July 2007

For upcoming media policy events, see http://www.benton.org

SPECTRUM POLICY
How to Sell the Airwaves?
Competition has a different meaning in the US
Public-Safety Groups Support 700 MHz Auction, Network Partnerships
1 step forward, 2 steps back for SF-citywide Wi-Fi

DIGITAL DIVIDE
Rural areas missing broadband
USF: Realities of Serving Telecom Customers in High-Cost Regions

MEDIA & ELECTIONS
Six Tech-Savvy Things the Next President Should Promise

BROADCASTING
PTC Fights To Preserve Profanity Amendment
Commerce Slates DTV Readiness Hearing
Engel Seeks More Money for DTV Education Campaign

DIGITAL CONTENT
Court denies Webcasters' stay petition
Search results favoring paid advertiser prompt suit against Google

QUICKLY -- Groups push for media-literacy education

SPECTRUM POLICY

HOW TO SELL THE AIRWAVES?
[SOURCE: Washington Post, AUTHOR: Kim Hart]
The airwaves that carry billions of calls, text=20
messages and e-mails have become one of the=20
hottest corporate properties. Not only are they=20
in demand by a nation of 240 million mobile-phone=20
users, they are also in short supply. Soon, one=20
of the last available sections of airwaves -- and=20
one of the most attractive -- will be sold, and=20
the issue of how to manage that sale has become=20
the focus of debate. The Federal Communications=20
Commission is overseeing the auction of a portion=20
of the radio frequency spectrum once used by=20
television broadcasters, and this week drafted=20
rules for the sale. The auction, scheduled for=20
January, is expected to raise at least $15=20
billion, with bidders ranging from start-ups to=20
established phone companies. Companies and=20
policymakers have different ideas on how to=20
allocate the airwaves. The battle pits software=20
firms against traditional telecom carriers,=20
Republican commissioners against Democratic, and=20
phone companies against cable companies. To=20
complicate matters, police and other public=20
safety organizations also have a stake in the=20
auction as they push for a national network that=20
would allow all first responders to communicate with each other.
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/12/AR200707...
2221.html
(requires registration)

COMPETITION HAS A DIFFERENT MEANING IN THE US
[SOURCE: GigaOM, AUTHOR: Om Malik]
[Commentary] Broadband competition has two=20
entirely different meanings depending on where=20
you reside =AD inside or outside of United States.=20
For rest of the planet, competition means opening=20
up the existing networks, forcing the incumbents=20
to share the last mile resources with the=20
upstarts, so to speak. In the US, it means=20
creating a brand new network, something that has=20
been a pet project of suddenly competition-happy=20
FCC Chairman Kevin Martin. Martin (version 2.0)=20
has been pushing for the open networks in the 700=20
MHz band of wireless spectrum that is going to be=20
available soon, once the television companies=20
switch from analog broadcasts to digital=20
broadcasts. His attempts, twisted at best, are=20
particularly grating because he helped create the=20
duopoly that is pushing the Google Block=20
(Verizon=92s words, not mine) to lobby for open=20
access on this new network. Not that the Google=20
Block doesn=92t have its own (and not consumer=92s)=20
vested interests behind their bid.
http://gigaom.com/2007/07/12/competition-has-a-different-meaning-in-the-us/
* Auction rules could dim prospects of wireless=20
broadband competition (Associated Press)
http://www.siliconvalley.com/latestheadlines/ci_6359708

PUBLIC SAFETY GROUPS SUPPORT 700 MHZ AUCTION, NETWORK PARTNERSHIPS
[SOURCE: TelecomWeb]
The Association of Public-Safety Communications=20
Officials (APCO) International and the National=20
Public Safety Telecommunications Council (NPSTC)=20
finally have revealed their stance on the=20
upcoming 700 MHz auction, supporting establishing=20
a nationwide public-safety broadband network that=20
uses both a portion of the 700 MHz spectrum=20
allocated for public safety and spectrum assigned=20
to a commercial entity via the auction. "This=20
statement reiterates our support for using the=20
FCC's auction mechanism as a means to promote a=20
viable public-private partnership to achieve a=20
nationwide public safety broadband network," says=20
APCO International President Wanda McCarley. The=20
two groups add, "Although the public-safety=20
community recognizes that the type of=20
public/private partnership contemplated herein=20
presents certain novel regulatory issues,=20
encumbering a portion of the commercial 700 MHz=20
spectrum with obligations to provide public=20
safety with needed critical broadband=20
communications capabilities, and permitting=20
public safety and a commercial network operator=20
to combine certain portions of their licensed=20
spectrum holdings in a shared network, represents=20
the only currently realistic potential=20
alternative to deliver a viable, affordable,=20
self-sustaining route to meet the 21st century=20
communications of public safety."
http://www.telecomweb.com/tnd/24198.html
* Former FBI chief joins wireless auction group
http://www.reuters.com/article/internetNews/idUSN1221981120070713

1 STEP FORWARD, 2 STEPS BACK FOR SF-CITYWIDE WI-FI
[SOURCE: San Francisco Chronicle, AUTHOR: Wyatt Buchanan]
Free wireless Internet access for San Francisco=20
is experiencing technical difficulties. Just last=20
week, a proposed contract negotiated by the=20
Newsom administration with EarthLink picked up=20
key backing from Board of Supervisors President=20
Aaron Peskin, who said that with changes to speed=20
up the service and make it more reliable, he=20
could support the deal. But on Wednesday, Peskin=20
and other supervisors raised more concerns at a=20
City Hall hearing over whether the agreement=20
adequately protects the privacy of users and=20
whether it could turn into a monopoly giveaway of=20
a public resource. To relieve concerns about an=20
EarthLink Wi-Fi monopoly, Peskin proposed cutting=20
the term of the contract in half, from 16 years=20
to eight years. He also wants the contract to=20
include an option for the city to buy the network=20
at the end of the eight-year term.
http://sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2007/07/12/BAG61QV3GO1.DT...
ype=3Dpolitics

DIGITAL DIVIDE

RURAL AREAS MISSING BROADBAND
[SOURCE: San Jose Mercury News, AUTHOR: Troy Wolverton]
The digital divide is alive and well in=20
California and may get worse unless policy-makers=20
take steps to address it, according to a new=20
report. Whether Californians have a high-speed=20
connection to the Internet depends a lot on where=20
they live and who they are, according to the=20
report, which was issued earlier this week by the=20
Public Policy Institute of California. Perhaps=20
most strikingly, the report suggests that many=20
Californians still can't even sign up for=20
broadband connections because they're simply not=20
available. Among households with income greater=20
than $100,000, broadband adoption was 68 percent=20
in 2005, that last year for which the report had=20
data. In that same year, broadband adoption among=20
households with income below $25,000 was 24=20
percent. Regional differences showed adoption=20
ranged from just above 50 percent in and around=20
the San Francisco Bay Area and Los Angeles to=20
just 21 percent in the rural central Sierra=20
region. Some of those regional differences can be=20
explained by their relative affluence and rates=20
of computer ownership, according to the report.=20
But data analyzed in the report suggests much of=20
the difference has to do with broadband not being=20
as available in rural areas as it is in urban ones.
http://www.siliconvalley.com/ci_6360216
http://www.siliconvalley.com/news/ci_6365041

USF: REALITIES OF SERVING TELECOM CUSTOMERS IN HIGH-COST REGIONS
[SOURCE: Balhoff & Rowe, AUTHOR: Balhoff, Rowe & Williams]
This report provides detailed data demonstrating=20
that the USF system is at risk as low cost and=20
more economically justifiable regions attract=20
more competitors, while the costs in other=20
regions remain stubbornly high and challenge the=20
business rationale for serving these high-cost=20
customers. The solution is not an arbitrary=20
contraction in universal service by eliminating=20
support monies as some suggest. Rather, the=20
solution requires an informed and renewed=20
commitment to a better targeted universal service=20
program in which the Provider of Last Resort=20
(=93POLR=94)1 in uneconomic regions receives support=20
for providing ubiquitous, high quality and=20
affordable service to the public. Importantly,=20
this paper proposes that it will be necessary to=20
re-craft the system to allocate appropriate=20
levels of USF to carriers assuming true POLR=20
obligations in high-cost and uneconomic regions.=20
It is also suggested that there are not multiple=20
wireline carriers in the true high-cost regions,=20
and may not be multiple carriers willing to accept true POLR obligations.
http://www.balhoffrowe.com/pdf/USF%20Funding%20Realities%20of%20Serving%...
elecom%20Customers%20in%20High%20Cost%20Regions%207-9-07.pdf

MEDIA & ELECTIONS

SIX TECH-SAVY THINGS THE NEXT PRESIDENT SHOULD PROMISE
[SOURCE: PC Magazine, AUTHOR: Dan Costa]
[Commantary] Technologically savvy campaigns are=20
one thing, but we also need candidates who=20
themselves have a basic understanding of how this=20
stuff works. We need to elect the first tech=20
president. The Personal Democracy Forum (PDF) is=20
leading the charge with a six-point technical=20
agenda it is hoping the presidential candidates=20
will support. 1) Declare the Internet a public=20
good. This means treating Internet access the=20
same way we do water, electricity, highways, and=20
public education. The government would have an=20
obligation to enable low-cost universal access.=20
2) Commit to providing affordable high-speed=20
wireless Internet access nationwide. Protect and=20
expand unlicensed spectrum for public use. The=20
PDF suggests spending $20 billion on an Internet=20
Innovation and Investment Fund that would=20
guarantee and spur development of a wireless=20
broadband blanket and make sure the Net reaches=20
every segment of the population. 3) Declare a Net=20
neutrality standard. This would prevent ISPs from=20
discriminating among content based on origin,=20
application, or type. And with no tiered service=20
pricing, big corporations couldn't buy their way=20
into the fast lane, leaving smaller firms and=20
individuals behind. 4) Make "Every Child=20
Connected" our goal. If major corporations are=20
able to increase the productivity of their=20
workers by equipping them with PCs, cell phones,=20
and Internet connections, we owe it to our=20
children to offer the same infrastructure in=20
schools. 5) Commit to building a connected=20
democracy. Local and national government=20
proceedings should be broadcast on the Internet=20
so anyone can hear them anytime. 6) Create a=20
National Tech Corps. This group would respond to=20
emergencies by reestablishing communications,=20
networks, and databases, and providing tech=20
support for relief and recovery efforts.
http://www.pcmag.com/article2/0,1895,2156717,00.asp

BROADCASTING

PTC FIGHTS TO PRESERVE PROFANITY AMENDMENT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Parents Television Council Thursday was=20
hoping to keep the momentum going for a TV=20
content-related amendments from Senator Sam=20
Brownback (R-Kan). Senate Commerce Committee=20
Chairman Daniel Inouye (D-Hawaii) wrote a letter=20
to Brownback asking Brownback not to use the=20
budgeting process to move the=20
legislation. Inouye said he was working on a=20
similar, bipartisan bill dealing with violence=20
and profanity. But PTC does not see the promise=20
of legislation as good enough: =93With no=20
legislation currently before the Commerce=20
Committee and the August recess looming," said=20
Winter. "There is no hope - zero - that the=20
Senate can act before the September oral=20
arguments in the Janet Jackson case, or before=20
the FCC=92s deadline to respond to the 2nd Circuit opinion."
http://www.broadcastingcable.com/article/CA6459862.html?rssid=3D193
* Commerce To Consider Bill Restoring FCC's Fleeting Profanity Powers
Senator Jay Rockefeller (D-WV) has introduced a=20
bill that would explicitly give the FCC the power=20
to find a fleeting expletive indecent and the=20
chairman of the Senate Commerce Committee has pledged to act on it.
http://www.broadcastingcable.com/article/CA6459939.html?rssid=3D193
* Senate Panel to Vote on TV-Indecency Bill
http://www.multichannel.com/article/CA6459948.html?rssid=3D196

COMMERCE SLATES DTV READINESS HEARING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Senate Commerce Committee will hold a hearing=20
July 26 to get a read on the U.S.'s readiness for=20
the digital transition. No witnesses yet for the=20
hearing, entitled "Preparing Consumers for the=20
Digital Transition" which will look at the=20
consumer impact of the switch to all-digital=20
broadcasting, scheduled for February 2009.
http://www.broadcastingcable.com/article/CA6459954.html?rssid=3D193
* See=20
http://commerce.senate.gov/public/index.cfm?FuseAction=3DHearings.Hearin...
earing_ID=3D1888

ENGEL SEEKS MORE MONEY FOR DTV EDUCATION CAMPAIGN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Rep. Elliot Engel (D-NY) has introduced a DTV=20
education bill that would create a federal=20
advisory committee for the transition from analog=20
to digital broadcasting--and provide a lot more=20
money to help inform consumers about the switch.=20
The bill is called the National Digital=20
Television Consumer Education Act, and it would=20
create a DTV transition Federal Advisory=20
Committee to coordinate across industries and=20
government. Among those with a stake are the=20
National Telecommunications & Information=20
Administration (NTIA), which must administer an=20
digital-to-analog converter box program; the FCC,=20
which is overseeing the reallocation of all that=20
spectrum; and the broadcast, cable and consumer electronics industries.
http://www.broadcastingcable.com/article/CA6459858.html?rssid=3D193

DIGITAL CONTENT

COURT DENIES WEBCASTERS' STAY PETITION
[SOURCE: Reuters]
The U.S. District Court of Appeals for the=20
District of Columbia Circuit has denied a=20
petition by U.S. Internet radio stations seeking=20
to delay a royalty rate hike due July 15 they say=20
could kill the fledgling industry. The=20
SaveNetRadio coalition of Webcasters vowed it=20
would continue fighting the hikes in Congress.
http://www.reuters.com/article/internetNews/idUSN1234036620070712
* Judges clear way for higher Internet radio royalties
http://www.latimes.com/business/printedition/la-fi-radio13jul13,1,178016...
tory?coll=3Dla-headlines-pe-business
* Shaken Internet Radio Stations Face Specter of New Fees Sunday
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/12/AR200707...
2169.html
* Congress Tries To Broker Last-Minute Deal between Webcasters and Labels
[Commentary] Ed Markey (D-Massachusetts) called=20
parties representing record labels and webcasters=20
before the House Commerce Committee on Energy and=20
Commerce to try to broker a deal that would allow=20
online radio stations to survive in something=20
similar to their current form, while still paying=20
labels and artists their due. The as-yet-unpassed=20
Internet Radio Equality Act proposes that=20
webcasters switch to a percentage royalty system=20
similar to the 7.5-percent-of-revenue fee=20
structure enjoyed by satellite and cable radio=20
broadcasters. The record labels' problem with=20
that is, I suspect, that webcasting is cheap=20
enough that operators' total revenue can be low=20
-- or even non-existent, in which case the labels=20
and artists would get nothing from the streaming of their music.
http://blog.wired.com/music/2007/07/webcasters-only.html

SEARCH RESULTS FAVORING PAID ADVERTISER PROMPT AUSTRALIAN SUIT AGAINST GOOG=
LE
[SOURCE: Associated Press]
Australia's consumer watchdog has launched legal=20
action against Google for allegedly misleading=20
users by blurring the distinction between paid=20
and unpaid search results in favor of one of its=20
advertisers. The Australian Competition and=20
Consumer Commission filed suit against the search=20
engine giant and one of its main advertisers, the=20
Trading Post, in Federal Court on Thursday,=20
alleging they "engaged in misleading and=20
deceptive conduct" in breach of trade practices=20
laws. The commission claims the Trading Post=20
submitted as keywords the names of two local car=20
dealerships that were direct competitors to the=20
Trading Post's online classified ads. As a=20
result, users who typed in the business names=20
"Kloster Ford" and "Charlestown Toyota" were=20
directed first to the Trading Post's Web site,=20
giving the false impression that the companies=20
were somehow related. The consumer watchdog named=20
Google, Google Ireland and Google Australia Pty.=20
as defendants in the action, along with the Trading Post magazine.
http://www.siliconvalley.com/latestheadlines/ci_6365048

QUICKLY

GROUPS PUSH FOR MEDIA-LITERACY EDUCATION
[SOURCE: eSchool News, AUTHOR: Meris Stansbury]
A new survey from the State Educational=20
Technology Directors Association (SETDA) and=20
Cable in the Classroom reveals that states are=20
making progress when it comes to teaching=20
students about media and information=20
literacy--but two out of five states surveyed=20
still don't have standards in place for doing=20
this. To help states and school systems teach=20
important media-literacy skills, SETDA has issued=20
a new toolkit containing resources and advice.
http://www.eschoolnews.com/news/showstoryts.cfm?Articleid=3D7252
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...and we're outta here. Have a great weekend.
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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.
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