July 2007

SPECTRUM POLICY
Next FCC Meeting Focuses On Auction, Roaming
Verizon Changes Course, Supports Open-Access Plan
Mobile DTV Consortium Bulks Up

INTERNET/BROADBAND
Blueprint for a National Broadband Policy
Study: 1 in 5 adults watch Web videos

COMMUNITY MEDIA
Imagining the (Un)Thinkable: Community Media Over the Next Five Years
The First Community Media Summit
What=92s Going on in Community Media?

OWNERSHIP
Tribune CEO says plan to go private on track
Dow Jones Falls on Concern Bancrofts Will Reject Bid
Very old media

KIDS & MEDIA
Disney Films To Be Smoke-Free
Internet sex crimes more complicated than public thinks

MEDIA & ELECTIONS
CNN's YouTube Debate Failed the American People
Political Ads Stage a Comeback in Newspapers

QUICKLY -- Radio giant makes itself Clear; Online=20
Newspaper Audience Rising Twice As Fast As=20
General Internet Population; Retired AT&T CEO dug in and kept going

SPECTRUM POLICY

NEXT FCC MEETING FOCUSES ON AUCTION, ROAMING
[SOURCE: TelecomWeb]
The FCC will hold an open meeting Tuesday July 31=20
and will consider two items: rules for an=20
upcoming spectrum auction and the roaming=20
obligations of Commercial Mobile Radio Service.=20
Commissioners will consider a Second Report and=20
Order concerning rules governing wireless=20
licenses in the 698 MHz-806 MHz Band, which is=20
spectrum currently occupied by television=20
broadcasters in TV Channels 52-69 and that will=20
be made available for wireless services,=20
including public safety and commercial services.
http://www.telecomweb.com/tnd/24405.html
* FCC agenda
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-275516A1.doc

VERIZON CHANGES COURSE, SUPPORTS OPEN-ACCESS PLAN
[SOURCE: Washington Post, AUTHOR: Kim Hart]
In a last-minute policy shift, Verizon Wireless=20
said yesterday that it would support a plan=20
requiring a portion of airwaves to be available=20
to any wireless device. But the company that=20
builds the network on those airwaves, Verizon=20
said, shouldn't have to guarantee that all=20
applications, such as games and videos, will work=20
properly. Verizon has firmly opposed a proposal=20
put forth by Federal Communications Commission=20
Chairman Kevin J. Martin that would require that=20
a large swath of airwaves, to be auctioned in=20
January, be used to build a network open to any=20
wireless device or service. Currently, wireless=20
carriers control the handsets and features=20
available to consumers. Google and other Internet=20
companies have argued that opening the network to=20
all devices would benefit consumers and allow a=20
new entrant into the wireless market. But Verizon=20
has said such a requirement would hurt=20
traditional wireless carriers, which want to buy=20
the spectrum to roll out services on their networks.
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/25/AR200707...
2554.html
(requires registration)

MOBILE DTV CONSORTIUM BULKS UP
[SOURCE: Broadcasting&Cable, AUTHOR: Glen Dickson]
The Open Mobile Video Coalition, a consortium of=20
broadcast station groups interested in using the=20
digital television spectrum for mobile=20
applications, has doubled in size with the=20
addition of ten new member groups as well as the=20
Association of Public Television Stations. Cox=20
Television, Dispatch Broadcast Group, Freedom=20
Broadcasting, LIN TV Corporation, Meredith=20
Corporation, Media General, Post-Newsweek=20
Stations, Raycom Media and Schurz Communications=20
have all joined the Coalition, which formally=20
announced itself at the NAB convention last=20
spring . Previous members included Belo Corp.,=20
Fox Television Stations, Gannett Broadcasting,=20
Gray Television, ION Media Networks, the NBC and=20
Telemundo Television Stations, Sinclair Broadcast=20
Group and Tribune Broadcasting Company, which=20
comprised 281 stations. The new members boost the=20
total number of commercial stations to in the=20
Coalition to 422, in addition to the 361 public=20
TV stations represented by APTS. To date, the=20
Coalition has mainly promoted the business=20
potential of providing mobile TV services through=20
the digital spectrum and urged technology vendors=20
to participate in the Advanced Television Systems=20
Committee=92s process for setting a U.S. standard=20
for mobile DTV. The Coalition hasn't formally=20
backed any specific mobile DTV technology, such=20
as the competing MPH and A-VSB systems from=20
Harris/LG and Samsung/Rohde & Schwarz,=20
respectively. But it has participated in tests of=20
each technology, and has also set up its own=20
mobile DTV test markets in Tampa, Fla. and=20
Washington, D.C. The Coalition says its overall=20
mission is the parallel development of mobile DTV=20
standards, devices and business models with the goal of a 2009 launch.
http://www.broadcastingcable.com/article/CA6462861.html?rssid=3D193

INTERNET/BROADBAND

BLUEPRINT FOR A NATIONAL BROADBAND STRATEGY
[SOURCE: OpenLeft, AUTHOR: Ben Scott, Free Press]
[Commentary] We need a genuine national broadband=20
policy. The vision for our national broadband=20
policy should be bold and comprehensive. The=20
problems in the marketplace will not be solved by=20
tweaking around the edges. We need to reject the=20
conventional political wisdom and embrace policy=20
ideas that will put our broadband future back on=20
track. Now is not the time to make artificial=20
declarations that some ideas are off the table=20
and narrowly focus on particular proposals. No=20
one policy idea is the silver bullet. It will=20
require many different initiatives aimed at=20
different levels of the broadband market to=20
accomplish our goals. The Blueprint for a=20
National Broadband Policy includes: 1) Allocate=20
the public airwaves to create a viable wireless=20
broadband competitor to DSL and cable. 2) Expand=20
unlicensed public spectrum. 3) Reform and=20
transition the federal universal service programs=20
to broadband. 4) Guarantee reasonable and=20
nondiscriminatory interconnection between=20
facilities-based providers. 5) Reintroduce=20
"intramodal" competition into the broadband=20
market. 6) Explore financial incentives to expand=20
broadband capacity in the last mile. 7) Authorize=20
and protect the right of local governments to=20
provide broadband services. Municipalities have=20
led the charge in recent years to fill gaps in=20
the broadband market and build services that=20
exceed those offered by commercial incumbents. 8)=20
Collect data and map the broadband market on an=20
ongoing basis. 9) Make Net Neutrality the=20
cornerstone of broadband policy. 10) Apply=20
Carterfone rules to the wireless broadband=20
platform. 11) Pair broadband expansion with=20
digital inclusion programs. 12) Facilitate=20
ongoing research into network traffic and data management.
http://www.openleft.com/showDiary.do?diaryId=3D401

STUDY: 1 IN 5 ADULTS WATCH WEB VIDEOS
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
One in five online Americans view video over the=20
Internet on any given day, thanks to speedier=20
Internet connections and a wider selection of clips, a study finds.
Young adults watch in greater numbers and often=20
turn to humorous clips, while all other age=20
groups use video predominantly for news,=20
according to the Pew Internet and American Life=20
Project. On a typical day, 19 percent of U.S.=20
Internet adults watch some form of video. News=20
ranked first and comedy second overall. Mary=20
Madden, a senior research specialist at Pew, said=20
news outlets, among the first to deliver online=20
video, had an "early mover advantage" and got=20
people comfortable with the idea of using the=20
Internet for video. But the rapid rise of the=20
video-sharing site YouTube, which Google Inc.=20
bought in November, drew many younger viewers.=20
Half of video viewers ages 18-29 watch clips on=20
YouTube, and about 15 percent cite News Corp.'s=20
MySpace. Only 7 percent turn to a cable or network TV site.
http://www.twincities.com/technology/ci_6462485?nclick_check=3D1

COMMUNITY MEDIA

IMAGINING THE (UN)THINKABLE: COMMUNITY MEDIA OVER THE NEXT FIVE YEARS
The Media Justice Fund of the Funding Exchange=20
explores the changing landscape in its new=20
journal, Imagining the (UN)Thinkable: Community=20
Media Over the Next Five Years. This collection=20
of essays pushes the boundaries of current=20
research on media policy and provides critical=20
information on the potential power of the=20
Internet, radio, and community-access TV to=20
enhance social justice movements. Written from=20
perspectives of people of color, low-income=20
people, women and other marginalized communities,=20
the report offers useful tools and strategies for media justice advocates.
http://www.fex.org/assets/246_fexmjfjournalfin.pdf
** Also see Benton's What's Going On in Community Media
http://www.benton.org/index.php?q=3Dnode/6172

THE FIRST COMMUNITY MEDIA SUMMIT
[SOURCE: see3]
The first Community Media Summit was held in=20
Chicago on June 15th. The purpose of this event=20
was to explore what is =93community media=94 and how=20
new media and technology impact how we work with=20
communities. What=92s a Community Media Summit=20
without media? See3 Communications partnered with=20
the Benton Foundation, CAN TV, Chicago Community=20
Trust and the host, the Community Media Workshop=20
to develop a 4-part video on What is Community Media.
http://blog.see3.net/?p=3D210
* 21st Century Community
http://www.brightcove.com/title.jsp?title=3D1119163880
* Role of Community Media
http://www.brightcove.com/title.jsp?title=3D1119187925
* Collaboration
http://www.brightcove.com/title.jsp?title=3D1119370791
* Broadband
http://www.brightcove.com/title.jsp?title=3D1120313656

WHAT'S GOING ON IN COMMUNITY MEDIA?
[SOURCE: Benton Foundation; AUTHOR: Fred Johnson]
June 2007 A new report shines a spotlight on=20
media that go beyond the standard notions of=20
media in the public interest to embrace practices=20
that increase citizen participation in media=20
production, governance, and policy. The report=20
summarizes the findings of a nationwide scan of=20
effective and emerging community media practices=20
conducted by the Benton Foundation in=20
collaboration with the Community Media and=20
Technology Program of the University of=20
Massachusetts, Boston. The scan includes an=20
analysis of trends and emerging practices; an=20
online survey of community media practitioners;=20
one-on-one interviews with practitioners,=20
funders, and policy makers; and the information=20
gleaned from a series of roundtable discussions=20
with community media practitioners in Chicago,=20
Boston, Minneapolis/St. Paul, and Portland, Oregon.
http://www.benton.org/index.php?q=3Dnode/6172

OWNERSHIP

TRIBUNE CEO SAYS PLAN TO GO PRIVATE ON TRACK
[SOURCE: Crain's Chicago Business]
Tribune Co. CEO Dennis FitzSimons reassured=20
investors Wednesday that the media company=92s=20
$8.2-billion plan to go private is on track even=20
as cash flow is declining and tightening credit=20
markets could potentially drive up the cost of=20
financing the buyout. But numbers released=20
Wednesday indicate the deal isn't a slam-dunk.=20
Under the agreement with its lenders, Tribune has=20
to maintain cash flow that is at least 10% higher=20
than interest costs. Debt levels also must be no=20
higher than nine times cash flow. In a prepared=20
statement, Mr. FitzSimons said executives =93expect=20
to be in full compliance with our credit=20
agreements.=94 Tribune=92s operating cash flow =97 the=20
money from which interest will be paid on the=20
billions it=92s borrowing to buy out shareholders =97=20
shrank 29% in the second quarter, dropping to=20
$254 million from $359 million the year before.
http://chicagobusiness.com/cgi-bin/news.pl?id=3D25775&seenIt=3D1

DOW JONES FALLS ON CONCERN BANCROFTS WILL REJECT BID
[SOURCE: Bloomberg, AUTHOR: Cecile Daurat and Leon Lazaroff]
Dow Jones & Co.'s stock fell to its lowest in two=20
months after a meeting of the company's=20
controlling shareholders heightened concern they=20
will reject Rupert Murdoch's $5 billion bid. "The=20
market is putting a higher and higher probability=20
that the deal is not going down,'' said Robert=20
Willis, chief investment officer of Willis Investment Counsel."
http://www.bloomberg.com/apps/news?pid=3D20601103&sid=3Da2JCa9DPd1N4

VERY OLD MEDIA
[SOURCE: The Economist]
[Commentary] Since launching his $5 billion bid=20
for Dow Jones in April, Rupert Murdoch, now aged=20
76, seems to have rediscovered his younger self.=20
His campaign to get his hands on the owner of the=20
Wall Street Journal, a newspaper he has long=20
coveted, has been a master class in=20
mergers-and-acquisitions strategy. It seems=20
likely to result in an against-all-odds victory,=20
perhaps the greatest of his career. Meanwhile,=20
one of Mr Murdoch=92s (literally) oldest rivals,=20
84-year-old Sumner Redstone, is making headlines=20
again -- not for the happiest reasons, but at=20
least it suggests that he remains fully engaged=20
in his media conglomerate and has no intention of=20
stepping down any time soon. He previously warred=20
with his son, and now seems to have fallen out=20
with his daughter, Shari, who was thought to be=20
the heiress apparent. What lessons can ordinary=20
mortals learn from these very old media titans?=20
=93First, be your own boss=97then nobody can sack you=20
or force you to retire,=94 argued The Economist a=20
couple of years ago. Also, =93greed -- the pursuit=20
of wealth -- is obviously good for you: keeping=20
at it is helping to keep these men young. The=20
money, evidently, is not the point.=94 The likes of=20
Messrs Murdoch and Redstone have =93stashed away=20
more billions than they could ever spend on new=20
houses or wives, yet they go on slugging. Maybe=20
it's the lust for power that drives them to=20
fulfill their evolutionary destiny. Maybe it's=20
the love of the chase. Either way, it beats=20
shuffleboard.=94 The bottom line? =93Never retire=97it=20
rots the brain.=94 Mr Murdoch once returned an=20
advance he had been given to produce his=20
autobiography, remarking that sitting down to=20
write his life story would be like admitting it was all over.
http://www.economist.com/business/displaystory.cfm?story_id=3D9536227

KIDS & MEDIA

DISNEY FILMS TO BE SMOKE-FREE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Disney has pledged, sort of, to cut out smoking=20
from future Disney-branded films, but says that=20
is not a precedent for a crackdown on other=20
content. In a letter to House Telecommunications=20
& Internet Subcommittee Chairman Ed Markey=20
(D-Mass.), Disney President Bob Iger said that=20
"we _expect_ [emphasis ours] that depictions of=20
cigarette smoking in future Disney-branded films=20
will be non-existent." Disney said in a release=20
that the company would "discourage depictions of=20
cigarette smoking in its films." He also said the=20
company would put anti-smoking PSA's on DVD's of=20
films from co-owned Miramax or Touchstone brands=20
that do show smokers. But Iger also said that=20
smoking was a "unique problem" and that the move=20
was not "a precedent for any other issue."
http://www.broadcastingcable.com/article/CA6462914.html?rssid=3D193
* Chairman Markey's press release
http://markey.house.gov/index.php?option=3Dcom_content&task=3Dview&id=3D...
1&Itemid=3D141
* Disney letter to Chairman Markey
http://markey.house.gov/docs/telecomm/Disney%20Letter%20--%20Commitment%...
o%20End%20Cigarette%20Smoking%20in%20Disney%20Branded%20Films.pdf

INTERNET SEX CRIMES MORE COMPLICATED THAN PUBLIC THINKS
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
Dr. David Finkelhor of the University of New=20
Hampshire told the Senate Commerce Committee=20
that, after studying hundreds of cases, his=20
research team found: 1) Teenagers, not young=20
children, are the typical online sex crime=20
victims. And the "predominant crime scenario"=20
rarely involves violence or abduction. These take=20
place, respectively, in only five and three=20
percent of cases. 2) The overwhelming majority of=20
adult offenders do not conceal who they really=20
are. 80% are "quite explicit about their sexual=20
intentions towards these kids." 3) Violent sex=20
crimes are atypical in these cases. By the time=20
the adult and the teenager have met, the former=20
has typically engaged in weeks of "very often=20
quite explicit online conversations that play on=20
the teen's desire for romance, adventure, sexual=20
information and understanding."
http://www.lasarletter.net/drupal/node/439
* Protecting Children on the Internet
See a webcast of the hearing or read opening remarks.
http://commerce.senate.gov/public/index.cfm?FuseAction=3DHearings.Hearin...
earing_ID=3D1885

MEDIA & ELECTIONS

CNN'S YOUTUBE DEBATE FAILED THE AMERICAN PEOPLE
[SOURCE: AlterNet, AUTHOR: Rory O'Connor]
[Commentary] In what was otherwise an interesting=20
and even laudable experiment in participatory=20
democracy, CNN and the candidates let us down in=20
the so-called "YouTube Debate." In only dipping=20
its toe in the swirling, muddy waters of citizen=20
media, greater access, and individual=20
empowerment, however, America's 'most trusted=20
news network' failed to deliver on the promise of=20
a Great Debate by, in essence, failing to trust the American people.
http://www.alternet.org/mediaculture/57807/

POLITICAL ADS STAGE COMEBACK IN NEWSPAPERS
[SOURCE: Wall Street Journal, AUTHOR: Kevin Helliker kevin.helliker( at )wsj.com]
At a time when many categories of newspaper=20
advertising are declining, the political message=20
is making a comeback. As overall spending on=20
campaigns doubled to $3.1 billion between 2002=20
and 2006, the amount spent on newspapers,=20
including their online editions, tripled to $104=20
million, according to PQ Media. The rate of=20
growth appears to be highest in races for local=20
posts, such as mayor and state legislator,=20
because newspapers boast greater penetration and=20
influence in small- to medium-size markets.=20
Newspapers are still far from their status in=20
pretelevision times as the premier vehicle for=20
political advertising. Even with the recent=20
gains, they are receiving less than 5% of the=20
advertising dollars spent on political campaigns.=20
And some of their recent political gains are=20
merely a by-product of the surge of campaign ads=20
on television: As political ads clog the=20
airwaves, newspapers have become a way to stand=20
out. Newspaper readers vote at above-average=20
rates. Even amid circulation declines, newspapers=20
in many markets reach an audience that is=20
competitive with any single broadcast channel, a=20
strength that online editions are bolstering.=20
Online editions also are reaching a demographic=20
group that their print editions have been losing=20
-- the young reader. Newspapers also allow for=20
more sophisticated arguments than are delivered=20
in the typical 30-second television campaign.
http://online.wsj.com/article/SB118541344062578440.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

CABLE

CABLE WITHOUT A CABLE BOX, AND TV SHOWS WITHOUT TV
[SOURCE: New York Times, AUTHOR: John Quain]
How would you like to use your video-game console=20
to tune in =93Big Love=94 on your television? Or=20
perhaps use your DVD player to download =93The=20
Departed=94 while you watch a ballgame? Those=20
features are now possible, thanks to some new=20
devices and recent rule changes governing cable=20
television service. Just don't throw out your old=20
cable box quite yet. The key to this new world of=20
TV entertainment is a Federal Communications=20
Commission rule that went into effect July 1.=20
Cable companies in the United States now have to=20
separate the security functions that prevent you=20
from watching channels you haven't paid for from=20
the TV tuner box most of us rent. The practical=20
result of the rule is that cable companies now=20
have to supply set-top boxes that come with a=20
removable CableCARD. The cards, which look like=20
the PC Cards used in notebook computers, contain=20
the information necessary to unscramble digital=20
cable channels like HBO. But they could allow=20
other equipment to become much more versatile.=20
The cards are designed to be inserted into a host=20
of other devices, including TVs, digital video=20
recorders (DVRs) and computers. Companies like=20
Toshiba, Panasonic, Microsoft and Hewlett-Packard=20
have sought this breakthrough for years because=20
it opens an array of features for=20
CableCARD-equipped devices. Cable companies have=20
resisted the idea, which should surprise no one.
http://www.nytimes.com/2007/07/26/technology/circuits/26basics.html
(requires registration)

QUICKLY

RADIO GIANT MAKES ITSELF CLEAR
[SOURCE: Variety, AUTHOR: William Triplett]
Clear Channel has responded to a senior lawmaker=20
who questioned whether the radio giant was=20
already violating a recent consent decree with=20
the Federal Communications Commission over=20
allegations of payola. Andrew W. Levin, Clear=20
Channel's top lawyer, sent a letter Monday to=20
Sen. Russell Feingold (D-Wisc.), assuring him the=20
company is in compliance with the decree, and=20
that reports of violations have been the result=20
of confusion over legal language.
http://www.variety.com/article/VR1117969044.html?categoryid=3D16&cs=3D1&...
=3D2568

ONLINE NEWSPAPER AUDIENCE RISING TWICE AS FAST AS GENERAL INTERNET POPULATI=
ON
[SOURCE: paidContent.org, AUTHOR: David Kaplan]
Newspapers=92 online audiences are rising at twice=20
the rate of the general Internet audience,=20
according to research by Nielsen//NetRatings for=20
the Newspaper Association of America. An average=20
of more than 59 million people (37.6 percent of=20
all active Internet users) visited newspapers=20
online each month during Q1, a 5.3 percent=20
increase over the same period a year ago,=20
according to Nielsen//NetRatings NetView custom=20
analysis. During the same time period, the=20
overall Internet audience grew just 2.7 percent.
http://www.paidcontent.org/entry/419-online-newspaper-audience-rising-tw...
-as-fast-as-general-internet-popu/

RETIRED AT&T CEO DUG IN AND KEPT GOING
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
An interview with retired AT&T CEO Edward=20
Whitacre Jr. During his 17 years as head of SBC=20
and AT&T, he pulled off a feat that many thought=20
impossible: He turned Southwestern Bell, the=20
smallest of the seven regional Bells, into the=20
biggest telecommunications company on the planet.
http://www.usatoday.com/printedition/money/20070726/edcenter.art.htm
--------------------------------------------------------------
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.
--------------------------------------------------------------