April 2007

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INTERNET/BROADBAND
The Next Big Thing in Broadband: Early Termination Penalties
World's largest Wi-Fi Having Growing Pains

CABLE/TELEVISION
Martin may abandon cable cap return
On the TV's margins, public access gives immigrants a voice

CONTENT
Radio Host Is Suspended Over Racial Remarks
U.S. to step up piracy battle
Reclaiming The Digital Frontier
Thailand Continues Internet Crackdown

NEW GAO REPORTS
Much Work Remains to Improve Communications Interoperability
EAS Has Limitations, Development of a New=20
Integrated System Will Be Challenging
Improving Freedom of Information Act Implementation

ELECTIONS & MEDIA
Clinton, Obama, Edwards to Skip Fox-Sponsored Debate
New Study Points To Web Prominence For 2008 Election

QUICKLY -- Report of Talk to Take Over Bell=20
Canada; Celebrex Commercial, Long and Unconventional, Draws Criticism

INTERNET/BROADBAND

THE NEXT BIG THING IN BROADBAND: EARLY TERMINATION PENALTIES
[SOURCE: Consumers Union]
Broadband Internet providers are increasingly=20
imposing early termination fees to keep their=20
customers from straying away for a better deal=20
somewhere else. Such fees have been a routine=20
part wireless phone contracts for years, but only=20
recently have they begun to show up in the=20
broadband business. Typically, the fees are=20
included in the fine print of long-term contracts=20
of a year or more. Many of the low-priced=20
promotional offers offered by the companies=20
require customers to sign such long-term=20
contracts. A survey of the country's top=20
broadband providers by www.hearusnow.org shows=20
that many are now including early termination=20
fees in their contracts, with penalties of $200=20
or higher for consumers. The widespread adoption=20
of early termination fees in the broadband=20
business should worry consumers, according to=20
Jeannine Kenney, senior policy analyst at=20
Consumers Union. "Cancellation penalties are=20
anti-competitive and deprive consumers of the=20
benefits of competition in the markets where=20
there is more than one broadband provider," says=20
Kenney. "The justifications for them are suspect.=20
Once enticing consumers to sign up, broadband=20
providers should rely on quality and service to=20
build customer loyalty, not onerous contract=20
terms that hold consumers hostage."
http://www.consumersunion.org/blogs/hun/2007/04/the_next_big_thing_in_br...
ban.html

WORLD'S LARGEST WI-FI HAVING GROWING PAINS
[SOURCE: San Francisco Chronicle, AUTHOR: Ryan Kim]
Since it began 15 months ago, Taipei's Wi-Fi=20
system has grown rapidly to become the world's=20
largest, with more than 4,200 antennas and=20
counting. The response of the populace, though,=20
has fallen short of expectations. The city has=20
struggled to get subscribers to sign up for the=20
service called WIFLY due to some perceived=20
performance issues, competition from free=20
hotspots and a lack of applications. So far,=20
about 30,000 people are using the system on a=20
consistent basis, well short of original=20
estimates. Taipei's pioneering experience has=20
implications for cities in the United States that=20
are pursuing similar networks. It is especially=20
relevant in the Bay Area, where many small=20
networks are running and others are planned.=20
Taipei's network is also instructive because of=20
the similarities between the two regions in urban=20
density and an abundance of free hotspots, both=20
potential problems for paid Wi-Fi systems.
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/c/a/2007/04/09/BUGK8P4...
1.DTL&type=3Dtech

CABLE/TELEVISION

MARTIN MAY ABANDON CABLE CAP RETURN
[SOURCE: TheDeal.com, AUTHOR: Ron Orol]
Federal Communications Commission Chairman Kevin=20
Martin=92s plan to reinstate a defunct rule, which=20
would limit cable operators' size by limiting=20
their audience reach, will not be adopted in=20
April. Regulatory observers speculated that the=20
agency would adopt the rule quickly after=20
Chairman Martin in March said he plans to=20
reinstate the old rule, limiting one provider's=20
reach to 30% of U.S. pay-TV subscribers. For=20
years, regulatory observers expected the FCC to=20
raise the cap by making it easier for the biggest=20
cable companies to merge. A source close to the=20
FCC said the agency will not consider a measure=20
to reinstate the cap at the agency=92s scheduled=20
April 25 meeting, as many observers had expected.
http://dealscape.thedealblogs.com/2007/04/martin_may_abandon_cable_cap_r...

ON TV's MARGINS, PUBLIC ACCESS GIVES IMMIGRANTS A VOICE
[SOURCE: Associated Press 4/8, AUTHOR: Juliana Barbassa]
Anyone with something to say, in almost any=20
language, can find a home on public access=20
television, which is why immigrant communities=20
are increasingly using it to educate,=20
entertain=97and stoke long-simmering feuds. The=20
most democratic space on the tube, public access=20
channels are made available by cable companies=20
legally mandated to offer space to amateur=20
broadcasters who can do or say just about=20
anything within the roomy boundaries of libel and=20
obscenity laws. In some cities, flipping through=20
these channels can feel like traveling around the=20
globe: Iranian film, Chinese news, Polynesian=20
worship, even the ugly side of Afghan community=20
politics. "They reflect the mosaic that's out=20
there," said Andrew Johnson, spokesman with the=20
cable company Comcast Corp., the nation's=20
largest, which airs immigrant-produced shows=20
around the country on its public access channels.=20
Although they usually fall beneath the radar of=20
mainstream viewers, the programs attract a=20
niche=97and often foreign=97audience that can feel=20
marginalized by mainstream programming, said=20
Vibert Cambridge, a professor at Ohio University=20
who has researched immigrant use of broadcast=20
media. "It's about identity, authenticity, coming=20
out of the margins, not being silent," she said.=20
"They're able to articulate an agenda that is=20
community-oriented, share their aspirations with=20
the wider community, and enter into dialogue with=20
the larger American society, giving texture to a=20
new culture, while reaffirming their heritage."
http://www.mercurynews.com/news/ci_5623249?nclick_check=3D1
http://www.pe.com/ap_news/California/CA_Diversity_on_the_Air_282492C.shtml

CONTENT

RADIO HOST IS SUSPENDED OVER RACIAL REMARKS
[SOURCE: New York Times, AUTHOR: Bill Carter]
The radio talk show host Don Imus was suspended=20
for two weeks yesterday after the outcry over his=20
racially disparaging remarks about the Rutgers=20
University women=92s basketball team. The=20
suspension will begin Monday. NBC News, which=20
does a simulcast broadcast of Mr. Imus=92s radio=20
program on its cable news channel MSNBC, was the=20
first to act, suspending Mr. Imus and calling his=20
comments =93racist and abhorrent.=94 A short time=20
later, CBS Radio, which is his chief employer,=20
followed, saying it, too, would take Mr. Imus,=20
66, off the air for two weeks. NBC also served=20
notice yesterday that it would not tolerate=20
insensitive remarks in the future. Mr. Imus had=20
promised to change the tenor of the show, NBC=20
said in a statement, and had agreed that the=20
suspension was appropriate. =93Our future=20
relationship with Imus is contingent on his=20
ability to live up to his word,=94 NBC said. CBS=20
made no statement other than that it was=20
suspending Mr. Imus, who has been the host of=20
=93Imus in the Morning=94 for more than 30 years. But=20
his job still appeared to be in jeopardy, with=20
Rev Al Sharpton and other black leaders calling=20
for Mr. Imus to be fired, threatening to initiate=20
a boycott of sponsors and demanding that the=20
Federal Communications Commission take action=20
against him and radio stations that carry his=20
program. The FCC may not have a direct means to=20
address the issue. It was under a mandate from=20
Congress to act against what was deemed=20
indecency, but there is not a similar mandate=20
against other types of speech by a broadcaster.
http://www.nytimes.com/2007/04/10/business/media/10imus.html
(requires registration)
* Don Imus Is Punished With Two Weeks of Radio Silence
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/09/AR200704...
1008.html
* Radio's Imus is suspended two weeks
http://www.usatoday.com/printedition/life/20070410/d_topstrip10.art.htm
* Shocked Jock
Don Imus takes his lumps. He deserves every one of them.
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/09/AR200704...
1105.html
* Trash Talk Radio
[SOURCE: New York Times, AUTHOR: Gwen Ifill, PBS]
[Commentary] "This country will only flourish=20
once we consistently learn to applaud and=20
encourage the young people who have to work=20
harder just to achieve balance on the unequal=20
playing field. Let=92s see if we can manage to=20
build them up and reward them, rather than opting=20
for the cheapest, easiest, most despicable shots."
http://www.nytimes.com/2007/04/10/opinion/10ifill.html
(requires registration)

US TO STEP UP PIRACY BATTLE
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera and Evelyn Iritani]
In the battle against pirated American movies,=20
music and other intellectual property in China,=20
the Bush administration has tried the carrot. Now=20
it's turning to the stick. That was the sign the=20
U.S. sent Monday as it decided to launch formal=20
complaints against Beijing with the World Trade=20
Organization. Although the move risks escalating=20
already tense trade relations, U.S. officials and=20
Hollywood executives have become increasingly=20
frustrated with the continued flood of bootleg=20
DVDs and other products from China. The Motion=20
Picture Assn. of America estimates that in 2005,=20
more than nine of every 10 DVDs sold there were=20
illegal copies. In recent years, Chinese and U.S.=20
officials have been working together to solve the=20
problem, but U.S. Trade Representative Susan=20
Schwab said Monday that 80% of all counterfeit=20
products seized at U.S. borders still come from China.
http://www.latimes.com/business/printedition/la-fi-wto10apr10,1,4895958....
ry?coll=3Dla-headlines-pe-business
(requires registration)

RECLAIMING THE DIGITAL FRONTIER
[SOURCE: TomPaine.com, AUTHOR: Art Brodsky, Public Knowledge]
[Commentary] The next time you plunk down your=20
$10 (and rising) for a movie ticket, think for a=20
minute about where the money goes. Millions go to=20
the movie stars, directors and producers. Tens of=20
thousands go to the people who work on the movie.=20
But a lot of that money also helps to pay for=20
lawyers whose job is to limit what consumers can=20
see and do with materials they have the right to=20
use. The big media companies can get away with it=20
because they played a large role in writing the=20
laws under which they sue innovators and hurt=20
consumers, and they have a knack for finding=20
friendly courts to enforce them. Common sense,=20
nor other laws, need not be applied. If the media=20
company lawyers are determined to earn their=20
money by playing defense, by trying to justify=20
these egregious violations of fair use and public=20
comment rather than by preying on innocent people=20
who in all probability would be better thought of=20
as fans rather than as someone to be sued.
http://www.tompaine.com/articles/2007/04/02/reclaiming_the_digital_front...
.php

THAILAND CONTINUES INTERNET CRACKDOWN
[SOURCE: Associated Press]
The Thai government continued its Internet=20
crackdown by ordering one of the country's most=20
popular chat sites to shut its political forum=20
because of postings deemed insulting to the=20
revered monarch. Government officials said Monday=20
that the political chat room of the Web site=20
pantip.com was closed Sunday. The chat room=20
carried frequent postings that criticized the=20
leaders of a September coup and the current=20
military-installed government. The closure=20
followed the Thai government's order last week to=20
block video-sharing site YouTube because of=20
videos that mocked King Bhumibol Adulyadej.=20
YouTube's owner, Google, has refused to remove=20
the videos but has said that it is working with=20
the Thai government to resolve the impasse.
http://online.wsj.com/article/SB117613724481664160.html?mod=3Dtodays_us_...
e_one
(requires subscription)

NEW GAO REPORTS

FIRST RESPONDERS: MUCH WORK REMAINS TO IMPROVE COMMUNICATIONS INTEROPERABIL=
ITY
[SOURCE: Government Accountability Office 4/2]
As the first to respond to natural disasters,=20
domestic terrorism, and other emergencies, public=20
safety agencies rely on timely communications=20
across multiple disciplines and jurisdictions. It=20
is vital to the safety and effectiveness of first=20
responders that their electronic communications=20
systems enable them to communicate with whomever=20
they need to, when they need to, and when they=20
are authorized to do so. GAO was asked to=20
determine, among other things, 1) the extent to=20
which Department of Homeland Security (DHS)=20
funding and technical assistance has helped to=20
improve interoperable communications in selected=20
states and 2) the progress that has been made in=20
the development and implementation of=20
interoperable communications standards. To=20
address these objectives, GAO reviewed grant=20
information, documentation of selected states=92=20
and localities=92 interoperability projects, and=20
standards documents. GAO is making=20
recommendations to DHS, which include assessing=20
how states=92 grant requests support statewide=20
communications plans and modifying its guidance=20
on acquiring interoperable equipment.
GAO-07-301
http://www.gao.gov/cgi-bin/getrpt?GAO-07-301
Highlights - http://www.gao.gov/highlights/d07301high.pdf
See also --
* FCC=92s Martin shows renewed interest in E911
[SOURCE: RCRWireless, AUTHOR: Jeffrey Silva]
Federal Communications Commission Chairman Kevin=20
Martin plans to tackle the location-based E911=20
arena with new rules for testing the service, as=20
well as a call for public comment on the=20
technology itself. Martin=92s moves come shortly=20
after his dismissal of an industry expert who was=20
working on a report that highlighted problems=20
with locating wireless callers inside buildings=20
and in rural areas. Chairman Martin plans to rule=20
soon that testing of location-based enhanced 911=20
wireless accuracy be conducted at local emergency=20
call centers rather than at the state level. The=20
Association of Public Safety Communications=20
Officials International petitioned the FCC for=20
such a move several years ago. Martin also plans=20
to seek public comment on E911 technological=20
advances and prospects for an across-the-board=20
industry deployment of a hybrid approach to E911,=20
which draws on both GPS technology in handsets as=20
well as network triangulation techniques.
http://www.rcrnews.com/apps/pbcs.dll/article?AID=3D/20070409/FREE/704090...
1005/rss01

CURRENT EMERGENCY ALERT SYSTEM HAS LIMITATIONS,=20
AND DEVELOPMENT OF A NEW INTEGRATED SYSTEM WILL BE CHALLENGING
[SOURCE: Government Accountability Office 3/30]
During emergencies, the public needs accurate and=20
timely information. Through the Emergency Alert=20
System (EAS), the media play a pivotal role,=20
assisting emergency management personnel in=20
communicating to the public. GAO reviewed 1) the=20
media=92s ability to meet federal requirements for=20
participating in EAS, 2) stakeholder views on the=20
challenges facing EAS and potential changes to=20
it, and 3) the progress made toward developing an=20
integrated alert system. GAO reviewed the Federal=20
Communications Commission=92s proposed rulemaking=20
on EAS and interviewed media outlets, state=20
emergency management officials, and federal=20
agencies responsible for EAS, including FCC and=20
the Federal Emergency Management Agency (FEMA),=20
within the Department of Homeland Security. To=20
improve the media=92s ability to issue emergency=20
alerts, GAO recommends that DHS and FCC develop a=20
plan to verify 1) the dependability and=20
effectiveness of the EAS relay system, and 2)=20
that EAS participants have the training to issue=20
effective EAS alerts. Also, DHS and FCC should=20
establish a forum for stakeholders to address the=20
challenges of implementing an integrated alert system. (GAO-07-411)
Highlights - http://www.gao.gov/highlights/d07411high.pdf
http://www.gao.gov/new.items/d07411.pdf

FREEDOM OF INFORMATION ACT: PROCESSING TRENDS SHOW IMPORTANCE OF IMPROVEMEN=
TS
[SOURCE: Government Accountability Office 3/30]
The Freedom of Information Act (FOIA) establishes=20
that federal agencies must provide access to=20
their information, enabling the public to learn=20
about government operations and decisions. To=20
help ensure proper implementation, the act=20
requires that agencies report annually to the=20
Attorney General, giving specific information=20
about their FOIA operations, such as numbers of=20
requests received and processed and median=20
processing times. Also, a recent Executive Order=20
directs agencies to develop plans to improve FOIA=20
operations, including decreasing backlog. For=20
this study, GAO was asked to examine the status=20
and trends of FOIA processing at 25 major=20
agencies as reflected in annual reports, as well=20
as the extent to which improvement plans contain=20
the elements emphasized by the Executive Order.=20
To do so, GAO analyzed the 25 agencies=92 annual=20
reports and improvement plans. GAO suggests that=20
the Congress consider requiring annual reports to=20
provide additional statistics, including=20
arithmetic means. GAO also makes recommendations=20
to strengthen selected improvement plans, among other things. GAO-07-441
http://www.gao.gov/new.items/d07441.pdf
Highlights - http://www.gao.gov/highlights/d07441high.pdf

ELECTIONS & MEDIA

CLINTON, OBAMA TO SKIP FOX-SPONSORED DEBATE
[SOURCE: Washington Post, AUTHOR: Perry Bacon Jr.]
Sens. Hillary Rodham Clinton (D-NY) and Barack=20
Obama (D-Il) yesterday joined former North=20
Carolina senator John Edwards (D) in deciding to=20
skip a debate scheduled for September that Fox=20
News is co-sponsoring with the Congressional=20
Black Caucus. Liberal activists, particularly the=20
online group Moveon.org, have called for=20
Democratic presidential candidates not to=20
participate in debates by Fox, which they say is=20
biased against Democrats. Several candidates,=20
including Edwards, last month withdrew from a=20
debate that Fox was co-hosting with the Nevada=20
Democratic Party and would have taken place in August in Reno.
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/09/AR200704...
1115.html
(requires registration)

NEW STUDY POINTS TO WEB PROMINENCE FOR 2008 ELECTION
[SOURCE: MediaPost, AUTHOR: Gavin O'Malley]
According to a new study from online ad network=20
Burst Media, one-quarter of likely voters in the=20
2008 election cited the Internet as the best=20
place to research candidates' positions and=20
general election issues. By contrast, about a=20
fifth -- 21.3% -- cited TV as the ideal source of=20
election information, while 17.3% said newspapers=20
were their key source of information. Trailing,=20
just 6.9% cited radio, 4.4% said magazines were=20
best, and 3.3% cited direct mail. The Web also=20
continues to be a powerful tool for fund-raising.=20
In the tradition of 2004 presidential candidate=20
Howard Dean, the Web is helping Sen. Barack Obama=20
compete with better-connected rivals. Obama=20
raised $25 million from more than 100,000 donors=20
in the first three months of the year, while Sen.=20
Hillary Clinton reported taking in $26 million.=20
The Obama campaign reported raising $6.9 million=20
using the Internet, compared with $4.2 million by the Clinton campaign.
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.san&s=...
8473&Nid=3D29192&p=3D368626

QUICKLY

REPORT OF TALK TO TAKE OVER BELL CANADA
[SOURCE: New York Times, AUTHOR: Andrew Ross Sorkin & Ian Austen]
One of Canada=92s largest pension funds is in early=20
talks with other investors to form a consortium=20
to mount a $45 billion takeover bid for the=20
parent company of Bell Canada in what would be=20
the largest buyout in history. The Ontario=20
Teachers=92 Pension Plan, which is the largest=20
shareholder of BCE, the telephone company=92s=20
parent, has reached out in recent weeks to Caisse=20
de D=E9p=F4t et Placement du Qu=E9bec and the Canada=20
Pension Plan Investment Board about pursuing a=20
takeover. A takeover bid would represent a rare=20
effort by a pension fund, rather than a private=20
equity firm, to lead a buyout of this size. It=20
also illustrates a growing tendency among pension=20
funds to make direct investments themselves, a=20
trend that is becoming particularly popular in Canada.
http://www.nytimes.com/2007/04/10/business/10deal.html
(requires registration)

CELEBREX COMMERCIAL, LONG AND UNCONVENTIONAL, DRAWS CRITICISM
[SOURCE: New York Times, AUTHOR: Stephanie Saul]
A new television commercial for Pfizer=92s=20
painkiller Celebrex that has attracted attention=20
for both its length and innovative marketing=20
approach is now also being criticized for its=20
message. Public Citizen, a consumer group, asked=20
the Food and Drug Administration yesterday to ban=20
the commercial, charging that it gives consumers=20
a false impression that the prescription drug has=20
no more safety risk than some other painkillers.
http://www.nytimes.com/2007/04/10/business/media/10celebrex.html
(requires registration)
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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.
--------------------------------------------------------------