April 2007

** There are two Congressional hearings on=20
broadband policy today: 1) In the House, the=20
Internet & Telecommunications Subcommittee hears=20
"Broadband Lessons from Abroad" with witnesses=20
representing New Zealand's parliament, the UK's=20
OFCOM, Japan's NTT, Rawandatel/Terracom, and the=20
Phoenix Center. 2) The Senate Commerce Committee=20
hearing is titled "Communications, Broadband and=20
Competitiveness: How Does the U.S. Measure Up?"=20
and includes ConnectKentucky, Free Press, the=20
Telecommunications Industry Association,=20
Qualcomm, the Progress and Freedom Foundation and=20
Criterion Economics. For more on these events see=20
http://www.benton.org/?q=3Devent **

INTERNET/BROADBAND
New Broadband Statistics -- US Now Ranks 15th in World
National Strategy, Focus on Openness,=20
Competition Can Inform U.S. Broadband Push

SPECTRUM
Studies: Incumbents Blocked New Rivals in Spectrum Auction
FCC plans for 700 MHz draw heated debate
Ten Years Ago: FCC Auction Falls Flat

MEDIA OWNERSHIP
Agenda for Tampa Media Ownership Hearing
Regulators OK 1st step of Tribune buyout

JOURNALISM
Chicago Tribune, L.A. Times to cut 250 jobs
Visitors to newspaper Web sites rise: study
Tyndall Report: The History of Saturation Coverage

CONTENT
NAACP Urges Image Upgrade in Media
Hip-hop's Simmons wants to remove offensive words
FCC Seeks To Rein In Violent TV Shows
CBS Radio Show Hosts Suspended After Phone Prank
Google tops new list of world's most valuable brands
Activists groups drop suit against Viacom
China says U.S. piracy case will harm trade ties

INTERNET/BROADBAND

OECD BROADBAND STATISTICS TO DECEMBER 2006
[SOURCE: Organization for Economic Co-operation and Development, AUTHOR: ]
Over the past year, the number of broadband=20
subscribers in the OECD increased 26% from 157=20
million in December 2005 to 197 million in=20
December 2006. This growth increased broadband=20
penetration rates in the OECD from 13.5 in=20
December 2005 to 16.9 subscriptions per 100=20
inhabitants one year later. Some highlights: 1)=20
European countries have continued their advance=20
with high broadband penetration rates. In=20
December 2006, eight countries (Denmark, the=20
Netherlands, Iceland, Korea,=20
Switzerland, Finland, Norway and Sweden) led the=20
OECD in broadband penetration, each with at least=20
26 subscribers per 100 inhabitants. 2) Denmark=20
and the Netherlands are the first two countries=20
in the OECD to surpass 30 subscribers per 100=20
inhabitants. 3) The strongest per-capita=20
subscriber growth over the year comes from=20
Denmark, the Netherlands, New Zealand, and=20
Ireland. Each country added more than 5.8=20
subscribers per 100 inhabitants during the past=20
year. 4) The United States has the largest total=20
number of broadband subscribers in the OECD at=20
58.1 million. US broadband subscribers now=20
represent 29% of all broadband connections in the=20
OECD, down from 30% in June 2006.
http://www.oecd.org/document/7/0,2340,en_2649_34223_38446855_1_1_1_1,00....
* FCC Commissioner Copps Call for National Broadband Strategy
"Every year brings more bad news as the United=20
States slides farther down the broadband=20
rankings. It's a national embarrassment and the=20
only way to change it is to develop a broadband=20
strategy like every other industrialized nation=20
has already done. These rankings aren't a beauty=20
contest -- they're about our competitiveness as a=20
country and creating economic opportunity for all=20
our people. Bringing high-speed broadband to=20
every corner of the country is the central=20
infrastructure challenge we face. Always in the=20
past, our nation found ways to stay ahead of=20
everyone else in building infrastructure like=20
turnpikes, railroads and highways. Now, in=20
broadband, we're not even an also-ran."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-272519A1.doc
* U.S. Drops Further in World Broadband Rankings (Free Press)
According to the OECD report, the United States=20
ranks 20th out of 30 nations in the growth rate=20
of broadband penetration over the past year.
http://www.freepress.net/press/release.php?id=3D226
* U.S. Trails Europe in Broadband Growth
http://www.multichannel.com/article/CA6435919.html

NATIONAL STRATEGY, FOCUS ON OPENNESS, COMPETITION CAN INFORM US BROADBAND P=
USH
[SOURCE: Benton Foundation press release]
As key Congressional panels examine U.S.=20
broadband competitiveness today, the Benton=20
Foundation releases two new research papers=20
highlighting the international, innovative policy=20
approaches that have propelled other countries=20
into positions of broadband leadership.=20
Pennsylvania State University's Amit M. Schejter=20
finds that Europeans have embraced, perfected,=20
and are benefiting from the open competitive=20
network concepts first developed, but later=20
abandoned by, U.S. policymakers. The strengths of=20
the European system are focus, simplicity,=20
relative efficiency and willingness to change the=20
course of policy as needed, an effective balance=20
between centralization and delegation of power,=20
and innovation. The result is broadband=20
penetration that exceeds that of the U.S. in many=20
European Union nations. Pennsylvania State=20
University's Krishna Jayakar and Indiana=20
University's Harmeet Sawhney examine the national=20
broadband strategies adopted by countries around=20
the world. Many embrace "ubiquitous" broadband=20
for the competitive advantages it offers not just=20
as a societal goal. Effective national strategies=20
focus on development of "soft infrastructure"=20
that enables broadband innovations --=20
applications, services, and devices - and thereby=20
make broadband more valuable to ordinary consumers and drives its uptake.
http://www.benton.org/benton_files/bentonresearch.doc
* What Lessons can the U.S. learn from Broadband Policies in Europe?
http://www.benton.org/benton_files/Schejter.doc
* Universal access in the information economy:=20
Tracking policy innovations abroad
http://www.benton.org/benton_files/Jayakar_Sawhney.doc
* Studies Question Effectiveness of U.S. Broadband Build-out
http://www.broadcastingcable.com/article/CA6435745.html

SPECTRUM

STUDIES: INCUMBENTS BLOCKED NEW RIVALS IN SPECTRUM AUCTION
[SOURCE: Multichannel News, AUTHOR: Kent Gibbons]
Public-interest law firm Media Access Project=20
said incumbent broadband carriers, including=20
large U.S. cable and phone companies,=20
successfully blocked potential key new=20
competitors -- including direct-broadcast=20
satellite companies -- from winning=20
wireless-broadband-spectrum auctions last year.=20
Through =93retaliatory=94 bids aimed at scaring off=20
bidders considered significant new threats, cable=20
and telephone companies kept targeted newcomers=20
from winning licenses in the=20
advanced-wireless-services auction last August=20
and September, according to studies prepared by=20
economist Gregory A. Rose for the=20
telecommunications-oriented nonprofit law firm.=20
MAP said the targeted new entrants included=20
Wireless DBS, a notable bidding group because it=20
combined both DBS powers, EchoStar Communications and DirecTV.
http://www.multichannel.com/article/CA6435898.html
* MAP Releases Two Studies Proving Anti-Competitive Behavior in AWS Auction
http://www.mediaaccess.org/press/MAP%20Press%20Release%204-23-07.pdf=20
(Press Release)
http://www.mediaaccess.org/filings/Rose_How_Incumbents_Blocked.pdf (study)
* Rose Reports Prove What We Said Last Summer:=20
Cable and Wireless Incumbents Leverage Auction Rules To Block Competition
http://feeds.publicknowledge.org/~r/publicknowledge-main/~3/111420536/917
* Dr. Rose Proves It Was Spectrum Co. In The Kitchen With the Candlestick .=
. .
http://www.wetmachine.com/totsf/

FCC PLANS FOR 700 MHz DRAW HEATED DEBATE
[SOURCE: RCRWireless, AUTHOR: Jeffrey Silva]
Nearly drowned out in broad policy debates over=20
controversial public-safety and broadband=20
wireless proposals are pressing questions about=20
how the Federal Communications Commission will=20
craft the 700 MHz band plan. A coalition of 21=20
small- and medium-sized wireless and wireline=20
carriers and state regulatory agencies are=20
worried the FCC is leaning toward a 700 MH band=20
plan largely favoring large geographic wireless=20
licenses over small ones for auction later this=20
year. =93This is a matter of great importance =85=20
given the unique technical attributes of the 700=20
MHz band, which make it ideally suited to serve=20
many of the more rural areas that are served or=20
are proposed to be served by the proponents of=20
the Balanced Consensus Plan,=94 the group told the=20
FCC. Included in the coalition are Alltel Corp.,=20
Aloha Partners L.P., Dobson Communications Corp.=20
Leap Wireless International Inc., MetroPCS=20
Communications Inc., U.S. Cellular Corp. and the=20
Rural Cellular Association. =93If the FCC does not=20
have multiple small and medium blocks with paired=20
spectrum, all small and regional carriers will be=20
forced to compete against each other in one or=20
two blocks of spectrum, while the large carriers=20
will have the very large spectrum blocks to=20
themselves because smaller carriers cannot=20
compete in the auction for those licenses,=94 said=20
Victor Meena, president of Cellular South Inc.,=20
in testimony before the House telecom subcommittee.
http://www.rcrnews.com/apps/pbcs.dll/article?AID=3D/20070423/FREE/704190...
1005/rss01
* A Legacy-Defining Moment
[SOURCE: Public Knowledge, AUTHOR: Gigi Sohn]
[Commentary] Every Federal Communications=20
Commission Chairman has one or two=20
legacy-defining moments in his tenure. Current=20
FCC Chairman Kevin Martin will be facing one of=20
those moments in the coming weeks. On Wednesday,=20
the FCC is expected to adopt an order that will=20
begin to set the terms of the most valuable=20
spectrum auction we have yet seen, and likely the=20
last significant auction in our lifetimes.
http://www.publicknowledge.org/node/916

FCC AUCTION FALLS FLAT
[SOURCE: Wall Street Journal 4/24/1997, AUTHOR: Bryan Gruley]
Ten years ago, the WSJ reported that television=20
broadcasters were thrilled because the FCC's=20
latest round of spectrum auctions was not going=20
all that well. Broadcasters wanted the auctions=20
to be unsuccessfully because it would increase=20
their chances of being able to hold on to their=20
analog television channels longer. (Ten years=20
later, they still have the spectrum for another=20
two years.) Then-FCC Chairman Hundt said he was=20
not that surprised by the sub par bidding because=20
the FCC didn't give the industry enough advanced notice about the auction.
http://online.wsj.com/PA2VJBNA4R/article/SB861837936921552500-search.htm...
EYWORDS=3DGruley&COLLECTION=3Dwsjie/6month
(read for $2.95)

MEDIA OWNERSHIP

AGENDA FOR TAMPA MEDIA OWNERSHIP HEARING
[SOURCE: Federal Communications Commission]
The Federal Communications Commission provided=20
additional details for its upcoming media=20
ownership hearing in Tampa (FL) on Monday April=20
30. There will be two panels during the=20
seven-hour meeting -- one giving an overview of=20
the Tampa media market and a second titled=20
"Perspectives on Media Ownership." The moderator=20
for the evening will be Louis Sigalos, Chief of=20
the Consumer Affairs & Outreach Division,=20
Consumer & Governmental Affairs Bureau. A live=20
audio cast of the hearing will be available at=20
the FCC's website at www.fcc.gov on a first-come,=20
first-served basis. The public may also file=20
comments or other documents with the Commission=20
and should reference docket number 06-121 when=20
filing by paper or submit your filing=20
electronically by going to=20
http://gullfoss2.fcc.gov/prod/ecfs/upload_v2.cgi=20
and enter proceeding number 06-121. Filing=20
instructions are provided at=20
http://www.fcc.gov/ownership/comments.html. For=20
additional information about the hearing, please=20
visit the FCC's website at=20
http://www.fcc.gov/ownership. Press inquiries=20
should be directed to Clyde Ensslin, at=20
202-418-0506, or David Fiske, at 202-418-0513.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-272530A1.doc

REGULATORS OK 1ST STEP OF TRIBUNE BUYOUT
[SOURCE: Associated Press]
Federal antitrust regulators approved Monday the=20
first step of real estate mogul Sam Zell's $8.2=20
billion purchase of the Tribune Co. According to=20
a Federal Trade Commission notice, the government=20
has completed its antitrust investigation of an=20
initial investment by Zell of $250 million into=20
the company, which owns the Chicago Tribune, Los=20
Angeles Times and several other newspapers, as=20
well as 23 television stations. The complex=20
transaction still requires a second step, in=20
which Tribune will merge with an employee stock=20
ownership plan, or ESOP, and become a private=20
company. That merger is subject to separate=20
Federal Communications Commission and other=20
regulatory approvals, as well as shareholder approval.
http://www.boston.com/business/articles/2007/04/23/regulators_ok_1st_ste...
f_tribune_buyout/

JOURNALISM

CHICAGO TRIBUNE, LA TIMES TO CUT 250 JOBS
[SOURCE: Associated Press]
The Chicago Tribune and the Los Angeles Times=20
disclosed plans Monday to reduce their staffs by=20
as many as a combined 250 jobs. The actions by=20
Tribune Co.'s two largest dailies, which had been=20
expected for months, come on top of earlier=20
cutbacks by both papers. The Times said it hoped=20
to cut its staff of 2,625 by up to 150 employees,=20
or around 5 percent. The Chicago Tribune said it=20
intends to trim its staff by as many as 100, or 3=20
percent. In an e-mail to Chicago Tribune=20
employees Monday afternoon, publisher Scott Smith=20
said first-quarter revenue at the paper and its=20
local affiliates was down 4% from the previous year.
http://chicagobusiness.com/cgi-bin/news.pl?id=3D24687
* Chicago Tribune aims to cut 100 jobs: report
http://today.reuters.com/news/newsArticle.aspx?type=3DindustryNews&storyID=
=3D2007-04-23T130213Z_01_N23252656_RTRIDST_0_INDUSTRY-CHICAGOTRIBUNE-JOBCUT=
S-DC.XML
* Los Angeles Times to offer 150 staff buyouts
http://today.reuters.com/news/newsArticle.aspx?type=3DindustryNews&storyID=
=3D2007-04-23T204850Z_01_N23315060_RTRIDST_0_INDUSTRY-TRIBUNE-LATIMES-DC.XML

VISITORS TO NEWSPAPER WEB SITES RISE: STUDY
[SOURCE: Reuters]
The number of people visiting U.S. newspaper Web=20
sites rose 5.3 percent during the first quarter,=20
an industry group said on Monday, even as=20
publishers reported slower online advertising=20
sales growth. More than 59 million people, or=20
37.6 percent of all active Internet users,=20
visited the sites in the quarter, the Newspaper=20
Association of America said, citing an analysis=20
it commissioned to Nielsen/NetRatings. The=20
figures are the highest for any quarter since the=20
association began tracking the numbers in 2004.
http://www.reuters.com/article/internetNews/idUSN2330076120070423

TYNDALL REPORT: THE HISTORY OF SATURATION COVERAGE
[SOURCE: Broadcasting&Cable]
As news broke of the campus shooting at Virginia=20
Tech, the familiar protocols of big-story TV=20
journalism went into effect. Anchors jetted off=20
to Blacksburg, Va., to probe the grief firsthand.=20
Graphics departments churned out strip-formatted=20
logos to brand the coverage. And virtually all=20
other news was ignored to focus on this latest=20
exercise in morbid fascination. But as familiar=20
as these conventions of saturation coverage have=20
become, it wasn't so long ago that a similarly=20
violent tragedy would be considered unworthy of=20
such national obsession. As few as twelve years=20
ago, when violent crime was a bigger public=20
policy issue than it is today, stand-alone=20
crimes, however horrifically lethal, were treated=20
by the networks as local stories. According to=20
an analysis of the top 10 mass shootings covered=20
most heavily by the broadcast networks' nightly=20
newscasts during the past 20 years, nine have=20
occurred within the past decade. Before 1998,=20
only one rose to the level of national coverage:=20
the 1991 shooting of 22 people at Luby's=20
Cafeteria in Killen, Tex. Of the 10 shootings, it=20
was the second deadliest; yet, it ranked last in=20
minutes of coverage. As mass shootings go, the=20
one perpetrated in Virginia was of major=20
proportions and was clearly a newsworthy event.=20
But, should a single criminal act be accorded the=20
newsworthiness of events of national and global=20
scope: a war, a natural disaster, a presidential=20
election campaign, a terrorist attack?
http://www.broadcastingcable.com/article/CA6435554.html

CONTENT

NAACP URGES IMAGES UPGRADE IN MEDIA
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
Upset about the way African Americans and=20
especially women are portrayed in music and music=20
videos, the NAACP is unveiling a campaign to get=20
cable TV, radio and music companies and recording=20
artists to "stop demeaning African American=20
images in the media." "There is nothing more=20
influential than the images on radio, TV and the=20
Internet," said NAACP President Dennis C. Hayes.=20
"We want to end the demeaning images." He said=20
the NAACP wasn't blasting media companies because=20
it hopes to work with them and with artists.=20
NAACP wants the artists, record companies and=20
media companies to pledge to do a better job of portraying African American=
s.
http://www.tvweek.com/news.cms?newsId=3D11926
(requires free registration)
* NAACP Launches "STOP" Campaign
http://www.naacp.org/news/press/2007-04-23/index.htm

HIP-HOP'S SIMMONS WANTS TO REMOVE OFFENSIVE WORDS
[SOURCE: Reuters, AUTHOR: Daniel Trotta]
Prominent U.S. hip-hop executive Russell Simmons=20
on Monday recommended eliminating "extreme curse=20
words" from the recording industry. Simmons,=20
co-founder of the Def Jam label and a driving=20
force behind hip-hop's huge commercial success,=20
called for voluntary restrictions on the words=20
and setting up an industry watchdog to recommend=20
guidelines for lyrical and visual standards.
http://today.reuters.com/news/NewsArticle.aspx?type=3DentertainmentNews&...
ryID=3D2007-04-23T214032Z_01_N23300171_RTRUKOC_0_US-USA-HIPHOP.xml

FCC SEEKS TO REIN IN VIOLENT TV SHOWS
[SOURCE: Washington Post, AUTHOR: Paul Farhi and Frank Ahrens]
The Federal Communications Commission, concerned=20
about the effect of television violence on=20
children, will recommend that Congress enact=20
legislation to give the government unprecedented=20
powers to curb violence in entertainment=20
programming. The FCC has concluded that=20
regulating TV violence is in the public interest,=20
particularly during times when children are=20
likely to be viewers -- typically between 6 a.m.=20
and 10 p.m. The agency's recommendations -- which=20
will be released in a report to Congress within=20
the next week, agency officials say -- could set=20
up a legal battle between Washington and the=20
television industry. First Amendment experts and=20
television industry executives, however, say that=20
any attempt to regulate TV violence faces high=20
constitutional hurdles -- particularly regarding=20
cable, because consumers choose to buy its=20
programming. Further, any laws governing TV=20
violence would have to define what violence is.=20
The FCC report contains broad guidelines but leaves the details up to Congr=
ess.
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/23/AR200704...
2048.html
(requires registration)

CBS RADIO SHOW HOSTS SUSPENDED AFTER PHONE PRANK
[SOURCE: New York Times, AUTHOR: Jacques Steinberg]
CBS Radio suspended two hosts from an FM station=20
in New York City yesterday after an=20
Asian-American advocacy organization complained=20
about the broadcast of a six-minute prank phone=20
call to a Chinese restaurant that was peppered=20
with ethnic and sexual slurs. The call was first=20
played on =93The Dog House With JV and Elvis,=94 a=20
mid-morning show on WFNY, on April 5, the day=20
after Don Imus made his comment about the Rutgers=20
women=92s basketball team on WFAN, another=20
CBS-owned station. The call was then replayed on=20
=93The Dog House=94 on Thursday, a week after Mr. Imus was fired by CBS Rad=
io.
http://www.nytimes.com/2007/04/24/arts/24radi.html
(requires registration)

GOOGLE TOPS NEW LIST OF WORLD'S MOST VALUABLE BRANDS
[SOURCE: Reuters]
Google Inc. has knocked Microsoft Corp. from its=20
perch as the world's top-ranked brand, according=20
to findings released on Monday. The rankings,=20
compiled by market research firm Millward Brown,=20
also put Google ahead of well-established brands=20
like General Electric Co., No. 2; Coca-Cola Co.,=20
No. 4; Wal-Mart Stores, No. 7; and IBM, No. 9.=20
Some key factors seen this year in building brand=20
recognition ranged from corporate responsibility=20
to serving customers in emerging markets like=20
Brazil and India. The top-ranked brand from a=20
non-U.S.-based company was China Mobile, which=20
dropped a spot but still came in at No. 5.
http://www.reuters.com/article/internetNews/idUSN2331486120070423

ACTIVISTS GROUPS DROP SUIT AGAINST VIACOM
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
The Electronic Frontier Foundation and Stanford=20
Law School's Fair Use Project dropped a federal=20
lawsuit against Viacom on Monday after the parent=20
of Comedy Central acknowledged it made a mistake=20
by asking YouTube to yank a parody of the cable=20
network's "The Colbert Report." Although the=20
video in question contained clips taken from the=20
television show, the groups argued that their use=20
was protected under "fair use" provisions of=20
copyright law, and thus Viacom shouldn't have=20
asked YouTube to remove the item. Viacom=20
initially denied requesting the removal but later=20
acknowledged it and said it was in error.
http://www.nj.com/newsflash/business/index.ssf?/base/business-10/1177360...
239210.xml&storylist=3Dbusiness

CHINA SAYS U.S. PIRACY CASE WILL HARM TRADE TIES
[SOURCE: Reuters, AUTHOR: Ben Blanchard]
U.S. complaints to the WTO over commercial piracy=20
in China will "badly damage" cooperation, Vice=20
Premier Wu Yi warned on Tuesday, insisting that=20
China has made great strides in protecting=20
patents and copyrights. Earlier this month,=20
Washington launched two cases at the World Trade=20
Organization claiming that Beijing was not doing=20
enough to punish illegal copiers of films and=20
music and that its restrictions on entertainment=20
imports violated trade rules. China denounced=20
Washington's move and Wu, who heads the country's=20
economic dialogue with Washington, bluntly warned=20
that the complaints would bruise bilateral trade ties.
http://www.reuters.com/article/technologyNews/idUSPEK947820070424
--------------------------------------------------------------
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.
--------------------------------------------------------------