August 2007

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POLICYMAKERS
U.S. Needs Broad Debate on Media Policy
Small Ball at the FCC

INTERNET/BROADBAND
Rural broadband drought puts hurt on retailer
POTS Potted As New Zealand Turns Off PSTN
FTC gives Time Warner go-ahead to buy Tacoda

WIRELESS
M2Z says it won't sue FCC, for now
Google offers numbers on its muni Wi-Fi network
Chicago disconnecting from Wi-Fi vision
Bill would ban cellphone use by teen drivers

TELEVISION
Cerf predicts the end of TV as we know it
FEC Seeks Guidance On Issue Ad Rule Changes
NAB promises FCC "massive campaign" to push DTV transition
FCC Hammers KPNZ over Missing Reports
Nielsen Study Shows Viewer Decline in May Sweeps
ACLU Rebukes Censorship of War Documentary

RADIO
Christian groups call for looser application cap on upcoming NCE window
NAB Takes Further Aim At XM/Sirius
Radio may survive this, too
With Low Ratings, Post Radio Venture To End Next Month

JOURNALISM
Two Decades of American News Preferences

QUICKLY -- Yahoo Asks Court In U.S. to Dismiss=20
Suit Over China; Washington's Surprisingly Flexible Rulemakers

POLICYMAKERS

US NEEDS BROAD DEBATE ON MEDIA POLICY
[SOURCE: Digital Democracy, AUTHOR: Jeff Chester]
[Commentary] Last Friday, FCC Commissioner=20
Michael Copps was a guest on the Bill Moyers=20
Journal public television program. Copps urged=20
the country to have a serious discussion about=20
the future of the U.S. communications system=20
during this crucial period of transition from old=20
to digital media. He is correct that we deserve=20
to make what=92s going on=ADand will likely occur=ADas=20
conscious and participatory as possible. It=92s not=20
a mystery that the corrupt politics of media=20
policy-making and greed have left our=20
journalistic and entertainment institutions=20
largely bereft of public service, deprived us of=20
vibrant journalism, and has prevented diversity=20
of ownership control by both people of color and=20
women. It=92s not a secret to see the broadband=20
world we are headed towards, unless we create a=20
national movement focused on creating democratic=20
structures for broadband communications (both=20
policy and market-based). That=92s why the plea by=20
Commissioner Copps should serve as a=20
call-to-action for advocates and others concerned=20
about the future of our media system.
http://www.democraticmedia.org/jcblog/?p=3D346
* See Copps interview
http://www.pbs.org/moyers/journal/08242007/profile.html
* Copps Airbrushes His Role In FCC Deregulatory Binge
[Commentary] "When Copps and Adelstein applaud=20
Net Neutrality mandates, they in fact had a hand in creating the alleged ne=
ed."
http://www.multichannel.com/blog/1830000183.html#1020013702

SMALL BALL AT THE FCC
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
[Commentary] At the White House, the Bush people=20
do not, in the words of the president, play=20
=93small ball=94 =96 that is, kill valuable time on=20
marginal issues. At the Federal Communications=20
Commission, small ball is sometimes elevated to=20
an Olympic sport, with all manner of slights=20
meted out in those creatively subtly ways for=20
which bureaucrats are famous. Last Friday, the=20
FCC was at its small-ball best. In an action by=20
the Media Bureau, the FCC said that an April 2002=20
ruling by then-Media Bureau chief Kenneth Ferree=20
was wrong and vacated. Ferree had effectively=20
told EchoStar it could, under certain conditions,=20
require customers to use two dishes to view all=20
their local TV signals. The four-page order=20
overturning Ferree five years after the fact was=20
unnecessary, because in late 2004 Congress=20
outlawed the two-dish option, effective 18 months=20
later. So what was the Media Bureau=92s superfluous=20
action really about? Payback, it seems, not about policy.
http://multichannel.com/article/CA6472088.html

INTERNET/BROADBAND

RURAL BROADBAND DROUGHT HURT ON RETAILER
[SOURCE: ComputerWorld, AUTHOR: Robert L. Mitchell]
[Commentary] The lack of broadband access in=20
rural areas isn't just hurting individuals and=20
small businesses. Even large retail chains, which=20
often have stores in rural shopping centers, find=20
that they can't get online. Consider the plight=20
of Trans World Entertainment, which relies mostly=20
on DSL services to link more than 1,000 music=20
stores - including its Coconuts and f.y.e. chains=20
- to its back-end systems. "Unfortunately, DSL=20
isn't available everywhere yet, even in retail=20
areas. Right now, about 17% [of store locations]=20
can't get broadband," says CIO Robert Hinkle,=20
noting that availability can be limited even in=20
the major retail zones within rural areas. TWE=20
stores that can't get broadband service now rely=20
on slower frame relay connections, which Hinkle=20
admits is a less than optimal solution. "It's=20
just too darned expensive for the speed," he=20
says, adding that he's looking for viable alternatives.
http://www.computerworld.com/blogs/node/6093

POTS POTTED AS NEW ZEALAND TURNS OFF PSTN
[SOURCE: TelecomWeb]
New Zealand may become the first country in the=20
world to turn off its public switched telephone=20
network (PSTN), instead relying entirely on a=20
next generation network (NGN), xDSL and=20
VoIP-based voice service, according to a document=20
released by that country's the country's Ministry=20
of Economic Development late last week.=20
Ostensibly, the document does no more than=20
request comments about what the effect of the NGN=20
plans will be on Telecom New Zealand's (TNZ)=20
so-called "Kiwi Share Obligations" (KSO) - the=20
requirement that the carrier provide basic phone=20
service to all residents of the country, more=20
formally called the Telecommunications Service=20
Obligations (TSO). The KSO, the Ministry notes,=20
was of "crucial importance" when TNZ was privatized in 1990.
http://www.telecomweb.com/tnd/25013.html

FTC GIVES TIME WARNER GO-AHEAD TO BUY TACODA
[SOURCE: Reuters]
The Federal Trade Commission has given Time=20
Warner Inc's AOL unit the go-ahead to buy Tacoda,=20
an online advertising company. The merger,=20
announced on July 24, is the latest acquisition=20
by AOL as it seeks to move away from its Internet=20
access business and instead offer consumers free=20
services supported by ads. Tacoda's technology=20
allows advertisers to target specific audience=20
segments based on the kinds of sites they have visited on the Web.
http://today.reuters.com/news/articlenews.aspx?type=3DindustryNews&storyID=
=3D2007-08-27T164046Z_01_N27450571_RTRIDST_0_INDUSTRY-TACODA-TIMEWARNER-FTC=
-DC.XML

WIRELESS

M2Z SAYS IT WON'T SUE FCC, FOR NOW
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
The would-be proprietors of a national, smut free=20
broadband network say they won't take legal=20
action against the Federal Communications=20
Commission for denying them spectrum, at least=20
not yet. M2Z Chair Milo Medin wrote to FCC=20
Commissioner Deborah Taylor Tate Monday,=20
informing her that the company will wait a=20
"reasonable interval" before deciding whether to sue the agency.
http://www.lasarletter.net/drupal/node/452

CHICAGO DISCONNECTING FROM WI-FI VISION
[SOURCE: Chicago Tribune, AUTHOR: Jon Van]
Chicago is curtailing its digital dreams,=20
deciding to back away from municipal Wi-Fi=20
service after failing to reach agreement with=20
either of two companies that sought to build a=20
wireless Internet network in the city. As=20
envisioned in early 2006, Chicago was expected to=20
become one of the first big cities in the country=20
to blanket its streets and neighborhoods with a=20
wireless Internet signal that would allow=20
residents access to the Web in their homes and=20
wherever they traveled in the city. But=20
technology is advancing and the cost of online=20
access for consumers is declining so dramatically=20
that Chicago has other avenues to promote more=20
use of the Internet. As a result, the Wi-Fi deal=20
lost luster when negotiations bogged down
http://www.chicagotribune.com/news/local/chi-tue_nowifi0828aug28,1,37242...
story

GOOGLE OFFERS NUMBERS ON ITS MUNI WI-FI NETWORK
[SOURCE: RCRWirelessNews, AUTHOR: Mike Dano]
Google offered a glimpse into the operations of=20
its free, municipal Wi-Fi effort, which the=20
company launched earlier this year in its home=20
base of Mountain View (CA). Google reported that=20
the network now covers 12 square miles and counts=20
15,000 unique users each month. The company said=20
its free muni Wi-Fi network comprises over 400=20
mesh routers and carries 300 gigabytes of data=20
each day. The company said the network has seen=20
traffic numbers grow around 10% each month.
http://www.rcrnews.com/apps/pbcs.dll/article?AID=3D/20070827/FREE/708270...
1001/FREE

BILL WOULD BAN CELLPHONE USE BY TEEN DRIVERS
[SOURCE: Los Angeles Times, AUTHOR: Patrick McGreevy and Tami Abdollah]
Citing a fistful of studies that show teenagers=20
among the most distracted and dangerous of=20
drivers, the California state Assembly on Monday=20
passed a bill that would prohibit drivers under=20
the age of 18 from using a cellphone, pager,=20
text-messaging device or laptop while driving.=20
The bill passed by a 62-5 vote, with one=20
Assemblywoman noting that teenagers make up 6% of=20
licensed drivers but 16% of auto accident=20
fatalities. The bill, previously approved by the=20
state Senate, goes back there for expected final=20
approval of amendments before it is placed on the=20
desk of Gov. Arnold Schwarzenegger, who has not=20
decided yet whether he will sign or veto it.=20
prohibits drivers under 18 from using cellphones=20
or any mobile service devices -- including=20
hands-free cellphones -- except in an emergency.=20
Violators would be assessed a $20 fine for the=20
first offense, and a $50 fine for subsequent=20
offenses, but with no violation point on their driving record.
http://www.latimes.com/news/printedition/front/la-me-cellphones28aug28,1...
95599.story?coll=3Dla-headlines-frontpage
(requires registration)

TELEVISION

CERF PREDICTS THE END OF TV AS WE KNOW IT
[SOURCE: The Guardian, AUTHOR: Bobbie Johnson]
Thirty years ago he helped create a technology=20
that has revolutionized millions of lives around=20
the world. But yesterday the man known as the=20
"godfather of the net" laid out his vision of=20
where our online future might be, including a=20
time when we download entire TV series in seconds=20
-- and even surf the web from Mars. Talking at=20
the MediaGuardian Edinburgh International=20
Television Festival, Vint Cerf -- one of the=20
handful of researchers who helped build the=20
Internet in the 1970s -- said that the television=20
industry would change rapidly as it approached=20
its "iPod moment." He told an audience of media=20
moguls that TV was rapidly approaching the same=20
kind of crunch moment that the music industry=20
faced with the arrival of the MP3 player. "85% of=20
all video we watch is pre-recorded, so you can=20
set your system to download it all the time," he=20
said. "You're still going to need live television=20
for certain things - like news, sporting events=20
and emergencies - but increasingly it is going to=20
be almost like the iPod, where you download content to look at later."
http://www.guardian.co.uk/technology/2007/aug/27/news.google

FEC SEEKS GUIDANCE ON ISSUE AD RULE CHANGES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Election Commission wants some help=20
in determining what TV and radio campaign ads can=20
be paid for from corporation or union funds=20
without triggering the ban on electioneering=20
communications in the run-up to a federal primary=20
or general election. The FEC has released a=20
Notice of Proposed Rulemaking with two options=20
for squaring its rules with a Supreme Court=20
decision two months ago that loosened the=20
restriction on such ads. Campaign finance law had=20
been interpreted by the FEC to ban those funds=20
for any ads that mentioned a candidate, but the=20
Supreme Court said that was too tight a rein on=20
political speech to square with the First=20
Amendment and that ads that mentioned candidates=20
could get those funds if there were "susceptible=20
to a reasonable interpretation" that they were=20
other than express advocacy for or against a candidate.
http://www.broadcastingcable.com/article/CA6472052.html?rssid=3D193
* FEC Issues Notice of Proposed Rulemaking on Electioneering Communications
http://www.fec.gov/press/press2007/20070823nprm.shtml

NAB PROMISES FCC "MASSIVE CAMPAIGN" TO PUSH DTV TRANSITION
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
National Association Broadcasters (NAB) Joint=20
Board Chair Jack Sander has promised the Federal=20
Communications Commission a "political campaign"=20
to educate consumers about the DTV transition=97the=20
impending move from analog to digital=20
broadcasting. "DTV is the candidate, the=20
transition date of February 17, 2009 is Election=20
Day, and over-the-air television viewers are our=20
target voters," Sander wrote to the FCC on August=20
21st. February 17th is the last day that=20
television stations can broadcast using analog=20
signals. The problem is that millions of=20
Americans don't know this, or that their analog=20
TVs won't work after that day. In fact, according=20
to Sander's letter, over 60 percent of polled=20
consumers have no idea that the transition is=20
taking place. But the NAB letter does not deal=20
with a sticky impending issue: whether the FCC=20
should require TV stations to broadcast PSAs on=20
the digital transition. The FCC will soon release=20
a Notice of Proposed Rulemaking proposing such a=20
requirement, and asking for public comment on=20
what these announcements should include and how=20
often they should run. The Notice will also=20
propose compliance measures that broadcasting trade groups usually oppose.
http://www.lasarletter.net/drupal/node/451

FCC HAMMERS KPNZ OVER MISSING REPORTS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission has=20
proposed fining KPNZ Ogden (UT) $20,000 for what=20
it called "willful an repeated violations" of its=20
children's TV and other reporting requirements.=20
The Commission requires stations to post various=20
documents in their public files, including=20
compliance with advertising limits and the age=20
ranges of their educational and informational=20
kids programming, as well as a list of the issues=20
of public importance it had covered. When KPNZ=20
applied for a renewal of its license back in June=20
2006, the station volunteered that it had not=20
filed its issues list for 24 quarters,=20
essentially its entire license term. It also=20
disclosed that it had failed to report on its=20
ad-limit compliance for more than a year between=20
2003 and 2005, and that many of the filings it=20
had made on kids-TV issues had been done after=20
the deadline for placement in the public file.=20
The station claimed it filed the issues reports=20
but that they had been lost or destroyed=20
(apparently by a station intern's dog). It said=20
it had taken steps to make sure that and other=20
reporting violations were not repeated.
http://www.broadcastingcable.com/article/CA6471947.html?rssid=3D193

NIELSEN STUDY SHOWS VIEWER DECLINE IN MAY SWEEPS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
According to a Nielsen study, the number of homes=20
tuning in to TV during the May sweep was down=20
3.5% from May 2006, including a more than 5% drop=20
in top market New York. The study, sent to=20
Nielsen clients on Friday, concluded that, while=20
use of digital-video recorders (DVR) may have=20
contributed to the decline, no one factor could=20
be fingered. Nielsen's survey of its=20
metered-market households found that the number=20
of households with DVRs increased from 7% in May=20
2006 to 17% in May 2007=97a contributing factor to=20
the viewership decline but apparently not the=20
main reason for the drop. When DVR usage was=20
added to the tune-in figure, Nielsen said, the=20
drop was 2.4%, and households without the digital=20
recorders showed similar rates of decline to those with them.
http://www.broadcastingcable.com/article/CA6471970.html?rssid=3D193

ACLU REBUKES CENSORSHIP OF WAR DOCUMENTARY
[SOURCE: American Civil Liberties Union press release]
The American Civil Liberties Union condemned the=20
Federal Communications Commission (FCC) for the=20
effect of its vague and inconsistent treatment of=20
"indecency." Because of the uncertainty, some=20
broadcasters are wary of airing a documentary on=20
World War II since the fourteen hour movie=20
contains a total of four expletives. The film,=20
"The War" by filmmaker Ken Burns, is scheduled to=20
air on the Public Broadcasting Channel on=20
September 23. The FCC has the ability to enforce=20
indecency laws by fining broadcasters for=20
instances of "indecency" between 6 a.m. and 10pm.
http://www.aclu.org/freespeech/gen/31471prs20070827.html?s_src=3DRSS
* ACLU Blames FCC For 'War' Objectors
http://www.broadcastingcable.com/article/CA6472086.html?rssid=3D193

RADIO

CHRISTIAN GROUPS CALL FOR LOOSER APPLICATION CAP ON UPCOMING NCE WINDOW
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
Groups and individuals continue to weigh in on=20
whether the Federal Communications Commission=20
should put a strict limit on the number of=20
Non-Commercial Educational (NCE) radio station=20
applications that any non-profit can file for.=20
Most commenters support the idea; but some=20
Christian outfits want to relax the rule.=20
"Without a numerical filing limit there is the=20
possibility of a single applicant filing dozens=20
to even hundreds of stations across the U.S.,"=20
argue three advocates who commented with the FCC=20
in late July. "This goes against the original=20
intent of a reserved educational channel - one=20
set outside the competitive marketplace, within=20
the grasp of local or regional educational institutions and non-profits."
http://www.lasarletter.net/drupal/node/450

NAB TAKES FURTHER AIM AT XM/SIRIUS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Association of Broadcasters has=20
filed reply comments in the FCC's ongoing review=20
of the proposed XM/Sirius satellite radio merger=20
against expressing its strong opposition.=20
Broadcasters say approving the merger would=20
create a satellite radio monopoly that competes=20
with them on the local front, but which they=20
cannot compete against for national delivery of=20
audio programming. They also argue it would be a=20
government bailout for satellite radio's=20
overpayment for programming (Howard Stern's=20
nine-figure deal, for example). XM/Sirius counter=20
that there is plenty of competition in the=20
national audio delivery market, including=20
syndicated terrestrial radio, cable radio, and=20
audio downloads, and that broadcasters are just=20
trying to protect their turf from increased competition.
http://www.broadcastingcable.com/article/CA6472061.html
* See NAB's filing:=20
http://www.nab.org/xert/corpcomm/pressrel/releases/082707_ReplyComments_...
IRI.pdf

RADIO MAY SURVIVE THIS, TOO
[SOURCE: Baltimore Sun, AUTHOR: nick.madigan( at )baltsun.com]
With all these new gadgets for listening to music=20
-- from MP3s to state-of-the-art cell phones and=20
laptops, not to mention satellite radio -- it's a=20
wonder anyone is listening to good old-fashioned=20
terrestrial radio. One theory says that so many=20
listeners are spending money on newfangled=20
technology that the ones left tuning in to=20
terrestrial radio are doing so only because they=20
can't afford the new toys. As a result, national=20
advertisers are not turning to the old medium the=20
way they once did, leaving the field to cheaper,=20
and often local, ad buyers. In turn, the stations=20
are obliged to charge less money because their=20
demographic is poorer leaving the stations with=20
less revenue. But other people in the business=20
consider that view heresy, and point to many ways=20
in which the traditional broadcasters are holding=20
their own. While they admit that radio audiences=20
are declining, and that the amount of time people=20
spend listening has fallen, they say that 230=20
million people, or about 93 percent of the U.S.=20
population, still listen to some radio during any=20
given week -- down from 96 percent a decade ago.=20
In contrast, upstarts XM Satellite Radio and=20
Sirius Satellite Radio have attracted a combined=20
14 million subscribers since their launches in=20
September 2001 and July 2002, respectively. The=20
two companies, which earlier this year announced=20
their intention to merge, charge about $13 a=20
month for access to hundreds of commercial-free=20
channels, which can be accessed through special=20
receivers and personal computers. While those=20
audience numbers are still comparatively small,=20
millions more people have bought MP3 players and=20
other music-playing gadgets, and sales remain hot=20
in the young demographic that advertisers covet.
http://www.baltimoresun.com/entertainment/bal-al.eye26aug26,0,7435523.story

WITH LOW RATINGS, POST RADIO VENTURE TO END NEXT MONTH
[SOURCE: Washington Post, AUTHOR: Paul Farhi]
Washington Post Radio, which brought the=20
newspaper's journalists to the local airwaves,=20
will go off the air next month after failing to=20
attract enough listeners and losing money during=20
its 17-month existence. Post Radio, which is=20
broadcast in the DC area on 107.7 FM and 1500 AM,=20
, was not able to draw even 1 percent of=20
listeners during its first year. Although ratings=20
have improved somewhat in recent months -- partly=20
because of Nationals baseball broadcasts and Tony=20
Kornheiser's morning program -- the gains weren't=20
enough to convince WTWP's owner, Bonneville=20
International Corp., that the station could be profitable any time soon.
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/27/AR200708...
1332.html
(requires registration)

JOURNALISM

TWO DECADES OF AMERICAN NEWS PREFERENCES
[SOURCE: Pew Research Center, AUTHOR: Michael J. Robinson]
The Pew Research Center has released a new study=20
that tracks the public's interest in news from=20
1986 to 2006. The results show that though=20
American interest in news has shifted with the=20
times, the changes have been slight and not=20
suggestive of any sort of meaningful trend.=20
Although the size and scope of the American news=20
media have changed dramatically since the 1980s,=20
audience news interests and preferences have=20
remained surprisingly static. Of the two major=20
indices of interest that are the focus of this=20
report -- overall level of interest in news and=20
preferences for various types of news -- neither=20
has changed very much. This has been especially=20
true for news preferences; Americans continue to=20
follow -- or to ignore -- the same types of=20
stories now as they did two decades ago. News=20
=93tastes,=94 measured among 19 separate categories=20
of news, have barely shifted at all: Disaster=20
News and Money News continue to be of greatest=20
interest to the U.S. public; Tabloid News and=20
Foreign News remain the least interesting.
http://pewresearch.org/pubs/574/two-decades-of-american-news-preferences
* Pew Center Reflects on Two Decades of U.S. News Preferences
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003631682

QUICKLY

YAHOO ASKS COURT IN US TO DISMISS SUIT OVER CHINA
[SOURCE: Washington Post, AUTHOR: Sam Diaz]
Yahoo yesterday asked a court to dismiss a=20
lawsuit accusing the Internet giant of abetting=20
torture and abuse of pro-democracy writers in=20
China. Yahoo acknowledged releasing personal user=20
information about the writers to the Chinese=20
government, but said it had to comply with the=20
country's lawful request and therefore cannot be=20
held liable. Advocacy groups view the suit as an=20
important test case because it asks U.S. courts=20
to punish corporations for human rights=20
violations abroad. Internet companies such as=20
Yahoo entering the booming Chinese market have=20
had to alter user policies or allow censorship in=20
order to comply with the country's laws.
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/27/AR200708...
1581.html
(requires registration)

WASHINGTON'S SURPRISINGLY FLEXIBLE RULEMAKERS
[SOURCE: Washington Post, AUTHOR: Cindy Skrzycki]
A common perception of regulators in Washington=20
is that they are rule-crazy, intent on churning=20
out directives that restrict industry while loath=20
to examine the costs and effects. Not so, says a=20
recent Government Accountability Office report,=20
which finds that federal agencies review and=20
change their work more than commonly thought,=20
though the public often doesn't know about it.=20
The report, requested by two Republican members=20
of Congress, is the first measurement of the Bush=20
administration's efforts to use rule reviews to=20
reduce the regulatory burden on business.
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/27/AR200708...
1582.html
(requires registration)
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Communications-related Headlines is a free online=20
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important industry developments, policy issues,=20
and other related news events. While the=20
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informal tone does not always represent the tone=20
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