July 2007

There's a House hearing today on wireless innovation. For this and
other upcoming media policy events, see
http://www.benton.org/?q=event/2007/07/10/month/all/all

SPECTRUM/WIRELESS
Muted Reaction To FCC Draft Auction Rules
Reed Hundt's Spectrum Play
SprintNextel drops needy customers

INTERNET/BROADBAND
Telecom Time Warp

CABLE/TELECOM
Verizon Tries To Save Face Re: Copper/FiOS Story
IPTV Will Take Off, Says Study
EC: no change to 'universal service' for now

BROADCASTING
Senate to Debate Fairness Doctrine
Brownback Tries to Restore FCC's Profanity Power

JOURNALISM
Dow Jones Hears Alternative Proposals
A different type of porn

QUICKLY -- Robert Chase leaving UCC communications post; European
Telecoms Move To Sell Radio Towers; U.S. teenagers have little
interest in news; Policy group says Google soft on piracy; Accuser
Says Web Site Has X-Rated Link

SPECTRUM/WIRELESS

MUTED REACTION TO FCC DRAFT AUCTION RULES
[SOURCE: DowJones, AUTHOR: Corey Boles corey.boles( at )dowjones.com]
Draft Federal Communications Commission rules on a major auction of
radio spectrum backed some proposals favored by Google. But potential
bidders said Tuesday they need further details to determine the clear
winners in the process. Rep. Edward Markey (D-MA), chairman of the
House Telecommunications Subcommittee, said in a statement he
welcomed the news that FCC Chairman Kevin Martin appeared to "
recognize that the wireless marketplace is insufficiently competitive
and innovative today due to current market structures and practice."
Blair Levin, a telecoms analyst at Stifel Nicolaus, said that the
news of Martin's draft rules still left unanswered whether they would
be enough to encourage a potential new national player into the
auction process. For public interest groups, which have largely been
on Google's side in its bid to have the auction rules structured to
encourage the participation of a third broadband competitor, Martin's
draft rules don't go far enough. Gigi B. Sohn, president of Public
Knowledge, said that without a third stipulation that the winner of
the spectrum must offer access to their broadband network on a
wholesale basis, the other two conditions would mean very little. She
acknowledged that effectively Google and public interest groups were
asking the FCC to "rig the auction" to facilitate a third national
broadband competitor to the incumbents - AT&T, Verizon Communications
Inc. and the cable companies. But she said without such action, the
spectrum would be acquired by these incumbents and the "last best
auction" would be a missed opportunity by the FCC.
http://money.cnn.com//news/newsfeeds/articles/djf500/200707101553DOWJONE...
* Statement by Chairman Markey
http://markey.house.gov/index.php?option=co
* Debate heats up over open access spectrum rules
http://news.yahoo.com/s/infoworld/20070710/tc_infoworld/90094
* FCC Plays Games With Wireless Competition
http://www.publicknowledge.org/node/1080
m_content&task=view&id=2950&Itemid=141
* Skype Appeals to FCC to Keep Wireless Internet Open
http://digg.com/tech_news/Skype_Appeals_to_FCC_to_Keep_Wireless_Internet...
* Spectrum Sale May Open Market
http://online.wsj.com/article/SB118411115421962670.html?mod=todays_us_pa...
* FCC wants open access to spectrum
http://www.latimes.com/business/printedition/la-fi-fcc11jul11,1,4975261....

REED HUNDT'S SPECTRUM PLAY
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
[Commentary] The Federal Communications Commission has been ordered
by Congress to auction off a large swath of valuable telecom spectrum
licenses by the end of January. The only question is whether the
auction will be open and fair, or tainted by rules that favor some
potential bidders over others. It looks as if FCC Chairman Kevin
Martin has opted for the latter. The agency hasn't formally released
the rules, but yesterday USA Today quoted Mr. Martin as saying that
"Whoever wins this spectrum has to provide . . . [a] truly open
broadband network -- one that will open the door to a lot of
innovative services for customers." In other words, Mr. Martin wants
to saddle the winning bidder with "net neutrality" mandates. [W]e
hope someone in the Bush Administration tells Mr. Martin that the
FCC's obligation isn't to carve out spectrum for special interests,
but to serve the larger public by selling spectrum to the highest bidder.
http://online.wsj.com/article/SB118411607574862804.html?mod=todays_us_op...
(requires subscription)

SPRINTNEXTEL DROPS NEEDY CUSTOMERS
[SOURCE: Associated Press]
Sprint Nextel Corp. isn't apologizing for its decision to ax
customers it determined were calling customer service too often. The
nation's third-largest wireless provider sent letters to about 1,000
subscribers June 29, saying the company's records showed they had
made frequent calls for help with questions about billing and other
account information. "While we have worked to resolve your issues and
questions to the best of our ability, the number of inquiries you
have made to us during this time had led us to determine that we are
unable to meet your current wireless needs," the letters said. The
customers were told their service agreements were being terminated,
they wouldn't owe anything on their final bill, and the company would
waive early termination fees. They also were told to switch to
another wireless provider by July 30 if they want to keep their phone number.
http://www.chicagotribune.com/business/chi-070710sprintnextel,0,734816.s...
* Sprint to Customers: Complaining Will Not Be Tolerated
http://www.consumersunion.org/blogs/hun/2007/07/sprint_to_customers_comp...

INTERNET/BROADBAND

TELECOM TIME WARP
[SOURCE: Wall Street Journal, AUTHOR: Robert Crandall and Hal Singer]
[Commentary] Calls for non-discrimination rules in telecom arise
periodically from disadvantaged groups of rivals. In the late 1960s,
the call for regulation came from equipment providers; in the early
1980s, it came from long-distance providers. In the mid-1990s, it was
local exchange carriers and Internet service providers. Today
Internet telephone, or "VoIP," providers want help, but to obfuscate
their role, they couch it in a deceptive, overused phrase: "network
neutrality." Unfortunately, some lawmakers and regulators are
seriously entertaining these pleas for greater regulation. The FCC is
considering service rules for the upcoming 700 MHz-auction sponsored
by Frontline, a firm headed by former FCC chairman Reed Hundt, which
would impose, among other onerous requirements, a net neutrality
requirement on the winning bidder. And today Rep. Edward Markey
(D-MA), chairman of the House Subcommittee on Telecommunications and
the Internet, will hold a hearing on the subject of "wireless net
neutrality." The lesson for future content providers -- particularly
those now seeking network neutrality regulation -- is that they
should develop content that network owners will perceive as being
complementary to their offerings and therefore will add value for
their broadband customers. Ignoring this advice will work only as
long as the regulators are under the content providers' thumb.
Eventually, either the FCC or the courts will realize that regulating
competitive networks for the benefit of select content providers is
not in the interest of American consumers.
http://online.wsj.com/article/SB118411797700062862.html?mod=todays_us_op...
(requires subscription)

CABLE/TELECOM

VERIZON TRIES TO SAVE FACE RE: COPPER/FIOS STORY
[SOURCE: TelecomWeb]
In the wake of a damaging story regarding existing copper and its new
FiOS network, Verizon is trying to explain its way out of what could
turn out to be a PR nightmare. Verizon's Sharon Cohen-Hagar SAID, "We
don't remove the copper network, as the article suggests -- only the
few dozen yards of copper wire from the street to the home. Customers
benefit because they don't need the copper cable, and it looks better
to remove it. We remove this copper drop if runs overhead from a pole
to the house. If it's buried, we leave the copper in place." And she
says existing customers or new homeowners won't have any trouble
changing back to copper if they find FiOS to be unsatisfactory: "If a
customer asks, we'll leave the copper in place, and if a new resident
wants or needs a copper-based service, we'll provide [the copper]
without charge."
http://www.telecomweb.com/tnd/24115.html

IPTV WILL TAKE OFF, SAYS STUDY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
As cable companies continue to take a bite out of telcos' voice
business, those companies will be returning the favor by ramping up
their IPTV business in a big way. That's according to a new report
from Tech support company iSupply Research, which says that the IPTV
market will go from $779.2 million in 2006 to a projected $26.3
billion by 2011, with revenues of more than a billion. That's a giant
leap for IPTV, but still only a small step toward cable's dominant
position in the mulitchannel video market. For example, the report
points out, Comcast in 2005 had $26 billion in pro forma cable
revenue. Isupply says it is unlikely that the entire IPTV market will
be as big in 2011 as Comcast alone.
http://www.broadcastingcable.com/article/CA6458770.html?rssid=193

COMMISSION: NO CHANGE TO 'UNIVERSAL SERVICE' FOR NOW
[SOURCE: DMeurope.com, AUTHOR: Ben Tanner]
The European Commission announced today that telcos across Europe
have endorsed the Commission's view that there is at present no need
to extend the 'universal service' safety net to mobile and high-speed
Internet services. In the opinion of the Commission, telcos and other
stakeholders, consumers have widespread affordable access to these
services. The idea of a 'universal service' safeguards consumers'
access to vital communications services. At present, according to the
Commission, mobile and high-speed Internet services are best left to
market forces. Competition is largely thriving and prices are
affordable, so the Commission does not need to implement further
regulation in these areas at this time.
http://www.dmeurope.com/default.asp?ArticleID=14808

BROADCASTING

SENATE TO DEBATE FAIRNESS DOCTRINE
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
The U.S. Senate is about to get its turn to block the Federal
Communications Commission from reviving the Fairness Doctrine, the
policy requiring broadcasters to offer competing viewpoints in a
balanced manner when presenting controversial issues. A week after
Sens. Norm Coleman (R-MN), Jim DeMint (R-SC), John Thune (R-SD), and
15 GOP co-sponsors proposed to enact a law mirroring a ban approved
by the House, the senators hope instead to add the language to an
Iraq war appropriations bill now on the Senate floor. A debate and
vote on the Fairness Doctrine amendment could take place by week's
end. The Senate today was locked in what could be a long debate on
Iraq war-related amendments that could delay consideration of other
amendments to the bill.
http://www.tvweek.com/news/2007/07/senate_to_debate_fairness_doct.php
(requires free registration)

BROWNBACK TRIES TO RESTORE FCC'S PROFANITY POWER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senator and presidential candidate Sam Brownback (R-Kansas) -- who
helped get the FCC's indecency fines increased 10-fold -- wants to
give the commission back the profanity enforcement power a federal
court decision essentially took away, and add violence regulation to
its resume. Sen Brownback, a member of the Senate Appropriations
committee, said Tuesday that he will offer two amendments to a
general government appropriations bill Thursday, July 12, one that
would "continue support for the FCC to fine broadcasters who air
indecent, profane, or obscene content," and another that would "fine
broadcasters for airing excessively violent content during the hours
when children are most likely to be in the audience."
http://www.broadcastingcable.com/article/CA6458900.html?rssid=193
* Brownback to Push TV-Content Regulation
http://www.multichannel.com/article/CA6458975.html?rssid=196

JOURNALISM

DOW JONES HEARS ALTERNATIVE PROPOSALS
[SOURCE: Wall Street Journal, AUTHOR: Sarah Ellison sarah.ellison( at )wsj.com]
As Dow Jones & Co. closes in on a deal to sell itself to News Corp.,
an unlikely pair of investors is making a last-ditch effort to create
a competing offer. Internet entrepreneur Brad Greenspan and
supermarket mogul Ron Burkle met with a committee of Dow Jones's
board yesterday evening to present their proposals for the company,
according to people familiar with the matter. The two men, who had
been exploring independent plans for Dow Jones, agreed to team up for
the meeting with the board committee, these people said. Details of
the proposals aren't clear, although Mr. Burkle, who is acting in an
advisory role, had been exploring a structure for Dow Jones, the
publisher of The Wall Street Journal, that would incorporate an
employee stock-ownership plan. Mr. Greenspan is leading an investor
group and has said his proposal is evolving. He has been talking to
such potential investors as satellite-television company EchoStar
Communications Corp. and Intel Corp.'s investment arm. He is
proposing a deal to purchase a portion of Dow Jones's stock at $60 a
share, partially through a stock buyback, and then invest an
additional $250 million in the company to expand its Web video capabilities.
http://online.wsj.com/article/SB118410792590962577.html?mod=todays_us_ma...
(requires subscription)
* Burkle explores Dow Jones offer
http://www.latimes.com/business/printedition/la-fi-dowjones11jul11,1,179...

A DIFFERENT KIND OF PORN
[SOURCE: USAToday, AUTHOR: Robert Lipsyte]
[Commentary] The Four F's -- Food, Fashion, Fitness and Finances --
masquerade as news, blotting out information we really need. Maybe
it's a conspiracy and maybe it's a coincidence, but as F-Porn expands
across the shelf, the information we need to know about the political
process, the conduct of the war, the state of the environment, health
care and education becomes harder and harder to find. Now, isn't that obscene?
http://www.usatoday.com/printedition/news/20070711/opledewednesday.art.htm

QUICKLY

ROBERT CHASE LEAVING UCC COMMUNICATIONS POST
[SOURCE: United Church of Christ, AUTHOR: Bennett Guess]
The Rev. Robert Chase, the UCC's communication director, is leaving
to become director of a New York-based justice organization. The
consistory of Collegiate Church of New York has called Chase to be
founding director of Intersections, a major global initiative that
hopes to build a culture of justice and peace by creating
opportunities for people and organizations to come together to share
diverse viewpoints. Since 1999, Chase has served as team leader for
the UCC's Proclamation, Identity and Communication Ministry Team,
where he was one of the architects of the denomination's highly
successful "God is still speaking" advertising and identity campaign.
He also served as publisher of United Church News, with a circulation
of more than 200,000, and directed the UCC's web ministry and
award-winning video production department. Chase also served
simultaneously as executive director of the UCC's Office of
Communication, Inc. (OC, Inc.), the denomination's historic media
advocacy organization, based in Washington, D.C., that seeks media
access for all sectors of society, especially those who have been
historically marginalized.
http://www.broadcastingcable.com/article/CA6458896.html?rssid=193

EUROPEAN TELECOMS MOVE TO SELL RADIO TOWERS
[SOURCE: Wall Street Journal, AUTHOR: Cassell Bryan-Low
cassell.bryan-low( at )wsj.com and Jason Singer jason.singer( at )wsj.com]
Cellphone companies, as well as television and radio broadcasters,
use patchworks of towers to transmit their signals. The towers
typically are tall structures on which an antenna is located. In
recent years, as telecom companies look for ways to cut costs in an
increasingly competitive environment, some carriers are deciding that
owning the towers isn't a core part of their business. Meanwhile,
transmitting wireless signals has become an attractive business for
investors such as infrastructure funds and private-equity firms.
Investors are able to borrow heavily with the debt secured on the
long-term contracts with mobile-phone companies, television and radio
broadcasters that need their signals sent over the network of towers.
http://online.wsj.com/article/SB118409517885462360.html?mod=todays_us_ma...
(requires subscription)

US TEENAGERS HAVE LITTLE INTEREST IN NEWS: STUDY
[SOURCE: Reuters, AUTHOR: Svea Herbst-Bayliss]
War and politics are largely ignored by American teenagers, according
to a Harvard University study released on Tuesday, which found that
60 percent of them pay little attention to daily news. 28 percent of
Americans between the ages of 12 and 17 said they pay almost no
attention to news every day. Another 32 percent said they pay only
casual attention to one news source a day. Among people aged 18 to
30, the poll found 48 percent said they are inattentive to daily
news. Only 23 percent of older Americans said they largely ignore
news. In general, soft stories about celebrities interest young
people more than hard news stories like congressional votes or
developments in Iraq. One reason teenagers may pay less attention to
news than older Americans is only one in 20 young people rely heavily
on a daily newspaper.
http://www.reuters.com/article/domesticNews/idUSN1036737320070710

POLICY GROUP SAYS GOOGLE SOFT ON PIRACY
[SOURCE: Reuters, AUTHOR: Gregg Goldstein]
Hoping to see "Blood Diamond," "Spider-Man 3" or other full-length
movies, TV series and concerts for free online? The National Legal
and Policy Center on Tuesday released a list of the top 50 videos it
found on the Google Video search engine, uploaded by Web users who
might be guilty of copyright infringement.
http://today.reuters.com/news/NewsArticle.aspx?type=filmNews&storyID=200...

ACCUSER SAYS WEB SITE HAS X-RATED LINK
[SOURCE: New York Times, AUTHOR: Brad Stone]
Parents and child safety experts concerned about the online
activities of teenagers have been particularly nervous about a Web
site called Stickam, which allows its 600,000 registered users, age
14 and older, to participate in unfiltered live video chats using
their Web cameras. But those Internet safety advocates might be even
more anxious if they knew of Stickam's close ties to a large online
pornography business.
http://www.nytimes.com/2007/07/11/technology/11video.html
(requires registration)
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Well, darn it... you're pitchers still don't know how to hit. Wait
'til next year!
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Communications-related Headlines is a free online news summary
service provided by the Benton Foundation (www.benton.org). Posted
Monday through Friday, this service provides updates on important
industry developments, policy issues, and other related news events.
While the summaries are factually accurate, their often informal tone
does not always represent the tone of the original articles.
Headlines are compiled by Kevin Taglang headlines( at )benton.org -- we
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