August 2007

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GOVERNMENT & COMMUNICATIONS
Satellite Plan Draws Scrutiny
McConnell: Fewer Than 100 Secret U.S. Wiretaps
White House Declares Office Off-Limits

INTERNET/BROADBAND
Congress Diverges Over Broadband Loans
Gambling Dispute With a Tiny Country Puts U.S. in a Bind

NEWS AT THE FCC
Martin Wants Dual Carriage Vote
Civil-Rights Groups Slam Martin Over a la Carte
FCC Must Protect Innovation, Privacy in e911 Rulemaking
Next FCC meeting: Sept. 11

SPECTRUM/WIRELESS
Handcuffs chafe wireless users
Google CEO says mobile auction bid still probable
Former FCC Chair Stumps For Spectrum
AT&T=92s Overstuffed iPhone Bills Annoy Customers

KIDS & MEDIA
=91Kid Nation=92 Parents Gave Show Free Rein
Checking the Kids' Homework Over the Internet
What Did U $( at )y? Online Language Finds Its Voice

QUICKLY -- Cable's summer of love; TV is taking a=20
back seat to Web, mobile; One in four read no books last year

GOVERNMENT & COMMUNICATIONS

SATELLITE PLAN DRAWS SCRUTINY
[SOURCE: Wall Street Journal, AUTHOR: Robert Block bobby.block( at )wsj.com]
In the first sign of opposition to a=20
controversial satellite-surveillance plan, House=20
Democrats told the Department of Homeland=20
Security they intend to exercise close oversight=20
of the program, a move that could spark another=20
confrontation between the legislature and the=20
executive over national security. The=20
announcement, contained in a tersely worded=20
letter sent yesterday to Homeland Security=20
Secretary Michael Chertoff by House Homeland=20
Security Committee Chairman Bennie Thompson=20
(D-MS), echoes concerns voiced by some critics=20
that the planned program lacks sufficient=20
safeguards to prevent abuses. Spy satellites have=20
been used for decades for civilian purposes,=20
including mapmaking and environmental studies.=20
Three months ago, the Bush administration decided=20
to expand their use for homeland security and law=20
enforcement, including border protection. The=20
satellites will later be made available to assist=20
federal, state, local and tribal authorities. The=20
program has been on the drawing board since=20
September 2005 and was authorized by the director=20
of national intelligence, Michael McConnell, in May.
http://online.wsj.com/article/SB118783777852006309.html?mod=3Dtodays_us_...
e_one
(requires subscription)

MCCONNELL: FEWER THAN 100 SECRET US WIRETAPS
[SOURCE: Washington Post, AUTHOR: Joby Warrick]
Law enforcement officials are targeting fewer=20
than 100 people in the United States for secret=20
court-approved wiretaps aimed at disrupting=20
terrorist networks, the top U.S. intelligence=20
official said in an interview published=20
yesterday. The relatively low number of those=20
under surveillance in this country stands in=20
contrast with "thousands" of people overseas=20
whose calls and e-mails are monitored for=20
possible links to terrorism, Director of National=20
Intelligence Mike McConnell said.
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/22/AR200708...
2598.html
(requires registration)

WHITE HOUSE DECLARES OFFICE OFF-LIMITS
[SOURCE: Washington Post, AUTHOR: Dan Eggen]
The Bush administration argued in court papers=20
this week that the White House Office of=20
Administration is not subject to the Freedom of=20
Information Act as part of its effort to fend off=20
a civil lawsuit seeking the release of internal=20
documents about a large number of e-mails missing=20
from White House servers. The claim, made in a=20
motion filed Tuesday by the Justice Department,=20
is at odds with a depiction of the office on the=20
White House's own Web site. As of yesterday, the=20
site listed the Office of Administration as one=20
of six presidential entities subject to the=20
open-records law, which is commonly known by its=20
abbreviation, FOIA. Much of the White House,=20
including the offices of President Bush and Vice=20
President Cheney, is not subject to FOIA, which=20
allows the media and the public to demand=20
disclosure of federal public records. But the=20
Office of Administration, which was formed in=20
1977 and handles various administrative and=20
technology duties, responded to 65 FOIA requests=20
last year and even has its own FOIA officer, records show.
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/22/AR200708...
2441.html
(requires registration)

INTERNET/BROADBAND

CONGRESS DIVERGES OVER BROADBAND LOANS
[SOURCE: Technology Daily 8/20, AUTHOR: David Hatch]
The Senate and House diverge sharply on proposed=20
fiscal 2008 funding for a federal program that=20
provides loans to rural areas to spur deployment=20
of high-speed Internet access. The Senate=20
Appropriations Committee has recommended nearly=20
$500 million for the broadband component of the=20
Agriculture Department's Rural Utilities Service.=20
But a House-passed spending bill would only=20
provide $300 million. In February, the Bush=20
administration proposed $300 million for the=20
initiative, which provides loans to communities=20
with populations of 20,000 or less to enable=20
broadband deployment. Congress has appropriated=20
$495 million for the effort in fiscal 2007. The=20
loan initiative, which has provided more than 70=20
loans totaling $1.2 billion since its creation=20
five years ago, is the subject of scrutiny on=20
Capitol Hill. Critics include Sens. Pat Roberts=20
(R-KS) and Ken Salazar (D-CO), who offered=20
legislation in May to overhaul the program and=20
ensure that support reaches communities that need it the most.
http://www.njtelecomupdate.com/2007/08/chambers_split_over_broadband.html

GAMBLING DISPUTE WITH A TINY COUNTRY PUTS US IN A BIND
[SOURCE: New York Times, AUTHOR: Gavin Rivlin]
A look at Mark E. Mendel and the case he has been=20
waging against his own government before the=20
World Trade Organization, the body in Geneva that=20
sets the ground rules for global trade. It is a=20
clash that at once challenges Washington=92s effort=20
to prohibit online gambling while simultaneously=20
testing the ability of the W.T.O. to enforce its=20
own standards. The dispute stretches back to=20
2003, when Mr. Mendel first persuaded officials=20
in Antigua and Barbuda, a tiny nation in the=20
Caribbean with a population of around 70,000, to=20
instigate a trade complaint against the United=20
States, claiming its ban against Americans=20
gambling over the Internet violated Antigua and=20
Barbuda=92s rights as a member of the W.T.O.=20
Antigua is best known to Americans for its=20
pristine beaches and tourist attractions like=20
historic English Harbor. But the dozens of online=20
casinos based there are vital to the island=92s=20
economy, serving as its second-largest employer.
http://www.nytimes.com/2007/08/23/business/worldbusiness/23gamble.html?ref=
=3Dtodayspaper
(requires registration)
* Neteller hurt by US gaming crackdown
http://www.ft.com/cms/s/3f11545e-514b-11dc-8779-0000779fd2ac.html
(requires subscription)

NEWS AT THE FCC

MARTIN WANTS DUAL CARRIAGE VOTE
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Federal Communications Commission Chairman Kevin=20
Martin is seeking support for an order that would=20
require cable operators in early 2009 to carry=20
so-called must carry TV stations in both analog=20
and digital formats on cable systems that have=20
not converted to digital-only transmission.=20
Chairman Martin circulated the order to the other=20
four FCC members on Tuesday just two business=20
days after the agency received its last round of=20
public comment on the dual carriage proposal.=20
Chairman Martin needs two more votes to prevail=20
on an issue that places him squarely at odds with=20
the cable industry, which has historically=20
opposed regulatory largess for local TV stations=20
that places additional burdens on cable channel=20
capacity. In its proposal, the FCC said that=20
because federal law requires that must carry=20
signals must be viewable in cable homes, cable=20
operators must carry those signals in both analog=20
and digital after Feb. 17, 2009. For cable=20
systems that are all digital on that date, the=20
dual carriage requirement would not apply because=20
the FCC is presuming that every TV sets connected=20
to the cable system can translate digital signals.
http://www.multichannel.com/article/CA6471119.html?rssid=3D196

CIVIL-RIGHTS GROUPS SLAM MARTIN OVER A LA CARTE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Black Leadership Forum, the Hispanic=20
Federation, the Labor Council for Latin American=20
Advancement, the League of United Latin American=20
Citizens, the National Black Chamber of Commerce,=20
the National Congress of Black Women and the=20
Hispanic Telecommunications and Technology=20
Partnership have asked Federal Communications=20
Commission Chairman Kevin Martin for a public=20
apology, saying comments attributed to him about=20
their opposition to his a la carte cable proposal=20
were "patronizing and insulting." According to=20
the groups, Chairman Martin said the=20
organizations were opposed to his proposal due to=20
"financial relationships that some may have with=20
television programmers and distributors." The=20
groups countered that they oppose mandating=20
per-channel cable offerings because that would be=20
"deeply harmful to the cause of greater diversity=20
in cable-television programming -- a goal that we=20
hope you would share." They argued that their=20
opposition is indeed about financial=20
relationships, but instead about the=20
relationships that won't be made because an a la=20
carte regime would make it tougher for African=20
Americans, Hispanics and women to raise enough=20
capital to get new programming on the air. "The=20
idea that you somehow know better about what is=20
in [their] best interests is puzzling to say the least," the groups added.
http://www.broadcastingcable.com/article/CA6470890.html
* FCC=92s Martin Apologizes to Minority Groups for a la Carte Statements
Federal Communications Commission Chairman Kevin=20
J. Martin is apologizing to some minority groups,=20
who contend his latest statements in a push to=20
let cable customers choose their channels a la=20
carte were =93patronizing and insulting.=94
http://www.tvweek.com/news/2007/08/fccs_martin_apologizes_to_mino.php
* Martin: A la Carte Benefits Diversity
Federal Communications Commission chairman Kevin=20
Martin Wednesday defended his stand for a la=20
carte, saying he believed it could benefit, not reduce, diversity.
http://www.broadcastingcable.com/article/CA6471117.html

FCC MUST PROTECT INNOVATION, PRIVACY IN E911 RULEMAKING
[SOURCE: Center for Democracy & Technology]
CDT, the Electronic Frontier Foundation and Sun=20
Microsystems this week urged the Federal=20
Communications Commission (FCC) to be cautious in=20
considering an "automatic" location requirement=20
for VoIP providers for use during e911 emergency=20
calls. In comments filed today with the FCC, the=20
groups noted that while the e911 system is a=20
vital part of our public safety net, VoIP=20
services are unable to provide "automatic"=20
location information (without user input), and a=20
requirement that they do so would harm innovation=20
and competition. The comments also cautioned=20
that some proposed solutions to address the VoIP=20
location requirement would destroy users' privacy.
e911 Comments: http://www.cdt.org/privacy/20070822e911-comments.pdf

NEXT FCC MEETING: SEPT 11
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
The Federal Communications Commission plans to=20
hold its next public meeting on Sept. 11, the=20
first time in six years that the agency has done=20
so on the same day as the 2001 terrorist attacks=20
in New York, Washington, D.C. and Pennsylvania.=20
No meeting agenda has been released; expect one=20
on Tuesday Sept 4. The FCC is facing an Oct. 5=20
deadline to extend the cable program access=20
rules. Among other things, those rules require=20
cable operators to sell their satellite-delivered=20
networks to other pay-TV providers.
http://www.multichannel.com/article/CA6471108.html

SPECTRUM/WIRELESS

HANDCUFFS CHAFE WIRELESS USERS
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
To many, the Apple iPhone is the ultimate=20
wireless device =97 a seductive blend of=20
technology, function and dead-on cool, all=20
wrapped into a sleek package. To others, it's a=20
glaring example of what's wrong with the U.S.=20
wireless industry in general. "The iPhone offers=20
superior technology, but public policies in this=20
country allow (Apple) to chain that technology to=20
one massive company, AT&T, rather than allow=20
consumers to make the choices they want," charges=20
Josh Silver, co-founder of Free Press, a consumer=20
advocacy group. His latest campaign =97 "Free the=20
iPhone" =97 promotes an open Internet and=20
consumer-friendly public policies for mobile=20
devices. The website (www.freetheiphone.org) has=20
resulted in "tens of thousands of supporting=20
petitions," he says. Silver says his beef isn't=20
with the iPhone per se. Other U.S. carriers do=20
the same thing with the devices they sell. For=20
starters, he notes, would-be iPhone users must=20
sign a two-year contract, or contract extension,=20
with AT&T, the sole U.S. distributor. Owners can=20
access the Internet only via AT&T's network,=20
unless they happen to be in range of a Wi-Fi hot=20
spot. And the iPhone works only with software=20
sold by Apple and AT&T. Though it is touted as a=20
"global phone," the iPhone is locked, so using it=20
overseas requires paying extra for an=20
international calling plan with =97 you guessed it=20
=97 AT&T. Such handcuffs are common in the U.S.=20
wireless industry. Other big carriers, including=20
Verizon Wireless and Sprint, impose similar=20
restrictions, says Chris Murphy of Consumers=20
Union. "Consumers have no bargaining power=20
against these wireless terms that carriers can=20
dictate. It's a take-it-or-leave-it proposition."
http://www.usatoday.com/printedition/money/20070823/wirelesscover.art.htm
* Overseas, cellphones mostly 'unlocked'
Are you unlocked? If you live in the USA,=20
probably not. Wireless devices here are generally=20
"locked" by carriers so that they work only with=20
that carrier's network and software applications.=20
In Europe, the situation is just the opposite:=20
Phones are typically "unlocked," enabling=20
wireless customers to switch carriers and applications with ease.
http://www.usatoday.com/printedition/money/20070823/2b_unlocked23.art.htm

GOOGLE CEO SAYS MOBILE AUCTION BID STILL PROBABLE
[SOURCE: Reuters, AUTHOR: Diane Bartz]
Google is leaning toward bidding in upcoming U.S.=20
mobile phone airwave auctions, despite a partial=20
setback last month from Washington regulators,=20
Chief Executive Eric Schmidt said on Tuesday.=20
Schmidt told a conference of regulatory and=20
industry leaders in Aspen that his company would=20
"probably" move ahead with plans to bid for=20
wireless spectrum freed up once broadcast=20
television networks switch to digital from analog=20
in 2009. In his comments, he reiterated that the=20
decade-old hands-off government policy toward the=20
Internet -- such as no sales tax -- had allowed=20
the Internet to grow exponentially. This means no=20
government scrutiny of what is said on the Web,=20
universal broadband access to speed up the=20
Internet and "net neutrality," essentially an=20
assurance that no government or single company=20
will control what goes on the Internet. "If you=20
have three or four choices, this is not going to=20
be a problem," he said of the need to ensure=20
multiple competitors are at play in communications markets.
http://www.reuters.com/article/internetNews/idUSN2140502020070822
* Google CEO Says Bid For Spectrum 'Probable'
http://online.wsj.com/article/SB118783753545406301.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

FORMER FCC CHAIR STUMPS FOR SPECTRUM
[SOURCE: internetnews.com, AUTHOR: Andy Patrizio]
After a string of engineering talks, the annual=20
Hot Chips conference took a turn toward=20
Washington as former Federal Communications=20
Commission (FCC) Chairman Reed Hundt took the=20
stage for the afternoon keynote. At first, it was=20
a stand-up routine, with Hundt making=20
self-deprecating jokes and taking a few shots at=20
Washington. But then he got around to the point=20
of his speech: encouraging the final wireless=20
spectrum, the 700 MHz band, to remain in the=20
hands of those who would keep it freely=20
accessible to all. That includes himself and his=20
company Frontline Wireless, of which he is a co-founder and vice chairman.
http://www.internetnews.com/wireless/article.php/3695826

AT&T'S OVERSTUFFED IPHONE BILLS ANNOY CUSTOMERS
[SOURCE: New York Times, AUTHOR: Katie Hafner]
For the last several weeks, iPhone users have=20
been by turns amused or enraged over the sheer=20
heft =97 some are the size of small novels =97 of the=20
bills they are receiving from AT&T. Yesterday, in=20
response to customers, AT&T=92s wireless business=20
sent text messages to all its iPhone users to let=20
them know that it will be sending them summarized bills from now on.
http://www.nytimes.com/2007/08/23/business/23bill.html?ref=3Dtodayspaper
(requires registration)
* AT&T to keep iPhone bills brief
http://www.latimes.com/business/printedition/la-fi-iphone23aug23,1,21768...
story?coll=3Dla-headlines-pe-business

KIDS & MEDIA

'KID NATION' PARENTS GAVE SHOW FREE REIN
[SOURCE: New York Times, AUTHOR: Edward Wyatt]
Children who participated in =93Kid Nation,=94 a CBS=20
reality show that has come under fire over=20
questions of whether it violated child safety and=20
labor laws, were required to do whatever they=20
were told by the show=92s producers, 24 hours a=20
day, 7 days a week, or risk expulsion from the=20
show, according to a copy of the contract signed=20
by the children and their parents. The contract=20
also specifies that while the children could be=20
paid for their participation, those payments or=20
the agreement to be fully under the producers=92=20
direction did not constitute employment under the=20
producers=92 interpretation and therefore was not=20
subject to any state or federal labor laws. The=20
agreement appears to anticipate the arguments=20
that were later made by New Mexico state=20
authorities that the show=92s producers might have=20
violated state labor laws and licensing requirements for child housing.
http://www.nytimes.com/2007/08/23/arts/television/23kids.html?ref=3Dtoda...
aper
(requires registration)

CHECKING KIDS' HOMEWORK OVER THE INTERNET
[SOURCE: Wall Street Journal, AUTHOR: Christopher=20
Lawton christopher.lawton( at )wsj.com]
A look at what hosted Web applications can do for=20
families and education. homework has become the=20
top reason that teenagers are using the Internet=20
on a monthly basis, according to a November 2006=20
JupiterResearch LLC study of 2,091 teens in the=20
U.S., ages 13 to 17. Social networking sites such=20
as MySpace and Facebook ranked fifth in the=20
survey. One concern with this type of close=20
online collaboration is the temptation to help=20
kids too much with their homework. Parents say=20
they must guard against that, because it would be=20
so easy to simply go in and make changes themselves.
http://online.wsj.com/article/SB118782016903605720.html?mod=3Dtodays_us_...
sonal_journal
(requires subscription)

WHAT DID U $( at )Y? ONLINE LANGUAGE FINDS A VOICE
[SOURCE: Wall Street Journal, AUTHOR: Christopher=20
Rhoads christopher.rhoads( at )wsj.com]
For years, heavy users of Internet games and chat=20
groups have conversed in their own written=20
language, often indecipherable to outsiders. Now,=20
some of those online words are gaining currency=20
in popular culture -- even in spoken form. The=20
words' growing offline popularity has stoked the=20
ire of linguists, parents and others who denounce=20
them as part of a broader debasement of the English language.
http://online.wsj.com/article/SB118679550023894850.html?mod=3Dtodays_us_...
e_one
(requires subscription)

QUICKLY

CABLE'S SUMMER OF LOVE
[SOURCE: The Hollywood reporter, AUTHOR: Kimberly Nordyke]
Ad-supported cable networks collectively are=20
outperforming the six broadcast networks this=20
summer in the adults 18-49 demographic by more=20
than 2-to-1, the largest margin ever, according=20
to Turner Research data released Wednesday.=20
Ad-supported cable nets -- a group that includes=20
most basic cable outlets with a few exceptions=20
like Disney Channel -- collectively are averaging=20
a 52.4 share in the demo this summer, compared=20
with broadcast's 24.2 share. Several cable=20
programs have set record highs this summer --=20
most recently exemplified by the Disney Channel=20
original movie "High School Musical 2," which=20
averaged 17.2 million total viewers in its=20
premiere Friday to become the most-watched basic=20
cable telecast ever -- while broadcast shows are slipping.
http://www.hollywoodreporter.com/hr/content_display/television/news/e3i1...
6288080adf3a99eafe59233169c2

TV IS TAKING A BACK SEAT TO WEB, MOBILE
[SOURCE: The Hollywood Reporter, AUTHOR: Georg Szalai]
Personal time that consumers spend on the=20
Internet is rivaling their TV time, with=20
user-generated content and networking sites among=20
the most popular destinations for entertainment=20
seekers. Plus, people seem more open to mobile=20
content and are looking for more traditional=20
entertainment offerings on their mobile devices=20
than previously thought. These are among the=20
findings of a new IBM survey of consumer behavior=20
in the digital age, which suggests that studios,=20
advertisers, ad agencies, content distributors=20
and other industry players must continue to=20
adjust their business strategies amid changes in=20
media usage and consumers' increased expectations for control and community.
http://www.hollywoodreporter.com/hr/content_display/television/news/e3ia...
015383aee6d1c2df545b983af870

ONE IN FOUR READ NO BOOKS LAST YEAR
[SOURCE: Associated Press, AUTHOR: Alan Fram]
One in four adults read no books at all in the=20
past year, according to an Associated Press-Ipsos=20
poll released Tuesday. Of those who did read,=20
women and older people were most avid, and=20
religious works and popular fiction were the top=20
choices. On average, people claimed to have read=20
four books last year -- half read more and half=20
read fewer. Excluding those who hadn't read any,=20
the usual number read was seven. Who are the 27=20
percent of people the AP-Ipsos poll found hadn't=20
read a single book this year? Nearly a third of=20
men and a quarter of women fit that category.=20
They tend to be older, less educated, lower=20
income, minorities, from rural areas and less=20
religious. Among those who said they had read=20
books, the median figure =97 with half reading=20
more, half fewer =97 was nine books for women and=20
five for men. The figures also indicated that=20
those with college degrees read the most, and=20
people aged 50 and up read more than those who are younger.
http://news.yahoo.com/s/ap/20070821/ap_on_re_us/reading_habits_ap_poll
--------------------------------------------------------------
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.
--------------------------------------------------------------