August 2007

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SPECTRUM/WIRELESS
FCC Opposes Plan For Free Broadband
White-space spectrum debate rages
The White Open Spaces
Wireless -- With Strings Attached
Public Airwaves for Public Safety

BROADCASTING/CABLE
Groups to FCC: Digital TV lacks Public Benefit
NTIA Awards IBM Contract For Digital-to-Analog Converter Box Coupon Program
Nickelodeon Takes Step in Fight Against Childhood Obesity
If Imus Comes Back, Some Advertisers Are Likely to Follow
PBS Expands Its World

GOVERNMENT & COMMUNICATIONS
Appeals court may let NSA lawsuits proceed
China Cracks Down on News Media as Party Congress Nears

QUICKLY -- Learn from the fall of Rome, US=20
warned; Verizon asks FCC to stop reduced rates=20
for competitors; Kevin Martin, from N.C. to the FCC

SPECTRUM/WIRELESS

FCC OPPOSES PLAN FOR FREE BROADBAND
[SOURCE: Wall Street Journal, AUTHOR: Corey Boles corey.boles( at )dowjones.com]
The Federal Communications Commission is seeking=20
to shut the door on a plan by a group of Silicon=20
Valley entrepreneurs to offer free wireless=20
broadband Internet service everywhere in the US.=20
M2Z Networks Inc. issued a statement Wednesday in=20
which it said it would take the FCC to court in=20
an attempt to force the agency to conduct a=20
thorough analysis of the plan before it=20
determined whether it would back it or not.=20
According to John Muleta, a former head of the=20
FCC's wireless bureau and now chief executive of=20
M2Z, the group was informed last week by FCC=20
Chairman Kevin Martin's office that he had=20
circulated a plan with the other four=20
commissioners to deny M2Z's plan. The company has=20
proposed taking 25 megahertz of spectrum that is=20
currently vacant and using it to build a wireless=20
broadband Internet network to provide free=20
service to 95% of Americans within a decade. In=20
addition to the backing of well-known Silicon=20
Valley venture capitalists who count among their=20
earlier investments Amazon.com Inc., Netscape,=20
Google Inc., social networking site MySpace and=20
TiVO Inc., the plan has the backing of a number=20
of prominent lawmakers. Public interest groups=20
have been strong advocates of the M2Z plan. Andy=20
Schwartzman of the group Media Access Project=20
said he was disappointed that it appeared the FCC=20
had decided against M2Z's plan. Noting that Mr.=20
Martin has repeatedly publicly stated that it is=20
a key policy objective of his to promote more=20
rapid deployment of broadband, Mr. Schwartzman=20
said the FCC should be willing to "take chances=20
to enable broadband deployment."
http://online.wsj.com/article/SB118720450065998722.html?mod=3Ddist_smart...
ef
(requires subscription)
* FCC against valley firm's free broadband proposal
http://www.bizjournals.com/sanjose/stories/2007/08/13/daily53.html?ana=3...
om_rss

WHITE-SPACE SPECTRUM DEBATE RAGES
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
Technology companies are putting pressure on the=20
Federal Communications Commission to open up=20
unused wireless spectrum between TV channels for=20
use with unlicensed devices, but the TV=20
broadcasters say there are still too many=20
interference issues. On their own, these slivers=20
of wireless spectrum are not sufficient to=20
provide enough capacity for companies to build=20
wireless broadband services that truly compete=20
against high-bandwidth services offered by the=20
cable and phone companies. But combined with=20
other pieces of spectrum, like Wi-Fi, this=20
spectrum could provide enough capacity to deliver=20
competitive services. "The 700MHz spectrum is not=20
enough to compete against a service like=20
Verizon's Fios," said Harold Feld, senior vice=20
president of public-interest nonprofit Media=20
Access Project, in reference to Verizon=20
Communications' high-capacity network featuring=20
fiber-optic connections to the home. "It's only=20
62MHz of spectrum. So you're going to need a lot=20
more. That's why it's important to provide access=20
to licensed as well as unlicensed spectrum." "We=20
didn't get the open access that we wanted on the=20
700MHz auction," Feld said. "So it makes it that=20
much more important that new providers can access=20
white-space spectrum." "If there was ironclad=20
proof that no person in America would lose access=20
to over-the-air TV signals, then maybe we=20
wouldn't have a problem with the introduction of=20
unlicensed portable devices," he said. "But=20
engineering studies and folks that we have talked=20
to say the likelihood of developing a product=20
that wouldn't interfere with TV broadcasts in large markets is nil."
http://news.com.com/White-space+spectrum+debate+rages/2100-1034_3-620275...
tml?tag=3Dnefd.lede

THE WHITE OPEN SPACES
[SOURCE: Washington Post, AUTHOR: Editorial staff]
[Commentary] Coveted bits of the radio spectrum=20
called "white spaces" -- unused areas of spectrum=20
wedged between licensed TV channels -- may soon=20
be freed up by the Federal Communications=20
Commission. Right now no broadband devices are=20
allowed to use these parts of the spectrum, but=20
the FCC is considering whether to let companies=20
sell FCC-certified wireless devices that would be=20
used without an exclusive broadcast license in=20
these slivers of bandwidth. Such white-space=20
devices (WSDs) would be low-power and so would=20
emit signals over very small geographic areas.=20
Certainly the FCC shouldn't approve WSDs that=20
will obliterate TV. But just because these=20
prototypes fell short doesn't mean the technology=20
can never work. Given the good that could come=20
out of using this unoccupied bandwidth, the FCC=20
should continue to encourage WSD research and development.
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/15/AR200708...
2128.html
(requires registration)

WIRELESS -- WITH STRINGS ATTACHED
[SOURCE: Wall Street Journal, AUTHOR: Amol Sharma amol.sharma( at )wsj.com]
In recent years, dozens of U.S. cities and towns=20
have announced plans to build Wi-Fi networks that=20
would give their citizens a cheap and convenient=20
way to access the high-speed Internet and provide=20
new competition to phone and cable companies. Now=20
some of those projects are running into hurdles.=20
Constructing networks that can provide Internet=20
access to homes and office buildings and=20
withstand challenges from nature that interfere=20
with wireless signals -- such as hills or=20
rainstorms -- is proving more costly than=20
anticipated. Some Wi-Fi projects, such as=20
Philadelphia's, are running 30% or more over=20
budget. Many cities are discovering the true=20
costs of the initiatives only as they begin to=20
roll out infrastructure and test the networks.=20
Consumer demand for the services, meanwhile, has=20
been soft in the early going. Companies such as=20
EarthLink Inc. and MetroFi Inc. have been=20
increasingly taking the lead on building and=20
operating these networks for cities. But as the=20
economics of the industry get tougher, the=20
companies are asking cities to bear more of the=20
financial burden, either by contributing cash=20
toward construction or by agreeing to purchase=20
Wi-Fi services for government workers. The=20
municipal Wi-Fi movement is far from dead. More=20
than 90 cities and towns, including Portland,=20
Ore., Corpus Christi, Texas, and others, have=20
already launched service, according to=20
MuniWireless.com, a Web site that tracks the=20
projects nationally. Nationwide spending on=20
municipal Internet projects was $236 million last=20
year, up from $117 million in 2005, and is=20
expected to nearly double this year, the=20
organization said. Wi-Fi technology, generally,=20
is gaining popularity. Consumers are increasingly=20
accessing the Web at hotspots like coffee shops=20
and airport lounges. And they are doing so not=20
just from laptops, but also from new mobile=20
devices like Apple Inc.'s iPhone. But municipal=20
networks aren't on track to offer consumers a=20
cheaper high-speed alternative to the powerful=20
U.S. phone and cable companies, as some backers once envisioned.
http://online.wsj.com/article/SB118722557149599153.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

PUBLIC AIRWAVES FOR PUBLIC SAFETY
[SOURCE: Associated Press, AUTHOR: John Dunbar]
The nation's emergency communication system is=20
inadequate, and the government has come up with a=20
solution - a nationwide wireless broadband=20
network that will operate on a highly valuable=20
portion of the publicly owned airwaves. While=20
legislators and bureaucrats have embraced the=20
idea, they haven't dedicated funds to pay for it.=20
For that, the plan depends on private investors.=20
If the plan succeeds, it will bring the benefits=20
of modern communications technology to the=20
nation's police and firefighters, all without=20
putting a dent in the U.S. Treasury. If it fails,=20
it will delay a meaningful solution to the=20
nation's emergency communication woes for years=20
to come. The Federal Communications Commission=20
approved the plan July 31. It calls for the=20
creation of a network shared by public safety=20
officials and commercial users. The cost - as=20
much $10 billion, according to one potential=20
investor - would be footed by private investors=20
who, in the long run, hope to turn a profit.
http://story.arabherald.com/index.php/ct/9/cid/2411cd3571b4f088/id/9741696/

BROADCASTING/CABLE

GROUPS TO FCC: DIGITAL TV LACKS PUBLIC BENEFIT
[SOURCE: tvnewsday]
A coalition of 28 groups (including the Benton=20
Foundation) said in a filing at the FCC that over=20
the past 12 years, the FCC =93has repeatedly failed=20
to redefine broadcasters=92 public interest=20
obligations in light of the nation=92s ongoing=20
transition to digital television.=94 The groups=92=20
filing came in the FCC=92s third periodic review of=20
the conversion of the nation=92s broadcast=20
television system from analog to digital=20
television on Feb. 18, 2009. In its rulemaking,=20
the FCC proposed procedures and rule changes=20
necessary to complete the transition, but, the=20
groups claim, =93once again failed to address=20
broadcasters=92 obligations to serve local=20
communities=92 educational, informational, civic,=20
minority, disability and emergency information=20
needs=97or how these services should be disclosed=20
to the public.=94 FCC Commissioner Michael Copps=20
said about the filing: "For years I have argued=20
that the most important part of the DTV=20
transition is to ensure that it increases=20
localism and diversity on our=20
airwaves. Broadcasters will be able to air up to=20
half a dozen different digital program streams,=20
so here is a wonderful chance for them to get=20
away from all the homogenized, nationalized=20
programming that big media has foisted on us in=20
favor of covering the people and communities they=20
actually serve. Digital technology can be a huge=20
boon for all of us--but only if we make sure this=20
spectrum serves the public interest. The FCC has=20
been asleep at the switch on this one, refusing=20
to address what is really the heart-and-soul of=20
DTV. I welcome the comments of the 28 groups who=20
came together to ask the Commission to get=20
serious about defining how this transition will=20
benefit not just broadcasters, but all the American people."
http://www.tvnewsday.com/articles/2007/08/15/daily.9/
* Commissioner Copps' statement
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-276017A1.doc
* Press release
http://www.benton.org/node/6814
* Filed comments
http://www.benton.org/benton_files/bentonetal_Final.doc

NTIA AWARDS IBM CONTRACT FOR DIGITAL-TO-ANALOG CONVERTER BOX PROGRAM
[SOURCE: National Telecommunications and Information Administration]
NTIA awarded IBM a contract to provide services=20
for the Digital-to-Analog Converter Box Coupon=20
Program, which is designed to help all Americans=20
receive free, over-the-air television when=20
full-power television stations cease analog=20
broadcasting after February 17, 2009. IBM will=20
provide services in three areas: Consumer=20
education; Coupon distribution to consumers and=20
retail store participation; and Financial=20
processing to reimburse retailers, to maintain=20
records, and to prevent waste, fraud, and abuse.=20
=93This is an important step in a process that will=20
bring digital television (DTV) to all Americans,=94=20
said Jonathan Collegio, Vice President of the=20
NAB=92s digital television transition unit, in a=20
statement. =93The success of the converter box=20
coupon program is critical to upgrading America=20
to digital television. NAB looks forward to=20
working with NTIA and IBM to ensure all Americans=20
continue to have access to free, over-the-air television.=94
http://www.ntia.doc.gov/ntiahome/press/2007/DTVvendor_081507.html
* NTIA Taps IBM for Digital Conversion Program
http://www.broadcastingcable.com/article/CA6469141.html?rssid=3D193
* IBM Wins NTIA Analog Converter Contract
http://www.multichannel.com/article/CA6469128.html?rssid=3D196
* Big Blue to Oversee DTV Coupon Program
http://www.tvnewsday.com/articles/2007/08/15/daily.12/

NICKELODEON TAKES STEP IN FIGHT AGAINST CHILDHOOD OBESITY
[SOURCE: Rep Ed Markey]
Nickelodeon Television has decided to restrict=20
use, in certain circumstances, of their licensed=20
characters on packaging of unhealthy foods.=20
Nickelodeon=92s announcement comes two days after=20
Discovery Kids announced a decision to stop=20
licensing its name and characters for use in=20
connection with unhealthy food and beverage=20
products. Rep Ed Markey (D-MA) said, =93I want to=20
commend Nickelodeon President Cyma Zarghami for=20
her letter, which indicates that Nickelodeon=20
recognizes its responsibility to the child=20
audience and the importance of taking steps to=20
combat the childhood obesity epidemic. As=20
childhood obesity is a serious public health=20
issue, it is vital that the media companies join=20
food and beverage marketers in adopting socially=20
responsible marketing strategies. In my view,=20
limits on the amount of junk food advertising=20
seen on children's television, along with strong=20
nutrition standards for food and beverage=20
products advertised and utilized with licensed=20
characters for such children's TV shows, will=20
help address childhood obesity in a positive way.=20
I look forward to reviewing the details and=20
implementation of the additional marketing=20
pledges regarding licensed characters Nickelodeon is making today."
http://markey.house.gov/index.php?option=3Dcom_content&task=3Dview&id=3D...
7&Itemid=3D141
* See Nickelodeon letter
http://markey.house.gov/docs/telecomm/Nickelodeon%20licensing.pdf
* Nickelodeon to Limit Use of Characters on Junk Foods
http://www.nytimes.com/2007/08/16/business/16kids.html

IF IMUS COMES BACK, SOME ADVERTISERS ARE LIKELY TO FOLLOW
[SOURCE: AdAge, AUTHOR: Andrew Hammp]
Don Imus might be returning to the airwaves --=20
and advertisers may not be far behind. The=20
media-buying community had mixed reactions to the=20
notion of a return. Marketers including Procter &=20
Gamble Co., General Motors Corp., American=20
Express and Staples were among the first to pull=20
out of the show following racial remarks made by=20
the talk show host. Natalie Swed Stone, who heads=20
up radio buying for OMD and who has had clients=20
advertise on Mr. Imus' previous incarnations,=20
said she "couldn't see why" advertisers would not=20
want to put their money behind the host's newest=20
show. Mr. Imus has apologized several times for=20
his remarks and advertisers could conclude that he has been punished enough.
http://adage.com/mediaworks/article?article_id=3D119872

PBS EXPANDS ITS WORLD
[SOURCE: Broadcasting&Cable, AUTHOR: Marisa Guthrie]
PBS World -- a new channel featuring documentary,=20
public affairs, and news programming from public=20
television=92s award-winning signature series and=20
acclaimed independent filmmakers -- made its=20
national debut on Wednesday, August 15.=20
Distributed by WGBH Boston and New York=92s=20
Thirteen/WNET, in association with American=20
Public Television (APT) and the National=20
Educational Telecommunications Association=20
(NETA), PBS World will offer second runs of=20
popular PBS programs including American=20
Experience, Frontline, History Detectives,=20
Nature, The Newshour with Jim Lehrer, NOVA,=20
Scientific American Frontiers and The Tavis=20
Smiley Show. The channel is now available on 55=20
stations, representing 24 licensees, across the=20
country, reaching more than 27% of U.S.=20
households. In most markets, PBS WORLD=20
programming will be available 24 hours a day, seven days a week.
http://www.broadcastingcable.com/article/CA6469115.html?rssid=3D193
* PBS press release
http://www.pbs.org/aboutpbs/news/20070807_pbsworld.html

GOVERNMENT & COMMUNICATIONS

APPEALS COURT MAY LET NSA LAWSUITS PROCEED
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
A federal appeals court on Wednesday appeared=20
unwilling to end a pair of lawsuits that claim=20
the Bush administration engaged in widespread=20
illegal surveillance of Americans. The 9th U.S.=20
Circuit Court of Appeals repeatedly pressed=20
Gregory Garre, the Bush administration's deputy=20
solicitor general, to justify his requests to=20
toss out the suits on grounds they could endanger=20
national security by possibly revealing "state=20
secrets." Judge Harry Pregerson wondered: "We=20
just have to take the word of members of the=20
executive branch that it's a state secret. That's=20
what you're saying, isn't it?" A moment later=20
Judge Michael Hawkins suggested that granting the=20
request could "mean abdication" of our duties.
http://news.com.com/Appeals+court+may+let+NSA+lawsuits+proceed/2100-1028...
6202865.html?tag=3Dhtml.alert.hed
* U.S. Defends Surveillance to 3 Skeptical Judges
http://www.nytimes.com/2007/08/16/washington/16nsa.html
(requires registration)

CHINA CRACKS DOWN ON NEWS MEDIA AS PARTY CONGRESS NEARS
[SOURCE: New York Times, AUTHOR: Keith Bradsher]
China=92s government said Wednesday that it was=20
cracking down on =93false news reports,=20
unauthorized publications and bogus journalists.=94=20
Beijing officials periodically try to discourage=20
the country=92s news media from being too=20
aggressive. The latest initiative comes two=20
months before a politically delicate occasion:=20
the Chinese Communist Party Congress, held every five years.
http://www.nytimes.com/2007/08/16/world/asia/16china.html
(requires registration)

QUICKLY

LEARN FROM THE FALL OF ROME, US WARNED
[SOURCE: Financial Times 8/14, AUTHOR: Jeremy Grant]
The US government is on a =91burning platform=92 of=20
unsustainable policies and practices with fiscal=20
deficits, chronic healthcare underfunding,=20
immigration and overseas military commitments=20
threatening a crisis if action is not taken soon,=20
the country=92s top government inspector has=20
warned. David Walker, comptroller general of the=20
US, issued the unusually downbeat assessment of=20
his country=92s future in a report that lays out=20
what he called =93chilling long-term simulations.=94=20
These include =93dramatic=94 tax rises, slashed=20
government services and the large-scale dumping=20
by foreign governments of holdings of US debt.=20
=93Our very prosperity is placing greater demands=20
on our physical infrastructure. Billions of=20
dollars will be needed to modernize everything=20
from highways and airports to water and sewage=20
systems. The recent bridge collapse in=20
Minneapolis was a sobering wake-up call.=94 Mr=20
Walker said he would offer to brief the would-be=20
presidential candidates next spring. =93They need=20
to make fiscal responsibility and=20
inter-generational equity one of their top=20
priorities. If they do, I think we have a chance=20
to turn this around but if they don't, I think=20
the risk of a serious crisis rises considerably.=94
http://www.ft.com/cms/s/80fa0a2c-49ef-11dc-9ffe-0000779fd2ac.html
(requires subscription)

VERIZON ASKS FCC TO STOP REDUCED RATES FOR COMPETITORS
[SOURCE: Boston Globe, AUTHOR: Carolyn Y. Johnson]
Verizon Communications Inc. is trying to shed=20
requirements that the telecom giant give its=20
competitors network access at reduced rates. The=20
company has petitioned the Federal Communications=20
Commission for "forbearance" from the rules=20
because Verizon says competition now makes the=20
regulated rates unnecessary. Consumer advocates=20
oppose the petition, and lawmakers worry that=20
Verizon's petition is an inappropriate use of an=20
arcane piece of telecommunications law that could=20
set a precedent allowing companies to escape=20
regulatory obligations. The petition itself=20
hinges on a piece of the 1996 act meant to foster=20
competition. The law requires companies such as=20
Verizon to give competitors access to portions of=20
their network at regulated prices, because=20
building the "last-mile" connection between a=20
central office that routes calls and a customer,=20
or the part of the network that connects central=20
offices, was expensive and a barrier to=20
competition. Verizon argues that it is now in the=20
public interest to scrap the requirement in the=20
Boston, Providence, New York, Philadelphia,=20
Pittsburgh, and Virginia Beach, Va. metropolitan areas.
http://www.boston.com/business/technology/articles/2007/08/15/verizon_as...
fcc_to_stop_reduced_rates_for_competitors/

KEVIN MARTIN, FROM NC TO THE FCC
[SOURCE: The Independent Weekly (NC), AUTHOR: Fiona Morgan]
Kevin Martin told a Raleigh audience earlier this=20
month that, besides his extensive credentials,=20
two life experiences prepared him to be chairman=20
of the Federal Communications Commission.=20
Struggles over parking spaces at UNC-Chapel Hill=20
while he was student government president were=20
good practice for negotiations in Washington. And=20
as the fourth of five children, he has experience=20
fighting over the TV remote, which isn't so=20
different from negotiations among the FCC's five=20
commissioners. Martin was in Raleigh Aug. 2 to=20
address the N.C. Chamber of Commerce; telecom=20
companies AT&T, Fair Point Communications, Embarq=20
and Corning, a fiber optic cable manufacturer,=20
were among the more than 120 invited guests.=20
There is speculation that the 41-year-old=20
commissioner might one day seek elected office in=20
North Carolina. Asked if he would consider=20
running for governor or senate, Chairman Martin=20
said, "No, no. I'm just interested in making sure=20
we're doing a good job with the commission." If=20
he did run, he would likely find a supportive=20
base among those dining at the Cardinal Club.
http://www.indyweek.com/gyrobase/Content?fromrss=3D1&oid=3Doid%3A158784
--------------------------------------------------------------
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.
--------------------------------------------------------------