May 2007

Not everyone is still enjoying the Memorial Day=20
weekend. Two events of note at the FCC this week:=20
1) an organizational meeting of the Advisory=20
Committee on Diversity for Communications in the=20
Digital Age today and 2) a full FCC meeting on=20
Thursday. Finally, on Friday, the New America=20
Foundation hosts "A Broadband Pipe, or a $12=20
Billion Pipe Dream?", a discussion on the=20
upcoming spectrum auction. For these and other=20
upcoming media policy events, see=20
http://www.benton.org/index.php?q=3Devent/2007/05/25/month/all/all

EMERGENCY COMMUNICATIONS
Ex-NTIA Chiefs Sketch Public Safety Plan
War Fears Turn Digital After Data Siege in Estonia

LOBBYING
'Net Neutrality' Group Missing Key Backers

CONTENT
Body Blow for Martin in Violence Bill

OWNERSHIP
More Tribune investors than expected tender shares
Kucinich Sends Letter to FCC Requesting Analysis of Verizon-FairPoint Merg=
er
Google Deal Said to Bring U.S. Scrutiny
Private Equity: Is Deal Frenzy Nearing End?

BROADCASTING
Venezuelan TV station goes dark
Television networks want you to watch the commercials

INTERNET/BROADBAND
Dial-up firm in a race to diversify
More Bandwidth Than You Can Use?
Niche groups use Web to gain ear of '08 contenders

QUICKLY -- Chicago Community Media Summit; New=20
bill would revamp ed-tech funding; Teen Tests Internet's Lewd Track Record

EMERGENCY COMMUNICATIONS

EX-NTIA CHIEFS SKETCH PUBLIC SAFETY PLAN
[SOURCE: Technology Daily 5/23, AUTHOR: David Hatch]
Two former chiefs of the National=20
Telecommunications and Information Administration=20
outlined a proposal for raising billions of=20
dollars to bolster communications for fire,=20
police and rescue squads. The plan is largely=20
based on the assumption that the upcoming auction=20
of television spectrum will garner far more=20
revenue than estimated. Larry Irving, who ran=20
NTIA during the Clinton administration, and=20
Michael Gallagher, who headed NTIA under=20
President Bush, said their recommendations are=20
critical to ensuring that "first responders" can=20
talk across jurisdictions. In November, the duo=20
released a blueprint for ensuring that sufficient=20
spectrum is available for emergency use. Now they=20
are seeking to harness the unique opportunity=20
presented by the auctioning of spectrum currently=20
used by broadcasters to fund the plan. The=20
Congressional Budget Office estimates that the=20
auction, part of the transition to digital TV=20
signals, could raise $12.5 billion to $15=20
billion, but the former NTIA chiefs said it could=20
draw up to $5 billion more. Half of the extra=20
revenue would go to deficit reduction, and the=20
other half to first responders under their=20
approach. The proposal would augment $1 billion=20
that Congress already has reserved and an=20
additional $3 billion in the appropriations pipeline.
http://www.njtelecomupdate.com/2007/05/by_david_hatch_wednesday_may.html

WAR FEARS TURN DIGITAL AFTER DATA SIEGE IN ESTONIA
[SOURCE: New York Times, AUTHOR: Mark Landler & John Markoff]
Estonia may be seeing the first war in=20
cyberspace. A monthlong campaign has forced=20
Estonian authorities to defend their Baltic=20
nation from a data flood that they say was set=20
off by orders from Russia or ethnic Russian=20
sources in retaliation for the removal of the=20
statue. The Russian government has denied any=20
involvement in the attacks, which came close to=20
shutting down the country=92s digital=20
infrastructure, clogging the Web sites of the=20
president, the prime minister, Parliament and=20
other government agencies, staggering Estonia=92s=20
biggest bank and overwhelming the sites of=20
several daily newspapers. =93It turned out to be a=20
national security situation,=94 Estonia=92s defense=20
minister, Jaak Aaviksoo, said in an interview.=20
=93It can effectively be compared to when your=20
ports are shut to the sea.=94 Computer security=20
experts from NATO, the European Union, the United=20
States and Israel have since converged on Tallinn=20
to offer help and to learn what they can about cyberwar in the digital age.
http://www.nytimes.com/2007/05/29/technology/29estonia.html
(requires registration)
* Cyberattack in Estonia: What it really means
http://news.com.com/When+cyberattacks+are+politically+motivated/2008-734...
-6186751.html?tag=3Dnefd.lede

LOBBYING

'NET NEUTRALITY' GROUP MISSING KEY BACKERS
[SOURCE: Technology Daily 5/24, AUTHOR: David Hatch]
The Open Internet Coalition officially launched=20
Thursday to urge lawmakers and regulators to=20
mandate a "neutral" Internet that treats all=20
Web-based players as equals. The 54 members=20
include the telecommunications industry=20
association Comptel, which represents several=20
competitors to dominant high-speed Internet=20
providers, as well as Earthlink, eBay, Google,=20
Public Knowledge and YouTube, which is owned by=20
Google. But Amazon, Microsoft and Yahoo, all=20
members in 2006 of the group's predecessor, the=20
It's Our Net Coalition, have not joined the new=20
entity. It's Our Net reportedly had 172=20
participants, but its successor has less than a=20
third of that, despite a broader agenda that=20
includes supporting widespread deployment of broadband service.
http://www.njtelecomupdate.com/2007/05/net_neutrality_group_missing_k.html
* Conservative group blasts net neutrality
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
The American Conservative Union (ACU) has filed a=20
statement with the Federal Communications=20
Commission calling net neutrality "a 'solution' to a non-existent problem "
http://www.lasarletter.net/drupal/node/401
* Is The Open Internet Coalition About A Real=20
Democratic Net=ADor One Safe for Data Collection and Interactive Advertisin=
g?
http://www.democraticmedia.org/jcblog/?p=3D287

CONTENT

BODY BLOW FOR MARTIN IN VIOLENCE BILL
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Sen. John D. =93Jay=94 Rockefeller (D-WV), the=20
Senate's most vocal critic of television mayhem,=20
is just a few weeks away from unveiling a new=20
bill designed to cut back on the all the=20
primetime violence seen each week by millions of=20
children. But the bill probably will not include=20
language that would force cable companies to sell=20
programming on a channel-by-channel basis, a=20
provision favored by Federal Communications=20
Commission Chairman Kevin Martin. For the past=20
two years, Chairman Martin has been saying that=20
mandating the a la carte sale of channels would=20
not only allow consumers to lower their monthly=20
cable bills, but also permit parents to avoid=20
paying for cable networks they think are=20
indecent, violent, or otherwise inappropriate for=20
their children. Instead, the Rockefeller bill=20
would restrict violent programming to late-night=20
hours, most likely between 10 p.m. and 6 a.m. Sen=20
Rockefeller's decision to broaden the safe harbor=20
to include indecent and excessively violent=20
programming on both broadcasting and cable was=20
probably the more conservative approach from his=20
perspective. Courts have upheld time-channeling,=20
though only with respect to broadcast=20
indecency. Nevertheless, his bill is risky:=20
Cable has never been regulated for indecency or violence.
http://www.multichannel.com/article/CA6446771.html

OWNERSHIP

MORE TRIBUNE INVESTORS THAN EXPECTED TENDER SHARES
[SOURCE: Associated Press]
Tribune Co. said Friday that nearly twice as many=20
shareholders as expected agreed to take $34 per=20
share in cash in its tender offer =97 the first=20
formal step in the company going private under a=20
buyout led by billionaire investor Sam Zell. But=20
its stock fell following a report that Tribune=20
had to agree to difficult borrowing terms in=20
order to finance the offer. Tribune said a=20
preliminary count showed 222 million shares were=20
tendered before the offer expired Thursday,=20
nearly double the 126 million shares the company was looking to buy.
http://chicagobusiness.com/cgi-bin/news.pl?id=3D25130
* Tribune offer oversubscribed
http://www.chicagotribune.com/business/chi-sat_tribunemay26,0,456609.sto...
track=3Drss
* Tribune's deal to sell some papers to Gannett called off
[SOURCE: Chicago Tribune, AUTHOR: James P. Miller]
Tribune Co. disclosed Friday afternoon that its=20
earlier agreement to sell two Connecticut=20
newspapers to Gannett Co. for $73 million has=20
been called off in the wake of an unfavorable=20
arbritrator's ruling regarding Gannett's plan not=20
to honor an existing union contract at one of the papers.
http://www.chicagotribune.com/business/chi-070525trib-deal,0,2885836.sto...
track=3Drss

KUCINICH SENDS LETTER TO FCC REQUESTING ANALYSIS OF VERIZON-FAIRPOINT MERGER
[SOURCE: Rep Dennis Kucinich]
Congressman Dennis Kucinich (D-OH) sent a letter=20
to Federal Communications Commission Chairman=20
Kevin Martin asking for a thorough analysis of=20
the Verizon-FairPoint merger. Rep Kucinich is=20
chairman of the Domestic Policy Subcommittee of=20
the Oversight and Government Reform Committee,=20
which has jurisdiction over the Federal=20
Communications Commission. He writes, "If the=20
proposed Verizon-FairPoint merger is not able to=20
provide customers with quality service and new=20
service to underserved areas, the merger would=20
not be consistent with the Commission=92s=20
responsibility to ensure such transactions serve=20
the public interest, convenience, and=20
necessity. As such, the Commission should=20
conduct a thorough analysis of the proposed merger."
http://kucinich.house.gov/News/DocumentSingle.aspx?DocumentID=3D66240

GOOGLE DEAL SAID TO BRING US SCRUTINY
[SOURCE: New York Times, AUTHOR: Steve Lohr]
The Federal Trade Commission has opened a=20
preliminary antitrust investigation into Google=92s=20
planned $3.1 billion purchase of the online=20
advertising company DoubleClick. The inquiry=20
began at the end of last week, after it was=20
decided that the Federal Trade Commission instead=20
of the Justice Department would conduct the=20
review. Jeff Chester, executive director of the=20
Center for Digital Democracy, said that decisions=20
made now about the structure of the online=20
advertising industry could have lasting effects=20
on data collection and personal privacy on the=20
Internet, especially if control rests with a =93few=20
powerful gatekeepers=94 led by Google. Still,=20
privacy issues are not typically the concern of=20
antitrust officials. In reviewing a proposed=20
merger, legal experts say, regulators weigh the=20
likely impact on competition and struggle with=20
tricky technical matters like defining the=20
relevant market to measure. =93To the extent that a=20
reduction in competition could make it more=20
difficult to protect privacy, it could be a=20
consideration,=94 said Andrew I. Gavil, a law=20
professor at Howard University. =93But it would=20
have to be linked to competition. Strictly=20
speaking, privacy is not an antitrust issue.=94
http://www.nytimes.com/2007/05/29/technology/29antitrust.html
(requires registration)

PRIVATE EQUITY: IS DEAL FRENZY NEARING END?
[SOURCE: Wall Street Journal, AUTHOR: Henny Sender henny.sender( at )wsj.com]
It would be a fool's game to predict the end of=20
the private-equity buying frenzy, but certainly=20
some signals are there. Over much of the past two=20
years, the prevailing private-equity mantra has=20
been to buy as many companies as possible and=20
then sell as much debt as possible to help pay=20
for them. Now, the biggest private-equity firms=20
are beginning to diverge in their views. Caution=20
on the part of even some of the players could be=20
bearish for stocks, coming at a time when one of=20
the biggest supports for the stock market is the=20
assumption that private equity will buy bad=20
companies because they are inexpensive and good=20
companies because they are good. Should=20
private-equity firms pull back, that support=20
could vanish. Some analysts say that without a=20
widespread belief in the appetite of LBO firms=20
for publicly traded companies, stock prices would be far lower.
http://online.wsj.com/article/SB118040066359316718.html?mod=3Dtodays_us_...
ey_and_investing
(requires subscription)
See also --
* Avaya May Be Next Telecom Takeover Call
Telecommunications-equipment maker Avaya Inc. is=20
in talks with private-equity and strategic=20
bidders about selling part or all of the company,=20
the latest sign that there could be a new round=20
of mergers and acquisitions in the telecommunications-equipment industry.
http://online.wsj.com/article/SB118038788335216373.html?mod=3Dtodays_us_...
e_one

BROADCASTING

VENEZUELAN TV STATION GOES DARK
[SOURCE: Los Angeles Times, AUTHOR: Chris Kraul]
Folk music, a Cuban documentary and heavy doses=20
of government propaganda glorifying "21st century=20
socialism" highlighted the first day of a new=20
television channel that on Monday took over=20
airspace of Venezuela's oldest and most popular=20
station, a frequent critic of leftist President=20
Hugo Chavez. At midnight Sunday, Radio Caracas=20
Television, or RCTV, went dark for the first time=20
in 53 years after the Chavez government refused=20
to renew its broadcast license, alleging=20
violations of telecommunications law. That=20
decision, announced in December, has been slammed=20
by international press freedom groups, several=20
governments and even some Chavez supporters.=20
RCTV, a powerhouse news and prime-time=20
programmer, was replaced on the airwaves by=20
Televisora Venezolana Social, or TVes, after the=20
Supreme Court over the weekend gave the new=20
broadcaster the right to use RCTV's towers and=20
microwave transmitters. RCTV lent at least tacit=20
support to a 2002 coup against the president by=20
directing marchers and then failing to inform the=20
public that the coup had failed. Whereas other=20
major broadcasters reportedly reached=20
understandings with the Chavez government to=20
soften their criticisms, RCTV had remained=20
critical since the failed coup. "What government=20
in the world would renew the license of a=20
broadcaster implicated in a military coup?" said=20
presidential advisor Alexander Main, noting that=20
last week two other commercial stations' licenses were renewed.
http://www.latimes.com/news/printedition/asection/la-fg-ventv29may29,1,5...
91.story?coll=3Dla-news-a_section
(requires registration)

TELEVISION NETWORKS WANT YOU TO WATCH THE COMMERCIALS
[SOURCE: Associated Press, AUTHOR: David Bauder]
Fueled by a growing sense of desperation,=20
networks are inserting games, quizzes and=20
mini-dramas into commercial breaks. They're=20
incorporating more product pitches into=20
programming. Two experimental programs without=20
traditional commercial breaks will premiere this=20
fall. NBC has even called on Jerry Seinfeld for=20
help. This is all being done to stop viewers with=20
digital video recorders from fast-forwarding=20
through advertisements, or to circumvent those that do.
http://www.siliconvalley.com/latestheadlines/ci_6010944?nclick_check=3D1

INTERNET/BROADBAND

DIAL-UP FIRM IN A RACE TO DIVERSIFY
[SOURCE: Los Angeles Times, AUTHOR: James S. Granelli]
United Online Inc. is preparing for life after=20
dial-up. The Internet service provider still gets=20
two-thirds of its revenue and most of its profit=20
from providing Internet access =97 mostly through=20
the dial-up connections it helped pioneer with=20
its low-cost NetZero and Juno brands. Tech=20
experts have long said that the market for=20
dial-up Internet access is dying, but its staying=20
power surprises even United Online's chairman and=20
chief executive, Mark R. Goldston. "We have this=20
cash-cow machine that has a much longer tail than=20
anybody thought," said Goldston, 52, who=20
previously ran Faberge USA Inc., Einstein/Noah=20
Bagel Corp. and L.A. Gear. But it's United=20
Online's shift into new kinds of online services,=20
similar to the transformation Time Warner Inc.'s=20
AOL is going through, that has Wall Street=20
impressed. It's a race to grow revenue from=20
online advertising and other Web business faster=20
than the dial-up business collapses. No one is=20
giddy over dial-up's future. The business is=20
expected to give way to broadband in five to=20
eight years, so providers are using the cash from=20
Internet access customers to fund ventures in growing markets.
http://www.latimes.com/business/printedition/la-fi-online29may29,1,16479...
story?coll=3Dla-headlines-pe-business
(requires registration)

MORE BANDWIDTH THAN YOU CAN USE?
[SOURCE: BusinessWeek, AUTHOR: Arik Hesseldahl]
From the moment the first phone-line modems=20
squawked to life, connecting consumers to early=20
Internet service providers two decades ago, there=20
has been a nearly universal quest for more=20
plentiful and speedier data pipes into the home.=20
Yet even now that those pipes are arriving, the=20
race to provide even bigger ones is intensifying=20
among telecom and cable TV companies, as well as=20
wireless network operators. But once you have=20
100Mbps or more available at home, what the heck=20
are you going to do with all that bandwidth? For=20
the average consumer, 6Mbps should more than=20
suffice for today's typical needs, whether it's=20
downloading music, watching the occasional video,=20
or even running a home network that lets two or=20
three computers do the same all at once. Does=20
anyone really care whether that song download=20
from iTunes (AAPL) takes 10 seconds or 2 seconds?
http://www.businessweek.com/technology/content/may2007/tc20070529_569646...
m?campaign_id=3Drss_tech

NICHE GROUPS USE WEB TO GAIN EAR OF '08 CONTENDERS
[SOURCE: The Christian Science Monitor, AUTHOR: Ariel Sabar]
The Internet-driven political activism that=20
helped bankroll former Vermont Gov. Howard Dean's=20
insurgent 2004 bid for the Democratic=20
presidential nomination is back, in ways that are=20
starting to transcend fundraising. Groups of=20
voters tethered by little more than a website are=20
drawing campaigns' attention for their numbers=20
and political savvy, not just their dollars. "The=20
size of an organization's e-mail list will get=20
more attention now than it would have two or four=20
years ago," says Andrew Rasiej, cofounder of=20
TechPresident.com, a website tracking the=20
intersection of presidential campaigns and the=20
Web. A seat at a big-ticket fundraiser or the=20
ability to raise large sums of campaign cash is=20
under no threat of extinction as the quickest=20
route to face time with a major presidential=20
candidate. But voters uniting under the banner of=20
a website are getting a level of notice =96 even if=20
still relatively brief =96 unseen in earlier election cycles.
http://www.csmonitor.com/2007/0529/p01s01-uspo.html

QUICKLY

CHICAGO COMMUNITY MEDIA SUMMIT
[SOURCE: Benton Foundation]
The Benton Foundation, the Chicago Community=20
Trust and the Chicago Media Workshop are=20
co-sponsoring the first Community Media Summit=20
June 14 and 15, 2007. We=92re gathering to=20
understand and examine the voices and content=20
that make up community media and to imagine and=20
explore the potentials of community media for=20
serving basic human and community needs. We=92ll=20
learn about how innovators in the fields of=20
Community Development, Immigrant and Refugee=20
Issues, and Creative Expression and Learning are=20
creating and using community media. We=92ll also=20
share experience from Minneapolis/St. Paul, Cleveland, and Detroit.
http://www.benton.org/index.php?q=3Dinitiatives/soundpartners

NEW BILL WOULD REVAMP ED-TECH FUNDING
[SOURCE: eSchool News, AUTHOR: Laura Devaney]
A new bill introduced into the U.S. House of=20
Representatives, called the Achievement Through=20
Technology and Innovation (ATTAIN) Act, aims to=20
make significant improvements to the federal=20
Enhancing Education Through Technology (EETT)=20
block-grant program. Backed by several major=20
educational technology groups, the bill would=20
increase the size of formula grants, target=20
funding more effectively to schools in need of=20
improvement, and specify that a higher percentage=20
of funds be used for sustained professional=20
development, among other changes. Supporters of=20
the bill say it would help schools better=20
leverage technology's potential to effect systemic reform.
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D7092

TEEN TESTS INTERNET'S LEWD TRACK RECORD
[SOURCE: Washington Post, AUTHOR: Eli Saslow]
California High Schooler Allison Stokke, 18,=20
becomes a victim of unwanted attention after photo is posted on a sports bl=
og.
http://www.washingtonpost.com/wp-dyn/content/article/2007/05/28/AR200705...
1370.html
(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.
--------------------------------------------------------------