had on Jan. 10 approved a=20
Justice Department request for a wiretap. The=20
decision to hand over the documents will allow=20
members of the House and Senate intelligence=20
committees -- as well as select congressional=20
leaders -- to review that court order. The=20
package of documents the Bush Administration is=20
giving to lawmakers is also expected to include=20
Justice Department applications for surveillance=20
approvals and the legal briefs submitted to the=20
FISA court. Lawmakers from both parties applauded=20
the decision, and pledged that the new Congress=20
will closely scrutinize the legality of the NSA program.
http://www.nytimes.com/2007/01/31/washington/31cnd-intel.html?hp&ex=3D11...
06000&en=3Debbd56c83091913b&ei=3D5094&partner=3Dhomepage
(requires registration)
* U.S. allows lawmakers to see court spying documents
http://today.reuters.com/News/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2007-02-01T002115Z_01_N31353590_RTRUKOC_0_US-USA-GONZALES-SPYING.xml&WTm=
odLoc=3DPolNewsHome_C1_%5bFeed%5d-8
* Records on Spy Program Turned Over to Lawmakers
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/31/AR200701...
0921.html
* U.S. to give Congress records on spying program
http://www.latimes.com/news/printedition/asection/la-na-nsa1feb01,1,1855...
.story?coll=3Dla-news-a_section

COURT URGED TO RULE ON EAVESDROPPING PROGRAM
[SOURCE: Reuters, AUTHOR: Andrea Hopkins]
A U.S. civil rights group urged a federal appeals=20
court on Wednesday to uphold a ruling against the=20
Bush Administration's domestic spying program,=20
although the White House has agreed a special=20
court can monitor the eavesdropping. The American=20
Civil Liberties Union said its challenge to=20
President George W. Bush's domestic wiretapping=20
program should not be dropped simply because the=20
government had volunteered, for now, not to renew=20
the eavesdropping activities. "It's this court's=20
duty to serve as check on the arbitrary exercise=20
of government power to wiretap American citizens=20
on American soil," ACLU lead attorney Ann Beeson=20
told a three-judge panel of the 6th U.S. Circuit=20
Court of Appeals. She noted the Bush=20
Administration was still claiming the "inherent=20
authority" to engage in eavesdropping without a=20
warrant, and that nothing would stop it from=20
withdrawing from the monitoring system in the=20
future. "A failure to decide the case could leave=20
it up to the president to decide when and whether=20
to obey the law," Beeson said.
http://today.reuters.com/News/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2007-02-01T002951Z_01_N31314744_RTRUKOC_0_US-USA-SECURITY-EAVESDROPPING.=
xml&WTmodLoc=3DPolNewsHome_C2_politicsNews-1
* Judges Weigh Arguments in U.S. Eavesdropping Case
http://www.nytimes.com/2007/02/01/washington/01nsa.html
* Appeals court hears wiretapping case
http://www.latimes.com/news/printedition/asection/la-na-spying1feb01,1,3...
692.story?coll=3Dla-news-a_section

REVISITING BUSH'S BROADBAND GOALS
[SOURCE: Technology Daily 1/30, AUTHOR: David Hatch]
In 2004, President Bush set a goal of affordable=20
high-speed Internet access for all Americans by=20
2007. The target year is here, but has the goal=20
been met? The answer may hinge on the meaning of=20
the word "by." John Kneuer, head of the National=20
Telecommunications and Information=20
Administration, which advises the White House on=20
communications policy, said Bush clearly meant=20
the end of 2007 as the timeframe. In that case,=20
he is confident that the objective will be=20
achieved. Kneuer believes that less than 10% of=20
households cannot receive broadband and that the=20
vast majority of households have a choice of=20
providers. Kneuer emphasized that broadband=20
investment has grown precipitously since the FCC=20
in 2005 classified broadband via phone networks=20
as a lightly regulated service. The FCC and NTIA=20
freed additional spectrum last year, encouraging=20
more carriers to offer wireless high-speed=20
Internet service. "We are the number one=20
broadband marketplace in the world" as measured=20
by total subscribers and investment, he said.=20
Kneuer added that Iceland, with 74,000 broadband=20
connections, is first in one survey that ranks=20
the U.S., with 64 million subscribers, as 12th in the world.
http://www.njtelecomupdate.com/lenya/telco/live/tb-NGLL1170274210860.html

NEWS FROM CONGRESS

NEW QUESTIONS FOR SENATE COMMERCE COMMITTEE OVERSIGHT HEARINGS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Meredith McGehee, policy director of the Campaign=20
Legal Center, has written to Senate Commerce=20
Committee members asking them to make sure and=20
ask FCC commissioners why, after six years of=20
study, the Commission has yet to define the=20
public interest obligations of digital=20
broadcasters. McGehee pointed out that two DTV=20
public interest-related items have been kicking=20
around the FCC without resolution for five and=20
six years, respectively. She also says that FCC=20
Chairman Kevin Martin made a "promising start"=20
when he first came in as chairman by naming 20=20
new members to a Consumer Advisory Commission,=20
but that the FCC has not acted on the DTV public=20
interest recommendations of that advisory group.=20
This includes the recommendation that the FCC=20
outline basic and meaningful public interest=20
obligations and disclosure rules for digital=20
television by May 2006. Calling the FCC's failure=20
to establish "bright lines" for DTV obligations=20
"inexcusable" McGehee says, "I sincerely hope=20
that you will stress to the Commissioners at=20
tomorrow=92s hearing their vital role in this=20
process and remind them that the airwaves they=20
use to broadcast are owned by the public and that=20
the absence of digital public interest=20
obligations after six years is unacceptable."
http://www.broadcastingcable.com/article/CA6412022?title=3DArticle&space...
c=3Dnews
* FCC expects to face queries on AT&T-BellSouth merger (Associated Press)
http://seattletimes.nwsource.com/html/businesstechnology/2003550457_fccc...
ress01.html

MARTIN: COMPETITORS NEED MUST-HAVE CABLE NETS
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
In testimony prepared for this morning's Senate=20
Commerce Committee hearing, FCC Chairman Kevin=20
Martin will say that he supports the extension of=20
rules that force cable companies to sell=20
programming to competing pay TV distributors.=20
Facing his first major oversight hearing since=20
becoming chairman in March 2005, Martin voiced=20
support for cable program-access rules as part of=20
the agency=92s ongoing effort =93to create a=20
regulatory environment that encourages entry into=20
this [pay TV] market and more choice for=20
consumers. This includes making sure that=20
competitive providers have access to =91must-have=92=20
programming that is vertically integrated with a=20
cable operator.=94 Cable operators are required to=20
sell satellite-delivered networks in which they=20
hold at least a 5% ownership stake. Such networks=20
include Time Warner=92s CNN and Comcast=92s Golf=20
Channel. The FCC=92s rule mandating=20
cable-programming sales will sunset in October=20
without formal FCC extension. Chairman Martin=92s=20
comments suggesting support for extension came=20
before the agency had sought public comment on=20
whether, as the law states, the rules continue=20
=93to be necessary to preserve and protect=20
competition and diversity in the distribution of video programming.=94
http://www.multichannel.com/article/CA6412300.html?display=3DBreaking+News

HOUSE FCC OVERSIGHT HEARING SCHEDULED FOR FEB 15
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The House Telecommunications Subcommittee has=20
scheduled a February 15 FCC oversight hearing. In=20
a letter to FCC commissioners, Subcommittee=20
Chairman Ed Markey (D-MA) and Commerce Committee=20
Chairman John Dingell (D-MI) sent a list of=20
questions concerning the AT&T-BellSouth merger=20
decision, broadband policy, spectrum policy, the=20
digital television transition, and overall=20
Commission policies, processes and functioning.=20
(See the questions at the URL below.)
http://www.broadcastingcable.com/article/CA6412039?title=3DArticle&space...
c=3Dnews

NET NEUTRALITY, BROADBAND TAXES TOP HOUSE TECH AGENDA
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Rep Rick Boucher (D-VA) said his 2007 goals are=20
to enact legislation related to Net neutrality,=20
patents, and broadband regulation and taxation,=20
including authorizing local governments to offer=20
their own Internet service. Rep Boucher and Rep.=20
Lee Terry (R-NE) also plan to push hard over the=20
next few months for passage of a proposal to=20
reform the universal service fund. Their bill=20
would formally allow companies that receive such=20
subsidies to use them for deploying broadband=20
service, which existing law does not. Right now,=20
telecommunications companies -- including those=20
offering wireless, pay-phone,=20
traditional-telephone and DSL services- - are=20
taxed on a fixed percentage of their=20
long-distance revenue and required to pay it into=20
a multibillion-dollar fund. Concerned that=20
dwindling long-distance revenue has eroded the=20
fund, the Federal Communications Commission last=20
year extended a similar requirement to some voice=20
over Internet protocol (VoIP) providers as well.=20
Rep Boucher said his bill would spread the=20
contribution requirements among "all who offer a=20
network connection" and require companies to=20
collect fees on local telephone calls as well. He=20
said the new sources will "replenish the fund and enable it to be sustained=
."
http://news.com.com/Net+neutrality%2C+patents%2C+broadband+taxes+top+Hou...
+Net+agenda/2100-1028_3-6155100.html?tag=3Dhtml.alert

SENS PUSH FCC ON SINCLAIR-MEDIACOM
[SOURCE: Multichannel News, AUTHOR: Ted Hearn & Linda Moss]
The leaders of the Senate Commerce Committee sent=20
a letter to Federal Communications Commission=20
chairman Kevin Martin urging the agency to help=20
resolve the dispute between Mediacom=20
Communications and Sinclair Broadcast Group=20
before Super Bowl weekend. =93We strongly urge you=20
and the other members of the [FCC] to actively=20
engage to resolve this dispute. At a minimum,=20
Americans should not be shut off from broadcast=20
programming while the matter is being negotiated=20
among the parties and is awaiting action by the=20
full [FCC] on appeal,=94 the letter said. The=20
letter, dated Tuesday, was signed by Senate=20
Commerce Committee chairman Daniel Inouye=20
(D-Hawaii) and ranking member Ted Stevens=20
(R-Alaska), who expressed concern that cable=20
subscribers might lose access to Sunday=92s Super=20
Bowl on CBS. The lawmakers urged =93immediate=20
action to resolve this dispute, which could include binding arbitration.=94
http://www.multichannel.com/article/CA6412260.html?display=3DBreaking+News
* Senate Commerce Co-Chairs Urge Arbitration
http://www.broadcastingcable.com/article/CA6412281.html?display=3DBreaki...
News

KERRY TO QUESTION PROPOSED DIRECTV-MLB DEAL
[SOURCE: Multichannel News, AUTHOR: R. Thomas Umstead]
Sen. John Kerry (D-MA) intends to question=20
Federal Communications Commission Chairman Kevin=20
Martin about the pending $700 million deal=20
between DirecTV and Major League Baseball that=20
would provide DirecTV with exclusive rights to=20
baseball=92s Extra Innings live-game package. The=20
deal would shut out cable subscribers from=20
purchasing the $179 package, which provides=20
hundreds of live out-of-market baseball games. =93I=20
am opposed to anything that deprives people of=20
reasonable choices. In this day and age,=20
consumers should have more choices, not fewer,=94=20
Kerry said in a prepared statement. =93I'd like to=20
know how this serves the public -- a deal that=20
will force fans to subscribe to DirecTV in order=20
to tune in to their favorite players. A Red Sox=20
fan ought to be able to watch their team without having to switch to DirecT=
V.=94
http://www.multichannel.com/article/CA6412251.html?display=3DBreaking+News

SECURITY OFFICIALS DECRY GAPS IN EMERGENCY COMMUNICATIONS
[SOURCE: Technology Daily 1/30, AUTHOR: Chris Strohm]
Members of the House Homeland Security=20
Appropriations Subcommittee and a panel of=20
national security experts criticized the Homeland=20
Security Department for not doing enough to=20
ensure that state and local governments have the=20
equipment to communicate with each other. They=20
added that Congress should mandate new standards.=20
Former department Deputy Secretary and retired=20
Coast Guard Adm. James Loy said Congress should=20
require the department to develop a strategic=20
plan for what it wants to accomplish by 2020 and=20
how to accomplish those goals, something similar=20
to what the Defense Department must do. He said=20
he was frustrated when he left the department in=20
2005 and remains frustrated that Homeland=20
Security has not done more to improve interoperable communications.
http://www.njtelecomupdate.com/lenya/telco/live/tb-FMMS1170274386100.html

NEWS FROM THE FCC

INITIAL SETTLEMENT PROPOSAL FOR RADIO PAYOLA: $10 MILLION
[SOURCE: USAToday, AUTHOR: Paul Davidson]
The nation's four largest radio broadcasters=20
would make payments and other contributions=20
valued at about $10 million under a proposed=20
settlement of a year-long probe by the Federal=20
Communications Commission into pay-for-play=20
claims in the music industry. While the FCC's=20
three Republicans generally have backed=20
less-punitive terms, Democrats Jonathan Adelstein=20
and Michael Copps have been pushing for tougher=20
concessions. Under settlement terms proposed=20
several weeks ago, the broadcasters would devote=20
$7 million of airtime to independently produced=20
music. The radio giants also would pay $3 million=20
to a fund for the National Association of=20
Broadcasters to provide training to member=20
stations to stop payola. But some FCC officials=20
are concerned that the agency doesn't have the=20
authority to require such contributions. As a=20
result, the original proposal was expected to be=20
pulled Wednesday night. A new proposal is=20
expected to require the broadcasters to pay a=20
more traditional penalty of $10 million to $15=20
million to the U.S. Treasury. In addition, the=20
companies would draft compliance plans detailing=20
which practices are unacceptable. FCC Democrats=20
worried the original proposal did not give the agency sufficient oversight.
http://www.usatoday.com/printedition/money/20070201/fcc01.art.htm

FCC RELEASES DATA ON HIGH SPEED SERVICES FOR INTERNET ACCESS
[SOURCE: Federal Communications Commission]
The FCC released new data on high-speed=20
connections to the Internet in the United States=20
as of June 30, 2006. The FCC defines "high-speed=20
lines" as connections that deliver services at=20
speeds exceeding 200 kilobits per second (kbps)=20
in at least one direction, while advanced=20
services lines are connections that deliver=20
services at speeds exceeding 200 kbps in both=20
directions. Here's some highlights: 1)=20
High-speed lines increased by 26% during the=20
first half of 2006, from 51.2 million to 64.6=20
million lines in service, compared to a 21%=20
increase, from 42.4 million to 51.2 million=20
lines, during the second half of 2005. For the=20
full twelve month period ending June 30, 2006,=20
high-speed lines increased by 52% (or 22.2=20
million lines). 2) Of the 64.6 million total=20
high-speed lines reported as of June 30, 2006,=20
50.3 million served primarily residential end=20
users. Cable modem service represented 55.2% of=20
these lines while 40.1% were asymmetric DSL=20
(ADSL) connections. 3) Providers list the Zip=20
Codes in which they have at least one high-speed=20
connection in service to an end user, and 99% of=20
Zip Codes were listed by at least one=20
provider. Our analysis indicates that more than=20
99% of the nation's population lives in those Zip=20
Codes. The most widely reported technologies by=20
this measure were satellite (with at least some=20
presence reported in 90% of Zip Codes), ADSL (in=20
82% of Zip Codes), and cable modem (in 64% of Zip=20
Codes). ADSL and/or cable modem connections were=20
reported to be present in 88% of Zip Codes.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270135A1.doc
* See full report:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270128A1.doc
* Broadband and mobile phone use continues to rise in U.S.
http://www.lasarletter.net/drupal/node/317

FCC RELEASES DATA ON LOCAL TELEPHONE COMPETITION
[SOURCE: Federal Communications Commission]
The FCC released new data on local telephone=20
service competition in the United States as of=20
June 30, 2006. Highlights: 1) 142.2 million=20
customer lines from incumbent telephone=20
companies, 29.8 million from competitive=20
telephone companies (CLECs) and 217.4 million=20
cell phone subscriptions. 2) 6 million of the=20
29.8 million "CLEC" lines were served by cable=20
connections. 3) At least one CLEC was serving=20
customers in 82% of the nation's Zip Codes at the=20
end of June 2006. About 98% of United States=20
households resided in those Zip Codes. Moreover,=20
multiple carriers reported providing local=20
telephone service in the major population centers of the country.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270136A1.doc
* See full report:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270133A1.doc

QUICKLY

TURNER BROADCASTING "REGRETS" BOSTON SECURITY SCARE
[SOURCE: Reuters, AUTHOR: Jason Szep]
Turner Broadcasting apologized on Wednesday for a=20
marketing campaign that sparked Boston's biggest=20
security scare since the September 11, 2001,=20
attacks -- closing bridges, shutting major roads=20
and putting hundreds of police on alert. The=20
day-long scare began when a suspicious package=20
was found on a steel beam under a bridge in the=20
morning. Police stopped traffic on a major=20
interstate highway north of Boston, cordoned off=20
the area, deployed a bomb squad and blew it up.=20
By afternoon, at least eight other similar=20
suspicious packages were discovered, each=20
triggering a security alert involving emergency=20
crews, federal agents, bomb squads, police and=20
the U.S. Coast Guard. The 'packages' in question=20
are magnetic lights that pose no danger," Turner=20
Broadcasting System Inc., a unit of Time Warner=20
Inc., said in statement. It said the devices were=20
part of an outdoor marketing campaign in 10=20
American cities for an animated television show=20
"Aqua Teen Hunger Force" produced by its Adult=20
Swim brand. They had been in place for two to=20
three weeks in Boston, New York, Los Angeles,=20
Chicago, Atlanta, Seattle, Portland, Austin, San=20
Francisco, and Philadelphia. "We regret that they=20
were mistakenly thought to pose any danger," said Turner.
http://today.reuters.com/news/newsArticle.aspx?type=3DdomesticNews&storyID=
=3D2007-02-01T001822Z_01_N31216023_RTRUKOC_0_US-SECURITY-BOSTON.xml&WTmodLo=
c=3DUSNewsHome_C1_%5bFeed%5d-2
* Suspicious Devices in Boston Turn Out to Be Ad Campaign for Cartoon
http://www.nytimes.com/2007/02/01/us/01boston.html
* Boston Livid Over Cartoon network Ad Stunt (Associated Press)
http://www.tvnewsday.com/articles/2007/02/01/daily.2/

FTC: CONSUMERS MUST BE ABLE TO UNINSTALL COPY PROTECTION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a decision that sets some limits on its=20
copy-protection of content, Sony has settled with=20
the Federal Trade Commission over security it=20
imbedded in its CDs. The FTC said Sony may not=20
hide the security system from consumers and,=20
beyond that, must "provide a reasonable and=20
effective way to uninstall any content protection software."
http://www.broadcastingcable.com/article/CA6411977?title=3DArticle&space...
c=3Dnews

CHANDLERS EXTEND TRIBUNE OFFER
[SOURCE: Editor&Publisher]
Chandler Trusts is extending its offer for=20
Tribune Co. past the previous Wednesday evening=20
deadline. There was no word if the offer has been=20
changed from its original terms, which would spin=20
off Tribune's television properties into a new=20
publicly traded company while taking the=20
newspaper business private. Current Tribune=20
stockholders would get stock in the new company=20
valued at $12.40, plus $19.30 per share in cash.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003540351

TELECOMMUTING AS ENERGY SAVER
[SOURCE: The Christian Science Monitor, AUTHOR: Editorial Staff]
There's roughly 28-32 million telecommuters in=20
the US. Cutting out that round-trip commute to=20
the office =96 which averages about 23 miles =96 can=20
save nearly $1,000 a year in gasoline and avoid=20
putting more than 6,000 pounds of carbon dioxide=20
into the atmosphere. Recent hearings in Congress=20
focused on telecommuting as a way to deal with=20
traffic, terrorism, oil dependency, and global=20
warming. Some participants noted that remote=20
employees make it possible for offices to operate=20
during a serious storm, terrorist attack, or=20
other emergency. Telecommuting helps some parents=20
better balance career and family. It enables=20
older workers to defer retirement and gives rural=20
residents more ways to earn money. At the same=20
time it broadens work opportunities for the=20
disabled. Supporters cite other benefits, such as=20
improved productivity and greater employee=20
satisfaction. Teleworking also represents an alternative to outsourcing.
http://www.csmonitor.com/2007/0201/p08s02-comv.html
--------------------------------------------------------------
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.
--------------------------------------------------------------