September 2007

BROADBAND/INTERNET
A Car In Every Garage, Fast Internet On Every PC
Clash over Internet access tax heats up
Paulson and Gutierrez urge permanent Internet tax ban
Fios in Your Neighborhood? Don't Ask Verizon
UK starts consultation on faster broadband speeds
Private cash sought to boost broadband in UK
Hong Kong's Broadband Is How Fast?

DTV TRANSITION
TV doomsday: Feb. 17, 2009. Will the USA be ready?
GOP Regulators Defend Work On DTV
Adelstein Praises Analog-to-Digital Converter Box
NAB Debuts DTV-Transition PSA

BROADCASTING
FCC to Challenge Profanity Decision in Supreme Court
Journal Broadcast Group Buys KPSE Palm Springs
Nielsen to expand its TV sample

SPECTRUM/WIRELESS
Martin working to revise 700 MHz open-access provisions
Google Network Could Cost Almost $17 Billion to Build

ADVERTISING
Unidentified TV Plugs Are Deceptive
NBC, Telemundo to Cut Snack Ads from Educational Kids=92 Shows
MoveOn Ad Saga Has Local Twist in Minneapolis
Public Service Groups Follow the Audience
New Study Offers Surprising Numbers on Newspaper/Yahoo Deal

TELECOM
Vonage Appeal Denied
Household Expenditures for Telephone Service

DIGITAL CONTENT
Verizon Rejects Messages of Abortion Rights Group
Facebook faces more pressure to protect children

INTERNATIONAL
Warner Bros. teams with Abu Dhabi in entertainment venture
World misunderstands China's Web controls: expert

QUICKLY -- Microsoft, Google square off in=20
Washington; Online Gambling Law Challenged;=20
Technology gives world rare view of Myanmar's=20
rage; Charities=92 Tie to MTV Angers Nonprofits

BROADBAND/INTERNET

A CAR IN EVERY GARAGE, FAST INTERNET ON EVERY PC
[SOURCE: WebProNews, AUTHOR: Jason Lee Miller]
At a hearing of the Committee on Small Business=20
and Entrepreneurship, Chairman John Kerry (D-MA)=20
called on the Bush administration to make a=20
commitment to making high-speed Internet access=20
more widely available to small businesses and all=20
Americans. This involves, he said, changes in=20
regulations to ensure universal broadband access=20
and adequate competition in the marketplace. "To=20
compete and win in the new global economy, we=20
need a national broadband strategy that=20
encourages competition and expands access," said=20
Sen Kerry. "Previous generations put a toaster in=20
every home and a car in every driveway as signs=20
of economic progress-it's time we do the same=20
with high speed Internet access." At the same=20
hearing, Federal Communications Commission=20
Commissioner Jonathan Adelstein echoed Sen.=20
Kerry's call for opening up broadband=20
competition. "Only rational competition policies=20
can ensure that the U.S. broadband market does=20
not devolve into a stagnant duopoly, which is a=20
serious concern given that cable and DSL=20
providers now control approximately 96 percent of=20
the residential broadband market." FCC=20
Commissioner Michael Copps was critical of the=20
FCC still calling 200 kilobits per second=20
'broadband' and assuming that if one person in a=20
ZIP code has broadband access, everyone else does=20
as well. "This is 2007, not 1997. We need a more=20
credible definition of speed and more granular=20
measures of deployment, as well as to start=20
gathering data on price and the experience of=20
other nations," Commissioner Copps said.
http://www.webpronews.com/topnews/2007/09/26/a-car-in-every-garage-fast-...
ernet-on-every-pc
* Commissioner Copps before Senate Committee on Small Business
America's lack of a broadband strategy is=20
imposing huge costs on small businesses all=20
across the land. Our lackluster broadband=20
performance is a huge barrier to, and tax upon,=20
innovation and entrepreneurship. Businesses=20
everywhere are increasingly reliant on broadband=20
Internet access; it has become as essential as=20
electricity, running water or phone service. Yet=20
many small businesses in rural America cannot get=20
an Internet connection at all. Even where they=20
can, they typically pay too much for service that=20
is too slow. The story isn't all that much=20
better in the nation's metropolitan=20
areas. Prices are high for service that is, by=20
international standards, uncompetitive. The=20
Internet should be the great equalizer-leveling=20
the playing field between urban and rural; large=20
and small; domestic and global businesses. The=20
broadband system we have today makes a mockery of=20
this great promise and instead creates=20
competitive disparities. Part of our problem is=20
reliance upon duopoly and oligopoly where we=20
should be enjoying vigorous carrier and network=20
competition. How do we turn things=20
around? Let's start with a comprehensive=20
national strategy. We need a strong statement,=20
combined with serious commitment from the very=20
top-not just a campaign promise-that broadband is=20
a national priority. We need to make sure all=20
the departments of government are cooperating to=20
encourage broadband deployment, using financial=20
tools such as matching grants and tax=20
incentives. Second we need to start cataloging=20
and benefiting from all the innovation and=20
experimentation that's occurring outside of=20
Washington D.C. Third, there is enormous room to=20
improve our competitive telecommunications=20
policies. Fourth, we need to commit to=20
supporting broadband with the Universal Service Fund.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-276881A1.doc
* Commissioner Adelstein before Senate Committee on Small Business
For a long time, the U.S. was the undisputed=20
world leader in communications technology. Yet,=20
in recent years, we have tumbled from that=20
historic position. Each year, we slip further=20
down the regular rankings of broadband=20
penetration. While some have questioned the=20
international broadband penetration rankings, the=20
fact is the U.S. has dropped year-after-year.=20
This downward trend and the lack of broadband=20
value illustrate the sobering point that when it=20
comes to giving our citizens affordable access to=20
state-of the-art communications, the U.S. has=20
fallen behind its global competitors. There is no=20
doubt about the evidence that citizens of other=20
countries are getting a much greater broadband=20
value in the form of more megabits for less=20
money. A true broadband strategy should=20
incorporate benchmarks, deployment timetables,=20
and measurable thresholds to gauge our progress.=20
We need to set ambitious goals and shoot for=20
affordable, truly high-bandwidth broadband. We=20
should start by updating our current anemic=20
definition of high-speed of just 200 kbps in one=20
direction to something more akin to what=20
consumers receive in countries with which we=20
compete, speeds that are magnitudes higher than our current definitions.
http://fjallfoss.fcc.gov/edocs_public/attachmatch/DOC-276886A1.pdf

CLASH OVER INTERNET ACCESS TAX HEATS UP
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera]
A monthly phone bill of $50 now includes as much=20
as $10 in taxes. And some in Congress warn that=20
consumers soon could be hit with similar=20
assessments for high-speed Internet access. For=20
nearly a decade, the lines carrying the Internet=20
into homes and businesses have been a virtual=20
tax-free zone. But that could change Nov. 1 when=20
a federal ban on Internet access taxes expires.=20
Almost everybody agrees that the politically=20
popular moratorium should be extended to=20
encourage continued investment in the high-speed=20
lines crucial to making new online activities=20
possible, particularly video. But changing=20
Internet usage has complicated the issue,=20
threatening to derail an extension and raising=20
the specter of local officials engaging in a=20
land-rush-like race to enact new taxes for=20
surfing the Web. But as phone and TV services=20
increasingly are delivered over the Internet,=20
state and local governments worry that more of=20
their tax revenue will disappear because of the=20
federal moratorium. They oppose the permanent=20
extension championed by McCain and a slew of=20
lawmakers, along with Don't Tax Our Web, a=20
coalition of major telecommunications, computer=20
and Internet companies, including AT&T Inc.,=20
Google Inc. and Time Warner Inc. Instead, the=20
U.S. Conference of Mayors, the National Governors=20
Assn. and other local government groups want to=20
narrow the definition of Internet access put in=20
place in 1998, which could be interpreted to=20
cover anything delivered online, and to make the=20
extension temporary in case technology again overtakes the law.
http://www.latimes.com/business/printedition/la-fi-nettax27sep27,1,13157...
story?coll=3Dla-headlines-pe-business
(requires registration)

PAULSON AND GUTIERREZ URGE PERMANENT INTERNET TAX BAN
[SOURCE: Reuters]
Treasury Secretary Henry Paulson and Commerce=20
Secretary Carlos Gutierrez on Thursday urged the=20
Senate to make permanent the moratorium on taxes=20
for Internet access and electronic commerce. In a=20
statement, the cabinet secretaries said passage=20
of legislation keeping the Internet free of=20
access taxes by the time the current moratorium=20
expires on November 1 would help keep the=20
Internet an "innovative force." The Senate=20
Commerce Committee is expected to consider a bill=20
to extend the moratorium on Thursday. The ban has=20
been in place since 1998 and was last reinstated=20
in 2004 for a period of three years.
http://www.reuters.com/article/internetNews/idUSN2623843520070926
* Bush administration endorses eternal Net tax ban
http://www.news.com/8301-10784_3-9785652-7.html

FIOS IN YOUR NEIGHBORHOOD? DON'T ASK VERIZON
[SOURCE: Washington Post, AUTHOR: Rob Pegoraro]
You'd be a little crazy to shop for a home=20
without considering the Internet, phone and TV=20
options awaiting in a new neighborhood. But good=20
luck finding that out, especially when it comes=20
to new services. But Verizon treats its plans for=20
Fios like a state secret. Finding out when this=20
service might show up at your door requires=20
detective work or outright clairvoyance. The=20
worst such example may be in the District.=20
Verizon has rolled out Fios in every surrounding=20
jurisdiction, but D.C. residents are still=20
waiting to hear when it might reach their homes.=20
Searching for service by typing in a District=20
address on Verizon's Web site generated only a=20
bland, meaningless assurance: "Our network is=20
continually being expanded." Verizon's public=20
relations department was no more informative.=20
Verizon has been just as uncommunicative when=20
responding to repeated requests for information from the D.C. government.
http://www.washingtonpost.com/wp-dyn/content/article/2007/09/26/AR200709...
2468.html
(requires registration)

UK STARTS CONSULTATION ON FASTER BROADBAND SPEEDS
[SOURCE: Reuters, AUTHOR: Kate Holton]
Britain's telecommunications regulator Ofcom=20
launched a consultation on Wednesday to chart the=20
country's move to a super-fast broadband network=20
needed to keep it internationally competitive.=20
Ofcom said the time was right to address the=20
issue as more people were turning to the Internet=20
to watch video-on-demand or play games -- putting=20
a strain on the current copper wire network and=20
the speeds it can deliver. The regulator said it=20
would aim to promote investment in future=20
broadband Next Generation Access networks in the=20
same way the current broadband market had=20
developed -- by promoting competition among=20
operators which had resulted in faster speeds and=20
cheaper prices. It said it would not propose=20
offering incentives to operators as this would=20
manipulate the market but any regulation would=20
have to reflect the risk involved as the demand=20
for higher speeds is currently unclear.
http://www.reuters.com/article/internetNews/idUSL2686378820070926

PRIVATE CASH SOUGHT TO BOOST BROADBAND
[SOURCE: Financial Times, AUTHOR: Andrew Parker]
British regulators yesterday sought to entice=20
companies into making multi-billion pound=20
investments in ultra-fast broadband networks,=20
after warning that existing telecoms systems are=20
likely to get overwhelmed by bandwidth-hungry=20
households and businesses. Ofcom, the media and=20
telecoms watchdog, published proposals to=20
encourage the investments, which it said would=20
produce the most important changes to the UK's=20
telecommunications infrastructure in 20 years.=20
The government and Ofcom are insisting the=20
private sector pays for the super-fast broadband=20
networks, which could cost =A315bn or more.
http://www.ft.com/cms/s/5226384c-6c95-11dc-a0cf-0000779fd2ac.html
(requires subscription)

HONG KONG'S BROADBAND IS HOW FAST?
[SOURCE: WebProNews, AUTHOR: Jason Lee Miller]
In case you're still convinced there's a true=20
open market in broadband space and the handful of=20
companies running it are sufficient competition=20
for each other, consider this: in Hong Kong, you=20
can get a fiber-to-the-home connection 20 times=20
faster than Verizon's FiOS connection for about the same price.
http://www.webpronews.com/topnews/2007/09/26/hong-kongs-broadband-is-how...
st

DTV TRANSITION

TV DOOMSDAY: FEB 17, 2009. WILL THE USA BE READY?
[SOURCE: USAToday, AUTHOR: FCC Commissioner Michael J. Copps]
[Commentary] Does Feb. 17, 2009, mean anything=20
to you? If you're among the millions of American=20
households that get over-the-air TV, it's the day=20
your set will stop working unless you protect=20
yourself. Here's why. TV stations broadcast=20
separate analog and digital signals. On Feb. 17,=20
2009, they'll switch to all-digital. Analog sets=20
=97 the majority of sets bought more than a few=20
years ago =97 can't display those digital signals.=20
If this is the first you've heard of it, you're=20
not alone: 61% of Americans have no idea it's=20
happening, according to a survey by the=20
Association of Public Television Stations.=20
Compare that with the United Kingdom, where 80%=20
of consumers know they face a transition. Why?=20
Well, last year, the U.K. launched a $400 million=20
consumer education campaign. In the USA =97 where=20
Red Lobster spends $95 million a year in=20
advertising =97 $5 million has been allocated. The=20
theory is that industry will pick up the slack.=20
But they're already tardy. Though websites and=20
pamphlets are fine, the real way to reach viewers=20
is through TV programming =97 early and=20
often. Broadcasters say not to worry, major=20
on-air efforts are coming. But a transition this=20
important cannot be left to a patchwork of=20
private action. It's time for the FCC to make=20
sure we have a coordinated, nationwide plan to=20
get the message out. The transition result in=20
more TV channels, but, perhaps, not more TV=20
programming. The reason is that the FCC has been=20
asleep at the switch. Even as we paved the way=20
for broadcasters to squeeze far greater capacity=20
from the public's airwaves =97 for free =97 we=20
haven't ensured that some of the digital dividend=20
will serve the American public rather than just=20
broadcasters' private financial interests. We=20
need a meaningful set of digital public interest=20
obligations for the 21st century.
http://www.usatoday.com/printedition/news/20070927/opcom_thurs.art.htm

GOP REGULATORS DEFEND WORK ON DTV
[SOURCE: Technology Daily, AUTHOR: David Hatch]
Republican regulators tasked with overseeing the=20
nationwide rollout of digital television signals=20
fiercely rejected criticism that they lack=20
coordination and vision. "Congress has provided=20
that different government agencies have different=20
responsibilities," FCC Chairman Kevin Martin=20
said, adding that the National Telecommunications=20
and Information Administration and his agency=20
will "respond to the authority that Congress has=20
given us." The accusation was made last week by=20
an investigator with Congress=92 Government=20
Accountability Office, which highlights the DTV=20
concern in a report to be released in November=20
that could further fuel the controversy=20
surrounding the changeover. NTIA Chief John=20
Kneuer said a single government entity dictating=20
public educational efforts would dissuade=20
industry groups from voluntarily running=20
public-service advertisements. "Each of these=20
industries has their own incentives, has their own messages," he said Tuesd=
ay.
http://www.njtelecomupdate.com/2007/09/gop_regulators_defend_work_on.html
* New Criticism Of DTV Shift On Horizon
http://www.njtelecomupdate.com/2007/09/new_criticism_of_digital_trans.html

ADELSTEIN PRAISES ANALOG-TO-DIGITAL CONVERTER BOX
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Commissioner Jonathan Adelstein gave RCA's=20
digital-to-analog converter box a vote of=20
confidence at the Federal Communications=20
Commission's public forum on the digital-TV=20
transition Wednesday. Commissioner Adelstein said=20
the box was simple to use, praising the one-touch=20
closed-captioning function and bilingual=20
instructions. The box -- and others from=20
manufacturers including LG Electronics and=20
Samsung -- was being demonstrated at FCC=20
headquarters as part of the forum. Commissioner=20
Adelstein said it was probably the clearest=20
demonstration he had ever had of the improved=20
picture quality. "Only 300 million more people to=20
go," he said. At the same forum, FCC Chairman=20
took the opportunity to plug the benefits of=20
multicasting. He said it would provide more local=20
news and information, which, he added, is a=20
particularly important issue as regards to the=20
FCC's media-ownership regulations.
http://www.broadcastingcable.com/article/CA6482949.html?rssid=3D193
* Chairman Martin's remarks
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-276880A1.doc
* Comments of Commissioner Copps
"Someone needs to coordinate and oversee that=20
effort. In Y2K we had an Inter-Agency Task=20
Force, headed out of The White House. That'd be=20
great, but absent that, it seems to me that the=20
FCC is the only entity in a position to get the=20
job done. We have a lot to do over the next 17=20
months, and there is a role for all of us -=20
government, industry and private=20
citizens. Working together that way is how we=20
always overcome our greatest challenges. Let's=20
try that here. We have one chance to get this=20
right. It's late, but hopefully not too late."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-276929A1.doc
* Comments of Commissioner Adelstein
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-276916A1.pdf
* Comments of Commissioner Tate
The most important factor in ensuring a smooth=20
transition is consumer education. Approximately=20
half of all American households that have=20
televisions still have analog-only sets. One=20
article I read says we just tend to keep our old=20
televisions-some homes have up to 11-which adds=20
to the challenges we are here to discuss. It is=20
important that these consumers can continue not=20
only to receive their favorite entertainment=20
shows, but vital news and emergency information as well.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-276928A1.doc

NAB DEBUTS DTV-TRANSITION PSA
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Association of Broadcasters=20
Wednesday unveiled its first national=20
digital-TV-transition public-service=20
announcement. That came in conjunction with a=20
Federal Communications Commission-sponsored forum=20
on the DTV transition. The spot was delivered to=20
stations last week as part of a broad education=20
effort that includes a speakers=92 bureau and a traveling road show.
http://www.broadcastingcable.com/article/CA6483722.html?rssid=3D193

BROADCASTING

FCC TO CHALLENGE PROFANITY DECISION IN SUPREME COURT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Justice Department agreed to seek Supreme=20
Court review of the Second Circuit court's=20
smackdown of the Federal Communications=20
Commission's crackdown on fleeting profanities.=20
According to a copy of the solicitor general's=20
request for another extension of the deadline for=20
filing the appeal, "The solicitor general has=20
decided to authorize the filing of a petition for=20
a writ of certiori in this case." Justice said it=20
needed the extra time to "permit the printing of=20
the petition and because the attorneys with=20
principal responsibility for drafting the=20
petition have been heavily engaged with the press=20
of other matters before the court," solicitor=20
general Paul Clement said. According to Andrew J.=20
Schwartzman, president of Media Access Project,=20
which has supported Hollywood in challenges to=20
FCC indecency enforcement, the solicitor general=20
asked for an extension until Nov. 1. Schwartzman=20
added that approval is essentially automatic.
http://www.broadcastingcable.com/article/CA6483656.html?rssid=3D193
* FCC pushes review of indecency policy
"I am pleased that the solicitor general will be=20
seeking Supreme Court review of the 2nd Circuit's=20
decision," FCC Chairman Martin said. "I continue=20
to support the commission's efforts to protect=20
families from indecent language on television and=20
radio when children are likely to be in the audience."
http://www.latimes.com/business/printedition/la-fi-fcc27sep27,1,7858856....
ry?coll=3Dla-headlines-pe-business
(requires registration)
* FCC chief fires back in war on dirty words
FCC Chairman Kevin Martin struck back Wednesday=20
at criticism from network broadcasters and others=20
that government standards are too vague on what=20
constitutes indecency on the public airwaves.=20
"We're down to a very few words," that can't be=20
uttered on the air, he said. "And the commission=20
is very clear about looking at the context in those cases."
http://www.charlotte.com/business/story/294753.html

JOURNAL BROADCAST GROUP BUYS KPSE PALM SPRINGS
[SOURCE: Broadcasting&Cable, AUTHOR: Michael Malone]
Journal Broadcast Group entered into an agreement=20
to purchase MyNetworkTV outlet KPSE Palm Springs=20
(CA) from Mirage Media. Terms of the transaction=20
were not disclosed. The deal is subject to=20
regulatory approval. The acquisition would create=20
a duopoly for Journal, which owns NBC affiliate KMIR.
http://www.broadcastingcable.com/article/CA6483688.html?rssid=3D193

NIELSEN TO EXPAND ITS TV SAMPLE
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
In a nod to the rapidly changing entertainment=20
landscape, Nielsen Media Research said Wednesday=20
that it would triple the size of its TV ratings=20
sample audience by 2011 to provide more accurate measurement.
http://www.latimes.com/business/printedition/la-fi-nielsen27sep27,1,4580...
.story?coll=3Dla-headlines-pe-business
(requires registration)

SPECTRUM/WIRELESS

MARTIN WORKING TO REVISE 700 MHZ OPEN-ACCESS PROVISIONS
[SOURCE: RCRWirelessNews, AUTHOR: Jeffrey Silva]
Federal Communications Commission Chairman Kevin=20
Martin is aggressively pushing for prompt=20
revisions to the 700 MHz open-access rule -- even=20
before the agency completes a review of the=20
various regulatory challenges to the full 700 MHz=20
decision, according to industry sources who=20
suggest the behind-the-scenes activity is tied to=20
Verizon Wireless=92 lobbying. Chairman Martin=20
failed late last week to make changes to the 700=20
MHz open-access conditions after a backlash from=20
one or more of his FCC colleagues. Apparently,=20
Chairman Martin is now attempting to use a=20
different policymaking vehicle -- a declaratory=20
ruling -- to modify the auction=92s open-access=20
guidelines in a way that responds to concerns=20
raised by Verizon Wireless executives at a Sept.=20
17 meeting with Martin, his staff and Fred=20
Campbell, chief of the FCC=92s wireless bureau. Key=20
industry players are worried Chairman Martin=20
wants to water down the open-access conditions=20
outside of the normal public-comment process.
http://www.rcrnews.com/apps/pbcs.dll/article?AID=3D/20070926/FREE/709260...
1005/rss01

GOOGLE NETWORK COULD COST ALMOST $17 BILLION TO BUILD
[SOURCE: eWeek.com, AUTHOR: Roy Mark]
Google's interest in obtaining spectrum to=20
challenge traditional wireless providers such as=20
AT&T and Verizon Wireless has sparked intense=20
speculation since the Federal Communications=20
Commission set the conditions for January's 700=20
MHz auction, largely following the suggestions of=20
Google, other technology companies and public=20
advocacy groups. But on top of the $4.6 billion=20
it might take to buy the spectrum, Google might=20
have to spend up to $12 billion -- and three=20
years -- more to build a national wireless=20
network from scratch. Does the company really=20
want to take that leap? "We may line up some=20
other high-tech companies or smaller telecoms.=20
Some of the second- and third-tier companies may=20
be willing to work with us," said Google's Rick=20
Whitt, adding that the company is willing to talk=20
with "anybody who thinks it makes sense to join=20
us on this." Whitt also said it might make more=20
sense for Google to make another play for a=20
smaller slice of spectrum in the auction or to=20
focus on emerging technologies such as the use of=20
unlicensed spectrum in the interference buffer=20
zones between broadcast channels or, possibly, mesh networks.
http://www.eweek.com/article2/0,1895,2188863,00.asp

ADVERTISING

UNIDENTIFIED TV PLUGS ARE DECEPTIVE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a letter to Federal Communications Chairman=20
Kevin Martin, House Telecommunications=20
Subcommittee Chairman Ed Markey (D-MA) and=20
Government Oversight Subcommittee Chairman Henry=20
Waxman (D-CA) said they think product placements=20
and integrations in TV shows are unfair and=20
deceptive if not clearly disclosed. They are=20
concerned that these plugs will blur the line=20
between programming and advertising to the degree=20
that the result will essentially be a=20
program-length commercial that "places marketing=20
objectives ahead of creative interests." The=20
chairmen praised Chairman Martin for saying=20
recently that he would look into what changes=20
might need to be made in the FCC's=20
sponsorship-identification rules. The legislators=20
encouraged a broad inquiry, including reviewing=20
how broadcast and cable programmers distinguish=20
between program and ad content and making sure=20
the rules require them to identify products being=20
plugged and who paid for the placement.
http://www.broadcastingcable.com/article/CA6483645.html?rssid=3D193
* Read the letter:
http://markey.house.gov/docs/telecomm/Letter%20with%20Waxman%20to%20FCC%...
e%20product%20placement.pdf
* Congressmen Tackle Product Placement
http://www.tvweek.com/news/2007/09/congressmen_tackle_product_pla.php
(requires free registration)

NBC, TELEMUNDO TO CUT SNACK ADS FROM EDUCATIONAL KIDS' SHOWS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
NBC Universal said Wednesday that its NBC and=20
Telemundo TV stations would no longer carry local=20
ads for "unhealthy food" during the educational=20
kids=92 TV program blocks on their 26=20
owned-and-operated TV stations. NBC affiliates=20
who run the block are not part of the pledge.=20
qubo, which supplies those educational shows to=20
both NBC and Telemundo stations, already declines=20
national advertising for snack foods. An NBC=20
spokeswoman said the company had not decided=20
which foods ads would not make the cut, one=20
reason the effort would not launch until June.=20
House Telecom Subcommittee Chairman Ed markey=20
(D-MA) wrote in response to the announcement: =93I=20
commend NBC and Telemundo for being the first=20
media companies to take this next step to protect=20
children from unhealthy junk food ads. Ideally,=20
children=92s television can be an electronic oasis=20
of educational and informational fare for kids in=20
the otherwise vast wasteland of commercial=20
television. Several other media companies like=20
Disney, Nickelodeon, Cartoon Network, and=20
Discovery Kids are also moving in the right=20
direction and I hope they and others will follow=20
NBC and Telemundo=92s lead in taking the next step=20
in combating the childhood obesity epidemic.=94
http://www.broadcastingcable.com/article/CA6482990.html?rssid=3D193
* NBC, Telemundo Expand Ban on Junk-Food Ads to Local O&Os
http://www.tvweek.com/news/2007/09/nbc_telemundo_expand_ban_on_ju.php
(requires free registration)

MOVEON AD SAGA HAS LOCAL TWIST IN MINNEAPOLIS
[SOURCE: Associated Press]
The Star Tribune of Minneapolis will be refunding=20
to Al Franken's Senate campaign about $12,000 of=20
$37,000 spent for a full-page ad a couple of=20
months ago. This week, Sen. Norm Coleman's=20
campaign took out a full-page ad in the newspaper=20
criticizing Franken for not condemning a New York=20
Times ad by MoveOn.org, which had attacked=20
General David Petraeus. Sen Coleman's campaign=20
says it paid a little over $23,000 on the ad --=20
far less than the $37,000 that Franken's campaign=20
says it paid for a full-page.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003646984

PUBLIC SERVICE GROUPS FOLLOW THE AUDIENCE
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
The Partnership for a Drug-Free America is=20
joining its profit-making counterparts in=20
radically rethinking its media choices,=20
reflecting substantial changes in how its=20
intended audiences consume media. The=20
organization is making a major commitment to=20
reaching the public, particularly parents,=20
through the Internet while reducing the amount of=20
advertising it runs on traditional television=20
outlets like broadcast networks. The shift is=20
illustrated by initiatives like Time to Talk,=20
which the organization intends as a resource for=20
parents seeking to discuss drug and alcohol use=20
with their children. The focus of Time to Talk is=20
a Web site (timetotalk.org), rather than a spate=20
of glossy television commercials.
http://www.nytimes.com/2007/09/27/business/media/27adco.html?ref=3Dtoday...
per
(requires registration)

NEW STUDY OFFERS SURPRISING NUMBERS ON NEWSPAPER/YAHOO DEAL
[SOURCE: Editor&Publisher, AUTHOR: Jennifer Saba]
Deutsche Bank is estimating that the consortium=20
of 400 newspapers working with Yahoo could see a=20
lift in year-over-year online revenue growth by=20
20 points by the second half of 2008, from 20% to=20
40%. Deutsche Bank believes the greatest=20
advantages of the partnership will come from=20
increased online inventory and traffic, better=20
CPMs due to Yahoo's behavioral targeting=20
capabilities, and the HotJobs affiliation.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003646899

TELECOM

VONAGE APPEAL DENIED
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
Vonage Holdings was smacked with its second legal=20
setback in two days when the U.S. Court of=20
Appeals for the Federal Circuit on Wednesday=20
upheld a lower-court ruling that the=20
Internet-voice provider had infringed two patents=20
held by Verizon Communications. The decision came=20
a day after a federal jury in U.S. District Court=20
in Kansas City, Kan., found that Vonage infringed=20
six Sprint Nextel patents and ordered the=20
Internet-phone company to pay $69.5 million in=20
damages. Vonage said it plans to appeal that=20
ruling. The federal appeals court affirmed an=20
injunction issued by a lower court judge in March=20
with regard to two Verizon patents, but reversed=20
the judge=92s ruling on a third patent. As such,=20
the appeals court vacated the March 8 damages of=20
$58 million and 5.5% royalty rate on future=20
revenues a jury awarded to Verizon because the=20
award did not specify which portion of the=20
damages was attributable to which patent. The=20
appeals court sent the case back to the district=20
court to determine the amount of damages and=20
royalties to be awarded to Verizon.
http://www.multichannel.com/article/CA6483008.html
* Vonage's Prospects Dim
http://www.businessweek.com/technology/content/sep2007/tc20070926_809540...
m?campaign_id=3Drss_tech

HOUSEHOLD EXPENDITURES FOR TELEPHONE SERVICE
[SOURCE: Federal Communications Commission, AUTHOR: Pedro Almoguera]
The FCC released its "Reference Book of Rates,=20
Price Indices and Household Expenditures for=20
Telephone Service. It highlights the data collected through the
Industry Analysis and Technology Division=92s=20
annual Urban Rates Survey. The local rate data=20
compiled for 2005 and 2006 reflect the inclusion=20
of various taxes and surcharges and, as such,=20
provide an estimate of the monthly charges=20
residential and single-line business customers=20
pay for local telephone service provided by=20
wireline telephone companies. The average rate=20
paid by residential customers for unlimited=20
touch-tone calling rose to $25.27 in 2006, an=20
increase of 2.6% from $24.64 in 2005. The average=20
connection charge for residential customers=20
increased to $42.92 in 2006 from $42.80 in 2005,=20
which represents an increase of 0.3%. The=20
increased availability and marketing of discount=20
and promotional long distance plans, as well as=20
the popularity of wireless =93bucket-of-minutes=94=20
plans, has made basic schedule rates obsolete for=20
many long distance customers, particularly=20
business customers and high volume residential=20
consumers. Today wireline, wireless, and cable=20
companies are offering consumers bundled packages=20
of local and long distance service, and buckets=20
of minutes that can be used to call anyone,=20
anywhere, and anytime. The average revenue per=20
minute of wireline long distance calling, which=20
reflects rates paid by residential and business=20
consumers, remained at 6 cents for the third=20
consecutive year, and represents a decrease of=20
60% from 1992, when discount and promotional long=20
distance plans were introduced. According to=20
Bureau of Labor Statistics (BLS) surveys, average=20
monthly expenditures for telephone service for=20
all U.S. households rose from $82.50 in 2004 to=20
$87.33 in 2005, an increase of 5.8%. Telephone=20
service continues to comprise approximately 2% of=20
household expenditures. Also, according to BLS=20
surveys, urban households continue to spend more on telephone service than
rural households. During 2005, average annual=20
expenditures for urban households were $1055, as=20
compared to $966 for rural households. According=20
to data provided by TNS Telecoms, a marketing=20
research firm, households with wireline telephone=20
service spent an average total of $97 per month=20
on telephone services during the year 2005
(compared to $92 in 2004); $36 per month on local=20
service (same as in 2004); $8 per month on long=20
distance service (compared to $9 in 2004); and=20
$53 per month on wireless service (compared to $47 in 2004).
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-276876A1.pdf

DIGITAL CONTENT

VERIZON REJECTS MESSAGES OF ABORTION RIGHTS GROUP
[SOURCE: New York Times, AUTHOR: Adam Liptak]
Saying it had the right to block =93controversial=20
or unsavory=94 text messages, Verizon Wireless has=20
rejected a request from Naral Pro-Choice America,=20
the abortion rights group, to make Verizon=92s=20
mobile network available for a text-message=20
program. The other leading wireless carriers have=20
accepted the program, which allows people to sign=20
up for text messages from Naral by sending a=20
message to a five-digit number known as a short=20
code. Text messaging is a growing political tool=20
in the United States and a dominant one abroad,=20
and such sign-up programs are used by many=20
political candidates and advocacy groups to send=20
updates to supporters. But legal experts said=20
private companies like Verizon probably have the=20
legal right to decide which messages to carry.=20
The laws that forbid common carriers from=20
interfering with voice transmissions on ordinary=20
phone lines do not apply to text messages.
http://www.nytimes.com/2007/09/27/us/27verizon.html?ref=3Dtodayspaper
(requires registration)
* Verizon Wireless Bars Abortion-Rights Group's Texting
http://online.wsj.com/article/SB119086739632741163.html?mod=3Dtodays_us_...
e_one
(requires subscription)

FACEBOOK FACES MORE PRESSURE TO PROTECT CHILDREN
[SOURCE: USAToday, AUTHOR: Wendy Koch]
Facebook, the second-largest social-networking=20
site, must respond within "a few weeks" to=20
requests by state attorneys general that it do=20
more to protect kids from sexual predators,=20
Connecticut Attorney General Richard Blumenthal=20
says. "If Facebook slams the door, we would=20
consider legal options," says Blumenthal, who has=20
negotiated with Facebook. He says the company=20
must verify users' ages, among other things, and=20
he expects a response within a month. Blumenthal=20
says Facebook "talked the right talk" at a=20
meeting Sept. 17, but "it has a long way to go=20
before we'll be satisfied." A group of attorneys=20
general has been investigating and negotiating=20
with the rapidly growing company. Blumenthal said=20
in July that investigators in his state found=20
that at least three convicted sex offenders had=20
profiles on Facebook. New York Attorney General=20
Andrew Cuomo said this week that his=20
investigators, who posed as young teens on the=20
site, received sexual advances from adults and=20
readily accessed pornographic images. Cuomo=20
subpoenaed Facebook for documents on the security=20
it promises its 43 million users and how it=20
resolves complaints. He said Facebook should not=20
promote itself as a safe website unless it protects kids.
http://www.usatoday.com/printedition/news/20070927/a_facebook27.art.htm

INTERNATIONAL

WARNER BROS TEAMS WITH ABU DHABI IN ENTERTAINMENT VENTURE
[SOURCE: Los Angeles Times, AUTHOR: Claudia Eller]
Time Warner Inc.'s Warner Bros. studio struck a=20
multibillion-dollar joint venture deal Wednesday=20
with two Abu Dhabi companies that would bring=20
such American icons as Bugs Bunny, Roadrunner and=20
Scooby-Doo to the Persian Gulf region. The=20
partners have agreed to build a theme park, a=20
hotel and multiplex cinemas in Abu Dhabi, the=20
leading power in the United Arab Emirates. They=20
also plan to produce movies and video games as=20
well as undertake Web initiatives as part of the=20
deal, which is arguably the most ambitious gamble=20
yet by a U.S. entertainment giant in a region=20
traditionally wary of Western culture. Flush with=20
cash from the oil boom, the Persian Gulf=20
monarchies have been in a race to attract foreign=20
investment in real estate, finance, healthcare=20
and technology. Over the last year, Abu Dhabi and=20
its smaller neighbor Dubai have made=20
cross-cultural alliances with Universal Studios=20
and Paramount Pictures in an effort to establish=20
entertainment hubs in the Arab world. "They know=20
oil won't be their lifeblood forever," said Steve=20
Baker, an Orlando, Fla.-based theme park industry=20
consultant. "They're trying to get their fair=20
share of tourism revenues. That's what this is about."
http://www.latimes.com/business/printedition/la-fi-warner27sep27,1,76773...
story?coll=3Dla-headlines-pe-business
(requires registration)
* Warner Brothers Enters Pact with Abu Dhabi Media
http://online.wsj.com/article/SB119085766043440895.html?mod=3Dtodays_us_...
e_one
(requires subscription)

WORLD MISUNDERSTANDS CHINA'S WEB CONTROLS: EXPERT
[SOURCE: Reuters, AUTHOR: Ben Blanchard]
Rebecca MacKinnon, assistant professor of new=20
media at Hong Kong University's Journalism and=20
Media Studies Centre, says the Internet in China=20
is not as restricted as sometimes believed in the=20
West, with most controls actually coming from=20
sites practicing self-censorship. But the=20
government has also effectively stopped online=20
dissent, defying expectations that the Communist=20
Party would never survive broadband, she adds.=20
Although MacKinnon added there was no doubt the=20
government could crack down hard when it wanted=20
to, pointing to the example of people jailed for=20
expressing their opinions online, she said it was=20
important to keep it in perspective. "There's a=20
real contradiction that's difficult to explain to=20
the West and the outside world about China and=20
about the Internet. On the one hand, you have a=20
lot of efforts -- and fairly successful efforts=20
-- to control content on the Internet and control=20
what people can access," she said. "Yet on the=20
other hand, you have this contradiction that at=20
the same time the space for conversation thanks=20
to the Internet has grown tremendously in China."
http://www.reuters.com/article/technologyNews/idUSPEK9306120070927

QUICKLY

MICROSOFT, GOOGLE SQUARE OFF IN WASHINGTON
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh and Anne Broache]
Google and Microsoft's bitter and long-standing=20
rivalry in the Internet search and advertising=20
markets is spilling over into Washington. Senior=20
executives from both companies are scheduled to=20
show up before a U.S. Senate panel on Thursday=20
afternoon to argue their respective cases for why=20
Google should--or should not--be allowed to=20
purchase DoubleClick for $3.1 billion. The=20
acquisition was announced in April but is still=20
undergoing a review by the Federal Trade=20
Commission and regulators in Europe and=20
Australia. The hearing could mark a turning point=20
in Google's relationship with Washington. It is=20
the first time that Congress has seriously=20
scrutinized the fast-growing company's business=20
strategies, and the first time that a proposed=20
acquisition by the company has encountered such=20
concerted political opposition. It also=20
represents the result of months of private=20
lobbying and public agitation against the merger=20
by Google's most dangerous business rivals. No=20
stranger to antitrust issues, Microsoft has=20
ordered its legendary army of lobbyists to=20
torpedo the deal, and AT&T, Yahoo and Time Warner=20
have also expressed concerns.
http://www.news.com/Microsoft%2C-Google-square-off-in-Washington/2100-10...
3-6210260.html?tag=3Dnefd.lede

ONLINE GAMBLING LAW CHALLENGED
[SOURCE: Associated Press, AUTHOR: Wayne Parry]
gambling industry group argued in federal court=20
Wednesday that a new federal law against=20
transmitting online bets outside the United=20
States violates people's right to gamble in the=20
privacy of their own homes. The group's lawyers=20
said that, because filtering technology already=20
exists to make sure children and compulsive=20
gamblers cannot access offshore betting sites,=20
the Unlawful Internet Gambling Enforcement Act=20
serves only to stifle gambling companies.
http://hosted.ap.org/dynamic/stories/O/ONLINE_GAMBLING?SITE=3DNYBUE&SECT...
=3DHOME&TEMPLATE=3DDEFAULT

TECHNOLOGY GIVES WORLD RARE VIEW OF MYANMAR'S RAGE
[SOURCE: Reuters, AUTHOR: Ed Cropley]
Secret networks of dissident citizen reporters=20
operating beneath the noses of government spies=20
in army-ruled Myanmar are giving the world=20
unprecedented glimpses of the biggest anti-junta=20
protests in two decades. With foreign journalists=20
barred from what is one of the world's most=20
closed states, much of the worldwide media=20
coverage is coming from exiled newshounds in=20
countries such as Thailand and India -- and their=20
clandestine contacts on the inside. Technology=20
ranging from the latest Internet gizmo to=20
satellite uplinks to camera phones are ensuring=20
pictures of the massed marches of monks and=20
civilians and the response by security forces is=20
on TV screens around the world in hours.
http://www.reuters.com/article/technologyNews/idUSBKK21818020070926

CHARITIES' TIE TO MTV ANGERS NONPROFITS
[SOURCE: New York Times, AUTHOR: Stephanie Strom]
MTV has begun testing a social networking Web=20
site called ThinkMTV.com that is intended to=20
encourage activism among young people. It has the=20
financial support of four foundations, including=20
the Bill and Melinda Gates Foundation and the=20
Case Foundation. But the foundations=92 alliance=20
with a for-profit venture has upset leaders of=20
several similar nonprofit sites, some of whom=20
have unsuccessfully sought support from the same foundations in the past.
http://www.nytimes.com/2007/09/27/us/27activism.html?ref=3Dtodayspaper
(requires registration)
--------------------------------------------------------------