September 2007

Two events of note next week: 1) a House hearing=20
on the future of telecommunications competition=20
and 2) a discussion on wireless broadband=20
innovation. For upcoming media policy events, see=20
http://www.benton.org/event/2007/10/05/month/all/all

NETWORK NEUTRALITY
Verizon Reverses Itself on Abortion Messages

INTERNET/BROADBAND
Where's My Free Wi-Fi?
Democrat Edwards into MySpace, MTV campaigning
Google looking at privacy protections for users
Democrats fail (at least for now) to protect Net users from taxes

NEWS FROM THE FCC
FCC Chief Endorses 'Bright Line' Dividing Local, Satellite Content
FCC Commissioner Expresses Merger Doubts
Copps Cautions FCC Against Being Over-Hasty on Media Ownership Rules
Copps Not Convinced White Spaces Technology Is There Yet
Commissioner Copps: FCC Has Good Case for Profanity Appeal
FCC Considering Fines Against Satellite Radio

DTV TRANSITION
Ensuring Americans Stay Connected Through the Transition to Digital
The DTV view from Puerto Rico

GOVERNMENT & COMMUNICATIONS
A Prosecution Tests the Definition of Obscenity

QUICKLY -- Headline Highlights -- Media and=20
Telecommunications Policy Developments September=20
2007; Hearst-Argyle Rejects Hearst Buyout Bid;=20
Johnson Blasts Markey Over BET Criticisms; China=20
targets digital divide; Korea: How Good Is Our=20
Broadband?; Trust in Federal Government Hits New Low

NETWORK NEUTRALITY

VERIZON REVERSES ITSELF ON ABORTION MESSAGES
[SOURCE: New York Times, AUTHOR: Adam Liptak]
Saying it had the right to block =93controversial=20
or unsavory=94 text messages, Verizon Wireless last=20
week rejected a request from NARAL Pro-Choice=20
America, the abortion rights group, to make=20
Verizon=92s mobile network available for a=20
text-message program. But the company reversed=20
course Thursday morning, saying it had made a=20
mistake. =93The decision to not allow text=20
messaging on an important, though sensitive,=20
public policy issue was incorrect, and we have=20
fixed the process that led to this isolated=20
incident,=94 Jeffrey Nelson, a company spokesman,=20
said in a statement. =93It was an incorrect=20
interpretation of a dusty internal policy,=94 Mr.=20
Nelson said. =93That policy, developed before text=20
messaging protections such as spam filters=20
adequately protected customers from unwanted=20
messages, was designed to ward against=20
communications such as anonymous hate messaging=20
and adult materials sent to children.=94 Legal=20
experts said private companies like Verizon=20
probably have the legal right to decide which=20
messages to carry. The laws that forbid common=20
carriers from interfering with voice=20
transmissions on ordinary phone lines do not=20
apply to text messages. In reversing course,=20
Verizon did not disclaim the power to block=20
messages it deemed inappropriate. The dispute=20
over the NARAL messages was a skirmish in the=20
larger battle over the question of =93net=20
neutrality=94 =97 whether carriers or Internet=20
service providers should have a voice in the=20
content they provide to customers. =93This is right=20
at the heart of the problem,=94 said Susan=20
Crawford, a visiting professor at the University=20
of Michigan law school, referring to the=20
treatment of text messages. =93The fact that=20
wireless companies can choose to discriminate is very troubling.=94
http://www.nytimes.com/2007/09/27/business/27cnd-verizon.html?hp
(requires registration)
* Verizon Wireless to allow abortion rights messages
http://today.reuters.com/news/newsArticle.aspx?type=3DindustryNews&storyID=
=3D2007-09-27T210200Z_01_N27345319_RTRIDST_0_INDUSTRY-VERIZON-NARAL-DC.XML
* Hill Democrats: Verizon Call raises Net neutrality Concerns
http://www.broadcastingcable.com/article/CA6484124.html?rssid=3D193
* Rep. John D. Dingell (D-MI)
=93Reports of Verizon's actions raise troubling=20
questions about a network operator's ability to=20
determine what its customers receive and from=20
whom. I am particularly concerned by its ability=20
and apparent willingness to interfere when=20
customers choose to receive legitimate and legal=20
communications from an organization. Further, its=20
latest statement does not identify any=20
substantive change in policy. I ask Verizon to=20
decisively state that it will no longer=20
discriminate against any legal content its=20
customers request from any organization.=94
http://energycommerce.house.gov/Press_110/110st93.shtml
* Markey Responds to Verizon Reversal
"I urge Verizon =AD and other wireless carriers =AD=20
to ensure that their company policies do not=20
interfere with the delivery of any lawful=20
content, nor discriminate on the basis of who the=20
sender of such messages may be."
http://markey.house.gov/index.php?option=3Dcom_content&task=3Dview&id=3D...
1&Itemid=3D141
* Verizon=92s =91Controversial And Unsavory=92 Record
http://thinkprogress.org/2007/09/27/dusty-verizon/
* A Phone Company's Discretion Isn't Enough
http://feeds.publicknowledge.org/~r/publicknowledge-main/~3/162150951/1202
* Verizon Can=92t Be Trusted to Protect Free Speech
http://www.freepress.net/press/release.php?id=3D277
* Verizon Blocks Pro-Choice Text Messaging
http://www.huffingtonpost.com/timothy-karr/verizon-blocks-prochoice_b_66...
.html
* NARAL Pro-Choice America Wins Fight over Corporate Censorship
http://www.prochoiceamerica.org/news/press-releases/2007/pr09272007_veri...
win.html
* Verizon Ends Text-Message Ban
http://www.washingtonpost.com/wp-dyn/content/article/2007/09/27/AR200709...
0823.html
* Corporate propriety yields to free speech (Commentary)
http://www.latimes.com/business/printedition/la-fi-lazarus28sep28,1,3774...
column?coll=3Dla-headlines-pe-business
(requires registration)
* NARAL's case for net neutrality
[SOURCE: Los Angeles Times, AUTHOR: Editorial staff]
"[B]y demonstrating how much power network=20
operators wield over speech, Verizon Wireless and=20
AT&T have strengthened the case for rules that=20
keep the Internet free from their control or anyone else's.
http://www.latimes.com/news/printedition/opinion/la-ed-verizon28sep28,1,...
5550.story?coll=3Dla-news-comment
(requires registration)

INTERNET/BROADBAND

WHERE'S MY FREE WI-FI?
[SOURCE: Slate, AUTHOR: Tim Wu]
[Commentary] The basic idea of offering Internet=20
access as a public service is sound. The problem=20
is that cities haven't thought of the Internet as=20
a form of public infrastructure that -- like=20
subway lines, sewers, or roads -- must be paid=20
for. Instead, cities have labored under the=20
illusion that, somehow, everything could be built=20
easily and for free by private parties. That=20
illusion has run straight into the ancient=20
economics of infrastructure and natural monopoly.=20
The bottom line: City dwellers won't be able to=20
get high-quality wireless Internet access for=20
free. If they want it, collectively, they'll have=20
to pay for it. By 2005, it became clear that=20
major cities didn't really want to build out=20
Wi-Fi networks as public works projects. Instead,=20
places like Philadelphia and San Francisco=20
announced "private/public" partnerships. That=20
meant giving a private company the right to build=20
a wireless network and try to make money off of=20
it. Often, this simply meant giving a company=20
like Earthlink the rights to install Wi-Fi=20
devices on street lamps and charge citizens for=20
access. The cities then washed their hands of the=20
issue of success or failure. The result, as this=20
summer has made clear, has been telecom's Bay of=20
Pigs=97a project the government wanted to happen=20
but left to underqualified private parties to=20
deliver. Firms like Earthlink promised too much,=20
and the cities have stood by and watched as the=20
firms trying to build Wi-Fi systems have twisted=20
and died on the beachhead. The lesson here is an=20
old one about the function of government. When it=20
comes to communications, the United States relies=20
on a privateer system: We depend on private=20
companies to perform public callings. That works=20
up to a point, but private industry will build=20
only so much. Real public infrastructure costs=20
real public money. We already know that, in the=20
real world, if you're not willing to invest in=20
infrastructure, you get what we have: crumbling=20
airports, collapsing bridges, and broken levees.=20
Why did we think that the wireless Internet would be any different?
http://www.slate.com/id/2174858/fr/rss/

DEMOCRAT EDWARDS INTO MYSPACE, MTV CAMPAIGNING
[SOURCE: Reuters, AUTHOR: Ellen Wulfhorst]
John Edwards stepped into the Internet world of=20
MySpace and MTV on Thursday as the first of the=20
U.S. presidential contenders to campaign live and=20
online on the Web sites hugely popular with=20
American youth. The former U.S. senator, who is=20
running third among Democrats in most=20
presidential public opinion polls, answered=20
questions on domestic and international issues=20
while viewers submitted queries online and=20
registered their reactions in a live poll. The=20
high-tech, youth-oriented forum was staged at the=20
University of New Hampshire a day after Edwards=20
and seven other Democratic candidates debated at=20
Dartmouth College, also in New Hampshire,=20
traditionally the first U.S. state to cast votes=20
to choose the Democratic and Republican presidential nominees.
http://www.reuters.com/article/politicsNews/idUSN2739746620070927
* For Edwards, MTV Turn Takes Twist to Serious
http://www.nytimes.com/2007/09/28/us/politics/28edwards.html?ref=3Dtoday...
per
* Edwards Acts As Guinea Pig
http://www.sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2007/09/27/MNKOSFOSL.DTL

GOOGLE LOOKING AT PRIVACY PROTECTIONS FOR USERS
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
Google Inc, the world's Web search leader, told=20
U.S. Senate lawmakers on Thursday the company is=20
pursuing new technologies to protect the privacy=20
of Internet users as it seeks to acquire=20
advertising company DoubleClick Inc. Google's=20
chief legal officer, David Drummond, testified=20
that the company was looking at the Internet=20
display advertising business with a "fresh eye=20
and evaluating whether changes can be made to=20
innovate on user privacy in this space." Critics=20
say Google's $3.1 billion acquisition of=20
DoubleClick, an advertising tools supplier, may=20
give the company too much power over online=20
advertising. Google stores mounds of data on=20
Internet-surfing habits of users and uses the=20
information to make money by selling advertisements.
http://www.reuters.com/article/technologyNews/idUSWBT00764520070927
* Senators Scrutinize Google=92s Bid for Ad Firm
http://www.nytimes.com/2007/09/28/technology/28google.html?ref=3Dtodaysp...
* Senators Probe Google Acquisition
http://www.washingtonpost.com/wp-dyn/content/article/2007/09/27/AR200709...
1191.html
* Google, DoubleClick scrutinized
http://www.usatoday.com/printedition/money/20070928/2b_google28.art.htm
* Google, Microsoft spar before senators
http://www.latimes.com/business/printedition/la-fi-google28sep28,1,40774...
story?coll=3Dla-headlines-pe-business

DEMOCRATS FAIL (AT LEAST FOR NOW) TO PROTECT NET USERS FROM TAXES
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
[Commentary] The Senate Commerce Committee did=20
not vote on a bill that would have extended a ban=20
on Internet access taxes. The ban is set to=20
expire November 1. Sen John Sununu (R-NH) said,=20
"We introduced a bill to permanently ban Internet=20
access taxes back in January. I just don't=20
understand the continued delay in action. The=20
clock continues to tick, placing Internet tax freedom in real jeopardy."
http://www.news.com/8301-13578_3-9786983-38.html

NEWS FROM THE FCC

FCC CHIEF ENDORSES 'BRIGHT LINE' DIVIDING LOCAL, SATELLITE CONTENT
[SOURCE: Radio Ink]
Speaking at the NAB Radio Show, FCC Chairman=20
Kevin Martin stressed to broadcasters that his=20
agency is serious about ensuring that both XM=20
Satellite Radio and Sirius Satellite Radio comply=20
with the regulation that prohibits them from=20
offering local content to their subscribers. "It=20
is very important to make sure that there is a=20
bright line differentiating their national=20
content and local content," Martin said during=20
the FCC Breakfast at the NAB Radio Show, taking=20
place here through tomorrow. "They have to put=20
out a nationwide service. They asked for the=20
terrestrial repeaters so they could fill in the=20
signal in rural areas, but we require them to=20
provide a national service. That is one of the=20
most critical aspects of their licenses."
http://www.radioink.com/HeadlineEntry.asp?hid=3D139359&pt=3Dtodaysnews
* FCC chairman: Sirius-XM merger no cause for worry (Associated Press)
http://seattlepi.nwsource.com/business/333473_satelliteradio28.html

FCC COMMISSIONER EXPRESSES MERGER DOUBTS
[SOURCE: Wall Street Journal]
FCC Commissioner Michael Copps expressed doubts=20
about three big mergers before the Commission:=20
Sirius-XM satellite radio; the pending sale of=20
the Tribune Company to Chicago-based billionaire=20
Sam Zell; and News Corp's purchase of Dow Jones,=20
publisher of the Wall Street Journal.
http://online.wsj.com/article/SB119094838396242372.html?mod=3Dtodays_us_...
e_one
(requires subscription)

COPPS CAUTIONS FCC AGAINST BEING OVER-HASTY ON MEDIA OWNERSHIP RULES
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
FCC Commissioner Michael J. Copps has suggested=20
the agency is starting to speed up in the pace of=20
its examination of new media-ownership rules and=20
warning that some important questions about=20
minority media ownership need to be resolved=20
before any rules are proposed. He also issued a=20
second warning about any attempt to alter the=20
FCC=92s cross-ownership rule that prevents=20
newspapers and broadcasters from buying each=20
other in the same market before the rest of the=20
ownership rules. Commissioner Copps said the=20
Commission=92s failure to review minority ownership=20
issues in its last look at ownership was a big=20
focus of an appellate court ruling that=20
overturned the rules. He said the FCC needs to=20
take steps to ensure minority owners =93need to=20
have a seat at the table=94 when the commission addresses new rules.
http://www.tvweek.com/news/2007/09/copps_cautions_fcc_against_bei.php
(requires free registration)

COPPS NOT CONVINCED WHITE SPACES TECHNOLOGY IS THERE YET
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
FCC Commissioner Michael Copps said that he=20
agreed that there is a lot of confusion over=20
Commission testing of unlicensed mobile devices=20
for possible use in the digital-TV spectrum band,=20
saying that making the technology work is=20
"imperative" but adding that it doesn't seem to=20
be there yet. Commissioner Copps said he thought=20
the FCC "needs to have some clarity" as it=20
proceeds, but added that he is "a believer in=20
white spaces," saying that using them "is not=20
only desirable, but imperative." Computer=20
companies want to use remote, unlicensed=20
spectrum-sensing devices -- personal digital=20
assistants, laptops -- that are designed to sense=20
and use available spectrum in the space between=20
DTV channels. Broadcasters have been fighting the=20
move -- including in a new radio campaign=20
launched this week -- arguing that allowing=20
unlicensed devices in the band could interfere,=20
literally, with the digital transition.
http://www.broadcastingcable.com/article/CA6483969.html?rssid=3D193

COMMISSIONER COPPS: FCC HAS GOOD CASE FOR PROFANITY APPEAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
At a meeting with reporters Thursday, FCC=20
Commissioner Michael Copps was asked whether he=20
thought the government made the right call in=20
seeking Supreme Court review of a lower-court=20
decision finding the FCC had not justified its=20
crackdown on fleeting profanities. "Yes, I do,"=20
he said emphatically even before the question=20
could be finished. Asked if he thought the=20
commission had a good case for overturning the=20
decision, he said yes, adding, "I think we have=20
the legal precedents for it and we have a sound=20
case to go to the court on. The rules remain=20
important." Commissioner Copps pointed to=20
protection of children as a point in the FCC's=20
favor. "I think the court has always been=20
confident, and the impact on families and kids,=20
and the special things you can do when you are=20
talking about the future of your kids,=94 he said.=20
=93I think we have a more than credible case."
http://www.broadcastingcable.com/article/CA6483937.html?rssid=3D193

FCC CONSIDERING FINES AGAINST SATELLITE RADIO
[SOURCE: Radio Ink]
Speaking at the NAB Radio Show, FCC Chairman=20
Kevin Martin said the agency is considering=20
forfeitures against XM Satellite Radio and Sirius=20
Satellite Radio for a series of rule violations=20
tied to receiver standards and power levels for terrestrial repeaters.
http://www.radioink.com/HeadlineEntry.asp?hid=3D139358&pt=3Dtodaysnews

DTV TRANSITION

ENSURING AMERICANS STAY CONNECTED THROUGH THE TRANSITION TO DIGITAL
[SOURCE: Center for American Progress, AUTHOR: Mark Lloyd]
[Commentary] Congress needs to appropriate funds=20
that will help elderly, poor, and rural Americans=20
who are most dependent on television make the=20
transition. We need an ongoing research effort to=20
make sure that messages about the planned coupon=20
program are effective for these populations, and=20
we need outreach efforts that fund and engage=20
grassroots groups and direct service providers=20
who work with these populations. We also need to=20
make sure that broadcasters and the public are=20
clear about how this new digital service will=20
meet the licensee=92s continuing obligation to act=20
in the public interest, convenience, and necessity.
http://www.americanprogress.org/issues/2007/09/digitaltv.html

THE DTV VIEW FROM PUERTO RICO
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
Over half of all households in Puerto Rico may=20
use over-the-air television and should be alerted=20
quickly about the coming digital or "DTV"=20
transition, the self-governing U.S. territory's=20
telecommunications board has warned the Federal=20
Communications Commission. "It should also be=20
pointed out that the average income per capita of=20
Puerto Rico households is considerably lower than=20
the average income per capita of U.S.=20
households," Puerto Rico's Telecommunications=20
Regulatory Board wrote to the FCC on September=20
17th. "Therefore, acquiring DTV sets or=20
subscribing to cable television or satellite=20
services not necessarily will be feasible=20
alternatives to a substantial number of these=20
consumers in Puerto Rico." Congress has=20
designated February 17, 2009 as the last day of=20
analog TV broadcasting. Millions of Americans do=20
not have digital TV sets. Starting on January=20
1st, 2008, all Americans will be eligible to=20
receive two $40 coupons good towards converter=20
set-top boxes that will make analog TV sets=20
digital ready. But Puerto Rico's telecom board=20
warns that the income disparity between many=20
Puerto Ricans and mainland Americans needs to be=20
taken into consideration by the FCC. While an=20
estimated 528,304 Puerto Rican households have=20
cable or satellite television, many or most of=20
the rest of the region's 1,261,325 homes depend=20
on conventional analog TV. Many may not have the=20
income to replace their older sets with brand new digital models.
http://www.lasarletter.net/drupal/node/473

GOVERNMENT & COMMUNICATIONS

A PROSECUTION TESTS THE DEFINITION OF OBSCENITY
[SOURCE: New York Times, AUTHOR: Neil Lewis]
Sometime early next year, Karen Fletcher, a=20
56-year-old recluse living on disability=20
payments, will go on trial in federal court here=20
on obscenity charges for writings distributed on=20
the Internet to about two dozen subscribers. In=20
an era when pornography has exploded on the Web=20
almost beyond measure, Ms. Fletcher is one of=20
only a handful of people to have been singled out=20
for prosecution on obscenity charges by the Bush=20
administration. She faces six felony counts for=20
operating a Web site called Red Rose, which=20
featured detailed fictional accounts of the=20
molesting, torture and sometimes gruesome murders=20
of children under the age of 10, mostly girls.=20
How Ms. Fletcher came to be selected for federal=20
prosecution among the countless pornography=20
purveyors is a vivid illustration of the=20
fractured and uncertain state of the enforcement=20
of obscenity law in the nation.
http://www.nytimes.com/2007/09/28/us/28obscene.html?ref=3Dtodayspaper
(requires registration)

QUICKLY

HEADLINE HIGHLIGHTS -- MEDIA AND=20
TELECOMMUNICATIONS POLICY DEVELOPMENTS SEPTEMBER 2007
[SOURCE: Benton Foundation]
After Congress returned to Washington in=20
September, front page headlines focused on the=20
status of the war in Iraq. But there's been a=20
great deal of action in telecommunications policy=20
as well. Here's a look at some of the major=20
developments since Labor Day concerning the=20
transition to digital broadcasting, universal=20
broadband, Network Neutrality, and media ownership policy.
http://www.benton.org/node/7349

HEARST-ARGYLE REJECTS HEARST BUYOUT BID
[SOURCE: tvnewsday]
A special committee of the Hearst-Argyle=20
Television board rejected Hearst Corp.=92s offer to=20
acquire that stock in the publicly traded station=20
group that it doesn't already own. The committee=20
called the $23.50-per-share bid =93inadequate and=20
not in the best interests on Hearst-Argyle shareholders.=94
http://www.tvnewsday.com/articles/2007/09/27/daily.6/
* Hearst-Argyle Committee: Reject Hearst Bid
http://www.broadcastingcable.com/article/CA6484101.html?rssid=3D193

JOHNSON BLASTS MARKEY OVER BET CRITICISMS
[SOURCE: Broadcasting&Cable, AUTHOR: ]
Robert Johnson, founder and former head of BET,=20
fired off a letter to House Telecommunications &=20
Internet Subcommittee chairman Ed Markey Thursday=20
saying that the legislator's recent criticism of=20
BET programming was uncalled for and "rooted in liberal white paternalism."
http://www.broadcastingcable.com/article/CA6484117.html

CHINA TARGETS DIGITAL DIVIDE
[SOURCE: The Christian Science Monitor, AUTHOR: Peter Ford]
Lenovo, the world's third-largest computermaker=20
and China's best-known global brand, has started=20
selling a $200 computer in an attempt to bridge=20
the digital divide between urban and rural=20
citizens. To tempt farmers into high-tech=20
territory, Lenovo executives explain, they have=20
tried to make their machine easy to use, cheap,=20
and robust. But its key feature, they say, is its=20
software, dubbed "Road to Riches," that helps=20
peasants search for agricultural information that will boost business.
http://www.csmonitor.com/2007/0928/p01s04-woap.html

KOREA: HOW GOOD IS OUR BROADBAND?
[SOURCE: BusinessWeek/ZDNetAsia, AUTHOR: Hyo-Jeoung Kim]
The Korea Communications Commission (KCC)=20
announced last week that it would undertake a=20
comprehensive evaluation of the nation's=20
broadband services to provide quality information=20
on communication services and balance the market=20
amongst communication service providers.=20
According to the KCC, the exercise aims to=20
safeguard user confidence in broadband services=20
and also to establish a standard by which the=20
service providers have to abide by.
http://www.businessweek.com/globalbiz/content/sep2007/gb20070927_824582....
?campaign_id=3Drss_tech

TRUST IN GOVERNMENT HITS NEW LOW
[SOURCE: Editor&Publisher]
A new Gallup poll reveals that, as the=20
organization puts it, Americans now "express less=20
trust in the federal government than at any point=20
in the past decade, and trust in many federal=20
government institutions is now lower than it was=20
during the Watergate era, generally recognized as=20
the low point in American history for trust in=20
government." Among the findings: Barely half=20
trust the government to handle international=20
problems, the lowest number ever. And less than=20
half express faith in the government handling=20
domestic issues, the lowest findings since=20
1976. Faith in the executive branch has fallen=20
to 43% -- only 3% higher than it was just before=20
President Nixon's resignation in 1974. At the=20
same time, trust in Congress, at 50%, is its lowest ever.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003647275
--------------------------------------------------------------
Yes, we'll back in if we have to... perhaps we'll be "but first." Go Cubs!
--------------------------------------------------------------
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.
--------------------------------------------------------------