August 2007

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GOVERNMENT & COMMUNICATIONS
Point, Click ... Eavesdrop: How the FBI Wiretap Net Operates

INTERNET/BROADBAND
Japan's Warp-Speed Ride to Internet Future
End Nigh For Muni Wi-Fi?
MAP and PISC Call For Changes to National Broadband Application
EU drops a broadband bombshell

JOURNALISM
Networks learn harsh lessons from Katrina
Media Showers

BROADCASTING
Shareholder Rejects Hearst Bid For Hearst-Argyle
Supreme Court Extends Deadline for Seeking Profanity Ruling Review
Sports Groups Oppose 'White Space' Devices

QUICKLY -- A Wireless Bounty; Universal Service=20
Fund Reform; Alltel Shareholders OK Buyout

GOVERNMENT & COMMUNICATIONS

POINT, CLICK ... EAVESDROP: HOW THE FBI WIRETAP NET OPERATES
[SOURCE: Wired, AUTHOR: Ryan Singel]
The FBI has quietly built a sophisticated,=20
point-and-click surveillance system that performs=20
instant wiretaps on almost any communications=20
device, according to nearly a thousand pages of=20
restricted documents newly released under the=20
Freedom of Information Act. The surveillance=20
system, called DCSNet, for Digital Collection=20
System Network, connects FBI wiretapping rooms to=20
switches controlled by traditional land-line=20
operators, Internet-telephony providers and=20
cellular companies. It is far more intricately=20
woven into the nation's telecom infrastructure=20
than observers suspected. DCSNet is a suite of=20
software that collects, sifts and stores phone=20
numbers, phone calls and text messages. The=20
system directly connects FBI wiretapping outposts=20
around the country to a far-reaching private communications network.
http://www.wired.com/politics/security/news/2007/08/wiretap
* Congress to revisit expanded spy law next week
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Congressional Democrats don't plan to waste much=20
time in revisiting a temporary expansion of=20
federal eavesdropping law that has met with=20
hostility in privacy and civil liberties circles.=20
The U.S. House of Representatives Judiciary=20
Committee on Wednesday afternoon said it plans to=20
hold a hearing on September 5 -- that is, the day=20
after politicians return from their August=20
recess--to begin exploring, well, changes to the=20
changes to the 1978 Foreign Intelligence=20
Surveillance Act, better known as FISA. According=20
to committee Chairman John Conyers (D-MI), the=20
move is in part a response to misgivings by House=20
Speaker Nancy Pelosi. She has said the=20
last-minute changes approved by Congress earlier=20
this month in response to Bush administration=20
pressure are "unacceptable" and warrant near-immediate "corrective action."
http://news.com.com/8301-10784_3-9768532-7.html

INTERNET/BROADBAND

JAPAN'S WARP-SPEED RIDE TO INTERNET FUTURE
[SOURCE: Washington Post 8/29, AUTHOR: Blaine Harden]
Broadband service in Japan is eight to 30 times=20
as fast as in the United States -- and=20
considerably cheaper. Japan has the world's=20
fastest Internet connections, delivering more=20
data at a lower cost than anywhere else, recent=20
studies show. Accelerating broadband speed in=20
this country -- as well as in South Korea and=20
much of Europe -- is pushing open doors to=20
Internet innovation that are likely to remain=20
closed for years to come in much of the United=20
States. The speed advantage allows the Japanese=20
to watch broadcast-quality, full-screen=20
television over the Internet, an experience that=20
mocks the grainy, wallet-size images Americans=20
endure. Ultra-high-speed applications are being=20
rolled out for low-cost, high-definition=20
teleconferencing, for telemedicine -- which=20
allows urban doctors to diagnose diseases from a=20
distance -- and for advanced telecommuting to=20
help Japan meet its goal of doubling the number=20
of people who work from home by 2010. Japan has=20
surged ahead of the United States on the wings of=20
better wire and more aggressive government=20
regulation, industry analysts say. In 2000, the=20
Japanese government seized its advantage in wire.=20
In sharp contrast to the Bush administration over=20
the same time period, regulators in Japan=20
compelled big phone companies to open up wires to upstart Internet provider=
s.
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/28/AR200708...
1990.html
(requires registration)
* A Tale of Two Cities
[Commentary] What=92s the secret of Japan=92s=20
success? Open access. Less than a decade ago, DSL=20
service in Japan was slower and pricier than in=20
the United States. So the Japanese government=20
mandated open access policies that forced the=20
telephone monopoly to share its wires at=20
wholesale rates with new competitors. The result:=20
a broadband explosion. Not only did DSL get=20
faster and cheaper in Japan, but the new=20
competition actually forced the creaky old phone monopoly to innovate.
http://www.savetheinternet.com/blog/2007/08/29/a-tale-of-two-cities/

END NIGH FOR MUNI WI-FI?
[SOURCE: InformationWeek, AUTHOR: Richard Martin]
[Commentary] The news this week -- EarthLink's=20
retrenching, Chicago's decision to shelve (not=20
"review," not "delay for more research," but=20
"shelve" as in can, eighty-six, disavow all=20
knowledge of) its prospective citywide network,=20
and of course the usual posturing out of San=20
Francisco -- would seem to indicate that looking=20
for signs of vitality in the municipal wireless=20
market is like searching for encouraging progress=20
from the surge in Iraq. But that's not entirely=20
the case: Muni Wi-Fi is not dead; it's just going=20
through a phase of, uhh, creative destruction.
http://www.informationweek.com/blog/main/archives/2007/08/end_nigh_for_m...
tml
* EarthLink to pay Houston $5M for missed deadline
[SOURCE: Houston Chronicle, AUTHOR: Carolyn Feibel]
EarthLink will pay Houston a $5 million penalty,=20
an acknowledgment that the Internet service=20
provider will not meet its first deadline for=20
building a wireless network throughout the city,=20
Mayor Bill White announced. The company failed to=20
meet its first deadline by not signing an=20
agreement with CenterPoint Energy to lease its=20
utility poles for the Wi-Fi project. EarthLink=20
now has a nine-month window to start building the=20
network in Houston. In the meantime, Houston can=20
consider offers from other vendors to build=20
wireless for the 640-square-mile city. Whatever=20
happens, the city will keep the $5 million, and=20
the city should use it to bridge the digital=20
divide, perhaps by building smaller "Wi-Fi bubbles" over public spaces.
http://www.chron.com/disp/story.mpl/front/5092403.html
* AT&T cancels citywide Wi-Fi plan in Springfield
AT&T has scuttled plans it had to deploy wireless=20
Internet with some free access throughout=20
Springfield (IL). Other companies are still=20
welcome to make proposals for citywide wireless=20
access, but there are no active negotiations. The=20
city has talked to Lt. Gov. Pat Quinn (D), whose=20
office had planned to provide a grant to the city=20
to deploy a wireless network at the Statehouse=20
and downtown, but nothing definitive has been worked out.
http://www.sj-r.com/News/stories/15186.asp
* No Net Over San Francisco
Get your own wireless: Citywide wi-fi Internet=20
proposal dies as EarthLink backs away from deal.
http://www.sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2007/08/29/MNEJRRO70.DTL
* Earthlink Needs a Lifeline
The onetime high-flying ISP is running out of=20
options as customers abandon dial-up services for faster ways to get online
http://www.businessweek.com/technology/content/aug2007/tc20070829_573797...
m?campaign_id=3Drss_tech

MAP AND PISC CALL FOR CHANGES TO NATIONAL BROADBAND APPLICATION
[SOURCE: Media Access Project]
MAP and the Public Interest Spectrum Coalition=20
(PISC) filed ex parte comments raising concerns=20
about M2Z's application to provide free wireless=20
service on a national basis. Though MAP and PISC=20
believe M2Z's application could provide=20
significant benefits to the American people, the=20
proposed license conditions do not adequately=20
ensure that M2Z would operate under open device=20
rules or network neutrality rules of sufficient stringency to confer the fu=
ll
benefits of innovation and free expression to the public.
http://www.mediaaccess.org/filings/2007-08-28-PISC-M2ZComments.pdf

EU DROPS BROADBAND BOMBSHELL
[SOURCE: Financial Times, AUTHOR: Sarah Laitner and Philip Stafford]
Viviane Reding, the EU media commissioner, this=20
week cited the decision to split the networks and=20
services division of BT of the UK as a potential=20
template for other former state-run telecoms=20
operators. Her suggestion goes to the heart of a=20
debate on how to spur investment in new=20
ultra-fast broadband networks to meet European=20
business and consumer hunger for bandwidth. No=20
stranger to controversy, Ms Reding has a=20
remarkably consistent method. The former=20
journalist and ex-member of the European=20
parliament is seen by some in the industry to use=20
a =93bomb-dropping=94 technique. First, she outlines=20
outlandish ideas then waits for the air to clear=20
before returning to the table to get a deal. The=20
coming months will reveal what effect her=20
approach has on the EU=92s leading telecoms groups.
http://www.ft.com/cms/s/1286d526-565a-11dc-ab9c-0000779fd2ac.html
(requires subscription)
* Broadband battles
[Commentary] Viviane Reding=92s nuclear negotiating=20
style is nothing if not effective. The urgent=20
issue, though, is to design a regulatory approach=20
that will ensure competition while giving=20
companies incentives to invest in the next=20
generation of infrastructure for broadband. A=20
pan-European regulator, however light its touch,=20
would be inappropriate =96 and its proposal is=20
highly unlikely to win agreement from member=20
states. But if the threat persuades national=20
agencies to tighten co-ordination and toughen=20
competition, Ms Reding=92s scare tactics will have paid off.
http://www.ft.com/cms/s/0/acb57316-565d-11dc-ab9c-0000779fd2ac.html
(requires subscription)

JOURNALISM

NETWORKS LEARN HARSH LESSONS FROM KATRINA
[SOURCE: Reuters, AUTHOR: Paul J. Gough]
Two years after Hurricane Katrina forever changed=20
the Gulf Coast, its echoes still reverberate=20
throughout TV journalism. When Hurricane Dean=20
formed earlier this month as the first major=20
hurricane in the Atlantic basin since the 2005=20
season ended, the networks leapt into action=20
using plans that have been finely tuned since=20
Katrina made landfall August 29, 2005, leaving=20
nearly 2,000 people dead and 1 million or more=20
displaced. Soon after the disaster, the networks=20
broke down their responses to it -- what went=20
right and what went wrong -- and found that the=20
plans they had made in advance for a natural=20
disaster didn't scale when faced with a story of Katrina proportions.
http://www.reuters.com/article/entertainmentNews/idUSN2930171020070829?f...
Type=3DRSS&feedName=3DentertainmentNews

MEDIA SHOWERS
[SOURCE: Wall Street Journal, AUTHOR: Daniel Henninger]
[Commentary] This summer a debate rages in=20
Britain about the role of media. There, the media=20
is anxious about the public's trust: Can you=20
believe what you see on television, does=20
television treat people fairly, is it healthy for=20
society? Fascinating and worthwhile questions to=20
be sure, insofar as most opinion polls of how=20
much the American public "trusts" the press, TV=20
news or even Congress have put their approval=20
ratings in Lindsay Lohanland. But for the media=20
ponderers there's a more troubling issue than the=20
restoration of trust. It's the possibility that=20
too many people now simply don't much care about=20
the major media anymore. Big media and big=20
politics are all flying through an electronic=20
meteor shower just now, and not all will survive.=20
But, like "Star Wars," it'll be fun to watch the carnage.
http://online.wsj.com/article/SB118843360338712933.html?mod=3Dtodays_us_...
nion
(requires subscription)

BROADCASTING

SHAREHOLDER REJECTS HEARST BID FOR HEARST-ARGYLE
[SOURCE: MediadailyNews, AUTHOR: David Goetzl]
Marathon Partners, which owns 90,000 shares of=20
Hearst-Argyle, is urging the Hearst-Argyle board=20
to reject an offer from Hearst to buy the=20
broadcasting group. "It is absolutely clear that=20
the current offer does not fairly compensate the=20
shareholders of (Hearst-Argyle) for the unique=20
and valuable assets the company controls," Mario=20
Cibelli, the managing member of Marathon, wrote=20
to the board--calling the offer price=20
"unacceptably low." Cibelli also accused Hearst=20
Corp. management of trying to capitalize on Wall=20
Street's recent downturn to nab full ownership of=20
the company at a low price. (It already owns some=20
73%, and is seeking the rest.) The H-A assets=20
include management of 29 TV stations (eight in=20
top-25 markets), a stake in Internet Broadcasting=20
and the possibility of future growth through retransmission consent dollars.
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.showAr...
leHomePage&art_aid=3D66540

SUPREME COURT EXTENDS DEADLINE FOR SEEKING PROFANITY RULING REVIEW
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Supreme Court has given the solicitor general=20
an extra month to decide whether to ask for=20
high-court review of the federal appeals court=20
decision that the FCC has not sufficiently=20
justified its crackdown on cussing. The deadline=20
for petitioning for Supreme Court review had been=20
Sept. 2, but the solicitor general's office last=20
week asked for an extension until Oct. 4, and the court granted it.
http://www.broadcastingcable.com/article/CA6473096.html?rssid=3D193

SPORTS GROUPS OPPOSE 'WHITE SPACE' DEVICES
[SOURCE: tvnewsday]
The Sports Technology Alliance -- a group=20
comprising MLB, NASCAR, NBA, NCAA, NFL, NHL, The=20
PGA Tour and ESPN -- has asked the Federal=20
Communications Commission to consider the=20
interests of sports producers in settling the=20
dispute over introducing unlicensed devices in TV=20
=93white spaces.=94 =93Sports programming relies=20
extensively on wireless microphones and related=20
audio equipment in its production and=20
distribution. In addition, these wireless=20
communications systems have become an important=20
infrastructure element in the conduct of the=20
games themselves. Any interference caused by new=20
devices operating in the =93white spaces=94 spectrum=20
will seriously impair U.S. sports event=20
programming and deny the American public full=20
enjoyment of their passion for sports."
http://www.tvnewsday.com/articles/2007/08/29/daily.19/
* Learfield Weighs in on Open Broadcast Spectrum Band
http://www.broadcastingcable.com/article/CA6473086.html

QUICKLY

A WIRELESS BOUNTY
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
[Commentary] In the name of fostering=20
competition, Democrats in Congress, liberal=20
consumer groups and even the Republican-led=20
Federal Communications Commission have been=20
calling for more government regulation of the=20
wireless telecom industry. But a new American=20
Consumer Institute survey of the domestic=20
cellular landscape suggests that competition=20
already abounds. Comparing U.S. and foreign=20
telecom markets, it concluded that the U.S.=20
market "offers more choice and is less=20
concentrated than any Western country's wireless=20
market." U.S. consumers have access to more=20
wireless operators and more devices than=20
consumers anywhere else in the world. And the top=20
three wireless providers in the U.S. comprise a=20
smaller share of the market than their=20
counterparts in Europe and Asia. Calls for more=20
telecom rules and regulations are a solution in search of a problem.
http://online.wsj.com/article/SB118843332452912925.html?mod=3Dtodays_us_...
nion
(requires subscription)

UNIVERSAL SERVICE FUND REFORM
[SOURCE: Federal Communications Commission]
On Wednesday, the Federal Communications=20
Commission adopted new rules aimed at=20
safeguarding the Universal Service Fund from=20
waste, fraud, and abuse. The Commission: 1)=20
fortified its debarment rule for parties=20
convicted of criminal violations or found civilly=20
liable in connection with acts arising from=20
participation in any of the four universal=20
service programs; 2) strengthens its oversight of=20
the Universal Service Fund contributions and=20
filing process by requiring timely filing and=20
payment and increasing the penalties for late=20
payments and late filing and 3) adopted=20
performance measures to improve the management=20
and administration of the program.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-276327A1.doc
* FCC Report & Order:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-150A1.doc
* FCC Takes Steps to Reform USF
http://www.broadcastingcable.com/article/CA6473077.html?rssid=3D193

ALLTEL SHAREHOLDERS OK BUYOUT
[SOURCE: Associated Press, AUTHOR: Chuck Bartels]
Alltel Corp. shareholders overwhelmingly approved=20
a $24.7 billion buyout Wednesday that put the=20
wireless company in the hands of two private=20
investor groups. The buyout must still be=20
approved by the Federal Communications Commission.
http://www.chicagotribune.com/business/ats-ap_business16aug29,0,3064245....
ry
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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
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
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