July 2007

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

SPECTRUM POLICY
New rules could rock wireless world
iPhone Politics... and Wednesday's iPhone Hearing in Congress
Public Safety Group Backs Public-Private Wireless Net
How to untangle the San Francisco wireless debate

INTERNET/BROADBAND
Verizon's Copper Cutoff Traps Customers
Union Busting: CWA Holds the Key to Net Neutrality but Won't Open the Door
Norway: Nearly full broadband coverage
90% of Koreans hooked to broadband

MEDIA OWNERSHIP
The Roots of Editorial 'Independence'
FCC Gets Earful On Satellite Radio Merger

BROADCASTING
FCC Waives Duopoly Rule In Wichita Sale
Third DTV Periodic Review

TELECOM
FCC Seeks Refresh on Special Access

QUICKLY -- Newspapers Losing the Most Ad Dollars=20
to the Internet; Nielsen to focus on time spent,=20
not page views, in measuring Web site popularity;=20
Operators Frustrated with FCC Set-Top Rulings;=20
Watching Food Ads on TV May Program Kids to Overeat

SPECTRUM POLICY

NEW RULES COULD ROCK WIRELESS WORLD
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
Coming soon could be a wireless broadband world=20
in which consumers get to pick any smartphone or=20
other device and load any software on it =97 and=20
not have to take what the wireless carrier wants=20
to sell. That's the goal of Federal=20
Communications Commission Chairman Kevin Martin,=20
who will propose sweeping new rules for wireless=20
airwaves the government is auctioning early next=20
year. The 700 MHz spectrum, being vacated by TV=20
stations as they go digital, is coveted for its=20
ability to penetrate walls and other obstacles.=20
Under Martin's proposal, to be circulated in the=20
agency as early as today, mobile services in=20
these airwaves would have to allow consumer=20
choice. "Whoever wins this spectrum has to=20
provide =85 truly open broadband network -- one=20
that will open the door to a lot of innovative=20
services for consumers," Chairman Martin=20
said. What this would mean in practice: "You can=20
use any wireless device and download any mobile=20
broadband application, with no restrictions,"=20
Chairman Martin explained. The only exceptions=20
would be software that is illegal or could harm a=20
network. The proposed rules would apply only to=20
the spectrum being auctioned, not the rest of the=20
wireless business, which still makes most of its=20
revenue from voice calls. But Martin's proposal,=20
if adopted by the FCC, could reverberate through=20
a U.S. wireless industry that has tightly=20
controlled access to devices and services. The=20
Apple iPhone is a prime example: Like most=20
devices sold in the USA, the iPhone is, in=20
industry parlance, "locked." It allows only=20
features and applications that Apple and AT&T=20
provide and works only with an AT&T contract.
http://www.usatoday.com/printedition/news/20070710/1a_bottomstrip10_dom....
.htm

iPHONE POLITICS... AND WEDNESDAY'S iPHONE HEARING IN CONGRESS
[SOURCE: Open Left, AUTHOR: Matt Stoller]
House Telecom Subcommittee Chairman Ed Markey=20
(D-MA) is holding a hearing on Wednesday=20
titled "Wireless Innovation and Consumer=20
Protection." But really, the hearing should be=20
titled 'the iPhone Hearing', because that's what=20
this is about. The launch of the iPhone is not=20
just a consumer landmark, it's a significant=20
moment in Internet politics. Working Assets has=20
already pointed this out with an action campaign,=20
and their CEO Michael Kieschnick has a thoughtful=20
post on the reactionary nature of the iPhone's=20
locked in contract with AT&T. Follow the link=20
below to an interview with Ben Scott of Free=20
Press who discusses what's at stake.
http://www.openleft.com/showDiary.do?diaryId=3D46

PUBLIC SAFETY GROUP BACKS PUBLIC-PRIVATE WIRELESS NET
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Public Safety Telecommunications=20
Council asked the FCC to create a public-private=20
emergency communications network along the lines=20
of one proposed by Frontline Wireless. In a=20
letter to the FCC, the NPSTC conceded that a=20
public-private partnership raised "novel=20
regulatory issues," but said it was the only=20
"realistic" alternative for delivering a "viable,=20
affordable, self-sustaining" public safety=20
network. The FCC is currently preparing rules for=20
the auctioning of spectrum reclaimed in the switch to all-digital broadcast=
ing.
http://www.broadcastingcable.com/article/CA6458336.html?rssid=3D193
* For more see: http://www.npstc.org/index.jsp

HOW TO UNTANGLE THE WIRELESS DEBATE
[SOURCE: San Francisco Chronicle, AUTHOR: Jed=20
Kolko, Public Policy Institute of California]
[Commentary] The debate in San Francisco is=20
about who should own and operate the citywide,=20
high-speed Internet service network -- the public=20
or the private sector -- and whether the wireless=20
antennae used for broadband are detrimental to=20
the environment or to public health. These=20
arguments have held up San Francisco's proposal=20
while cities in its backyard, such as Sacramento=20
and a consortium of dozens of Silicon Valley=20
cities, move ahead with planned networks. Not=20
only have they delayed the project, but they're=20
the wrong arguments. The explicit goal of most=20
governments who are getting into wireless=20
broadband, including San Francisco, is to close=20
the "digital divide" -- the gap between those who=20
have and use high-speed Internet, known as=20
broadband, and those who don't. Providing=20
low-cost or free broadband service is intended to=20
give everyone equal access to the Internet's=20
wealth of information and resources. Proponents=20
of these wireless networks -- in San Francisco=20
and elsewhere -- expect municipal broadband=20
service to help citizens find jobs, become better=20
educated, stay healthier and use online=20
government services. They also expect it to=20
create jobs because better Internet connections=20
attract businesses. But my research shows that=20
when people switch from dial-up Internet to=20
high-speed broadband Internet, they are more=20
likely to research medical information online, as=20
well as download more music and visit more adult=20
entertainment sites -- but they're no more likely=20
to search for jobs or use online government=20
services than when they had more primitive=20
technology. As for attracting businesses, the=20
savings a firm would get from using municipal=20
broadband would be very small compared to the=20
labor, real estate and other cost considerations=20
that factor much more heavily into the decision=20
of where to locate and whether to expand. While=20
some businesses, in some situations, will=20
certainly take advantage of a municipal broadband=20
network, it is doubtful that the service would=20
attract or create many jobs. So what should San=20
Francisco do? If municipal broadband is to be in=20
the city's future, it's critical to: keep monthly=20
usage costs low; establish programs that improve=20
access to computers and raise computer literacy;=20
and use very conservative revenue assumptions=20
while planning for unforeseen costs from technical challenges.
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/c/a/2007/07/09/EDG6QQ4...
1.DTL

INTERNET/BROADBAND

VERIZON'S COPPER CUTOFF TRAPS CONSUMERS
[SOURCE: Associated Press, AUTHOR: Deborah Yao]
Verizon's new high-bandwidth, FiOS fiber lines=20
are fully capable of carrying not only telephone=20
calls but also Internet data and television=20
channels with room to grow. But once the old=20
copper line that once provided plain old=20
telephone service is pulled, it's difficult to=20
switch back to the traditional phone system or=20
less expensive Digital Subscriber Line service.=20
And Verizon isn't required, in most instances, to=20
lease fiber to rival phone companies, as it is=20
with the copper infrastructure. As it hooks up=20
homes and businesses to its fiber network,=20
Verizon has been routinely disconnecting the=20
copper and, many subscribers say, not telling=20
them upfront or giving them a choice. More than 1=20
million customers have signed up for a FiOS=20
service, which is offered mainly in the suburban=20
areas of 16 states. Verizon spokesman Eric Rabe=20
said customers should have been notified at least=20
three times - once by the sales representative=20
when FiOS is ordered, by the technician before=20
copper is cut, and through paperwork given to the=20
customer. Some customers say that hasn't happened.
http://www.forbes.com/feeds/ap/2007/07/08/ap3892179.html
* Cutting the Copper Means Less Competition for=20
Verizon, Fewer Choices for Consumers
http://www.consumersunion.org/blogs/hun/2007/07/cutting_the_copper_means...
ss.html

UNION BUSTING: CWA HOLDS THE KEY TO NET NEUTRALITY BUT WON'T OPEN THE DOOR
[SOURCE: Huffington Post, AUTHOR: Art Brodsky]
[Commentary] Apparently, the Communications=20
Workers of America have a problem with Network=20
Neutrality. Like it or not, CWA is the key to=20
whether the Internet will continue to be open, or=20
whether the telephone and cable companies will=20
turn it into an instrument under their control.=20
The prospects are not encouraging. To put it more=20
strongly, given the influence the union wields=20
with Democratic legislators in Congress and in=20
state houses, the prospects are downright=20
discouraging. Democrats who traditionally take=20
progressive positions on issues are also=20
Democrats who don't want to cross organized=20
labor. When there is a conflict, labor wins. And=20
if labor is allied with the company, it's no=20
contest. CWA and, to a lesser extent, the=20
International Brotherhood of Electrical Workers=20
(IBEW), could free Democrats to vote for a free=20
and open Internet. But in a demonstration of the=20
Stockholm syndrome, they won't. Consider two=20
quotations. Here's the first: "The network=20
builders are spending a fortune constructing and=20
maintaining the networks that Google intends to=20
ride on with nothing but cheap servers ... It is=20
enjoying a free lunch that should, by any=20
rational account, be the lunch of the facilities=20
providers." Here's the second: "Companies=20
building networks plan to recoup their investment=20
in high-speed Internet from their video product.=20
Amazon, Google and others don't want owners of=20
the network to be able to do this. They say this=20
is 'discrimination.' Google, Amazon and others=20
want to send their content over the networks for=20
free." Which one was spoken by a representative=20
of the union, and which by a representative of a telephone company?
http://www.huffingtonpost.com/art-brodsky/union-busting-cwa-holds-_b_554...
html

NORWAY: NEARLY FULL BROADBAND COVERAGE
[SOURCE: The Norway Post, AUTHOR: Rolleiv Solholm]
An average 98.3 per cent of all Norwegians now=20
have access to broadband, and it is expected that=20
the coverage will reach 99 per cent by the end of the year.
http://www.norwaypost.no/cgi-bin/norwaypost/imaker?id=3D89223

90% OF KOREANS HOOKED TO BROADBAND
[SOURCE: The Korean Hearld, AUTHOR: hannahj( at )heraldm.com]
Almost all the households in Korea are now hooked=20
up to high-speed Internet, the Information=20
Ministry said. The ministry said that nine out of=20
10 households in Korea are subscribing to=20
broadband. The percentage of households=20
subscribing to broadband is 100 percent in both=20
Gyeonggi Province and in Seoul. Gyeonggi Province=20
reached the 100 percent mark in February, up from January's 98 percent.
https://www.koreaherald.co.kr/SITE/data/html_dir/2007/07/09/200707090045...

MEDIA OWNERSHIP

THE ROOTS OF EDITORIAL 'INDEPENDENCE'
[SOURCE: Wall Street Journal, AUTHOR: Jim Prevor, Phoenix Media Network]
[Commentary] The controversy over the possible=20
sale of Dow Jones and particularly The Wall=20
Street Journal to Rupert Murdoch's News Corp. may=20
be predictable, and the efforts of the Bancroft=20
family to maintain the editorial integrity of the=20
publication may be laudable. Yet the complicated=20
negotiations to create a board that would secure=20
editorial independence are a mistake. They=20
misinterpret the nature of editorial independence=20
and miss the point that the owner of a=20
publication is the person most likely to defend=20
its editorial integrity. Editorial independence=20
is always a function of one thing and one thing=20
only: an editor's willingness to be fired.
http://online.wsj.com/article/SB118403552816161785.html?mod=3Dtodays_us_...
nion
(requires subscription)

FCC GETS EARFUL ON SATELLITE RADIO MERGER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Monday was the deadline for initial comments in=20
the proposed merger of XM and Sirius satellite=20
radio, and there were plenty of them. Opponents=20
of the merger include the National Association of=20
Broadcasters, and consumer groups Common Cause,=20
Consumer Federation of America, Consumers Union,=20
and Free Press, which said that XM and Sirius'=20
contention that there is one big digital audio=20
market with satellite radio only one of many=20
players is a way to hide the "truly=20
anticomptetitive and anti-consumer nature of the=20
proposed merger." Public Knowledge, which=20
promotes fair use rights for intellectual=20
property, weighed in in support of the merger so=20
long as the merged company sets aside 5% of its=20
capacity for noncommercial educational=20
programming over which it has no control;=20
provides a la carte or tiered programming, and=20
does not raise prices for three years. The=20
Progress and Freedom Foundation, a think tank=20
that ponders digital-related public policy, also=20
gave a nod to the merger by suggesting any=20
antitrust review should look beyond the two=20
satellite players to other digital information=20
providers in deciding whether the resulting=20
company would be a monopoly, saying that market=20
should also include "services the platforms in=20
question may provide in the future that they do not today."
http://www.broadcastingcable.com/article/CA6458668.html?rssid=3D193
* Conservative Group Backs Satellite-Radio Deal
http://www.multichannel.com/article/CA6458639.html?rssid=3D196
* Edwin Meese endorses XM/Sirius merger
http://www.lasarletter.net/drupal/node/429

BROADCASTING

FCC WAIVES DUOPOLY RULE IN WICHITA SALE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC Monday waived its duopoly rules to allow=20
one company to own two TV stations in the Wichita=20
market. Saying that KSCW met its criteria for a=20
failing station, the commission said it was=20
granting the transfer of the license from WLBB=20
Broadcasting to Sunflower Broadcasting. The FCC's=20
TV duopoly rule only allows dual station=20
ownership in markets where neither of the two=20
stations in question are rated in the top four=20
and there will still be eight independently-owned=20
stations in the market after the two are allowed=20
to be jointly owned. The Wichita combo does not=20
meet that test, but the FCC makes exceptions=20
where the merger would help a financially=20
troubled station. According to filings, KSCW has=20
had six-figure losses for the last three years=20
and its share of audience has not gotten above 2.7% of the market.
http://www.broadcastingcable.com/article/CA6458374.html?rssid=3D193

THIRD DTV PERIODIC REVIEW
[SOURCE: Federal Communications Commission]
On April 25, 2007, the FCC adopted a Notice of=20
Proposed Rulemaking in the Third DTV Periodic=20
Review proceeding, which requested comment on the=20
procedures and rule changes necessary to complete=20
the nation's transition from analog to digital=20
television. The Third DTV Periodic Review NPRM=20
set deadlines for filing comments and reply=20
comments at 30 and 45 days after publication of=20
the Third DTV Periodic Review NPRM in the Federal=20
Register. On July 9, 2007, the Third DTV Periodic=20
Review NPRM was published in the Federal=20
Register. Accordingly, comments must be filed=20
on or before August 8, 2007 and reply comments=20
must be filed on or before August 23, 2007. For=20
additional information, contact Evan Baranoff,=20
Evan.Baranoff( at )fcc.gov, or Eloise Gore,=20
Eloise.Gore( at )fcc.gov, of the Media Bureau, Policy=20
Division, (202) 418-2120. Press inquiries should=20
be directed to Mary Diamond, (202) 418-2388. TTY:=20
(202) 418-7172 or (888) 835-5322.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-07-3073A1.doc

TELECOM

FCC SEEKS REFRESH ON SPECIAL ACCESS
[SOURCE: Federal Communications Commission]
The FCC would like to refresh its record on=20
interstate access services. (Special access=20
services do not use local switches; instead they=20
employ dedicated facilities that run directly=20
between the end user and an IXC's point of=20
presence, where an IXC connects its network with=20
the local carrier's network, or between two=20
discrete end user locations. An IXC is a=20
telecommunications company that provides=20
telecommunication services between local=20
exchanges on an interstate or intrastate basis.=20
People who know all this should move to the front=20
of the class.) In the Special Access NPRM, the=20
FCC commenced a broad examination of the=20
regulatory framework to apply to price cap local=20
exchange carriers' (LECs) interstate special=20
access services, including whether the special=20
access pricing flexibility rules which the FCC=20
adopted in 1999 have worked as intended. In=20
response to the Special Access NPRM, the FCC=20
received comments on June 13, 2005 and reply=20
comments on July 29, 2005. Since these comments=20
were filed, a number of developments in the=20
industry may have affected parties' positions on=20
the issues raised in the Special Access=20
NPRM. These developments include a number of=20
significant mergers and other industry=20
consolidations; the continued expansion of=20
intermodal competition in the market for=20
telecommunications services, which affects the=20
uses of, and competition to provide, a variety of=20
special access services or alternatives; and the=20
release by the Government Accountability Office=20
of a report summarizing its review of certain=20
aspects of the market for special access=20
services. Accordingly, the FCC requests that=20
parties refresh the record in this proceeding to=20
reflect the effects of these=20
developments. Parties should include any new=20
information or arguments that may be relevant to=20
the Commission's consideration of what action, if=20
any, may be appropriate in this proceeding. The=20
FCC also asks parties to address the specific=20
questions, which were not raised in the Special Access NPRM.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-123A1.doc

QUICKLY

REPORT: NEWSPAPERS LOSING THE MOST AD DOLLARS TO THE INTERNET
[SOURCE: Editor&Publisher, AUTHOR: Jennifer Saba]
Newspapers are losing the most ad dollars to the=20
Internet compared to other media, according to a=20
new report from Wachovia Equity=20
Research. Wachovia Senior Analyst John Janedis=20
and his team analyzed 100 leading national=20
advertisers to determine the shift away from=20
traditional media to the Internet. Specifically,=20
the team looked at 55 of those advertisers that=20
fell in the following categories: automotive,=20
retail, telecommunications, financial services,=20
general services, media, and tech/Internet. Of=20
those seven categories, only one -- financial=20
services -- increased spending in newspapers.=20
Television, the study noted, actually experienced=20
the opposite trend with four of the seven=20
categories including telecommunications,=20
automotive, media and tech/Internet, increasing=20
the amount of dollars spent the medium. Looking=20
at the seven categories collectively, newspapers=20
lost 14.3% in advertising dollars in 2006 while=20
TV gained 4.4%. The Internet experienced a rise=20
of 17.8% in spending while ad spending on other measured channels fell 1.1%.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003608834

NIELSEN TO FOCUS ON TIME SPENT, NOT PAGE VIEWS, IN MEASURING SITE POPULARITY
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
A leading online measurement service will scrap=20
rankings based on the longtime industry yardstick=20
of page views and begin tracking how long=20
visitors spend at the sites. The move by=20
Nielsen/NetRatings, expected to be announced=20
Tuesday, comes as online video and new=20
technologies increasingly make page views less=20
meaningful. Although Nielsen already measures=20
average time spent and average number of sessions=20
per visitor for each site, it will start=20
reporting total time spent and sessions for all=20
visitors to give advertisers, investors and=20
analysts a broader picture of what sites are most popular.
http://apexchange.typepad.com/industry_news/2007/07/nielsen-to-focu.html

OPERATORS FRUSTRATED WITH FCC SET-TOP RULINGS
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
Cable operators large and small expressed=20
frustration with the Federal Communications=20
Commission=92s rulings late last month that denied=20
most in the industry exemptions from the July 1=20
integrated set-top ban, while giving Verizon=20
Communications and other telephone companies=20
waivers of the rule for at least one year.
http://www.multichannel.com/article/CA6458584.html

WATCHING FOOD ADS ON TV MAY PROGRAM KIDS TO OVEREAT
[SOURCE: Wall Street Journal, AUTHOR: Tara Parker-Pope]
Does food advertising on television make you eat=20
more? The question is central to the debate about=20
whether food marketing to children is fueling the=20
childhood obesity epidemic. While TV has long=20
been linked with inactivity and poor eating=20
habits, a number of health groups say=20
food-industry advertising of fatty and sugary=20
products to kids is making kids overeat. Now, new=20
research from Britain supports the claim, showing=20
that the type of advertising kids see on=20
television can make a dramatic difference in how much food they eat afterwa=
rd.
http://online.wsj.com/article/SB118402733235161571.html?mod=3Dtodays_us_...
sonal_journal
(requires subscription)
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Communications-related Headlines is a free online=20
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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
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