May 2007

NEWS FROM CONGRESS
Politicians weigh renewal of Net access tax ban
Rep. Gordon Wants 'Enhanced 911' Mandate
Doyle Disses XM/Sirius Deal
U.S. House approves less stringent anti-spyware bill

NEWS FROM THE FCC
Broadcasting and the Unabashed Regulator
FCC Preps To Collect Documents On Liberty/DirecTV
Second 'White Spaces' Device Presented to FCC

NEWS FROM THE STATES
The State Video-Franchise Bill Report Card
Illinois Appellate Court Reverses Chicago Cable-Modem-Fee Ruling

JOURNALISM
News Corp. May 'Walk Away' From Dow Jones, Pali Says
What the Mainstream Media Can Learn from Jon Stewart
Turmoil Inside Iraq Leads the Week's News

CONTENT
Media Mobilize to Block TV Violence Law
FCC TV
Record group lets small Webcasters pay lower rates
E-mail brings books in small doses for commuters

QUICKLY -- The Quest for Democratic Media;=20
Justice Souter's Revelation; U.S. May Be Target=20
in Gambling Dispute; 70% of TV Sets in Cable=20
Households Do Not Have a Set-Top Box

NEWS FROM CONGRESS

POLITICIANS WEIGH RENEWAL OF NET ACCESS TAX BAN
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
With only months left on a moratorium restricting=20
state governments from taxing Internet access,=20
the U.S. House of Representatives on Tuesday=20
began a debate over whether the ban should be=20
made permanent or allowed to lapse. At issue is=20
the scheduled expiration on November 1 of a law,=20
initially enacted in 1998, that says local=20
governments generally cannot tax Internet access,=20
including DSL (digital subscriber line), cable=20
modem and BlackBerry-type wireless transmission=20
services. The law also prohibits governments from=20
taxing items sold online in a different manner=20
than those sold at brick-and-mortar stores, but=20
it does not deal with sales taxes on online shopping.
http://news.com.com/Politicians+weigh+renewal+of+Net+access+tax+ban/2100...
28_3-6185868.html?tag=3Dhtml.alert.hed
* Local governments urge caution on Internet tax ban
The federal government might make a temporary ban=20
on Internet taxes permanent, though state and=20
local officials worry it will affect their ability to set their own tax cod=
es.
http://www.infoworld.com/cgi-bin/redirect?source=3Drss&url=3Dhttp://www....
oworld.com/article/07/05/22/Local-governments-urge-caution-on-Internet-tax-=
ban_1.html

REP GORDON WANTS 'ENHANCED 911' MANDATE
[SOURCE: Technology Daily, AUTHOR: David Hatch]
Rep. Bart Gordon (D-TN) is drafting legislation=20
to require Internet telephone companies to comply=20
with FCC rules mandating the availability of=20
"enhanced 911" emergency service (E911). The=20
measure also would extend existing liability=20
protections to Internet phone players and=20
emergency centers in the event that E911 calls=20
are misrouted by mistake. Wireless and wireline=20
carriers already benefit from the legal=20
protections. A staffer to Rep Gordon said that=20
the bill would be introduced in May or early June=20
as a counterpart to similar legislation sponsored=20
by Sen. Bill Nelson (D-FL) The Senate Commerce=20
Committee approved that bill April 25.
http://www.njtelecomupdate.com/2007/05/rep_gordon_pushes_enhanced_911.html

DOYLE DISSES XM/SIRIUS DEAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Rep Mike Doyle (D-PA), a member of the House=20
Commerce Committee, has written the Federal=20
Communications Commission, and the Justice=20
Department, opposing the proposed merger of XM=20
and Sirius satellite radio. He says the merger=20
would unduly consolidate the satellite radio=20
market. He also complained that the two companies=20
had not produced an interoperable receiver, which=20
the FCC had urged them to do when granting the=20
satellite licenses that allowed them to develop=20
the national service. Rep Doyle said he was=20
worried the merger would reduce the "diversity of=20
artists" on the services or lead to decreased=20
sound quality as the new combined company made=20
room for big-ticket programming, like major=20
league baseball and NFL football, available on both services.
http://www.broadcastingcable.com/article/CA6445581.html?rssid=3D193

U.S. HOUSE APPROVES LESS STRINGENT ANTI-SPYWARE BILL
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
House of Representatives passed legislation on=20
Tuesday that would impose specific penalties for=20
the fraudulent use of spyware but would not=20
impose new requirements on software makers. House=20
lawmakers approved a bill providing for up to=20
five years in jail for those who use spyware to=20
commit fraud but stops short of regulatory=20
requirements sought by some lawmakers. There is=20
currently no similar legislation in the Senate.
http://www.reuters.com/article/technologyNews/idUSN2226632220070522

NEWS FROM THE FCC

BROADCASTING AND THE UNABASHED REGULATOR
[SOURCE: tvnewsday, AUTHOR: Harry A. Jessell]
A Q&A with Federal Communications Commission=20
Commissioner Michael Copps who some speculate=20
would be the agency's next Chairman if a Democrat=20
wins the White House in 2008. For most=20
broadcasters, he=92s a reason to vote Republican.=20
During his six years as a commissioner,=20
Commissioner Copps has vigorously opposed=20
loosening ownership regulations and made it clear=20
that any new privileges the FCC grants=20
broadcasters will be laden with serious, new=20
public interest obligations. What really bugs=20
broadcasters about Commissioner Copps is that=20
even as a member of the FCC=92s Democratic minority=20
he has been highly effective in pushing his=20
personal agenda. Working with outside groups,=20
Copps has managed to slow FCC Chairman Kevin=20
Martin=92s effort to relax ownership restrictions=20
to a point where many believe it may not happen=20
at all. Jessell asks what his agenda would be if=20
he were Chairman (reinvigorating some public=20
interest responsibilities, improving broadband=20
penetration, addressing homeland security),=20
increasing minority ownership of broadcast=20
outlets, media ownership consolidation, indecency=20
regulation, violence regulation, the Fairness=20
doctrine, and digital must-carry.
http://www.tvnewsday.com/articles/2007/05/22/daily.2/

FCC PREPS TO COLLECT DOCUMENTS ON LIBERTY/DIRECTV
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC Monday extended its protection to=20
documents it will seek in its ongoing review of=20
Liberty's proposed purchase of DirecTV from News=20
Corp. The protective order means that the=20
commission promises to adequately protect the=20
confidentiality of any proprietary documents=20
requested from the two parties or others. That=20
doesn't mean that the information is de facto=20
shielded from public release under a Freedom of=20
Information Act request, but it sets up the basic=20
ground rules for protecting financial documents=20
and other material companies will only give up=20
under some promise that it won't be shared with the competition.
http://www.broadcastingcable.com/article/CA6445572.html?rssid=3D193

SECOND 'WHITE SPACES' DEVICE PRESENTED TO FCC
[SOURCE: DrewClark.com]
On Monday, the White Spaces Coalition -- whose=20
members include Dell, EarthLink, Google,=20
Hewlett-Packard, Intel, Microsoft and Philips=20
Electronics -- met with FCC officials and=20
provided them with a prototype device for=20
operating in vacant television broadcast=20
channels. Philips' devices joins one previously submitted by Microsoft.
http://www.drewclark.com/2007/05/second-white-spaces-device-presented-to...
tml

NEWS FROM THE STATES

THE STATE VIDEO-FRANCHISE BILL REPORT CARD
[SOURCE: TelecomWeb]
With the first half of 2007 nearly over, the=20
scorecard for state video-franchise legislation=20
stands at four and four. Florida became the=20
latest state to enact such rules, with Gov.=20
Charlie Crist signing that state's bill into law=20
late last week. Missouri, Iowa and Georgia have=20
passed similar legislation, but those bills still=20
await the governors' signatures. The list of=20
states with new video-franchising rules in place=20
also includes California, Texas, Kansas, South=20
Carolina, North Carolina, Virginia, Indiana, New=20
Jersey, Michigan and Florida. Utah and Colorado=20
voted down bills in committee this year,=20
Washington has tabled the discussion until,=20
perhaps, next year, and the sponsor of a bill in=20
Idaho has withdrawn it. Eight states, primarily=20
in AT&T territory, still have bills on the front=20
burner: Connecticut, Illinois, Massachusetts,=20
Nevada, New York, Ohio, Tennessee and Wisconsin.
http://www.telecomweb.com/tnd/23394.html

ILLINOIS APPELLATE COURT REVERSES CHICAGO CABLE-MODEM-FEE RULING
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
The City of Chicago may pursue franchise fees on=20
modem service from its cable providers, according=20
to a recent decision by the Illinois First=20
District Appellate Court. The decision, issued=20
May 17, said there is nothing in federal law that=20
prevents the city from acting on its franchise=20
agreement. The appellate ruling reversed a=20
lower-court decision granting a dismissal to the=20
city's cable operators, including Comcast, RCN and WideOpenWest.
http://www.multichannel.com/article/CA6445658.html?rssid=3D196

JOURNALISM

NEWS CORP MAY 'WALK AWAY' FROM DOW JONES, PALI SAYS
[SOURCE: Bloomberg, AUTHOR: Leo Lazaroff]
Rupert Murdoch's News Corp. may be preparing to=20
walk away from a $5 billion bid for Dow Jones &=20
Co. after trying without success to win support=20
from the controlling Bancroft family, Pali Research analysts said.
http://www.bloomberg.com/apps/news?pid=3D20601103&sid=3DapM1VCRrN.IM&refer=
=3Dnews
* The Wall Street Journal riddle
The bid to buy Dow Jones has been a loser in that=20
Murdoch's bid has opened the door to a very=20
public and bruising examination of the crass=20
brand of journalism his properties often=20
practice, and why he would be the wrong person --=20
too irresponsible, too unprincipled -- to own the=20
venerable Wall Street Journal.
http://mediamatters.org/columns/200705220003

WHAT THE MAINSTREAM MEDIA CAN LEARN FROM JOHN STEWART
[SOURCE: American Journalism Review, AUTHOR: Rachel Smolkin ]
Whether lampooning President Bush's disastrous=20
Iraq policies or mocking "real" reporters for=20
their credulity, Stewart and his team often seem=20
to steer closer to the truth than traditional=20
journalists. The "Daily Show" satirizes spin,=20
punctures pretense and belittles bombast. When a=20
video clip reveals a politician's backpedaling,=20
verbal contortions or mindless prattle, Stewart=20
can state the obvious -- ridiculing such blather=20
as it deserves to be ridiculed -- or remain=20
silent but speak volumes merely by arching an eyebrow.
http://www.poynter.org/column.asp?id=3D45&aid=3D123485

TURMOIL INSIDE IRAQ LEADS THE WEEK'S NEWS
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
Last week was one of the rare times this year=20
when events inside Iraq generated more news=20
coverage than the Washington-based policy debate=20
over the war. And it marked the first time in=20
2007 that the bloodshed in Iraq -- which filled=20
10% of the overall newshole -- was the biggest=20
story of the week, according to PEJ=92s News=20
Coverage Index for the period from May 13=97May 18.
http://www.journalism.org/node/5689

CONTENT

MEDIA MOBILIZE TO BLOCK TV VIOLENCE LAW
[SOURCE: tvnewsday, AUTHOR: Kim McAvoy]
The National Association of Broadcasters along=20
with the major broadcast networks, the National=20
Cable & Telecommunications Association and the=20
Motion Picture Association of America have formed=20
an ad hoc coalition to oppose expected=20
legislation on regulation of violent TV=20
programming and it has already made its first=20
move. According to those involved in the effort,=20
the coalition has hired one of the nation=92s=20
leading constitutional scholars, Harvard Law=20
School Professor Laurence Tribe. Not only can=20
Tribe make the First Amendment case against=20
regulating TV violence, but as a respected=20
liberal Democrat he can also appeal politically=20
to the liberal Democrats who are driving the=20
legislation. Tribe is expected to testify at a=20
Senate Commerce Committee hearing on TV violence.=20
No date has been announced for the hearing, but June 26 is still a possibil=
ity.
http://www.tvnewsday.com/articles/2007/05/22/daily.13/

FCC TV
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
[Commentary] Late last month, the Federal=20
Communications Commission issued a report=20
advocating more government regulation of TV=20
programming. The agency said "exposure to violent=20
programming can be harmful to children" and that=20
the V-chip screening device now required in all=20
U.S.-made televisions is "not effective." Unlike=20
three decades ago, content-screening devices=20
abound in today's media marketplace. Some 86% of=20
U.S. households subscribe to cable or satellite=20
TV, and both services provide conscientious=20
parents with multiple filtering tools. Cable=20
set-top boxes allow homes to block unwanted=20
programs by channel, rating and title. On the=20
satellite side, DirecTV offers a "Locks & Limits"=20
feature, and the Dish Network has "Adult Guard."=20
Even if, as the report found, most households=20
don't take advantage of the V-chip, that hardly=20
translates into a public cry for in loco parentis=20
federal intervention. After all, 67% of=20
households have no children under 18 in=20
residence, and those that do often opt to monitor=20
personally what their children watch rather than=20
rely on technology. The report cites studies=20
showing that parents in the U.S. are deeply=20
concerned about violence on TV. That may be true,=20
but it's difficult to square with another of the=20
report's findings, which is that nearly 70% of=20
children have a TV in their bedroom. Either mom=20
and dad aren't as concerned about the issue as=20
policy makers and special-interest groups would=20
like, or they have things in better perspective.=20
The FCC's inclusion of a la carte recommendations=20
is especially troubling, and not merely because=20
it would constitute an unwarranted attempt by the=20
government to dictate a private sector business=20
model. Another problem is that a la carte pricing=20
bears little relationship to the issue of violent television programming.
http://online.wsj.com/article/SB117988446509011614.html?mod=3Dtodays_us_...
nion
(requires subscription)

RECORD GROUP LETS SMALL WEBCASTERS PAY LOWER RATES
[SOURCE: Reuters]
A group backed by the record industry that=20
collects Internet music royalties said on Tuesday=20
it would defer new copyright-payment rates for=20
small Webcasters who claim the new payments would=20
bankrupt them. SoundExchange, which collects and=20
distributes royalties from Webcasters and=20
satellite radio, said the offer was for=20
Webcasters with revenues of $1.25 million or=20
less. SoundExchange's latest efforts follows=20
mounting pressure and activity in Congress, where=20
legislators have introduced bills to annul the=20
pending royalty rate increase, which they say threatens the fledgling indus=
try.
http://www.reuters.com/article/technologyNews/idUSN2222217620070522
* Music Group Offers Some Web Radio Sites a Break
http://www.washingtonpost.com/wp-dyn/content/article/2007/05/22/AR200705...
1453.html
* Net radio faces swan song if fees increase
http://www.usatoday.com/printedition/money/20070523/pandora23.art.htm

E-MAIL BRINGS BOOKS IN SMALL DOSES FOR COMMUTERS
[SOURCE: Reuters, AUTHOR: Claudia Parsons]
A new Web site is offering to send classic books=20
in bite-size installments to your handheld device=20
or e-mail every morning before you go to work, or=20
whenever you want, for free. The e-mails from=20
www.dailylit.com are designed to be read in under=20
five minutes. Jules Verne's "Around the World in=20
80 Days" comes in 82 parts while Leo Tolstoy's=20
"Anna Karenina" could take nearly two years of=20
working days to read at 430 parts.
http://www.reuters.com/article/internetNews/idUSN2245647620070522

QUICKLY

THE QUEST FOR DEMOCRATIC MEDIA
[SOURCE: Center for American Progress]
Center for American Progress Senior Fellow Mark=20
Lloyd discussed his new book -- Prologue to a=20
Farce: Communication and Democracy in America. He=20
was joined by former FCC Commissioner (and former=20
Benton Foundation President) Gloria Tristani.=20
They explored the problem of commercial=20
domination over media outlets and discussed how=20
the current state of telecommunications policy=20
affects civic engagement. "During the Clinton=20
administration when I was on the FCC,=20
commercialism still ruled the world," said=20
Tristani. "I came into the FCC right after the=20
enactment of the 1996 Telecommunications Act,=20
which was supposed to promote competition --=20
which was supposed to benefit consumers -- and I=20
think in the long run has done us a lot of harm=20
[because] it allowed an already consolidated=20
media to be further consolidated." Lloyd said,=20
=93What we really need in this country is... a=20
competitive alternative to commercial=20
broadcasting=94 that would be supported by the=20
public and fully financed. Voicing the main theme=20
of his book, Lloyd discussed our country=92s=20
movement away from democratic media. =93Our=20
philosophy, our lived practice of public policy=20
looks very different from what we hoped for,=94 he=20
said. =93If we have not become the farce [of which]=20
Madison warned us, we are certainly not the=20
democracy that we hoped for=97that we dreamed.=94
http://www.americanprogress.org/issues/2007/05/prologue.html

JUSTICE SOUTER'S REVELATION
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
[Commentary] This week's Supreme Court ruling in=20
Bell Atlantic v. Twombly was important for the=20
awful things that won't happen as a result.=20
Justice Souter captured the significance of the=20
case nicely, writing that "if alleging parallel=20
decisions to resist competition were enough to=20
imply an antitrust conspiracy, pleading [an=20
antitrust] violation against almost any group of=20
competing businesses would be a sure thing." In=20
other words, letting Twombly proceed to discovery=20
and trial would amount to declaring open season=20
on any number of big industries. Just shout=20
"conspiracy," and you've got a case. Score this=20
one for consumers and capitalists against=20
self-styled "consumer advocates" and their tort bar funders.
http://online.wsj.com/article/SB117988569302011665.html?mod=3Dtodays_us_...
nion
(requires subscription)

US MAY BE TARGET IN GAMBLING DISPUTE
[SOURCE: Associated Press, AUTHOR: Bradley S. Klapper]
The Caribbean nation of Antigua and Barbuda is=20
seeking compensation from the United States over=20
its restrictions on Internet gambling sites based=20
overseas, and on Tuesday asked other countries to=20
join in as it targets Washington over its failure=20
to comply with global trade rules. Antigua, the=20
smallest country to successfully litigate a case=20
in the WTO's 12-year-history, also threatened to=20
target U.S. trademarks, copyrights and=20
telecommunications companies after the WTO on=20
Tuesday formally adopted a landmark decision=20
reached in March on the gambling restrictions.=20
The gambling dispute is threatening to become one=20
of the most complicated the WTO has ever handled=20
and could soon spark a series of compensation=20
negotiations between the United States and such=20
other trading powers as the European Union.
http://www.washingtonpost.com/wp-dyn/content/article/2007/05/22/AR200705...
1391.html
(requires registration)

70% OF TV SETS IN CABLE HOUSEHOLDS DO NOT HAVE A SET-TOP BOX
[SOURCE: Center for Media Research]
New consumer research from Leichtman Research=20
Group, Inc. finds that 23% of all TV sets in=20
consumers' homes do not receive cable or Direct=20
Broadcast Satellite (DBS) programming. This=20
represents over 70 million TV sets in US=20
households that only receive over-the-air=20
broadcast television. Bruce Leichtman, president=20
and principal analyst for Leichtman Research=20
Group, Inc., said "Just 36% of all TV sets in the=20
U.S. are currently connected to a cable or DBS=20
set-top converter box. With the digital=20
transition now less than two years away, much=20
work clearly still needs to be done to prevent=20
millions of TV sets from going dark in February=20
2009." Half of all broadcast-only TV sets are in=20
15% of primary households nationwide that do not=20
subscribe to cable, DBS, or any other type of=20
multi-channel video service. The other half are=20
in households that subscribe to cable or=20
DBS. Nine percent of TV sets in cable=20
households are broadcast-only, and 19% of TV sets=20
in DBS households are broadcast-only.
http://www.centerformediaresearch.com/cfmr_brief.cfm?fnl=3D070522
--------------------------------------------------------------
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.
--------------------------------------------------------------