March 2007

(Beware the lion!)
Two Congressional hearings of note today: 1) in the House, "Digital
Future of the United States: Part I -- The Future of the World Wide
Web" and 2) in the Senate, Universal Service is the topic and
witnesses include FCC Commissioners Tate and Copps, state regulators,
corporate execs and a rep from the North Dakota Association of
Telecommunications Cooperatives
(http://commerce.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&...)

TELEVISION
Rep. Dingell Tells Broadcasters DTV Transition May Be Delayed
Campaign to educate public on digital TV switch
Sources: NCTA Takes Up Retrans Fight

MEDIA OWNERSHIP
FCC's Tate Pushes For Media Diversity
Karmazin Says Sirius/XM Would Cap Price

TELECOM
Reverse USF Auctions Scrutinized

NEWS FROM THE FTC
Net Neutrality Vital to Creative Artists AND American Public
CDT Recommends Steady Increase in FTC Funding

QUICKLY -- Why the tech industry still can't get its way; Does Cisco
want to run the FCC's national public safety network?; Court: Raid of
S.F. pirate station legal; What Was News Feb 18-23; Governors craft
reform strategy

TELEVISION

REP DINGELL TELLS BROADCASTERS DTV TRANSITION MAY BE DELAYED
[SOURCE: Technology Daily 2/27, AUTHOR: David Hatch]
House Commerce Chairman John Dingell (D-MI) stunned the broadcast
industry by suggesting that the nation's switch to digital television
-- set to occur on Feb. 17, 2009 -- may be postponed. "We have to fix
a date that, first of all, makes sense," he told journalists
following a speech to the National Association of Broadcasters.
"Second of all," the government must ensure that other initiatives
are on track for the deadline to be met, he said. "There are some
questions about both, and I don't have [for] you an answer at this
particular time," Chairman Dingell told reporters. "But this is one
of the things that the committee will be looking at." Scrapping the
deadline would have repercussions for consumers, electronics
manufacturers and television outlets that have based their business
plans on being able to offer multiple digital signals -- up to six
per station. A delayed deadline would be a disincentive for many
consumers to purchase new high-definition sets, a broadcast source
said privately. It also would affect the auctioning of spectrum to be
returned by TV stations and the allocation of some of those
frequencies for public-safety purposes.
http://www.njtelecomupdate.com/lenya/telco/live/tb-ECAY1172688205681.html
* Why Digital TV Will Be Delayed
[Commentary] Congress will push back the 2009 deadline when it
realizes that millions of voters might lose their TV signals.
http://www.tvpredictions.com/dtvdelay022807.htm

CAMPAIGN TO EDUCATE PUBLIC ON DIGITAL TV SWITCH
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Concerned that millions of Americans don't understand what the
February 2009 digital television switch means for their sets, a
number of industry and public interest groups on Wednesday said they
plan to launch an educational campaign. Trade associations
representing consumer electronics manufacturers and retailers, the
cable and broadcast industries, public television stations, and civil
rights advocates have aligned themselves as the DTV Transition
Coalition and plan to pool unspecified millions of dollars to educate
consumers about the crossover from analog TV. The announcement of the
alliance's formation at a press conference here arrived one day
before manufacturers must cease shipping TVs, VCRs, DVD players and
recorders, digital video recorders and other devices that contain
only an analog tuner. The proposed transition from analog to
all-digital broadcasts has been in the works for years, but Congress
decreed in late 2005 that analog TV spectrum had to be vacated after
February 17, 2009. The deadline will not affect the vast majority of
Americans who already subscribe to cable or satellite TV. But an
estimated 19 million households, according to a recent National
Association of Broadcasters (NAB) survey, that do not subscribe to
those services, must either acquire a digital-to-analog converter box
or another device, such as a VCR or DVD player, containing a digital
tuner to continue receiving free, "over-the-air" shows on their
analog TV sets. The new campaign also launches as leaders in Congress
continue to voice concern about what some perceive as a lack of
guidance from the Bush administration on a planned program to
subsidize converter boxes.
http://news.com.com/Campaign+to+educate+public+on+digital+TV+switch/2100...

SOURCES: NCTA TAKES UP RETRANS FIGHT
[SOURCE: tvnewsday, AUTHOR: Kim McAvoy]
Apparently the National Cable & Telecommunications Association is
joining the fight in Congress to change retransmission law, which
requires that cable operators get the permission of broadcasters
before carrying their signals. The American Cable Association has
attacked broadcasters' retransmission consent rights in Washington
over the past year, while the NCTA -- representing the nation's major
operators -- has sat quietly on the sidelines.
http://www.tvnewsday.com/articles/2007/02/28/daily.2/

MEDIA OWNERSHIP

FCC'S TATE PUSHES FOR MEDIA DIVERSITY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
FCC Commissioner Deborah Taylor Tate staked out some new territory at
the FCC. She has been labeled the kids commissioner for her emphasis
on issues like childhood obesity, but also wants to push the FCC,
Congress, and industry to do more to encourage media diversity. There
are informal and formal steps that could boost the participation of
women and minorities both in front of the mike and behind the desk in
the executive suites, she says, pointing to statistics that while
women are 51% of the population, they represent only 4.9% of station
owners, with a similar disparity for minorities, a difference she
called "troubling." Among the possible steps the FCC could take, she
said, including a proposal FCC Chairman Kevin Martin has been
floating as well, which would allow TV stations to lease digital
spectrum to small and minority-owned entities, who could program the
channels and receive must-carry rights on cable, as well as public
interest obligations. She also said the FCC could re-establish the
tax certificate program that gave companies a tax break for selling
to minorities. Congress repealed that break in 1995, but before that
it helped boost the ranks of minority owned stations from 60 to some
300, she said. A bill to do just that, H.R. 600, was introduced in
January by Rep. Bobby Rush (D-II). Commissioner Tate also said she
supported modifying the FCC rules on attributable investments to
allow minorities to raise more money.
http://www.broadcastingcable.com/article/CA6420250?title=Article&spacede...

KARMAZIN SAYS SIRIUS/XM WOULD CAP PRICE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
At a hearing of the House Antitrust Task Force, Sirius Satellite
Radio CEO Mel Karmazin says that if XM and Sirius are allowed to
merge, the combined company is willing to cap prices -- he says he
even expects to lower them -- and accept other conditions from the
Justice Department, Federal Trade Commission, and the FCC in order to
get the deal done. He also pledged that nobody would have to buy a
new radio to get service from the combined companies. Karmazin said
the deal does not have to be done -- neither company is claiming
hardship -- but that if it is approved, it will bring lower prices
and more choice. He called it "pro-consumer." Public Knowledge,
which advocates for fair use recording rights, said it would support
the merger, but with a few conditions. PK wants a three-year price
cap, a 5% set-aside of channels for educational and informational
programming, and a la carte programming. The National Association of
Broadcasters and Consumers Union testified against the merger.
http://www.broadcastingcable.com/article/CA6420385.html?display=Breaking...
* Sirius Chief Talks of Ways to Get XM Deal Approved
http://www.nytimes.com/2007/03/01/technology/01radio.html
* Sirius CEO Vows Postmerger Price Cuts
http://online.wsj.com/article/SB117269465701522421.html?mod=todays_us_mo...
* XM-Sirius Merger Draws Skepticism
http://www.washingtonpost.com/wp-dyn/content/article/2007/02/28/AR200702...
* Sirius CEO argues for radio merger
http://www.latimes.com/business/printedition/la-fi-xmradio1mar01,1,24861...
* House panel grills Sirius CEO on merger
http://news.com.com/House+panel+grills+Sirius+chief+on+XM+merger/2100-10...

TELECOM

REVERSE USF AUCTIONS SCRUTINIZED
[SOURCE: Technology Daily 2/27, AUTHOR: David Hatch]
Revamping the universal service fund with so-called "reverse
auctions" has the backing of Republican FCC Chairman Kevin Martin,
but critics include Sen. Ted Stevens (R-Alaska). The
multibillion-dollar fund, a perennial focus of telecommunications
legislation, lowers the costs of telecom services and connections in
rural and impoverished areas. But it has become stretched thin as its
contributor base shrinks and more companies tap into it. Now there
are efforts to change the way carriers receive money from the $4
billion high-cost portion, which subsidizes phone providers serving
rural, sparsely populated regions. Under the existing system,
multiple wireline and wireless carriers often qualify for USF support
in an area. Under a reverse auction, the carrier agreeing to receive
the lowest subsidy wins. The approach would reduce the number of
companies drawing from the fund. On Feb. 20, the agency's
Federal-State Joint Board on Universal Service held a public hearing
on reverse-auction proposals, and it eventually will make
recommendations to the commission. The devil is in the details as
dueling auction proposals emerge.
http://www.njtelecomupdate.com/lenya/telco/live/tb-OEIH1172690877296.html

NEWS FROM THE FTC

NET NEUTRALITY VITAL TO CREATIVE ARTISTS AND AMERICAN PUBLIC, CV TELLS FTC
[SOURCE: Center for Creative Voices in Media]
In comments filed at the Federal Trade Commission, the Center for
Creative Voices in Media asked the Commission to protect the public
interest in an open and diverse Internet by implementing significant
Net Neutrality protections on the Internet. Artists' ability to
create and produce their work, and then distribute that work to the
American public, has often been restricted by lack of access to the
means of distribution. Film and television production and
distribution are tremendously expensive, and usually tightly
controlled by a handful of media conglomerates. In conjunction with
technological advances in video production, the Internet promises to
dramatically reduce the cost of production and distribution of video
content. Creative media artists view these changes as a tremendously
exciting opportunity to directly reach their audience -- the American
people -- with the best content they can possibly create. Yet that
exciting opportunity may not come to pass if the cable and telephone
companies that overwhelmingly dominate the market for broadband
distribution can pick and choose who will get distribution over their
"pipes" based on discriminatory fees for so-called "priority" service.
http://www.creativevoices.us/php-bin/news/showArticle.php?id=179

CDT RECOMMENDS STEADY INCREASE IN FTC FUNDING
[SOURCE: Center for Democracy and Technology]
The Federal Trade Commission (FTC) plays a critical role in
protecting consumers against Internet crimes and must be adequately
funded, CDT Deputy Director Ari Schwartz said Wednesday. Testifying
before the Appropriations Committee's Financial Services and General
Government Subcommittee, Schwartz illustrated how the FTC has emerged
as the lead government agency in the fight against spyware, online
fraud and identity theft. As those threats increase, Congress should
consider bolstering the FTC's available resources to meet the growing
challenge, Schwartz said.
Schwartz Testimony: http://www.cdt.org/privacy/20070228schwartzftc.pdf

QUICKLY

WHY THE TECH INDUSTRY STILL CAN'T GET ITS WAY
[SOURCE: C-Net|News.com, AUTHOR: Charles Cooper]
[Commentary] Each week, it seems, brings fresh evidence of the
increasing intersection between the worlds of high technology and
politics. Yet it's also clear that the tech business sector commands
less influence with our political class than its size might suggest.
The reasons? I've heard several, but maybe the most persuasive is
that Silicon Valley, for most of its history, wanted as little to do
with Washington, D.C., as possible. And now it's got to play catch-up
in a hurry.
http://news.com.com/Why+the+tech+industry+still+cant+get+its+way/2010-10...

DOES CISCO WANT TO RUN THE FCC'S NATIONAL PUBLIC SAFETY NETWORK?
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
Reading Cisco Systems Inc.'s comments endorsing the Federal
Communications Commission's proposal for a nationwide, public safety
communications network run by a single entity, one could get the
impression that the IP hardware giant has a candidate in mind for the job.
http://www.lasarletter.net/drupal/node/371

COURT: RAID ON SF PIRATE STATION LEGAL
[SOURCE: San Francisco Chronicle, AUTHOR: Bob Egelko]
Federal agents acted legally in raiding the Castro neighborhood
office of San Francisco Liberation Radio in 2003 and seizing
equipment that was used to run the unlicensed, low-power "pirate" FM
station, a federal appeals court ruled Wednesday. The Ninth U.S.
Circuit Court of Appeals said Liberation Radio was not entitled to
advance notice or a hearing before the raid by federal marshals and
Federal Communications Commission representatives. The station, which
had broadcast music and "radical progressive'' politics on 93.7 FM
for 10 years, was driven off the airwaves by the raid and now
operates over the Internet. At the time of the raid, the station
accused the Federal Communications Commission of arbitrarily denying
a license to Liberation Radio as part of a politically motivated
crackdown on so-called micro-broadcasters.
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/02/28/BAG3LOCSKB4.DTL

WHAT WAS NEWS FEB 18-23
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
It began with a headline splashed atop the story on the front page of
the February 18 Washington Post: "Soldiers Face Neglect, Frustration
At Army's Top Medical Facility." At a time when supporting the troops
is the only common ground in the polarizing debate over Iraq, the
Post investigation reverberated through the White House, Pentagon,
and media. Picked up by everyone from cable hosts to network anchors,
the story of the war on the homefront -- dominated by the Walter Reed
story -- received its highest level of coverage of the year the week
of February 18-23, according to PEJ's News Coverage Index. The fifth
biggest story of the week, (filling 5% of the overall newshole) the
Iraq homefront generated the most attention on the broadcast network
news, where it made up fully 10% of the airtime, much of it crediting
the Post.
http://www.journalism.org/node/4291

GOVERNORS CRAFT REFORM STRATEGY
[SOURCE: eSchool News]
At the annual winter meeting of the National Governors Association,
the nation's governors agreed that states need to overhaul their
curricula and refocus on math, science, technology, engineering, and
foreign languages if they want to meet the challenge of globalization
and prepare their graduates to compete in the 21st-century economy.
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=6881
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