June 2007

The Universal Service Fund: Assessing the Recommendations of the Federal-State Joint Board.

Hearing of the Senate Commerce Committee

When: Tuesday, June 12, 2007
Time: 10:00 a.m.
Location: 253 of the Senate Russell Office Building

Panel I
The Honorable Deborah Taylor Tate Commissioner, Federal Communications Commission, and Chair, Federal-State Joint Board on Universal Service

Panel II
Mr. John E. Rooney, President and Chief Executive Officer, U.S. Cellular



Talk Hosts Opt For Politics Over The ‘TB Traveler’: May 27 - June 1, 2007

TALK HOSTS OPT FOR POLITICS OVER 'TB TRAVELER': MAY 27- JUNE 1
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]

Headline Highlights -- The big stories from the past month

What were the big developments in the world of media and telecommunications policy over the past month?

1. Piecing Together a National Broadband Strategy

Legislation
In mid-May, Rep Ed Markey (D-MA), Chairman of the House Energy and Commerce Subcommittee on Telecommunications and the Internet, chaired a hearing to discuss draft legislation regarding broadband mapping and data collection. The legislation seeks to address the lack of accurate information about the nature and extent of broadband service across America in order to pave the way for the development and implementation of a comprehensive national broadband strategy. Read a recap of the hearing and follow the progress of the bill, The Broadband Census of America Act of 2007. On May 24, Senate Commerce Committee Chairman Daniel Inouye (D-Hawaii) introduced a similar bill, the Broadband Data Improvement Act (S. 1492). Track the bill.

On June 6, a House Agriculture Subcommittee approved proposals for the Farm Bill. The discussion draft includes an amendment by Rep John Salazar mandating a comprehensive rural broadband strategy from the Secretary of Agriculture which would: 1) promote interagency coordination of policies and resources, 2) coordinate existing rural initiatives, 3) address both short- and long-term solutions and 4) catalogue best practises for addressing rural broadband needs. The plan is to include goals and timeframes.

Oversight
On May 22, the House Committee on Oversight and Government Reform sent a letter to the Government Accountability Office asking it to conduct a survey of all actions undertaken by the federal government to encourage broadband deployment. Specifically the Committee asked the study to address: 1) Actions taken by the federal government to encourage broadband deployment, 2) A comparison of US broadband deployment to that in other countries, 3) The extent the government is using existing authority to encourage broadband, 4) The unique characteristics of the US that affect broadband deployment and 5) Coordination of various governmental efforts to encourage broadband deployment.

New Coalition
These efforts are receiving support from the newly-formed Open Internet Coalition, a group of 54 organizations calling for the U.S. government to create a national broadband policy.

2. Spectrum Policy Gets More Attention

Technology groups, consumers, political activists and former-Senator John Edwards (now running for President) are flooding the Federal Communications Commission (FCC) with advice for the agency's upcoming auction of spectrum that may sell for more than $12 billion. The New America Foundation also released a Working Paper by economist Greg Rose showing that current FCC auction rules allow incumbent wireless providers to engage in "retaliatory bidding" and "blocking" to prevent the emergence of new national competitors. Follow this debate

There's also been a number of articles of late questioning the effectiviness of municipal broadband networks. A Computer World story captured the tone of these articles in its openning line: "Municipal Wi-Fi systems, full of promise and hype over the past two years, have hit the wall of reality in the U.S. because of economics, politics and even the technology."

3. Broadcasting in the News

Public Interest Obligations
FCC Commissioner Michael Copps wrote an op-ed on the public interest obligations of broadcasters that appeared in the New York Times in early June. He reminded readers that using the public airwaves is a privilege -- a lucrative one -- not a right, and said he fears the FCC has not done enough to stand up for the public interest. "Our policies should reward broadcasters that honor their pledge to serve that interest and penalize those that don't." The op-ed was answered by two interesting letters to the editor.

The Transition to Digital TV
In the past month, we've also seen an increase in the number or articles related to the transition to digital television -- especially articles about how consumers are not ready for it. See: FCC Proposes $3 Million in DTV Tuner Fines, Closed Captioning for Digital Television, Converters Signal a New Era for TVs, APTS Study: Viewers Not Ready For DTV Switch, Consumers unaware of digital TV change, Dingell, Markey Want to See FCC's DTV Plan, High-tech TV upgrades will create low-tech trash, 70% of TV Sets in Cable Households Do Not Have a Set-Top Box, FCC Gives Stations More Time To Convert To Digital and FCC Initiates Third Review of DTV Transition

Important Indecency Decision
On June 4, the U.S. Court of Appeals for the Second Circuit in New York, in a divided decision, said that the U.S. Federal Communications Commission was "arbitrary and capricious" in setting a new standard for defining indecency. The case could have far-reaching implications, especially as the Commission delves into regulating violent TV content.

4. Media Ownership and Diversity

Free Press released a new study -- Pushed Off the Dial: Media Consolidation Diminished Diversity on Radio -- and delivered it to the FCC. As the Commission considers eliminating longstanding media ownership limits, the research exposes how these changes could hasten the disappearance of the few female- and minority-controlled stations on the radio. Free Press finds that the average local radio market has 16 white male-owned radio stations -- but just one female-owned station and two-minority owned stations.

In addition, leaders from the NAACP, in addition to Latino and Asian advocacy groups monitoring the TV industry for years, are disappointed in the Fall TV line-up, saying network television is sending mixed messages when it comes to diversity.

5. Murdoch Bids for Wall Street Journal

Finally, although news of a bid for Wall Street Journal parent Dow Jones by News Corp/Rupert Murdoch broke in early May, this story has daily articles about the implications of a possible sale. As of mid-June, editorial independence of the paper appears to be the the main issue holding up the sale which is opposed by members of the controlling Bancroft family and the paper's staff. Follow our stories on journalism.

Next Week's Agenda

Some big events late next week -- 1) Top Bush Administration officials will highlight broadband wireless policy perspectives in the U.S. and globally during a keynote-level session on Thursday, June 14 at the Wireless Communications Association convention, 2) Mirror Awards will be presented for excellence in coverage of the media, and 3) the first Chicago Media Summit will be held Thursday and Friday. For these and other upcoming media policy events, see http://www.benton.org/index.php?q=event/2007/06/14

Today's Quote 06.08.07

"The total number of broadband subscribers will increase by over 40 million over the next five years."
-- Bruce Leichtman, Leichtman Research Group

Over Half of U.S. Households Subscribe to Broadband Internet

OVER HALF OF US HOUSEHOLDS SUBSCRIBE TO BROADBAND INTERNET
[SOURCE: Leichtman Research Group press release]

Boucher Wants to Improve America's Broadband

BOUCHER WANTS TO IMPROVE AMERICA'S BROADBAND
[SOURCE: Public Knowledge, AUTHOR: John Bergmayer]

House Subcommittee Supports Rural Broadband Funding

HOUSE SUBCOMMITTEE SUPPORTS RURAL BROADBAND FUNDING
[SOURCE: House Agriculture Committee]

Network Neutrality is Essential to a Democratic and Dynamic Internet

NETWORK NEUTRALITY IS ESSENTIAL TO A DEMOCRATIC AND DYNAMIC INTERNET
[SOURCE: HearUsNow.org, AUTHOR: Mark Cooper, Consumer Federation of America]