July 2007

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INTERNET/BROADBAND
Broadband Baloney
Bandwidth wars

MEDIA & ELECTIONS
Public Voice Adds Edge to Debate

OWNERSHIP
XM and Sirius Radio Propose Pricing
Tribune Sale at Issue as Newspaper Woes Mount
Family Talks on a Sale of Dow Jones Are Called =91Not Acrimonious=92
Citadel's Closing in on ION

NEWS FROM CONGRESS
Dingell Seeks FCC Answers On Set-Tops, Spectrum Auctions
Lautenberg Introduces Community Broadband Act of 2007

QUICKLY -- Lawyers Get Court Approval for Pop-Up Ads on Internet

INTERNET/BROADBAND

BROADBAND BALONEY
[SOURCE: Wall Street Journal, AUTHOR: Robert McDowell]
[Commentary] Federal Communications Commission=20
Commissioner Robert McDowell writes that American=20
consumers are poised to reap a windfall of=20
benefits from a new wave of broadband deployment.=20
But you would never know it by the rhetoric of=20
those who would have us believe that the nation=20
is falling behind, indeed in free fall. Looming=20
over the horizon are heavy-handed government=20
mandates setting arbitrary standards, speeds and=20
build-out requirements that could favor some=20
technologies over others, raise prices and=20
degrade service. This would be a mistaken road to=20
take -- although it would hardly be the first=20
time in history that alarmists have ignored cold,=20
hard facts in pursuit of bad policy. When it=20
comes to broadband policy, let's put aside flawed=20
studies and rankings, and reject the road of=20
regulatory stagnation. In the next few years, we=20
will witness a tremendous explosion of=20
entrepreneurial brilliance in the broadband=20
market, if the government doesn't micromanage.=20
Belief in entrepreneurs and a light regulatory=20
touch is the right broadband policy for America.
http://online.wsj.com/article/SB118524094434875755.html?mod=3Dtodays_us_...
nion
(requires subscription)
* Are the numbers flawed? See=20
http://www.freepress.net/docs/shooting_the_messenger.pdf

BANDWIDTH WARS
[SOURCE: Financial Times, AUTHOR: Thomas Hazlett, George Mason University]
[Commentary] What's the real pay-off in the=20
transition to digital television? Spectrum=20
efficiency. What an analog television transmitter=20
can do using a standard television channel (6-8=20
MHz, depending on country) a digital station can=20
do four, five or six times. Viewer choice=20
increases =ADmulti-fold by flipping a technology=20
switch. Digital=92s cleaner use of airwaves also=20
accommodates new voice and data applications.=20
Given that vast frequency space was long ago set=20
aside for analog television, digitization frees=20
up abundant bandwidth for pretty amazing new=20
stuff. We have trekked to just the cusp of the=20
Wireless Age. But that day is delayed by go-slow=20
spectrum policies, accounted for by three=20
factors. First, regulators enjoy, and profit=20
from, control over valuable stuff. Given that no=20
agency official stands to lose salary or share=20
price by squandering socially valuable bandwidth,=20
state =93warehousing=94 of frequencies is endemic.=20
Second, market players are generally comfortable=20
with market stability. From the operators=92=20
perspective, cellular licence auctions do three=20
things =96 cost money, yield more spectrum for them=20
to use, yield more spectrum for their rivals to=20
use =96 and two of them are bad. Finally, there is=20
a great temptation for other political interests,=20
including those affiliated with tele=ADvision=20
broadcasters, to keep the spectrum subject to=20
political allocation. That yields power and=20
opportunity. The US performance on television=20
band reallocation is not visibly improved, but=20
the plodding elsewhere appears as bad or worse.=20
By making some progress to advance productive use=20
of the digital dividend, the Americans may=20
paradoxically stumble to a first-place finish in=20
an international race being run in slow motion.
http://www.ft.com/cms/s/84e25588-3949-11dc-ab48-0000779fd2ac.html
(requires subscription)

MEDIA & ELECTIONS

PUBLIC VOICE ADDS EDGE TO DEBATE
[SOURCE: Washington Post, AUTHOR: Dan Balz and Anne E. Kornblut]
Democratic presidential candidates shared the=20
spotlight Monday night with ordinary citizens=20
from around the country in a two-hour debate that=20
featured sharp and sometimes witty video=20
questions and often equally sharp exchanges among=20
the candidates on issues ranging from Iraq and=20
health care to whether any of them can fix a=20
broken political system. The debate, co-sponsored=20
by CNN and YouTube, underscored the arrival of=20
the Internet as a force in politics. The=20
citizen-interrogators generated the most diverse=20
set of questions in any of the presidential=20
debates to date and challenged the candidates to=20
break out of the rhetoric of their campaign=20
speeches and to address sometimes uncomfortable=20
issues, such as race, gender, religion and their own vulnerabilities.
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/23/AR200707...
2074.html
(requires registration)
* YouTube video debate actually worked
http://news.com.com/YouTube+video+debate+actually+worked/2100-1028_3-619...
5.html?tag=3Dhtml.alert.hed
* Via YouTube, public presses Democratic hopefuls
http://www.usatoday.com/printedition/news/20070724/a_debate24.art.htm
* YouTube presidential debate blazes trail
http://www.latimes.com/news/printedition/front/la-na-debate24jul24,1,351...
3.story?coll=3Dla-headlines-frontpage
* Hi, I'm Tom In Washington, And My Question Is for CNN...
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/23/AR200707...
2122.html
* Campaign mash-up, v. 1.0
[Commentay] In the end, the CNN/YouTube=20
presidential debate amounts to little more than=20
an interesting sort of town hall.
http://www.latimes.com/news/printedition/asection/la-et-ontv24jul24,1,39...
97.story?coll=3Dla-news-a_section

OWNERSHIP

XM AND SIRIUS RADIO PROPOSE PRICING
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
Hoping to persuade skeptical regulators to=20
approve their proposed merger, the nation=92s two=20
satellite radio companies today announced=20
detailed plans to let consumers choose the=20
programs that make up their subscription package.=20
The companies, Sirius Satellite Radio and XM=20
Satellite Radio, said they would offer two=20
so-called =93=E0 la carte=94 pricing plans -- one of=20
which would enable consumers to purchase the best=20
of the premium services now offered by each=20
company, like professional football, baseball and=20
basketball -- for a monthly fee of $14.99. To=20
subscribe to the =93=E0 la carte=94 plans, consumers=20
would have to buy new radios. The companies said=20
they would also let listeners select rate plans=20
that would give them credit for adult stations=20
that they decide not to get as part of their=20
packages. The two companies now each offer their=20
services for $12.95 a month, with lower rates for=20
longer-term contracts. They have 14 million=20
subscribers. The announcement, coming the day=20
before the record closes in the proceeding at the=20
Federal Communications Commission, was an effort=20
to persuade the agency that the merger was in the public interest.
http://www.nytimes.com/2007/07/23/business/23cnd-radio.html?_r=3D1&hp&oref=
=3Dslogin
(requires registration)
* XM, Sirius promise low cost packages, more choice
http://www.reuters.com/article/technologyNews/idUSWNAS700820070723
* XM-Sirius in New Pitch for Merger
http://www.phillyburbs.com/pb-dyn/news/24-07232007-1381877.html
* Sirius, XM Radio Plan Packages Aimed at Pleasing Regulators
http://online.wsj.com/article/SB118520370393574960.html?mod=3Dtodays_us_...
e_one
* XM, Sirius plan a la carte offerings
http://www.usatoday.com/printedition/money/20070724/xmradio24.art.htm
* A nervous commentary on the XM/Sirius merger - from Toyota
Toyota Motor North America, which offers both XM=20
and Sirius satellite radio with its cars,=20
endorsed the proposed merger of the two services=20
in a statement filed with the Federal=20
Communications Commission. Maybe. Sort of.
http://www.lasarletter.net/drupal/node/438
* NPR Opposes XM/Sirius Merger
http://www.broadcastingcable.com/article/CA6462230.html?rssid=3D193
* Karmazin Makes New XM-Sirius Price Offer
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/23/AR200707...
1606.html
* Sirius, XM cite benefits if merger wins approval
http://www.latimes.com/business/printedition/la-fi-radio24jul24,1,282874...
tory?coll=3Dla-headlines-pe-business

TRIBUNE SALE AT ISSUE AS NEWSPAPER WOES MOUNT
[SOURCE: Associated Press, AUTHOR: ]
Billionaire real estate investor Sam Zell was=20
viewed as a savior in some quarters last spring=20
when he swooped in to orchestrate an $8.2 billion=20
buyout offer for Tribune Co. amid tepid interest=20
for the ailing newspaper publisher. Now the=20
industry's accelerating decline has some Wall=20
Street experts wondering whether the deal for the=20
parent company of the Chicago Tribune, Los=20
Angeles Times and Chicago Cubs could fall apart.=20
And even if it goes through, the employee stock=20
ownership plan that will own most of the company=20
could face a debt burden even more onerous than=20
the one envisioned in April. Zell so far has put=20
up only $50 million in cash, and his ability to=20
walk away appears restricted to certain scenarios=20
which, according to those following the deal=20
closely, don't yet exist. But double-digit drops=20
in revenue and cash flow at the Los Angeles Times=20
as well as deteriorating results at other=20
newspapers have heightened speculation about the=20
potential for the transaction to collapse before=20
the planned closing late this year.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003615487

FAMILY TALKS ON A SALE OF DOW JONES ARE CALLED 'NOT ACRIMONIOUS'
[SOURCE: New York Times, AUTHOR: Richard Perez-Pena]
In their last meeting before an expected vote on=20
selling to Rupert Murdoch=92s News Corporation, the=20
family that controls Dow Jones & Company, owner=20
of The Wall Street Journal, heard arguments for=20
and against the deal yesterday from family=20
members and advisers. Over the next several days,=20
the Bancroft family members will tell their=20
lawyers where they stand, and the lawyers will=20
tally the results. There was no debate only a=20
series of speeches. And as expected, the family=20
was deeply divided; people close to them said the vote was too close to cal=
l.
http://www.nytimes.com/2007/07/24/business/media/24dow.html
(requires registration)
* New Opposition Arises to Dow Jones Deal
http://online.wsj.com/article/SB118522326046475319.html?mod=3Dtodays_us_...
e_one
* Owners of Dow Jones Convene to Vote on Bid
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/23/AR200707...
1594.html
* Murdoch seeks sale decision this week
http://www.latimes.com/business/printedition/la-fi-dowjones24jul24,1,214...
1.story?coll=3Dla-headlines-pe-business
* The Journal And the Mogul
[Commentary] Eugene Robinson doesn't see any=20
realistic choice for the Bancrofts but to take Rupert Murdoch's offer.
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/23/AR200707...
1363.html

CITADEL'S CLOSING IN ON ION
[SOURCE: New York Post, AUTHOR: Zachery Kouwe]
Hedge fund Citadel Investment Group and NBC=20
Universal came a step closer to taking control of=20
broadcaster Ion Media Networks after a Delaware=20
judge quickly refused to hear an appeal from a=20
group of angry investors. The investors, who own=20
preferred stock in Ion, filed a lawsuit last=20
month seeking to stop a planned takeover by NBC=20
and Citadel, claiming it undervalues their stake.=20
Earlier this month, the Delaware Chancery Court=20
denied a motion by the investors, led by Gradient=20
Partners, to stop the takeover of Ion. The=20
investors have also filed a complaint with the=20
Federal Communications Commission claiming that=20
NBC is exercising too much influence over Ion=20
despite the fact that Citadel will own most of the company.
http://www.nypost.com/seven/07242007/business/citadels_closing_in_on_ion...
siness_zachery_kouwe.htm

NEWS FROM CONGRESS

DINGELL SEEKS FCC ANSWERS ON SET-TOPS, SPECTRUM AUCTIONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The House Telecommunications & Internet=20
Subcommittee will hold an FCC oversight hearing=20
July 24, with all the commissioners scheduled to=20
be in attendance. Saying he appreciated FCC=20
Chairman Kevin Martin's participation given=20
recent eye surgery that made it tough for him to=20
read, John Dingell (D-MI), chairman of the parent=20
Commerce Committee, still had a lot of questions=20
he wanted Martin to bone up on for the hearing on=20
subjects including 1) the set aside of some of=20
the 700mHz TV spectrum for an interoperable=20
public safety communications network and 2) cable=20
set-top waiver decisions earlier this month.
http://www.broadcastingcable.com/article/CA6462132.html?rssid=3D193
* Google's Money Could Change Everything in Wireless Communications
http://www.consumersunion.org/blogs/hun/2007/07/googles_money_could_chan...
eve.html

LAUTENBERG INTRODUCES COMMUNITY BROADBAND ACT OF 2007
[SOURCE: Sen. Frank R. Lautenberg]
Sen. Frank R. Lautenberg (D-NJ) introduced=20
legislation to help make broadband access=20
universal and affordable across the country. The=20
measure would promote economic development,=20
enhance public safety, and increase educational=20
opportunities by removing barriers that prevent=20
cities and towns from offering broadband services=20
to their residents. Sen. Lautenberg=92s measure =AD=20
known as the =93Community Broadband Act of 2007=94 =AD=20
stipulates that states cannot prohibit a=20
municipality from offering broadband to its=20
residents, and that a municipality that is a=20
provider cannot discriminate against private=20
competitors. The measure: 1) Sets forth that no=20
state regulation or requirement shall prevent a=20
public provider from offering broadband=20
services; 2) Prohibits a municipality from=20
discriminating against competing private=20
providers; 3) Requires a municipality offering=20
high-speed Internet services to comply with=20
Federal telecommunications law or regulation that=20
applies to all such providers; 4) Encourages=20
public-private partnerships and; 5) Provides the=20
public with notice and an opportunity to be heard=20
before a municipality provides broadband to the=20
public. The measure also is sponsored by Sens.=20
Gordon Smith (R-OR), John Kerry (D-MA), John=20
McCain (R-AZ), Claire McCaskill (D-MO), and Olympia Snowe (R-ME).
http://lautenberg.senate.gov/newsroom/record.cfm?id=3D279536
* Track the bill http://www.benton.org/?q=3Dnode/6649

QUICKLY

LAWYERS GET COURT APPROVAL FOR POP-UP ADS ON INTERNET
[SOURCE: New York Times, AUTHOR: Karen Donovan]
A federal judge in Syracuse has cleared the way=20
for lawyers in New York State to use pop-up ads=20
on the Internet, but did not answer the bigger=20
but more subtle issue of whether firms must label=20
newsletters and e-mail messages to clients as advertising.
http://www.nytimes.com/2007/07/24/business/media/24legal.html
(requires registration)
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