March 2007

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INTERNET/BROADBAND
Adelstein Blasts White House Over Access To Broadband
Sen. Inouye Seeking To Craft Bipartisan Universal Service Bill
U.S. Internet advertising climbs 34 pct in 2006

OWNERSHIP
Satellite Vs. Local: Karmazin, Broadcasters Square Off
FCC meeting addresses media, diversity
FCC Extends Comment Window For KTLA Renewal

BROADCASTING
Changing TV economics prompts fresh thinking about public airwaves
Google, Intel, Skype and Yahoo! Seek Rules for=20
Bidding on Broadcast Frequencies

JOURNALISM
After Libby Trial, New Era for Government and Press
Big Profits in Small Packages

QUICKLY -- Oversight Questions for NTIA; Gates=20
calls for 'infinite' H-1Bs, better schools;=20
Wicked Storms, Wobbly Stocks, and Wounded Soldiers Make News

INTERNET/BROADBAND

ADELSTEIN BLASTS WHITE HOUSE OVER ACCESS TO BROADBAND
[SOURCE: Technology Daily 3/6, AUTHOR: David Hatch]
FCC Commissioner Jonathan Adelstein leveled fresh=20
accusations at the Bush administration over what=20
he says is a failed policy on high-speed Internet=20
deployment. "I really believe we lack a=20
coordinated vision for success," he said at the=20
Freedom to Connect technology conference. "This=20
has got to be a greater national priority than it=20
is now." Adelstein and the FCC's other Democrat,=20
Commissioner Michael Copps, regularly take aim at=20
the White House's broadband policies. In 2004,=20
the Bush administration set a goal of affordable,=20
universal broadband access by 2007. But critics=20
say that goal will not be met by the end of this=20
year in many rural areas, even though=20
administration officials insist the plan is on=20
track. Commissioner Adelstein called for a=20
national broadband strategy that includes=20
benchmarks, deployment timetables and measurable=20
thresholds to gauge its success.
http://www.njtelecomupdate.com/lenya/telco/live/tb-NZEO1173296524287.html

SEN INOUYE SEEKING TO CRAFT BIPARTISAN UNIVERSAL SERVICE BILL
[SOURCE: Technology Daily 3/1, AUTHOR: David Hatch]
Senate Commerce Chairman Daniel Inouye (D-Hawaii)=20
will work with members of his panel from both=20
parties to craft legislation aimed at overhauling=20
the universal service fund. Apparently, the=20
measure would focus only on revamping the=20
multibillion-dollar fund, which subsidizes=20
telecommunications service in rural and=20
impoverished areas -- and is not envisioned as=20
broader telecom legislation. Noting that the=20
committee's membership is heavily rural, Sen=20
Inouye said during a USF hearing, "I can assure=20
you that we will have some action here, including=20
a measure on the floor." But to do so, he=20
acknowledged that he must consider the concerns=20
and interests of many parties. "It will be a=20
challenge, but I can assure you, we will take on=20
that challenge," he said. To assist with the=20
process, Inouye plans an in-depth briefing on the=20
potential -- and limitations -- of high-speed=20
Internet and wireless services. Lawmakers and=20
regulators agreed that the USF is bloated and=20
outdated, but disagreed on how to improve it.
http://www.njtelecomupdate.com/lenya/telco/live/tb-JZQH1173297103250.html

US INTERNET ADVERTISING CLIMBS 34 PCT IN 2006
[SOURCE: Reuters]
U.S. Internet advertising surged 34 percent last=20
year, reaching a record high, as companies moved=20
more spending on marketing and promotion into new=20
media, according to The Interactive Advertising=20
Bureau and PricewaterhouseCoopers. The IAB and=20
PricewaterhouseCoopers have tracked online ad=20
spending since 1996. They provide a more detailed=20
breakdown twice yearly, with the next one due in=20
April. But preliminary results showed that=20
revenues for 2006 rose to an estimate $16.8=20
billion from $12.5 billion in 2005.=20
Fourth-quarter 2006 revenues totaled about $4.8=20
billion, making it the highest quarter reported,=20
and a 32 percent increase over the same period in 2005.
http://www.reuters.com/article/internetNews/idUSN0723447620070307

OWNERSHIP

SATELLITE VS LOCAL: KARMAZIN, BROADCASTERS SQUARE OFF
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
At the House Telecom Subcommittee hearing on the=20
Future of Radio, Sirius CEO Mel Karmazin again=20
made the case for the merger of his company and=20
XM. But Peter Smyth, president of radio station=20
owner Greater Media, wasn't buying the pledge of=20
lower prices, saying "subscription prices will=20
rise because there will be no competition to=20
restrain monopoly rates," then, sounding like an=20
anti-media consolidation activist, he added:=20
"Jobs will be eliminated. Innovation will suffer.=20
Neither listeners nor advertisers will benefit.=20
Put simply -- private corporate interests will=20
benefit, but the public will suffer." Gene=20
Kimmelman of Consumers Union said the merger as=20
advertised would not be in consumer's interest.=20
He said that satellite radio was a distinct=20
service, a mobile national offering, that=20
broadcasters do not directly compete with. One=20
legislator pointed out that Kimmelman had seen=20
some "significant benefits" in the proposed=20
merger of DirecTV and EchoStar in 2002 -- a=20
merger that was found to be anticompetitive --=20
while he opposed outright the current satellite=20
radio merger, not even proposing conditions on a=20
possible merger. Kimmelman said the difference=20
was that cable prices were going up three times=20
the rate of inflation and that he was looking to=20
satellite to be a governor on that price. By=20
contrast, he said, "last time I looked, the price=20
of free radio wasn't going up." He also said=20
there had been a proposal of spectrum=20
divestiture. He then suggested that if the=20
combined companies wanted to divest some spectrum=20
and combine into one service, that would be an interesting proposal.
http://www.broadcastingcable.com/article/CA6422600.html?display=3DBreaki...
News
* Karmazin Counters Character Qualification Criticisms
http://www.broadcastingcable.com/article/CA6422620.html?title=3DArticle&...
cedesc=3Dnews
* For more on the hearing see=20
http://energycommerce.house.gov/cmte_mtgs/110-ti_hrg.030707.future_radio...
tml
* Sirius-XM Merger
http://techdailydose.nationaljournal.com/2007/03/more_openers_siriusxm_m...
er_1.php
* Women & Minority-Owned Radio
http://techdailydose.nationaljournal.com/2007/03/openers_women_minorityo...
d_ra.php
* XM, Sirius Pitch Merger to Hill
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/07/AR200703...
2243.html
* New Net radio rules draw fire on Capitol Hill
Rep Ed Markey (D-MA) had harsh words for a ruling=20
released Tuesday by the U.S. Copyright Royalty=20
Board. It proposes raising the amount that=20
commercial Internet radio services pay to record=20
companies by 30 percent retroactively to 2006 and=20
in each of the next three years through 2009.=20
Each station would have to hand over a minimum $500 royalty payment.
http://news.com.com/New+Net+radio+rules+draw+fire+on+Capitol+Hill/2100-1...
_3-6165336.html?tag=3Dnefd.lede
* Markey Examines Radio Industry, Merger at Hearing
http://markey.house.gov/index.php?option=3Dcom_content&task=3Dview&id=3D...
0&Itemid=3D141

FCC MEETING ADDRESSES MEDIA, DIVERSITY
[SOURCE: The Repository (Canton, Ohio), AUTHOR:=20
Paul Kostyu paul.kostyu( at )cantonrep.com]
Three of the five commissioners of the Federal=20
Communications Commission heard this message over=20
and over: Ohio's minority population is not being=20
well-served by policies that allow consolidation=20
of media. And two of the commissioners, Jonathan=20
S. Adelstein and Michael J. Copps, agreed. They=20
and fellow commissioner Robert M. McDowell=20
attended a Columbus town meeting Wednesday night=20
on the "Future of Media." Copps said the most=20
important issue in America today is media=20
ownership, because all other issues, such as=20
education, health care, employment and the Iraq=20
war, "filter through the funnel of the big media."
http://www.cantonrep.com/index.php?ID=3D340661

FCC EXTENDS COMMENT WINDOW FOR KTLA RENEWAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC has given critics of, and commenters on,=20
the license renewal of Tribune's KTLA Los Angeles=20
a little more time to do both. Saying that "a=20
full and complete record should be assembled with=20
respect to the KTLA-TV license renewal=20
application," the commission Wednesday said that=20
it has opened a 30-day window for comments or=20
petitions to deny the renewal. KTLA is owned by=20
the Tribune Company which also owns the Los Angeles Times.
http://www.broadcastingcable.com/article/CA6422602.html?display=3DBreaki...
News

BROADCASTING

CHANGING TV ECONOMICS PROMPTS FRESH THINKING ABOUT PUBLIC AIRWAVES
[SOURCE: Seattle Times, AUTHOR: Alex Alben]
[Commentary] Shifting economics between the=20
networks and their affiliates already reflect=20
this. We increasingly live in an age in which=20
producers of high-quality TV shows will go=20
directly to the consumer to monetize their=20
investment. This sea change in TV economics is=20
occurring against the background of a mandatory=20
review by the Federal Communications Commission=20
of local TV station ownership rules and=20
regulations. For example, the commission will=20
consider lifting the ban against a newspaper also=20
owning a TV station in its local market.=20
Advocates of lifting the ban say that news=20
quality will actually improve, if a local TV=20
outlet can draw upon the depth and experience of=20
local print reporters. Besides, the argument=20
goes, in a world where people can go to the=20
Internet any moment of the day to get news from=20
sources around the world, the concept of=20
maintaining independent control between=20
territorial news outlets is outmoded. But local=20
stations, after all, enjoy a government monopoly=20
on a finite resource =97 the spectrum for VHF and=20
UHF broadcast signals. To continue to enjoy their=20
monopoly, local stations file simplified forms=20
every few years when their FCC licenses come up=20
for renewal. There are very few requirements to=20
offer locally generated programming or even local=20
news. Most stations make their money by inserting=20
their local ads into reruns of "Seinfeld" and=20
other secondhand programming. Local TV needs to=20
do more than simply exist as an "over the=20
airwaves" channel for the distribution of content=20
available in other formats. Despite the changing=20
economics of video distribution, is it really too=20
much to ask that local stations address the=20
informational interests of the people within the=20
regions they are chartered to serve?
http://seattletimes.nwsource.com/html/opinion/2003604342_alben07.html

GOOGLE, INTEL, SKYPE AND YAHOO SEEK RULES FOR BIDDING ON BROADCAST FREQUENC=
IES
[SOURCE: Wired in Washington, AUTHOR: Drew Clark]
The country's two satellite television companies=20
have joined forces with four major technology=20
companies and a wireless company to promote the=20
auction of frequencies currently used by=20
television broadcasters. In a March 5 meeting at=20
the Federal Communications Commission with FCC=20
Commissioner Jonathan Adelstein, the tech=20
companies =96 Google, Intel, Skype and Yahoo! =96=20
joined with Access Spectrum to promote their=20
"Coalition for 4G in America." The engagement of=20
Internet giants like Google and Yahoo!, which=20
traditionally have not lobbied the FCC, suggests=20
considerable interest by the technology industry=20
in the upcoming auction, which is set to begin no=20
later than January 28, 2008. In 2006, Congress=20
fixed February 19, 2009, as the end-date for=20
analog television, freeing a wide swath of=20
radio-frequencies for use by new technologies.=20
The frequencies to be made available at auction=20
are in the 700 Megahertz (MHz) range, and are=20
among the most desirable because they easily=20
penetrate buildings and trees. Wireless=20
communications using the WiFi wireless broadband=20
standard currently takes place at 2.4 or 5.8=20
Gigahertz (GHz), frequencies that are much less=20
desirable. Technology companies like Intel,=20
Microsoft and Motorola played a key role in the=20
lobbying campaign to put a fixed date on the=20
digital television transition. The first priority=20
of the group is to ensure that both the auction=20
date and the digital television switchover date are not altered.
http://www.drewclark.com/2007/03/google-intel-skype-and-yahoo-seek-rules...
tml

JOURNALISM

AFTER LIBBY TRIAL, NEW ERA FOR GOVERNMENT AND PRESS
[SOURCE: New York Times, AUTHOR: Adam Liptak]
The investigation and trial of I. Lewis Libby=20
Jr., who was Vice President Dick Cheney=92s chief=20
of staff, will have many legacies and lessons =97=20
for government officials, for supporters and=20
critics of special prosecutors and for historians=20
of the events leading to the war in Iraq. But the=20
institution most transformed by the prosecution,=20
and the one that took the most collateral damage=20
from Patrick J. Fitzgerald=92s relentless pursuit=20
of obstruction and perjury charges against Mr.=20
Libby, may have been the press, forced in the end=20
to play a major role in his trial. After Mr.=20
Libby=92s conviction Tuesday, it is possible to=20
start assessing that damage to the legal=20
protections available to the news organizations,=20
to relationships between journalists and their=20
sources and to the informal but longstanding=20
understanding in Washington, now shattered, that=20
leak investigations should be pressed only so=20
hard. Ten out of 19 of the witnesses in Mr.=20
Libby=92s trial were journalists, a spectacle that=20
would have been unthinkable only a few years ago.
http://www.nytimes.com/2007/03/08/washington/08fitzgerald.html
(requires registration)

BIG PROFITS IN SMALL PACKAGES
[SOURCE: Washington Post, AUTHOR: Frank Ahrens]
If there's any good news about the businesses of=20
newspapering these days, it can be found at the=20
industry's littlest papers, which are doing well=20
even as their bigger brothers founder. The=20
average daily circulation of all U.S. newspapers=20
has declined since 1987. The smallest papers,=20
however -- community weeklies and dailies with=20
circulation of less than 50,000 -- have been a=20
bright spot in a darkened industry. As the=20
Internet dramatically transforms the largest=20
papers in the business -- siphoning classified=20
advertising and commoditizing national news --=20
many small papers are weathering the decline with=20
relative ease, and some are even prospering. Why?=20
Small papers face less competition from other=20
media outlets, are insulated from ad slumps that=20
have hammered big papers, employ smaller staffs=20
of lower-salaried journalists and have a zealous=20
devotion to local news, both in print and online,=20
industry experts agree. Also, there is less=20
competition on the Web for local news.
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/07/AR200703...
2408.html
(requires registration)

QUICKLY

OVERSIGHT QUESTIONS FOR NTIA
[SOURCE: House of Representatives Commerce Committee 3/6/2007]
On March 22, the House Commerce Committee will=20
hold an oversight hearing on the National=20
Telecommunications and Information Administration=20
(NTIA). In preparation, Committee Chairman John=20
Dingell (D-MI) and Telecom Subcommittee Chairman=20
Ed Markey (D-MA) have sent a list to questions to=20
NTIA head John Kneuer, asking him to respond=20
before St Patrick's Day. Topics include: 1)=20
efforts the NTIA has taken to achieve the=20
President's goal of universal, affordable=20
broadband by 2007; 2) Internet governance and=20
security; and 3) minority media ownership.
http://energycommerce.house.gov/Press_110/110-ltr.030607.NTIA.Kneuer.pre...
ring_questions.pdf

GATES CALLS FOR 'INFINITE' H-1Bs, BETTER SCHOOLS
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Microsoft Chairman Bill Gates on Wednesday=20
renewed his fight for "infinite" H-1B=20
guest-worker visas and improvements in U.S.=20
education before largely receptive senators on=20
Capitol Hill. In only his third appearance ever=20
at a congressional hearing, Gates urged=20
politicians on the Senate Health, Education,=20
Labor and Pensions Committee to pursue a=20
three-pronged approach to boosting the nation's=20
competitiveness: equipping American students,=20
teachers and workers with necessary math and=20
science skills; elevating research spending; and=20
rewriting immigration laws to allow American=20
companies to hire more foreigners.
http://news.com.com/Gates+calls+for+infinite+H-1Bs%2C+better+schools/210...
014_3-6165166.html?tag=3Dnefd.lede

WICKED STORMS, WOBBLY STOCKS, AND WOUNDED SOLDIERS MAKE NEWS
[SOURCE: Project for Excellence in Journalism]
Two dramatic breaking events and two=20
long-simmering story lines were among a list of=20
subjects competing for media attention in an=20
unusually heavy news week, according to PEJ=92s=20
News Coverage Index from February 25-March 2. The=20
breaking news stories were very different kinds=20
of events=97tornadoes in the South and a financial=20
plunge on Wall Street. The simmering, slower=20
developing subjects were the growing controversy=20
about treatment of soldiers at home=97for the=20
second week running=97and the deteriorating=20
situation in Afghanistan. They joined two stories=20
that typically dominate the Index=97the 2008=20
Presidential race and the debate over Iraq=20
policy=97on the roster of top stories last week.
http://www.journalism.org/node/4399
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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.
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