April 2007

GOVERNMENT & COMMUNICATIONS
Legislation Seeks to Ease Rules on Domestic Spying
Legal Worries Over Missing Emails Grow

INTERNET/BROADBAND
Construction on the information superhighway
FCC auction critical: It will determine broadband's future
A "100 Megabit Nation" by 2015
Beyond Digital Inclusion -- A Ten Point Plan for Digital Excellence
UK =91must increase broadband investment=92
For CBS the Web, not Imus, is the news

BROADCASTING
No FCC action expected in Imus affair
Furor over Imus puts heat on other broadcasters
FCC Releases Payola Consent Decree
Broadcasters =3D First Responders?
Martin to Stations: Put Public Records Online
FCC Chairman Kevin Martin A No-Show at NAB
Nonprofit groups want shot at FM radio licenses
A =93Fubar=94 Waiting To Happen

MEDIA OWNERSHIP
Spring break in Tampa!
FCC asks Clear Channel for suggestions on media panel
Broadcasting moves away from Wall Street
Four in Running for Clear Channel TV
Clear Channel, Tennessee broadcasters lobby FCC against XM/Sirius merger
Google Buys an Online Ad Firm for $3.1 Billion

TELECOM
Vonage has no 'workaround' for Verizon technology
Vonage Patent Case Could Hurt Phone Competition
Telcos Lift Block On FreeConference.Com
Analog cell service nears the finish line
Telemarketers getting through

JOURNALISM
Best-Informed Also View Fake News, Study Says

QUICKLY -- Copps: FCC's Power Broker; Competition=20
Won't Cure All, Advisers Tell Town Officials; The=20
Sky=92s the Limit For Stations Online; A World Wide Web of terrorist plotti=
ng

GOVERNMENT & COMMUNICATIONS

LEGISLATION SEEKS TO EASE RULES ON DOMESTIC SPYING
[SOURCE: New York Times 4/13, AUTHOR: James Risen]
The Bush administration proposed a bill on Friday=20
to relax certain legal restrictions on the=20
government=92s ability to intercept telephone calls=20
and other communications in the United States.=20
The proposal would change provisions in the=20
primary law on domestic surveillance that the=20
Bush administration says limit its ability to spy=20
on the domestic and international communications=20
of foreigners and would provide new legal=20
immunity for telecommunications companies that=20
have been sued for cooperating with the=20
government as it conducts domestic wiretapping.=20
But the proposed changes to the Foreign=20
Intelligence Surveillance Act of 1978 face=20
resistance in Congress. Democratic lawmakers have=20
been pressing for more oversight of the domestic=20
eavesdropping run by the National Security Agency=20
before they agree to amend the laws, and they=20
have become increasingly concerned by disclosures=20
of abuses in other data collection programs, too.
http://www.nytimes.com/2007/04/14/us/14fisa.html
(requires registration)

LEGAL WORRIES OVER MISSING EMAILS GROW
[SOURCE: Wall Street Journal, AUTHOR: John D. McKinnon john.mckinnon( at )wsj.co=
m]
The revelation of missing emails at the White=20
House and Republican National Committee could=20
become a legal headache as well as a political=20
problem for President Bush. The clock already is=20
ticking on the administration's promise to=20
Congress to find out what happened. Senate=20
Judiciary Committee leaders plan to meet with=20
White House Counsel Fred Fielding today to "get=20
this matter moving forward...so that we can=20
figure out whether anything wrong was done," Sen.=20
Arlen Specter (R-PA) said on ABC's "This Week."=20
Critics say the White House has violated the=20
Presidential Records Act, a 1978 law that=20
requires each administration to maintain an=20
adequate record of its deliberations. White House=20
spokeswoman Dana Perino acknowledged on Thursday=20
that "We screwed up." What's of equal concern,=20
potentially, are the legal obligations that arose=20
for the White House because of federal=20
investigations into the leaking of the identity=20
of a CIA agent, Valerie Plame Wilson, and into=20
Republican lobbyist Jack Abramoff. Once those=20
investigations began, the legal burden on the=20
White House to preserve emails grew. The key=20
issue for the White House is whether people=20
involved in the erasures intended to impede an investigation.
http://online.wsj.com/article/SB117669454310570978.html?mod=3Dtodays_us_...
e_one
(requires subscription)

INTERNET/BROADBAND

CONSTRUCTION ON THE INFORMATION SUPERHIGHWAY
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
Although it has already taken nearly four decades=20
to get this far in building the Internet, some=20
university researchers with the federal=20
government's blessing want to scrap all that and=20
start over. The idea may seem unthinkable, even=20
absurd, but many believe a "clean slate" approach=20
is the only way to truly address security,=20
mobility and other challenges that have cropped=20
up since UCLA professor Leonard Kleinrock helped=20
supervise the first exchange of meaningless test=20
data between two machines on Sept. 2, 1969. The=20
Internet "works well in many situations but was=20
designed for completely different assumptions,"=20
said Dipankar Raychaudhuri, a Rutgers University=20
professor overseeing three clean-slate projects.=20
"It's sort of a miracle that it continues to work=20
well today." No longer constrained by slow=20
connections and computer processors and high=20
costs for storage, researchers say the time has=20
come to rethink the Internet's underlying=20
architecture, a move that could mean replacing=20
networking equipment and rewriting software on=20
computers to better channel future traffic over=20
the existing pipes. Even Vinton Cerf, one of the=20
Internet's founding fathers as co-developer of=20
the key communications techniques, said the=20
exercise was "generally healthy" because the=20
current technology "does not satisfy all needs."=20
One challenge in any reconstruction, though, will=20
be balancing the interests of various=20
constituencies. The first time around,=20
researchers were able to toil away in their labs=20
quietly. Industry is playing a bigger role this=20
time, and law enforcement is bound to make its needs for wiretapping known.
http://nwitimes.com/articles/2007/04/15/business/business/doc3165eaa26cb...
18862572bc0066b64c.txt
* Internet design challenges lead to work on rebuilding network
http://www.nwitimes.com/articles/2007/04/15/business/business/doc1854175...
2c0551862572bc00682e23.txt
* Next-generation Internet effort likely to draw commercial, policy interes=
ts
http://www.nwitimes.com/articles/2007/04/15/business/business/doce48a277...
e61e96862572bc0067a25d.txt
* Transitioning to a new Internet would be difficult
http://www.nwitimes.com/articles/2007/04/15/business/business/doc6b61070...
457e2b862572bc0067a105.txt

FCC AUCTION CRITICAL: IT WILL DETERMINE BROADBAND'S FUTURE
[SOURCE: Newhouse News Service, AUTHOR: Katherine Reynolds Lewis]
There's about to be a land rush in=20
telecommunications as the U.S. government=20
auctions the only remaining airwaves suitable for=20
nationwide, high-speed wireless Web access. Big=20
telephone and cable companies are jostling=20
alongside Internet and technology entrepreneurs=20
to control the spectrum, estimated to be worth as=20
much as $30 billion. "It's the biggest chunk of=20
spectrum to come back into the public=20
administration in a generation and it's by far=20
the most valuable piece," said Ben Scott, policy=20
director at Free Press. What's at stake? The=20
auction winners will determine whether American=20
homes, businesses and classrooms have access to a=20
third "pipe" for high-speed Internet, not to=20
mention better reception and innovative services=20
for mobile phones and other devices. The spectrum=20
is ideally suited to wireless communications=20
because the frequencies are high enough to carry=20
large amounts of data, but low enough to=20
penetrate walls and travel long distances -=20
meaning fewer towers are required for a network.
http://www.cleveland.com/business/plaindealer/index.ssf?/base/business-1...
7655383389100.xml&coll=3D2

A "100 MEGABIT NATION" BY 2015
[SOURCE: Broadband Properties]
Underscoring the importance of higher bandwidth=20
to America=92s future competitiveness, and deeply=20
concerned by the lack of progress on a national=20
telecommunications bill, the Fiber-to-the-Home=20
(FTTH) Council has called on Congress and the=20
President to adopt a =93100 Megabit Nation=94 policy=20
by the end of this year. The imitative is aimed=20
at ensuring that a majority of American=20
households have broadband connectivity available=20
by 2010 and that next-generation symmetrical 100=20
Mbps broadband connections be universally=20
available by 2015. The FTTH Council noted that=20
while the technology exists today to provide this=20
level of bandwidth, the broadband services=20
currently available to the overwhelming majority=20
of Americans do not exceed 5 Mbps. Only FTTH=20
technology could provide the bandwidth the=20
Council described as necessary. Both private and=20
public sector initiatives are called for in the=20
Council=92s proposed initiative. Along with its=20
call for a =93100 Megabit Nation,=94 the FTTH Council=20
suggested a number of policy proposals to help=20
reach this objective, including continued video=20
franchise reform, an end to restrictions on=20
municipal broadband, financial incentives, the=20
re-authorization of the Rural Utilities Service=20
broadband loan program, and congressional=20
oversight on video content access concerns. The=20
FTTH Council also encouraged policymakers to hear=20
from a wide range of stakeholders in order to=20
incorporate an effective broadband strategy.
http://www.broadbandproperties.com/2007issues/feb07issues/100Mbs_feb.pdf

BEYOND DIGITAL INCLUSION -- A TEN POINT PLAN FOR DIGITAL EXCELLENCE
[SOURCE: saschameinrath.com]
[Commentary] The Chicago Digital Access Alliance=20
(CDAA) -- a coalition of more than 40=20
communities, 70 non-profits, 50 churches, 100=20
small businesses, and 1000 individuals -- laid=20
out a ten point plan to promote Digital=20
Excellence that provides a springboard for others=20
looking to build networks that support social and=20
economic justice in their own communities: 1)=20
Digital Excellence is an Institutionally-funded=20
Priority for Chicago; 2) Sound Planning,=20
Evaluation and Policy Measures are Crucial; 3)=20
Universal Access to High-Speed Connectivity is a=20
Public Right and Necessity; 4) Digital Literacy=20
requires public investment; 5) Local=20
infrastructure is needed for community-driven=20
content; 6) Hardware tools must be available to=20
all; 7) Environmentally-sustainable practices=20
improve neighborhoods; 8) Network Neutrality; 9)=20
Workforce Development; and 10) Cultivating entrepreneurs and small business.
http://www.saschameinrath.com/2007apr15beyond_digital_inclusion_a_ten_po...
_plan_for_digital_excellence

UK 'MUST INCREASE BROADBAND INVESTMENT'
[SOURCE: Financial Times, AUTHOR: Andrew Edgecliffe-Johnson and Andrew Par=
ker]
Ministers and regulators have just two years to=20
find ways of encouraging investment in the next=20
generation of high-speed broadband, or the UK=92s=20
competitiveness will suffer, according to a=20
report published on Monday. Existing Internet=20
access networks, and those being rolled out, will=20
be too slow to meet the demands of the most=20
bandwidth-hungry businesses and households by=20
2012, the Broadband Stakeholder Group report=20
warns. Pressure on broadband pricing means=20
commercial incentives for building the necessary=20
infrastructure are =93particularly weak=94 in the UK,=20
according to BSG, a government advisory group=20
composed of telecoms companies, content providers=20
and regulators. =93If steps are not taken [by 2009]=20
to prepare for next-generation broadband, then we=20
may well find ourselves in a position where it is=20
too late to catch up,=94 said Kip Meek, BSG=20
chairman. BT will start offering broadband=20
download speeds of up to 24 megabits per second=20
from next year =96 three times its fastest existing=20
speed =96 as it rolls out its =A310bn 21st century=20
fixed-line network. Virgin Media plans to offer=20
up to 20 mbps from June and is testing a 50 mbps service.
http://www.ft.com/cms/s/c3b9db80-eb8f-11db-b290-000b5df10621.html
(requires subscription)

FOR CBS THE WEB, NOT IMUS, IS THE NEWS
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
CBS Corp. grabbed headlines late last week, but=20
not the ones it had intended. The broadcaster had=20
hoped to signal its rapid evolution from an=20
old-media titan into a powerful Internet player=20
with the announcement Thursday that it was=20
creating its own "online network" in partnership=20
with some of the biggest names in the business,=20
including Microsoft Corp., Comcast Corp. and=20
Yahoo Inc. But the unveiling of its latest=20
venture, known within CBS as Rolling Thunder,=20
came a few hours before the company sacked its=20
66-year-old radio shock jock, Don Imus. Its=20
Internet news was buried by the media storm over=20
the racist and sexist comments Imus made about=20
the Rutgers University women's basketball team.=20
The unfortunate timing underscores the plight of=20
CBS Chief Executive Leslie Moonves. The veteran=20
entertainment executive is striving to transform=20
his company into a cool and relevant digital=20
darling but continues to be hamstrung by the=20
fading fortunes of his old workhorses, CBS Radio and the CBS broadcast netw=
ork.
http://www.latimes.com/business/printedition/la-fi-cbs16apr16,1,2021554....
ry?coll=3Dla-headlines-pe-business
(requires registration)

BROADCASTING

NO FCC ACTION EXPECTED IN IMUS AFFAIR
[SOURCE: Reuters, AUTHOR: Rachelle Younglai]
The Federal Communications Commission is not=20
expected to take action over racist comments=20
uttered by now-fired radio host Don Imus because=20
of free-speech concerns. Although the FCC has=20
received complaints, it is barred from trying to=20
prevent the broadcast of any point of view. The=20
Communications Act prohibits the agency from=20
censoring broadcast material, in most cases, and=20
from making any regulation that would interfere=20
with freedom of speech. The complaints "will go=20
into the normal review process," FCC spokesman=20
David Fiske said. David Solomon, former FCC=20
Enforcement Bureau chief and now a lawyer with=20
Wilkinson, Barker & Knauer, said, "There are=20
cases involving African-Americans, Jews, Muslims,=20
that make clear that the FCC views the First=20
Amendment as protecting racist speech. First of=20
all there is no rule, and given their precedent,=20
they have made it quite clear that it is=20
protected by the First Amendment. They would have=20
to overturn decades of precedent relating to the=20
First Amendment," he said. Jack Goodman, the=20
former general counsel of the National=20
Association of Broadcasters, said, "The truth is,=20
in the current understanding of the rules, it is=20
not in violation of any FCC rule." The FCC bars=20
radio and television broadcast stations from=20
airing obscene material. Under the rules,=20
broadcast stations can air profanity and sexually=20
explicit content only during late-night hours=20
when children are less likely to be watching or listening.
http://today.reuters.com/news/newsArticle.aspx?type=3DindustryNews&storyID=
=3D2007-04-13T085609Z_01_N12387937_RTRIDST_0_INDUSTRY-MEDIA-IMUS-FCC-DC.XML

FUROR OVER IMUS PUTS HEAT ON OTHER BROADCASTERS
[SOURCE: Reuters, AUTHOR: Daniel Trotta]
Corporate decisions to cancel Don Imus' U.S.=20
radio and cable television shows have some=20
commentators wondering what may happen to other=20
media personalities who have also pushed the=20
bounds of civility. Don Imus was not alone in=20
offending minorities. Nationally syndicated U.S.=20
radio host Neal Boortz last year said a black=20
congresswoman who has since failed in a bid for=20
re-election, Cynthia McKinney, "looks like a=20
ghetto slut." Rush Limbaugh, another national=20
radio broadcaster, in January called Democratic=20
presidential candidate Barack Obama, whose father=20
was from Kenya and white mother from Kansas, a=20
"halfrican American." And CNN talk-show host=20
Glenn Beck, during an interview with Muslim=20
congressman Keith Ellison, said in November,=20
"Sir, prove to me that you are not working with=20
our enemies." Boortz, Limbaugh and Beck remain in=20
their jobs, and Boortz was among a group of=20
conservative radio hosts who met U.S. President=20
George W. Bush in the White House for 90 minutes=20
last September. Some media experts suggested=20
their offenses were not as egregious as Imus'=20
because they targeted public officials rather=20
than collegiate athletes. But Karl Frisch, a=20
spokesman for Media Matters, said politicians did=20
not deserve "racist, homophobic, sexist ridicule."
http://today.reuters.com/news/newsArticle.aspx?type=3DtelevisionNews&sto...
D=3D2007-04-12T215607Z_01_N12378956_RTRIDST_0_TELEVISION-USA-RACE-BROADCAST=
ERS-DC.XML
* With Imus ousted, will other shows clean up their acts?
http://www.csmonitor.com/2007/0416/p01s02-ussc.html

FCC RELEASES PAYOLA DECREE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC Friday released the consent decrees=20
settling payola allegations against CBS Radio,=20
Citadel, Clear Channel, and Entercom to the tune=20
of a total of $12.5 million. In addition to the=20
fine, the stations agreed not to take payola, to=20
limit gifts from record companies to employees,=20
appoint compliance executives to monitor=20
compliance, and hold regular training sessions=20
about the payola restrictions. Arguably the key=20
lines in the four decrees for broadcasters are=20
the FCC's declaration that "[N]othing in the=20
record before us creates a substantial and=20
material question of fact in regard to these=20
matters as to whether [fill in the name] and its=20
direct or indirect subsidiaries that hold FCC=20
authorizations possess the basic qualifications,=20
including character qualifications, to hold or=20
obtain any FCC licenses or authorizations."
http://www.broadcastingcable.com/article/CA6433817.html
* BROADCASTERS PAY $12.5 MILLION TO RESOLVE POSSIBLE "PAYOLA" VIOLATIONS
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-272304A1.doc
* Radio payola settlement reached
http://www.tennessean.com/apps/pbcs.dll/article?AID=3D/20070414/BUSINESS...
704140322/1003
* The FCC's new 'payola' rules
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
http://www.lasarletter.net/drupal/node/391
* Radio watchdog calls payola settlement a sham
Paul Porter, co-founder of media watchdog group=20
Industry Ears, says the agreement does not go=20
nearly far enough. =93You=92re basically talking=20
about a fine and a fine doesn't stop payola,=94=20
Porter said. The broadcasters did not have to=20
admit guilt and Porter said he expects radio=20
playlists to remain virtually unchanged. =93Twelve=20
million dollars is nothing for the big four companies,=94 Porter said.
http://journalstar.com/articles/2007/04/14/news/business/doc461ffbde80ff...
3854958.txt

BROADCASTERS =3D FIRST RESPONDERS?
[SOURCE: Broadcasting&Cable, AUTHOR: P.J. Bednarski]
At the National Association of Broadcasters=20
convention this week, Sen. Mary L. Landrieu=20
(D-LA) will reveal details of a bill that she=20
will introduce: The First Response Broadcasters=20
Act of 2007. The bill would give broadcasters=20
special privileges at a time of disasters like=20
the devastation caused by Hurricane Katrina in=20
2005, essentially making them the equivalent of=20
=93first responders=94 to catastrophes. The bill=20
would also make broadcasters eligible for=20
matching grants administered by the Federal=20
Emergency Management Agency (FEMA) to aid in the=20
construction or reinforcement of on-air=20
facilities. After Katrina, only one television=20
station, WWL New Orleans, remained on the air and=20
did so because it had planned for the emergency.=20
The bill would create a three-year pilot program,=20
funded at $10 million a year, to encourage=20
broadcasters to obtain =93disaster-resistant=94=20
equipment. Broadcasters would have access to=20
federal supplies of fuel, food, water and other=20
essentials. And stations would be able to retain=20
such necessities without fear that they would be=20
confiscated by authorities. A third component of=20
the Landrieu bill would make the local=20
municipality the authority for issuing and honoring press credentials.
http://www.broadcastingcable.com/article/CA6433936.html

MARTIN TO STATIONS: PUT PUBLIC RECORDS ONLINE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
FCC Chairman Kevin Martin wants broadcasters to=20
put their public files online, including=20
public-affairs=ADprogramming logs, requests for=20
political-ad time and the prices charged. Some in=20
the TV industry say the move could provide more=20
ammunition for activist groups looking to=20
challenge TV licenses and could add up to more=20
expense and time for stations to convert drawers=20
of papers to a searchable Web database. Chairman=20
Martin has circulated a notice of proposed=20
rulemaking that would require online filing of TV=20
stations=92 public files. He likely has the votes=20
to pass it, given the views of Democratic=20
Commissioners Michael Copps and Jonathan=20
Adelstein on the public=92s access to information.=20
Floated by former Democratic FCC Chairman William=20
Kennard in 2000, the proposal would make it a lot=20
easier for the public -- including activist=20
groups -- to keep tabs on broadcasters=92 filing=20
obligations and performance on a number of=20
fronts, ranging from consulting deals with=20
independent contractors to ongoing=20
indecency-complaint investigations to how much=20
they were charging candidates for airtime. It is=20
one of dozens of items the chairman is=20
circulating among the commissioners, looking to=20
clear up a backlog of items dating back to=20
previous chairmen in the face of increased=20
oversight by powerful Democrats now heading=20
congressional committees. Cheryl Leanza, managing=20
director of the United Church of Christ, which=20
has filed complaints against stations for kids-TV=20
rule violations, says, =93Having public files=20
online would make it much easier for any member=20
of the public, including the UCC, to review a=20
station=92s behavior and progress.=94 Currently,=20
citizens frequently have to make an appointment=20
and go down and look at a public file, and it can=20
be very difficult, she says. Andrew Schwartzman,=20
of watchdog group Media Access Project, says=20
=93Putting this information online is essential for=20
meaningful public participation.=94
http://www.broadcastingcable.com/article/CA6433706.html

FCC CHAIRMAN KEVIN MARTIN A NO-SHOW AT NAB
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
FCC Chairman Kevin Martin will not be attending=20
the annual National Association of Broadcasters=20
(NAB) conference in Las Vegas, according to an=20
NAB spokesperson. The conference traditionally=20
features the FCC's top regulator. The chairman is=20
scheduled to be the only witness at a hearing in=20
the House Appropriations Financial Services and=20
General Government Subcommittee Tuesday, April 17=20
(10 a.m.), on the FCC's appropriation, though he=20
will also be grilled on how the commission is=20
doing its job. Martin will be explaining and=20
defending the FCC's budget request. Committee=20
spokeswoman Kristin Brost couldn't say when the=20
hearing schedule had been set, but said an FCC=20
hearing had been planned since at least February.=20
According to Brost, the committee was unaware of=20
the potential NAB conflict. According to the=20
office of Chairman Jose Serrano (D-NY), the=20
subcommittee worked with FCC staffers on the=20
timing of the hearing, and would have made=20
accommodations if the FCC had asked to move it.
http://www.broadcastingcable.com/article/CA6433738.html

NONPROFIT GROUPS WANT SHOT AT FM RADIO LICENSES
[SOURCE: Associated Press, AUTHOR: M.R. Kropko]
Nonprofit community groups, schools and churches=20
this year will get their first opportunity since=20
2000 to apply for licenses for full-power,=20
noncommercial/educational FM radio stations. The=20
Federal Communications Commission stopped taking=20
those applications so it could catch up on its=20
backlog and revise its system for reviewing them.=20
The agency says it expects to begin taking=20
requests again in the fall.=20
Noncommercial/educational stations are usually=20
found at the low end of the FM frequencies=20
spectrum (87.9 to 91.9) and depend on public or=20
institutional support. Because there's a lack of=20
noncommercial space on the radio dial in cities,=20
opportunities more often exist in remote or rural=20
areas. Although the licenses are free, costs a=20
station would face could limit the number of=20
applicants. Legal, engineering and equipment=20
startup costs typically could total as much as=20
$250,000, said Matthew Lasar, a media history=20
professor at University of California at Santa=20
Cruz and editor of a blog on FCC issues. Adding=20
to what could be a flood of new applications are=20
the hundreds of low-power noncommercial stations=20
that could look to increase power and cover a=20
much wider area through a full-power signal.
http://www.ohio.com/mld/ohio/news/17082112.htm

A FUBAR WAITING TO HAPPEN
[SOURCE: Broadcasting&Cable, AUTHOR: Former-FCC Commissioner James Quello]
[Commentary] Letting unlicensed devices, from=20
wireless laptops to radio-controlled toys, use=20
spectrum that was once reserved for television=20
has great potential of becoming a disaster. A key=20
problem is the location of these unlicensed=20
devices relative to a consumer's TV set. Even a=20
low-power device can interfere with a TV set if=20
it is located close enough: A neighbor in the=20
next apartment or down the street may cause your=20
new digital TV set or subsidized converter box to=20
freeze up. In a more perfect, logical world, the=20
government should first finalize the DTV=20
transition before activating auctions or before validating unlicensed devic=
es.
http://www.broadcastingcable.com/article/CA6433707.html

MEDIA OWNERSHIP

FCC MEDIA OWNERSHIP HEARING IN TAMPA
[SOURCE: Federal Communications Commission]
On March 13, the FCC announced it would hold a=20
media ownership hearing in Tampa, Florida. On=20
Friday, more details were offered. The hearing=20
will be held Monday, April 30 from 4-11pm at the=20
Tampa Bay Performing Arts Center. The purpose of=20
the hearing is to fully involve the public in the=20
process of the 2006 Quadrennial Broadcast Media=20
Ownership Review that the Commission is currently=20
conducting. The hearing is open to the public,=20
and seating will be available on a first-come,=20
first-served basis. This hearing is the fourth=20
in a series of media ownership hearings the=20
Commission intends to hold across the=20
country. There will be a period for public=20
comment following panel discussions. Further=20
details including names of the panelists will be=20
released prior to the hearing. For additional=20
information about the hearing, please visit the=20
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-272326A1.doc

FCC ASKS CLEAR CHANNEL FOR SUGGESTIONS ON MEDIA PANEL
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
A public filing indicates that Federal=20
Communications Commissioner Deborah Taylor Tate=20
asked Clear Channel Communications for=20
suggestions for professors at the University of=20
South Florida for a panel "on younger listening=20
habits." The FCC has scheduled its next public=20
hearing on its national media ownership rules to=20
take place at the Tampa Bay Performing Arts=20
Center in Florida on April 30th. The April 12th=20
Clear Channel filing says that on April 6th,=20
Republican Commissioner Tate met with the media=20
giant and a group of Tennessee broadcasters to=20
discuss their opposition to the proposed=20
XM/Sirius satellite radio merger. During the=20
conversation, Tate also presented Clear Channel=20
with a request "for contacts at The University of=20
South Florida in Tampa to potentially help set up=20
a panel to discuss younger listening habits,"=20
according to the Clear Channel response. It isn't=20
clear from the filing, but seems likely, that=20
Tate was referring to a potential panel for the=20
media ownership hearing scheduled for Tampa.=20
Clear Channel's Vice President Tom English then=20
forwarded the question to the company's Tampa=20
Market Manager, Dan Diloreto, who came up with=20
the following suggestions and descriptions: 1)=20
Edward Jay Friedlander "Professor specializing in=20
mass communications and society." 2) Kenneth C.=20
Killebrew Jr. "Associate Professor specializing=20
in television reporting, writing public policy=20
and opinion." 3) Larry Z. Leslie "Associate=20
Professor specializing in media ethics, mass=20
comm. theory and impact on society." 4) Terry=20
Hynes, Ph.D. "Dean and Professor College of=20
Journalism and Comm." 5) Rebecca Hoover "Director=20
of Development College of Journalism and Comm."
http://www.lasarletter.net/drupal/node/390

BROADCASTING MOVES AWAY FROM WALL STREET
[SOURCE: Broadcasting&Cable, AUTHOR: Paige Albiniak]
Since November, four of the country=92s biggest=20
station groups -- Ion, Univision, Tribune Co. and=20
Clear Channel -- have announced plans to be=20
acquired by private-equity firms. In February,=20
CBS sold seven of its stations to private equity=20
firm Cerberus Capital Management for $185=20
million. And two more groups that aren't among=20
Broadcasting & Cable=92s Top 25 Station Groups --=20
The New York Times Co. and Bluestone Television=20
-- are taking shelter under a private-equity=20
umbrella. More than half of the companies on the=20
annual B&C list changed rank. CBS fell to No. 2=20
(exchanging places with Fox) because of the sale=20
of seven stations. E.W. Scripps dropped from 11th=20
to 16th because it sold off several stations that=20
were part of the Shop at Home network it=20
abandoned. But on next year=92s list at least eight=20
stations will be privately held, double this=20
year=92s number. =93Wall Street has walked away from=20
broadcast investments because they don't see the=20
growth that the industry has had over the past=20
20-30 years,=94 says Larry Patrick, president of=20
station brokerage Patrick Communications. =93Growth=20
has slowed, but broadcasting is a tremendously=20
high free-cash-flow business. If you are a big=20
hedge fund or a private-equity fund and you have=20
$10 billion-$20 billion, you have to find places=20
to park that. A television company has 35%-40%=20
operating margin. You can't put your money in=20
anything else that gets that kind of return.=94
http://www.broadcastingcable.com/article/CA6433752.html
See also --
* Private-Equity Firms Face Public Future
[SOURCE: Washington Post, AUTHOR: Thomas Heath]
The co-founder of the Carlyle Group, the giant=20
District private-equity firm that invests tens of=20
billions of dollars on behalf of pension funds=20
and other investors, said over the weekend that=20
he expects most of the major firms in his=20
industry to become public companies in the next=20
few years. "These guys who built these=20
private-equity firms: You can say many things=20
about them, but one thing you can't say is=20
they're stupid, or they are not an alpha male,"=20
said David M. Rubenstein, Carlyle's managing=20
director. "These guys are going to be fairly=20
forthright about getting what they think they earned for building these fir=
ms."
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/15/AR200704...
0688.html
(requires registration)

FOUR IN RUNNING FOR CLEAR CHANNEL TV
[SOURCE: tvnewsday, AUTHOR: Harry A. Jessell]
With the bidding past the $1 billion mark, four=20
companies are vying for Clear Channel Television,=20
the division of Clear Channel Communications that=20
operates 42 TV stations in 24 small- and=20
mid-sized markets, and a winner could be named=20
with the next two weeks. The four bidders include=20
Nexstar Broadcasting Group, a publicly traded=20
broadcast group headed by Perry Sook, along with=20
three entities backed by private equity firms=20
that have been active in the station trading=20
marketplace over the past year -- Kelso, Oak Hill=20
Capitol Partners and Providence Equity. The next=20
round of bids is due next Wednesday, and parent=20
Clear Channel Communications is expected to pick=20
a winner within a week of those bids.
http://www.tvnewsday.com/articles/2007/04/13/daily.6/
* Suitors Raise Bid for Clear Channel
The two private equity firms seeking to buy Clear=20
Channel Communications have sweetened their=20
offer, fearing that their initial bid may be rejected by shareholders.
http://www.nytimes.com/2007/04/16/business/media/16deal.html

CLEAR CHANNEL, TENNESSEE BROADCASTERS LOBBY FCC AGAINST XM/SIRIUS MERGER
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
Clear Channel Communications is leading a small=20
battalion of Tennessee area broadcasting groups=20
against Federal Communications Commission=20
approval of a merger between XM and Sirius=20
satellite radio. Clear Channel says the move will=20
give XM/Sirius an "unfair spectrum advantage."=20
But now the radio giant has to explain why media=20
consolidation is good for the goose but not for=20
the gander. The company has long protested FCC=20
rules that limit to eight the number of radio=20
stations that it can buy in a designated market.=20
Clear Channel, in tandem with three other groups,=20
met with the FCC's Deborah Taylor Tate on April=20
6th to lobby hard against the proposed XM/Sirius=20
union. "The broadcasters noted their concerns=20
with the XM-Sirius merger and its adverse impact=20
on free radio and listeners," their public=20
filing, dated April 12th, concludes. Clear=20
Channels' partners in this move include Whit=20
Adamson, President, Tennessee Association of=20
Broadcasters, and radio station owners Bayard=20
"Bud" Walters of the Cromwell Group, and Craig=20
Jacobus, President of South Central Communications.
http://www.lasarletter.net/drupal/node/389

GOOGLE BUYS ONLINE AD FIRM FOR $3.1 BILLION
[SOURCE: New York Times 4/14, AUTHOR: Louise Story & Miguel Helft]
Google agreed to its largest acquisition,=20
reaching a deal to purchase DoubleClick, the=20
online advertising company, from two private=20
equity firms for $3.1 billion in cash, almost=20
double what it paid for YouTube last year. And=20
perhaps just as important, the deal kept=20
DoubleClick from the hands of Microsoft. For=20
Google, the purchase is another step in its=20
transformation from a search engine into an=20
advertising powerhouse. DoubleClick, which is=20
based in New York City, specializes in software=20
for display advertising and has close=20
relationships with Web publishers, advertisers and advertising agencies.
http://www.nytimes.com/2007/04/14/technology/14deal.html
(requires registration)
* Google's Rivals Fear DoubleClick Deal Concentrates Too Much Web-Ad Clout
Microsoft, AT&T, Time Warner and several other=20
large Internet and media companies are hoping to=20
encourage antitrust regulators to closely=20
scrutinize Google's planned $3.1 billion purchase=20
of Internet-ad-services firm DoubleClick. They=20
said the deal would give Google a grip over the=20
booming market for online advertising. The=20
planned acquisition will be subject to a review=20
by either the Justice Department or Federal Trade=20
Commission, in accordance with standard procedure=20
for acquisitions larger than a certain size. At=20
issue is that Google already controls the lion's=20
share of the market for Internet-search=20
advertising and related contextual ads; the=20
DoubleClick deal would make it a dominant player=20
in the market for serving graphical ads on Web=20
sites on behalf of the sites' publishers.
http://online.wsj.com/article/SB117667837084170630.html?mod=3Dtodays_us_...
ketplace
* Microsoft Wary of DoubleClick Buyout
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/15/AR200704...
0855.html
See also --
* Google Reaches Deal With Clear Channel to Sell Radio Ads
Google will begin selling advertisements across=20
all of the stations of Clear Channel=20
Communications, the No. 1 radio station owner in=20
the United States, at the end of June, the companies will announce today.
http://www.nytimes.com/2007/04/16/technology/16radio.html

TELECOM

VONAGE HAS NO 'WORKAROUND' FOR VERIZON TECHNOLOGY
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
Vonage has finally confirmed what many had=20
feared: The embattled Internet phone company has=20
no "workaround" in hand to sidestep Verizon's=20
patented Internet phone technology. Moreover,=20
Vonage isn't sure that such a plan is even=20
"feasible," given the expansiveness of Verizon's=20
patents, which set out methods for passing calls=20
between the Web and conventional phone networks.=20
Vonage's chilly assessment, contained in a filing=20
submitted to a federal court Friday, marks the=20
first time it has admitted that it doesn't have a=20
plan for getting around Verizon's technology.
http://www.usatoday.com/printedition/money/20070416/vonage16.art.htm

VONAGE PATENT CASE COULD HURT PHONE COMPETITION
[SOURCE: HearUsNow.org, AUTHOR: Bob Williams]
[Commentary] The Vonage-Verizon patent suit over=20
Voice over Internet Protocol (VoIP) services=20
could end in Vonage going out of business. By=20
itself, that would be bad for all phone=20
consumers, not just Vonage customers. Competition=20
from new rivals such as Vonage and cable=20
operators have forced traditional phone companies=20
such as Verizon and AT&T to fight harder for=20
customers, generally driving down prices and=20
improving service. Far more troubling, however,=20
is the possibility that Verizon might try to use=20
similar litigation to cripple or shut down other=20
new competitors in the phone business.=20
Competition has clearly benefited phone=20
consumers. It will be unfortunate if Verizon is=20
able to use lawsuits to kill off its rivals rather than competing with them.
http://www.consumersunion.org/blogs/hun/2007/04/vonage_patent_case_could...
rt.html

TELCOS LIFT BLOCK ON FREECONFERENCE.COM
[SOURCE: ConsumerAffairs.Com 4/13, AUTHOR: Martin H. Bosworth]
Major telecom companies that were blocking access=20
to the FreeConference.Com calling service have=20
agreed to lift the restrictions, at least for=20
now, pending a meeting between the companies=20
supporting FreeConference.Com and the Federal=20
Communications Commission (FCC) next week. The=20
FCC said it received more than 1,000 complaints=20
on the issue, and asked that all call blocking to=20
the service cease until the commission met with=20
both sides to discuss the issue. Sprint Nextel=20
agreed to stop blocking calls to=20
FreeConference.Com on April 12th, joining=20
AT&T/Cingular and Qwest, according to=20
FreeConference.Com. Company CEO Alex Cory=20
credited the "voice of the consumer" for drawing=20
attention to the blockage and getting it lifted.
http://www.consumeraffairs.com/news04/2007/04/free_conference.html

ANALOG CELL SERVICE NEARS THE FINISH LINE
[SOURCE: USAToday, AUTHOR: Paul Davidson]
Regulators are poised to send the crackling and=20
bulky analog cellphone to the scrap heap next=20
February, denying a last-ditch appeal from a=20
business group. The shutdown of analog wireless=20
networks Feb. 18 will mean lost service or=20
disruptions for 500,000 GM car owners with OnStar=20
emergency wireless service, up to 1 million alarm=20
customers and a few million diehards who refuse=20
to trade in their analog phones. Federal=20
Communications Commission Chairman Kevin Martin=20
is recommending the agency deny a petition by the=20
alarm industry to delay the shutdown two years,=20
FCC officials say. The industry says providers=20
need more time to convert analog customers to=20
digital. Most commissioners are likely to support=20
Martin, officials say, noting alarm firms have=20
had five years to upgrade subscriber equipment.=20
In 2002, the FCC permitted cellphone carriers to=20
turn off their analog networks by 2008. AT&T and=20
Verizon, the only two national carriers with=20
analog systems, say less than 1% of their=20
combined subscriber bases, or about 1 million=20
people, still use analog handsets. Wireless=20
carriers say it would cost several hundred=20
million dollars to maintain the systems two more=20
years, and the airwaves can be better used to improve digital coverage.
http://www.usatoday.com/printedition/money/20070416/1b_analogwireless16....
.htm

TELEMARKETERS GETTING THROUGH
[SOURCE: San Francisco Chronicle, AUTHOR: Ryan Kim]
Overall, the federal Do Not Call Registry, with=20
143 million registered numbers since its=20
inception in 2003, has worked to curb the number=20
of telemarketing calls. A Harris Interactive poll=20
last year found that 76 percent of respondents=20
had signed up for the Federal Trade Commission's=20
call registry and that nine out of 10 said they=20
were receiving fewer unsolicited calls. But some=20
Bay Area residents are seeing a rise in the last=20
year of unsolicited calls from what they believe=20
are telemarketers who are pushing the boundaries=20
of the law to make a sale. That uptick comes at a=20
time when the first round of registrants who=20
signed up in 2003 will need to apply again if=20
they want to remain on the registry. The first=20
round of registration expires in the summer of=20
2008. FTC officials said they have been zealous=20
in their efforts to track down violators. The FTC=20
has received more than 2.8 million complaints=20
since the program started and completed 29 cases=20
against violators. The penalty can be as high as $11,000 per violation.
http://www.sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2007/04/16/CALL.TMP

JOURNALISM
Best-Informed Also View Fake News, Study Says
BEST-INFORMED ALSO VIEW FAKE NEWS, STUDY SAYS
[SOURCE: New York Times, AUTHOR: Katharine Seelye]
Americans may have more news outlets today than=20
two decades ago, but they still don't know much=20
more about current events than they did then,=20
according to a new survey by the Pew Research=20
Center for the People and the Press. But here=92s=20
one big difference: the survey respondents who=20
seemed to know the most about what=92s going on =97=20
who were able to identify major public figures,=20
for example -- were likely to be viewers of fake=20
news programs like Jon Stewart=92s =93The Daily Show=94=20
and =93The Colbert Report=94; those who knew the=20
least watched network morning news programs, Fox=20
News or local television news. Only 69 percent=20
of people in the latest survey could come up with=20
Dick Cheney when asked to name the vice=20
president; in 1989, 74 percent could name Dan=20
Quayle. Fewer could name the governor of their=20
state (66 percent now compared with 74 percent in=20
1989) and fewer could name the president of=20
Russia (36 percent now compared with 47 percent=20
before). In 1989, fully 81 percent of people knew=20
that the United States had a trade deficit;=20
today, only 68 percent knew. The survey found=20
that education was the best predictor of who=20
would do well on the questions. =93However,=94 it=20
said, =93despite the fact that education levels=20
have risen dramatically over the past 20 years,=20
public knowledge has not increased accordingly.=94
http://www.nytimes.com/2007/04/16/business/media/16pew.html
(requires registration)

QUICKLY

COPPS: FCC'S POWER BROKER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
A Q&A with FCC Commissioner Michael Copps. With=20
the Democrats having taken the Hill and=20
Republican FCC Commissioner Robert McDowell=20
proving to be an independent-minded commissioner=20
rather than a lock for a third vote for Chairman=20
Kevin Martin, the power of the Democratic=20
minority on the commission has grown. On his=20
message to broadcasters: "I guess I would say=20
that they are the stewards of a precious public=20
jewel and I went there to applaud those who work=20
hard to service the public interest by putting=20
real resources into news and public affairs and=20
local coverage. I understand there are challenges=20
that exist in the media environment we all find=20
ourselves in, but I'm also there to say that I am=20
worried that it is becoming more and more=20
difficult for these folks to meet those=20
objectives we talked about in this age of media=20
consolidation and the often unforgiving=20
expectations of Wall Street and Madison Avenue.=20
Their job of gathering and communicating news and=20
public affairs is more important now than ever=20
before, especially in this environment. That=20
isn't just something nice for them to do, but=20
that was the original bargain, to use the=20
airwaves to serve the public interest. We need to=20
make sure those principles are front and center=20
and take broadcasters to new and even higher altitudes."
http://www.broadcastingcable.com/article/CA6433742.html

COMPETITION WON'T CURE ALL, ADVISORS TELL TOWN OFFICIALS
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
Video competition is not going to solve all=20
customer-service problems, so cities and counties=20
still need to craft and enforce local guidelines,=20
attorneys advising the regulators said. Those=20
standards could be most successful if written to=20
guide all service providers in town, not just=20
cable operators, the attorneys advised. That=20
would mean removing customer-service protections=20
from franchising agreements and crafting them=20
into municipal ordinances. The language in these=20
documents should allow for frequent updates to=20
reflect current working conditions.
http://www.multichannel.com/article/CA6431716.html

THE SHY'S THE LIMIT FOR STATIONS ONLINE
[SOURCE: Broadcasting&Cable, AUTHOR: Michael Malone]
Despite vast opportunity, the nation=92s TV=20
stations have largely failed to capitalize on the=20
Internet. That=92s the essential message from an=20
exclusive B&C/Magid Media Labs =93Online User=20
Study.=94 On the bright side, viewership for=20
stations=92 televised news remains high (84% watch=20
a local television newscast at least once a=20
week). But less encouraging is that only half of=20
the polled users access local news online at=20
least once a month, and a mere 13% surf the Web=20
for local news on a daily basis.
http://www.broadcastingcable.com/article/CA6433703.html

A WORLD WIDE WEB OF TERRORIST PLOTTING
[SOURCE: Los Angeles Times, AUTHOR: Sebastian Rotella]
The Internet has become a virtual training camp=20
and operations center replacing the Al Qaeda=20
bases in Afghanistan and Bosnia that produced a=20
legion of fighters, formed them into cells and launched them at targets.
http://www.latimes.com/news/printedition/front/la-fg-net16apr16,1,200894...
tory?coll=3Dla-headlines-frontpage
(requires registration)
--------------------------------------------------------------
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.
--------------------------------------------------------------