June 2007

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GOVERNMENT & COMMUNICATIONS
U.S., Venezuela trade barbs over media freedom, rights
Senate Committee Seeks Domestic Eavesdropping Info
Musharraf reins in broadcasters amid unrest

BROADCASTING
Court rejects FCC broadcast decency limit
Hollywood Says Profanity Smackdown Affects Violence Push
APTS Study: Viewers Not Ready For DTV Switch
Native American Broadcasters Suggest Radio Application Rules

OWNERSHIP
Murdoch calls Dow Jones meeting "constructive"
Wall St bullish on media company Belo
Chandler reps resign from Tribune's board

AT&T
Meet the new boss=85 Same as the old boss
Analyst: AT&T to Pick EchoStar Over DirecTV

NEWS FROM CONGRESS
Upcoming Congressional Hearings

SPECTRUM
For the Next Big Bout, Tune In to Channel 41/2

GOVERNMENT & COMMUNICATIONS

US, VENEZUELA TRADE BARBS OVER MEDIA FREEDOM, RIGHTS
[SOURCE: Reuters, AUTHOR: Arshad Mohammed and Brian Harris]
The United States called Venezuela=20
"anti-democratic" on Monday for closing an=20
opposition TV station and Venezuela compared the=20
U.S. prison at Guantanamo Bay to Nazi Germany in=20
a public spat over human rights. The testy=20
exchanges erupted at a regional meeting that was=20
supposed to be about energy but was marked by=20
dueling speeches by U.S. Secretary of State=20
Condoleezza Rice and Venezuelan Foreign Minister=20
Nicolas Maduro. Sec Rice fired the first shot by=20
telling reporters as she flew to Panama, "I do=20
not see how closing down an opposition (TV=20
station), literally because they have taken you=20
on and taken on your policies, can be seen as=20
anything but anti-democratic." She later told=20
officials at the meeting of the Organization of=20
American States, or OAS, "The unfettered public=20
discussion of ideas is the greatest guarantee for=20
the rule of law and the surest protection against=20
the whims of rulers." She added, "It would be=20
difficult for any commission to debate more=20
fully, to investigate more fully, to criticize=20
more fully the policies of the United States=20
government than is done every night on CNN, on=20
ABC, on CBS, on NBC." "That is the point of press=20
freedom -- that in a democracy the citizens of a=20
country should have the assurance that the=20
policies of their government will be held up for=20
criticism by a free and independent press without=20
the interference of their government," she said.
http://www.reuters.com/article/politicsNews/idUSN0447385320070604
* Venezuela and the Media: Fact and Fiction
[Commentary] Regrettably, the US media coverage=20
of Venezuela's RCTV controversy says more about=20
the deficiencies of our own news media that it=20
does about Venezuela. It demonstrates again, as=20
with the invasion of Iraq, how our news media are=20
far too willing to carry water for Washington=20
than to ascertain and report the truth of the matter.
http://www.huffingtonpost.com/mark-weisbrot/venezuela-and-the-media-_b_5...
6.html

SENATE COMMITTEE SEEKS DOMESTIC EAVESDROPPING INFO
[SOURCE: Center for Democracy & Technology]
The Senate Intelligence Committee has told the=20
Administration that it cannot complete its review=20
of the White House-backed proposal to rewrite the=20
rules for domestic surveillance until the=20
committee receives the President's orders=20
authorizing the warrantless surveillance of=20
Americans and legal opinions on the program. The=20
Administration is seeking broad authority to=20
intercept international calls of Americans=20
without a court order. On June 7, the House=20
Judiciary Committee begins hearings on the=20
program, and last week the House Intelligence=20
Committee announced that it would conduct a=20
series of hearings on the Administration's=20
activities and its legislative proposal. CDT=20
applauds lawmakers for exercising vigorous=20
oversight over the surveillance programs.
Senate Intelligence Committee report on 2008=20
budget authorization, May 31, 2007:=20
http://www.cdt.org/security/20070501intel-report.pdf

MUSHARRAF REINS IN BROADCASTERS AMID UNREST
[SOURCE: Los Angeles Times, AUTHOR: Mubashir Zaidi and Laura King ]
President Pervez Musharraf, the besieged military=20
leader of Pakistan, sharply tightened=20
restrictions Monday on the nation's broadcast=20
media. The move was the latest signal that Gen.=20
Musharraf intends to respond to a wave of popular=20
unrest by cracking down on perceived foes rather=20
than acceding to calls that he step aside or=20
allow fair elections to be held. The new=20
restrictions appear aimed at diminishing the role=20
that the country's independent television=20
stations have played in galvanizing=20
anti-government sentiment during a 3-month-old=20
political crisis. Musharraf's administration has=20
increasingly sought to limit television coverage=20
of large anti-government rallies across the=20
country, which has been avidly followed by many=20
ordinary Pakistanis. The tightened restrictions=20
on Pakistani media mark a major reversal for=20
Musharraf, who had previously ushered in greater=20
freedom for newspapers and broadcasters. Under=20
the new rules, which were set forth in an=20
emergency ordinance signed into law by the=20
president, broadcasters can lose their licenses,=20
have their premises sealed and be fined more than=20
$160,000 for violating government directives.
http://www.latimes.com/news/printedition/asection/la-fg-mush5jun05,1,928...
.story?coll=3Dla-news-a_section
(requires registration)

BROADCASTING

COURT REJECTS FCC BROADCAST DECENCY LIMIT
[SOURCE: Reuters, AUTHOR: Martha Graybow]
(This summary contains expletives.) The U.S.=20
Court of Appeals for the Second Circuit in New=20
York, in a divided decision, said that the U.S.=20
Federal Communications Commission was "arbitrary=20
and capricious" in setting a new standard for=20
defining indecency. The court sent the matter=20
back to the commission for further proceedings to=20
clarify its indecency policy. The FCC, which said=20
it was still studying the opinion, could decide=20
to ask the U.S. Supreme Court to reverse the=20
appeals court. The FCC ruled in March 2006 ruling=20
that News Corp.'s Fox television network had=20
violated decency rules when singer Cher blurted=20
"fuck" during the 2002 Billboard Music Awards=20
broadcast and actress Nicole Richie used a=20
variation of that word and "shit" during the 2003=20
awards. No fines were imposed but Fox had=20
challenged the decision to the appeals court,=20
arguing that the government's decency standard=20
was unclear, violated free speech protections and=20
that the rulings had contradicted findings in=20
past cases. FCC Chairman Kevin Martin angrily=20
retorted that he found it "hard to believe that=20
the New York court would tell American families=20
that 'shit' and 'fuck' are fine to say on=20
broadcast television during the hours when=20
children are most likely to be in the audience.=20
If we can't prohibit the use (the two=20
obscenities) during prime time, Hollywood will be=20
able to say anything they want, whenever they=20
want," Chairman Martin said in a statement.
http://today.reuters.com/news/newsArticle.aspx?type=3DindustryNews&storyID=
=3D2007-06-04T223440Z_01_N04486815_RTRIDST_0_INDUSTRY-DECENCY-COURT-DC.XML
* FCC Chairman Martin
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-273602A1.doc
* Martin Calls Court Decision "Divorced From Reality"
http://www.broadcastingcable.com/article/CA6449007.html
* FCC's Martin: This Is Unf---ing Believable
http://adage.com/mediaworks/article.php?article_id=3D117099
* FCC Commissioner Copps
"This decision is disappointing to me and to=20
millions of parents and concerned citizens across=20
the land. But it doesn't change the FCC's legal=20
obligation to enforce the indecency statute. So=20
any broadcaster who sees this decision as a green=20
light to send more gratuitous sex and violence=20
into our homes would be making a huge mistake."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-273599A1.doc
* Copps Says Court Profanity Ruling Is No Green Light
http://www.broadcastingcable.com/article/CA6448988.html
* Appeals Court Hands Broadcasters a Win (Associated Press)
http://www.tvnewsday.com/articles/2007/06/04/daily.11/
* FCC's Profanity Ruling Against Fox Thrown Out
http://www.broadcastingcable.com/article/CA6448861.html?rssid=3D193
* Court Stops FCC=92s F-Word Crackdown
http://www.multichannel.com/article/CA6449023.html
* Inouye, PTC Tell FCC To Appeal Profanity Call To Supremes
http://www.broadcastingcable.com/article/CA6449016.html

HOLLYWOOD SAYS PROFANITY SMACKDOWN AFFECTS VIOLENCE PUSH
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Hollywood expressed its happiness with the=20
federal court's reversal of FCC profanity policy=20
Monday with Jonathan Rintels, executive director=20
of the Center for Creative Voices in Media, using=20
it as an opportunity to warn the FCC about=20
extending its reach to violent programming.=20
Rintels said "Last April, the FCC told Congress=20
that it could give the Commission new powers to=20
regulate so-called 'violent' broadcast television=20
content, however that might ultimately be=20
defined. In light of today=92s clear Court of=20
Appeals ruling that the FCC has abused its=20
discretion to regulate television content, and=20
acted =93arbitrarily and capriciously,=94 it would be=20
extremely unwise =96 even irresponsible -- for=20
Congress to now grant these exponentially=20
expanded new powers to the Commission."
http://www.broadcastingcable.com/article/CA6448995.html?rssid=3D193
* Media Access Project:
"Score one for the First Amendment. It=92s a shame=20
that citizens and broadcasters had to seek=20
protection from the courts, but it is very=20
reassuring to know that one branch of the government can rise above demagog=
y."
http://www.mediaaccess.org/press/Indecency0604.pdf

APTS STUDY: VIEWERS NOT READY FOR DTV SWITCH
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
According to a study commissioned by the=20
Association of Public Television Stations (APTS),=20
the government has grossly underfunded a consumer=20
DTV education campaign, particularly considering=20
that the number of analog-only households does=20
not appear to have significantly decreased over=20
the past three years. The study found, according=20
to APTS, that "left to their own devices, the 22=20
million American households that rely on free,=20
over-the-air television will move slowly to adopt=20
digital TV sets or subscribe to cable or=20
satellite services." "We need a Y2K-level=20
effort," says John Lawson, president of APTS.=20
APTS says the research shows that the=20
over-the-air household population has remained=20
virtually unchanged between 2004 (22.6 million)=20
and 2007 (22.5 million). Of that 22 million-plus=20
over-the-air households, only 7% own a digital=20
TV, compared to 23% of cable and/or satellite=20
subs. "Consumers are generally unaware of the=20
nature of the transition and do not fully know=20
what the direct impact on their ability to watch TV will be," APTS conclude=
d.
http://www.broadcastingcable.com/article/CA6448809.html?rssid=3D193
* APTS press release:
http://www.apts.org/news/ota_trends.cfm

NATIVE AMERICAN BROADCASTERS SUGGEST RADIO APPLICATION RULES
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
In early April the FCC announced that it will=20
open a filing window for non-commercial stations=20
to begin on Friday, October 12th and last through=20
the following Friday the 19th. An alliance of=20
Native American public radio stations has asked=20
the Federal Communications Commission to put a=20
limit on the number of applications groups can=20
submit. NPM wants the Commission to set a limit=20
of no more than ten applications for a single=20
party. The organization also wants the FCC to=20
devote one of its upcoming Indian=20
Telecommunications Initiatives (ITI) conferences=20
to informing tribes about how to apply for=20
stations. In addition, NPM has petitioned the FCC=20
to modify its point system for evaluating NCE=20
applications, giving one additional point to=20
applications filed by federally recognized Native American tribes.
http://www.lasarletter.net/drupal/node/404

OWNERSHIP

MURDOCH CALLS DOW JONES MEETING "CONSTRUCTIVE"
[SOURCE: Reuters, AUTHOR: Robert MacMillan and Kenneth Li]
Rupert Murdoch said on Monday that he had a=20
"constructive" meeting with the Bancrofts to=20
reassure the family that controls Dow Jones & Co.=20
Inc. that his $5 billion offer for the company=20
will not undermine its flagship newspaper, The=20
Wall Street Journal. Murdoch and his son James,=20
met key members of the Bancroft family, which in=20
total holds 64 percent of the voting power in Dow=20
Jones, for the first time in New York. One focus=20
of the five hours of discussions was safeguards=20
to preserve editorial independence at the=20
Journal, which is a key concern for the=20
Bancrofts, as well as editors and reporters at=20
Dow Jones. The union representing over 2,000 Dow=20
Jones workers, the Independent Association of=20
Publishers' Employees, said on Monday it had=20
retained advisers to seek alternative bids that=20
could better protect the publication's "unquestioned journalistic integrity=
."
http://today.reuters.com/news/newsArticle.aspx?type=3DindustryNews&storyID=
=3D2007-06-04T224050Z_01_N04455861_RTRIDST_0_INDUSTRY-DOWJONES-NEWSCORP-DC.=
XML
* Murdoch, Dow Jones's Bancrofts Meet to Discuss Paper's Autonomy
http://www.washingtonpost.com/wp-dyn/content/article/2007/06/04/AR200706...
1750.html
* 2 Sides Meet Face to Face on Dow Jones
http://www.nytimes.com/2007/06/05/business/media/05dow.html
See also --
* Dow Jones Union Hires Advisors to Seek Alternatives to Murdoch Bid
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003593531
* Family Dissidents Could Block Dow Jones Sale
http://www.nytimes.com/2007/06/05/business/media/05place.html
* Wall Street Journal's Net Worth Isn't in Profits
If all you care about is reported profit, you=20
wouldn't want any part of owning the Wall Street=20
Journal. The paper, for all its cachet and=20
influence, is at best marginally profitable.
http://www.washingtonpost.com/wp-dyn/content/article/2007/06/04/AR200706...
1853.html

WALL ST BULLISH ON MEDIA COMPANY BELO
[SOURCE: Reuters 6/3]
Television stocks are the hottest in the media=20
segment now and shares of Belo Corp. could rise=20
by 30 percent if it separates its broadcasting=20
and newspaper divisions, a report in Barron's=20
said on Sunday. "TV stocks are back, partly=20
because private-equity firms are paying top=20
dollar for operators of stations that carry ...=20
network programming," the weekly business=20
newspaper wrote. It said Wall Street was bullish=20
for Belo, a Texas-based media company that owns=20
19 TV stations and four newspapers, including the Dallas Morning News.
http://www.reuters.com/article/mergersNews/idUSN0340782920070603

CHANDLER REPS RESIGN FROM TRIBUNE'S BOARD
[SOURCE: Reuters]
Tribune Co. said on Monday three board members=20
representing the Chandler Trusts have resigned=20
upon completion of a share tender offer, as=20
agreed under a buyout deal with real estate=20
magnate Sam Zell. With the departure of Jeffrey=20
Chandler, Roger Goodan and William Stinehart Jr.,=20
the board now has nine members including Zell,=20
who was elected on May 9 and will become chairman=20
after Tribune is taken private. The Chandler=20
Trusts now holds 17% of the Trib's outstanding=20
shares and will sell all remaining shares.
http://chicagobusiness.com/cgi-bin/news.pl?id=3D25233
* Chandler Family Reps Exit Tribune Co. Board
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003593729
* Chandler family directors resign from Tribune board
http://www.chicagotribune.com/business/chi-070604chandler,0,7859674.stor...
rack=3Drss

AT&T

MEET THE NEW BOSS... SAME AS THE OLD BOSS
[SOURCE: Common Cause]
Randall Stephenson steps into his new role as=20
chief executive officer of AT&T, taking over from=20
Ed Whitacre, the executive who unwittingly kicked=20
off the ongoing national debate over net=20
neutrality. What will Stephenson=92s appointment=20
mean for AT&T=92s efforts to eliminate longstanding=20
net neutrality principles that forbid carriers=20
like AT&T from discriminating against Internet=20
traffic on the basis of its source or=20
destination? Not much, according to new Common=20
Cause report that takes a look at=20
Stephenson. Among the findings: 1) Last year,=20
Stephenson told Forbes magazine that he believes=20
Congress should allow, for the first time in the=20
history of the Internet, a two-tier system to be=20
created. =93You=92ve got YouTube and Google dumping=20
unbelievable traffic on here,=94 he complained. 2)=20
In 2005, Stephenson was asked whether his DSL=20
customers would be able to watch live video from=20
any website. =93Oh no,=94 Stephenson=20
declared. =93We=91re going to control the video on=20
our network. The content guys will have to make a=20
deal with us.=94 3) Stephenson brings more to the=20
job than 25 years as a company man: he also has=20
access to the Bush White House. He has served=20
for several years, and is currently the vice=20
chairman of the National Security=20
Telecommunications Advisory Committee (NSTAC). 4)=20
According to the Center for Responsive Politics,=20
97 percent of Stephenson=92s political=20
contributions have gone to Republicans, including=20
Representative Joe Barton, the Ranking Member of=20
the House Commerce Committee, who last year=20
sponsored a major piece of legislation that would=20
have eliminated net neutrality.
http://www.commoncause.org/NewATTBoss

ANALYST: AT&T TO PICK ECHOSTAR OVER DIRECTV
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
With the economic stakes enormous, AT&T is=20
=93likely=94 to pick EchoStar Communications, not=20
DirecTV, when it migrates to just one=20
satellite-TV service for its bundle by the end of=20
the year. Sanford C. Bernstein analyst Craig=20
Moffett wrote that AT&T=92s planned move =93presents=20
a classic zero-sum game: It is clearly bad news=20
for one DBS provider, but good news for the other=20
=85 We believe the loser will begin posting=20
negative subscriber growth within a year.=94 AT&T=20
has deals now to use both direct-broadcast=20
satellite providers to provide video for bundles=20
that also include phone service. But chief=20
financial officer Rick Lindner announced May 16=20
that the telco would =93migrate to one provider=94=20
for its video service by year=92s end. Moffett=20
believes EchoStar, parent of Dish Network, is=20
likely to be named the exclusive DBS provider for=20
AT&T. =93We think the two companies are more=20
closely aligned -- operationally and=20
strategically -- than are AT&T and DirecTV,=94=20
Moffett wrote. =93Just as important, Dish needs=20
this arrangement more than DirecTV does; without=20
it, they would be without a terrestrial broadband=20
partner in fully 90% of the United States.=94
http://www.multichannel.com/article/CA6448829.html

NEWS FROM CONGRESS

UPCOMING CONGRESSIONAL HEARINGS
[SOURCE: US Congress]
Congress is back in Washington and, needing=20
something to do, announced upcoming hearings on=20
1) Universal Service (6/12), 2) spectrum auction=20
rules (6/14), and 3) Internet gambling (6/8). The=20
Senate Commerce Committee's Universal Service=20
hearing will examine the Federal-State Joint=20
Board recommendations recently released by the=20
Federal Communications Commission to cap=20
distribution of funds to wireless programs. The=20
Senate Commerce Committee's spectrum hearing will=20
examine a variety of issues related to the=20
auction of spectrum at the 700 MHz band. The=20
House Committee on Financial Services The hearing=20
will address issues related to ensuring the=20
safety and security of online gambling.
(http://www.senate.gov/~commerce/press/releases.htm)
* Universal Service Fund: Assessing the=20
Recommendations of the Federal-State Joint Board
http://commerce.senate.gov/public/index.cfm?FuseAction=3DHearings.Hearin...
earing_ID=3D1873
* The 700 MHz Auction: Public Safety and Competition
http://commerce.senate.gov/public/index.cfm?FuseAction=3DHearings.Hearin...
earing_ID=3D1874
* Senate Schedules FCC Spectrum Auction Hearing
http://www.broadcastingcable.com/article/CA6448925.html?rssid=3D193
* Can Internet Gambling be Effectively Regulated=20
to Protect Consumers and the Payments System?
http://www.house.gov/apps/list/hearing/financialsvcs_dem/ht060807.shtml
* House panel sets hearing on Internet gambling
http://www.reuters.com/article/domesticNews/idUSN0418990520070604

SPECTRUM

FOR THE NEXT BIG BOUT, TUNE IN TO CHANNEL 4 1/2
[SOURCE: Washington Post, AUTHOR: Jeffrey H. Birnbaum]
[Commentary] For months now, broadcasters and=20
high-tech firms have battled over what both sides=20
refer to proudly as "white spaces" -- the unused=20
broadcast channels in between the local channels=20
that we watch on television. Turns out all that=20
emptiness is potentially worth a fortune. All=20
that's required is for regulators to allow=20
companies to utilize those spaces to carry=20
broadband signals so that fancy new devices can=20
take people onto the Internet. The National=20
Association of Broadcasters, which represents=20
local TV stations, thinks that's a terrible idea.=20
Tech giants want to expand high-speed Internet=20
connections and sell the white-space devices.=20
Dozens of lobbyists and executives have been=20
swarming Congress and the FCC to apply as much pressure as they know how.
http://www.washingtonpost.com/wp-dyn/content/article/2007/06/04/AR200706...
1605.html
(requires registration)
In a related story see --
* Wireless Spectrum May Hold Key To Net Neutrality
http://www.consumeraffairs.com/news04/2007/06/wireless_spectrum.html
--------------------------------------------------------------
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.
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