October 2007

Benton's Communications-related Headlines For Monday October 22, 2007

To view Benton's Headlines feed in your RSS=20
Aggregator, paste=20
http://www.benton.org/index.php?q=3Dtaxonomy/term/6/all/feed into your read=
er.

INTERNET/BROADBAND
Comcast blocks some Internet traffic
U.S. Becoming Less Relevant In Global, Internet Economy
ITIF: More broadband regulation may be needed
Universal Service Fund necessary for rural connectivity
Patrick files bill for $25M broadband investment in Massachusetts

MEDIA OWNERSHIP
The End Is Near?
Free Press Pushes for Media-Ownership Oversight Hearing
Changes To FCC Media Rules Unlikely To Produce Merger Mania
Rupert Murdoch sketches financial media assault

SPECTRUM POLICY
WiMAX Garners U.N. Endorsement
In Search of Wireless Wiggle Room
AT&T says plans to participate in wireless auction

BROADCASTING
Media reformers to Martin: DTV is about quality, not quantity
FCC: NAB's $697 Million Not Enough
Top three TV retailers coordinate FCC filings on DTV transition
NPR Chief Rides the Airwaves
Groups Want New Leased Access Rate From Martin

ADVERTISING
Election '08: TV Demand May Create Commercial Jams
FCC Commissioner Jonathan Adelstein: Adamant About Ads

GOVERNMENT & COMMUNICATIONS
The Wiretap Deal
Government Surveillance Threatens Your Freedom,=20
Even If You Have Nothing To Hide
Say What You Like, Just Don't Say It Here

QUICKLY -- Libraries Shun Deals to Place Books on=20
Web; Clinton Finds Way to Play Along With Drudge;=20
NTIA Renews .us Domain Contract With Neustar;=20
Eligible Services List for Schools and Libraries;=20
President Bush's Broadcasting Board Nominees;=20
AT&T sues Vonage for patent infringement; End=20
global inequality: become a Luddite

INTERNET/BROADBAND

COMCAST BLOCKS SOME INTERNET TRAFFIC
[SOURCE: Associated Press, AUTHOR: Peter Svensson]
Comcast actively interferes with attempts by some=20
of its high-speed Internet subscribers to share=20
files online, a move that runs counter to the=20
tradition of treating all types of Internet=20
traffic equally. The interference, which The=20
Associated Press confirmed through nationwide=20
tests, is the most drastic example yet of data=20
discrimination by a U.S. Internet service=20
provider. It involves company computers=20
masquerading as those of its users. If widely=20
applied by other ISPs, the technology Comcast is=20
using would be a crippling blow to the=20
BitTorrent, eDonkey and Gnutella file-sharing=20
networks. While these are mainly known as sources=20
of copyright music, software and movies,=20
BitTorrent in particular is emerging as a=20
legitimate tool for quickly disseminating legal=20
content. The principle of equal treatment of=20
traffic, called "Net Neutrality" by proponents,=20
is not enshrined in law but supported by some=20
regulations. Most of the debate around the issue=20
has centered on tentative plans, now postponed,=20
by large Internet carriers to offer preferential=20
treatment of traffic from certain content=20
providers for a fee. Comcast's interference, on=20
the other hand, appears to be an aggressive way=20
of managing its network to keep file-sharing=20
traffic from swallowing too much bandwidth and=20
affecting the Internet speeds of other subscribers.
http://www.msnbc.msn.com/id/21376597/
* Look! My Solution Found A Problem! Comcast=20
Degrades BitTorrent Traffic Without Telling Users.
[Commentary] "making a deal with the broadband=20
access devil to police your content guarantees=20
that broadband access providers will end up=20
owning you the way Microsoft ended up owning IBM=20
and everyone else who thought that they could=20
leverage another parties control of a bottleneck=20
facility to its own advantage."
http://www.wetmachine.com/item/912

US BECOMING LESS RELEVANT IN GLOBAL, INTERNET ECONOMY
[SOURCE: InformationWeek, AUTHOR: Antone Gonsalves]
The United States is losing its clout in the=20
global economy and the Internet as other=20
countries develop faster growing markets. The=20
U.S. share of the global gross domestic product=20
has declined steadily since 1999 to 19% today=20
from 22%. While this has been good news for other=20
countries, it hasn't been a favorable trend for=20
the U.S. Going forward within the U.S., the=20
country's current woes related to the subprime=20
mortgage market "should not be underestimated"=20
and it could have a serious impact on the U.S.=20
GDP. In terms of the Internet -- especially in=20
technologies key to Web 2.0 success -- the=20
fastest growth is in non-U.S. markets. For=20
example, Germany leads the e-commerce market,=20
China leads in online gaming, South Korea leads=20
in broadband, Japan leads in mobile payments, the=20
United Kingdom leads in online advertising,=20
Brazil and South Korea lead in social networking,=20
and the Philippines leads in micro-transactions=20
via SMS. America is not totally out of the=20
picture. Online advertising is growing at a=20
healthy clip in the U.S., growing 26% this year=20
to 10% of the total ad market, or $21 billion,=20
Meeker said. The total U.S. advertising market=20
this year is expected to grow by 4%. By 2012,=20
online advertising is expected to make up 17% of=20
the total ad spend in the U.S.
http://www.informationweek.com/management/showArticle.jhtml;?articleID=3...
2404434

ITIF: MORE BROADBAND REGULATION MAY BE NEEDED
[SOURCE: InfoWorld, AUTHOR: Grant Gross, IDG News Service]
Information Technology and Innovation Foundation=20
President Robert Atkinson said that relying on=20
competition may not fix problems with broadband=20
speed and cost in the United States, because of=20
the high cost of entry into the market. Many DC=20
policymakers call for competition to cure issues=20
with broadband value and build-out, but they=20
don't recognize that the cost of building out=20
competing networks may make broadband a natural=20
monopoly or duopoly. "It's a mistake for=20
policymakers to assume that if they simply 'push=20
the competition lever,' all the problems with=20
broadband policy will be solved," wrote Atkinson,=20
in an ITIF paper. "The bottom line is that if=20
policymakers want to maximize not only societal=20
welfare but also consumer welfare, they must=20
balance the push for more competition with the=20
need to maintain and create an efficient=20
broadband industry structure." Atkinson and some=20
other speakers at an ITIF broadband policy forum=20
argued that the United States may need more=20
broadband regulations to achieve higher speeds=20
and lower prices. Atkinson suggested a balance=20
between competition and regulations that would=20
mandate open pipes and create stronger=20
enforcement of consumer protection and antitrust laws.
http://www.infoworld.com/article/07/10/19/More-broadband-regulation-need...
1.html
* The Role of Competition in a National Broadband Policy
Reviews the four main policy options toward=20
broadband competition: 1) keep the same number of=20
=93pipes=94; 2) spur the deployment of more pipes; 3)=20
force incumbents to open up existing pipes to=20
competitors, and 4) regulate =93duopoly=94 pipes.=20
Although each policy track will achieve some=20
benefits, each also brings with it costs and risks.
http://www.itif.org/index.php?id=3D87

UNIVERSAL SERVICE FUND NECESSARY FOR RURAL CONNECTIVITY
[SOURCE: The Hill, AUTHOR: Rep. Lee Terry (R-Neb.)]
[Commentary] The nationwide rollout of broadband=20
is one of those campaign promises that we still=20
have failed to act on. Most disappointing is that=20
this issue, unlike many before the Congress, has=20
bipartisan support and can pass both chambers to=20
be sent to the president=92s desk. Unfortunately,=20
Congress still spends its time on issues that=20
only divide and give Americans an even lower=20
opinion of the work that is done in Washington.=20
Our current policy to ensure that Americans have=20
access to the highest quality telecommunications=20
is broken and in desperate need of repair. As=20
elected officials we have the responsibility to=20
make sure that all of our constituents are given=20
every tool necessary to participate and succeed=20
in the 21st century global economy. The Universal=20
Service Fund is central to the goal of delivering=20
accessible and affordable telecommunications to=20
rural areas. Specifically, USF is the public=20
policy that will deliver broadband to rural=20
America, if Congress will agree to reform and=20
improve the fund in order to allow=20
telecommunication providers the ability to use=20
money they are currently receiving to deploy=20
broadband networks. The failure to act on=20
Universal Service Fund reform will result in=20
millions of Americans losing access to=20
telecommunication services including broadband. I=20
continue to be optimistic that Congress will work=20
to enact H.R. 2054, The Universal Service Reform=20
Act of 2007. However, I see it as complementary=20
to regulators=92 continued efforts to be fiscally=20
responsible through specific policies.
http://thehill.com/leading-the-news/universal-service-fund-necessary-for...
ral-connectivity-2007-10-16.html

PATRICK FILES BILL FOR $25M BROADBAND INVESTMENT IN MASSACHUSETTS
[SOURCE: Boston Business Journal, AUTHOR: Jackie Noblett]
Businesses and residents in remote areas of=20
Massachusetts may finally be able to have=20
high-speed Internet access as a part of a $25=20
million state investment in broadband=20
infrastructure. But the measure will need to get=20
the support of major telecommunications players=20
before anything can happen. Governor Deval=20
Patrick announced the filing of a bond bill=20
Thursday that would establish a Massachusetts=20
Broadband Institute, whose mission would be to=20
extend access to every community in the state by=20
2010. State officials say state-wide broadband=20
will spur economic developments in areas it is=20
needed. There are 32 communities in Massachusetts=20
without broadband Internet access and 62 others=20
with limited access. Most of the areas are in the=20
western parts of the state. Area=20
telecommunication providers stand to gain from=20
the bill, as the Broadband Institute doles out=20
funds to establish public-private partnerships to=20
build and maintain the state-owned=20
infrastructure. Both existing telecommunications=20
providers and incoming ones would be eligible to=20
bid for the funding. Some inside the=20
telecommunication industry have expressed=20
skepticism in the past of the governor's broadband plans.
http://boston.bizjournals.com/boston/stories/2007/10/15/daily53.html?jst...
b_ln_hl

MEDIA OWNERSHIP

THE END IS NEAR
[SOURCE: Broadcasting&Cable, AUTHOR: Editorial staff]
[Commentary] After 18 months of hearings and=20
studies and public input, FCC Chairman Kevin=20
Martin is about to propose that=20
newspaper-broadcast cross-ownerships be allowed=20
in the same city. This is a very old issue that=20
has been successfully opposed by public-interest=20
groups and others that fail to recognize that=20
there is no good reason to keep the rule around.=20
Indeed, many papers are now being printed in red=20
ink. In cities nationwide, newspapers are cutting=20
staffs, features, even whole sections. News=20
platforms are changing far faster than=20
politicians' rhetoric. Progressive television=20
stations are making news-sharing arrangements=20
with newspapers. Newspaper Websites shoot video.=20
Television Websites write stories. Opposing=20
cross-ownership in these times is about as=20
relevant as, well, yesterday's newspaper.
http://www.broadcastingcable.com/article/CA6492826.html
* Cross-ownership of media can be good
[Commentary] Dual ownership of a local newspaper=20
and a local radio station, handled responsibly,=20
can be of benefit to any community.
http://www.stamfordadvocate.com/news/opinion/columnists/scn-sa-russelloc...
,0,525911.column?coll=3Dstam-opinion-columnists
* Will Martin Rule?
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
According to an FCC source, on November 13,=20
Federal Communications Commission Chairman Kevin=20
Martin will release his proposed media ownership=20
rule changes. These changes will almost certainly=20
include allowing newspaper-broadcast station=20
cross-ownership. The full Commission could vote on December 18.
http://www.broadcastingcable.com/article/CA6492824.html
* Media ownership proceeding heads towards endgame
AFL-CIO leader Paul Almeida: "Federal=20
Communications Commission Chairman Kevin Martin=20
is doing a Michael Powell. He=92s trying to ram=20
through new rules to give more billions to=20
billionaires -- people like Rupert Murdoch and Sam Zell -- at our expense."
http://www.lasarletter.net/drupal/node/487

FREE PRESS PUSHES FOR MEDIA OWNERSHIP OVERSIGHT HEARING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Free Press has asked its 350,000 members to=20
contact their congressman asking for oversight hearings on media ownership.
http://www.broadcastingcable.com/article/CA6492762.html
* See: "Tell Congress to Stop Big Media"
http://action.freepress.net/campaign/fcc_oversight/
* John Edwards Warns Against Rewriting Rules That=20
Prevent Excessive Media Consolidation
John Edwards sent a letter to the FCC=20
Commissioners in response to Chairman Kevin J.=20
Martin's proposal to loosen media ownership=20
rules: "I urge you to cease your efforts to=20
radically rewrite the rules preventing excessive=20
media consolidation. You and your fellow=20
commissioners have the responsibility to ensure=20
that our nation's media is open, democratic and=20
as diverse as the American people, and not --=20
like too much of our economy and our political=20
system today -- dominated by the wealthiest=20
Americans, large corporations and their=20
lobbyists. Rewriting the ownership rules in the=20
manner you propose is contrary to that responsibility."
http://johnedwards.com/news/headlines/20071019-fcc-letter/
* The Time Has Come
[Commentary] Broadcasters are hoping FCC Chairman=20
Kevin Martin can deliver on his plan to vote on=20
new media ownership rules by Dec. 18, but the=20
impediments remain many, including angry=20
Democrats with pitchforks and torches. The FCC's=20
process for reviewing the rules has had its=20
critics, but they are the same people who don't=20
want the dergulatory rule rewrite at all so their=20
complaints must be seen through that prism. The=20
FCC has held more field hearings and gotten much=20
more public input this time around, which even=20
Sen Byron Dorgan, head pitchfork carrier, concedes.
http://www.broadcastingcable.com/blog/50000405.html#620016062

CHANGES TO FCC MEDIA RULES UNLIKELY TO PRODUCE MERGER MANIA
[SOURCE: DowJones, AUTHOR: Shira Ovide]
Changes to Federal Communications Commission=20
media ownership rules that would allow media=20
companies owning a newspaper and TV station in=20
the same market are unlikely to open the=20
floodgates to media deals as most companies have=20
given up on benefits from the strategy.=20
"Cross-selling of advertising has been elusive=20
and is not widely believed in at this point,"=20
said Leland Westerfield, an analyst with BMO=20
Capital Markets. The failure of cross-ownership=20
is borne out by the struggles of Tribune. Tribune=20
bought Times Mirror in 2000 in part to reap=20
benefits from combining big-city newspaper like=20
the Los Angeles Times and Chicago Tribune with TV=20
stations in the same cities. But Tribune's=20
decision to go private earlier this year was seen=20
widely as an admission of the merger's failures.=20
At the same time, technology marches on. Media=20
companies say the rules are irrelevant at a time=20
when the Internet gives consumers diverse sources=20
of news and information and erodes the=20
stranglehold of newspapers and TV stations over=20
local news and entertainment. Internet outlets=20
and newspapers aren't regulated by the FCC.
http://www.smartmoney.com/bn/ON/index.cfm?story=3DON-20071018-001109-1718

RUPERT MURDOCH SKETCHES FINANCIAL MEDIA ASSAULT
[SOURCE: Reuters, AUTHOR: Kenneth Li]
Rupert Murdoch sketched out his plans for the Fox=20
Business Network on Friday, saying he will spend=20
years nurturing the new channel to win over more=20
than half of the business news audience. The News=20
Corp chairman and chief executive confirmed media=20
reports that his media conglomerate intended to=20
invest $150 million to $200 million over three=20
years in FBN, including about $70 million in=20
fiscal 2008. Aiming to repeat the success of the=20
Fox News Channel, which unseated CNN as the top=20
cable news network four years after its launch,=20
FBN is part of Murdoch's ambitions to build a=20
global financial media powerhouse in print, the Internet and TV.
http://today.reuters.com/news/newsArticle.aspx?type=3DindustryNews&storyID=
=3D2007-10-19T201947Z_01_N19419099_RTRIDST_0_INDUSTRY-NEWSCORP-WRAP-DC.XML
* Murdoch: Pulling CNBC Ads Could Have Been =93Heavy-Handed=94
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
News Corp's Rupert Murdoch said the controversy=20
surrounding advertisements from CNBC that were=20
pulled from the Wall Street Journal and=20
MarketWatch web sites during the launch of News=92s=20
rival Fox Business Network was done without his=20
knowledge. He added that the decision to pull the=20
ads could be perceived as being heavy handed, but=20
said it would be well within News Corp.=92s rights=20
to reject ads from competitors.
http://www.multichannel.com/article/CA6492804.html
* News Corp sees $1 billion Internet revenue this year
[SOURCE: Reuters, AUTHOR: Kenneth Li]
At the end of its fiscal fourth quarter, News=20
Corp said it would be "surprised" if its Fox=20
Interactive Media Internet division revenues "do=20
not exceed $1 billion with margins well above 20=20
percent." Also, on Thursday, the company cut its=20
fiscal 2008 revenue outlook for its MySpace=20
online social network to about $750 million from=20
its prior target of over $800 million.
http://www.reuters.com/article/internetNews/idUSN1933724920071019
* News Corp. hangs onto its dual-class stock system
Murdoch, in control, says investors know the score
http://www.usatoday.com/printedition/money/20071022/3b_murdoch22.art.htm

SPECTRUM POLICY

WIMAX GARNERS UN ENDORSEMENT
[SOURCE: Wall Street Journal, AUTHOR: Don Clark=20
don.clark( at )wsj.com and Anne Jolis]
A wireless technology called WiMAX got a key=20
endorsement from a United Nations agency,=20
improving the odds it will be widely deployed.=20
The decision by the International=20
Telecommunications Union came after a lengthy=20
lobbying battle, which pit Intel Corp. and other=20
WiMAX supporters against an opposing camp that=20
included Qualcomm Inc. and Telefon AB L.M.=20
Ericsson. As a result of the ITU action, WiMAX=20
joins a list of approved technologies for use=20
with the designation 3G, for third generation. In=20
some countries, certain broadcast frequencies can=20
only be used with 3G technologies as defined by=20
the group. The decision puts WiMAX on a more=20
equal regulatory footing with cellular=20
technologies, and helps address one of the=20
biggest question marks about the technology--will=20
broadcast spectrum be available to widely deploy WiMAX around the world.
http://online.wsj.com/article/SB119281823806765074.html?mod=3DdjemTECH
(requires subscription)
* ITU press release
http://www.itu.int/newsroom/press_releases/2007/30.html

IN SEARCH OF WIRELESS WIGGLE ROOM
[SOURCE: New York Times, AUTHOR: Judith Chevalier, Yale]
[Commentary] There are signs that the existing=20
order in the wireless world may finally be=20
changing. This month, despite the opposition of=20
companies like Verizon, the Federal=20
Communications Commission reiterated that its=20
coming auction of wireless spectrum would include=20
rules intended to give consumers more choices in=20
the phones they can use. These =93open access=94=20
auction rules have already received considerable=20
attention, but the commission also faces other=20
decisions that will significantly affect the=20
availability and the price of wireless service.=20
Google and other technology companies, including=20
Dell, Philips and Microsoft, are part of a group=20
called the White Space Coalition that is asking=20
the F.C.C. to open up the empty space between=20
assigned TV channels to unlicensed users and=20
devices. While there is certainly a risk that=20
white-space Internet devices could interfere with=20
some television signals, the potential for cheap,=20
accessible wireless broadband is too great to pass up.
http://www.nytimes.com/2007/10/21/business/media/21view.html?ref=3Dtoday...
per
(requires registration)
* NAB Cites Yet More 'White Spaces' Doubters
Reps Tom Tancredo (R-CO) and Christopher Sahys=20
(R-CT) have sent letters to the FCC with concerns=20
about allowing unlicensed mobile devices to use so-called white spaces.
http://www.broadcastingcable.com/article/CA6492862.html

AT&T SAYS PLANS TO PARTICIPATE IN WIRELESS AUCTION
[SOURCE: Reuters, AUTHOR: Daisuke Wakabayashi and Michele Gershberg]
AT&T said on Friday it plans to participate in an=20
upcoming government auction of airwaves in the=20
700-Megahertz spectrum band, but it is still=20
deciding whether to bid for a portion of the=20
spectrum reserved for open access. AT&T Chief=20
Executive Randall Stephenson said the spectrum=20
would be prime property for wireless companies=20
and would be a key element for delivering data=20
services to mobile devices in the future. The=20
airwaves to be sold in the 700-megahertz band can=20
travel long distances and penetrate thick walls.=20
The spectrum will be freed up once broadcast=20
television networks switch to digital from analog in 2009.
http://www.reuters.com/article/technologyNews/idUSN1932395620071019
* Spectrum auction may be a mixed bag for companies
The Federal Communications Commission tried to=20
structure its upcoming auction of valuable=20
broadcast spectrum to benefit small businesses,=20
but that may not happen. The auction's rules=20
could help software developers and makers of=20
handsets and other wireless devices, because=20
winners of a large chunk of spectrum will be=20
required to open their networks to any products=20
that consumers want. But some small wireless=20
providers say they won't be able to compete in=20
the auction because of restrictions that make it=20
impossible to raise enough capital.
http://portland.bizjournals.com/portland/stories/2007/10/22/story13.html

BROADCASTING/CABLE

MEDIA REFORMERS TO MARTIN: DTV IS ABOUT QUALITY, NOT QUANTITY
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
Five prominent media reform organizations have=20
taken Federal Communications Commission chair=20
Kevin Martin to task for suggesting that digital=20
(DTV) television's draw will be the wide variety=20
of new channels available to consumers. "We write=20
today to say that we believe that the quality of=20
DTV programming, not quantity of DTV programming=20
could be the key to a successful digital=20
television transition," the groups told the FCC=20
on Friday October 19th. They include the Benton=20
Foundation, Common Cause, Communication Service=20
for the Deaf, Free Press, and the United States=20
Conference of Catholic Bishops. media reform=20
groups have long argued that the ability of=20
digital broadcasters to split their signal into=20
multiple channels should come with public=20
interest strings attached, mandated by the FCC.=20
"Multicasting on local cable systems could be the=20
great DTV benefit for US consumers," the five=20
groups write, "if broadcasters will better serve=20
the basic needs of their local audiences=97not only=20
for children, where the FCC has unanimously=20
supported new rules for DTV, but for everyone=20
with increased local news, electoral and public=20
affairs; more diverse programming for minorities=20
and women; strengthened disability access; and=20
necessary information in times of=20
emergency." "We urge the Commission to issue=20
clear, concrete guidelines on this subject, and=20
to provide notice to regulated entities and the=20
public regarding how broadcasters will continue=20
to fulfill their public interests obligations in=20
the digital age," the filing concludes.
http://www.lasarletter.net/drupal/node/488

FCC: NAB'S $697 MILLION NOT ENOUGH
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Last week, the broadcast industry agreed to=20
commit $697 million to DTV education, but the=20
Federal Communications Commission is still likely=20
to adopt education benchmark mandates including=20
PSA quotas and reporting requirements. While=20
broadcasters don't welcome mandates, they could=20
likely live with them if FCC Chairman Martin=20
secures the other part of his pitch to Congress=20
-- mandatory cable carriage of broadcasters' DTV=20
signals. Chairman Martin told House=20
Telecommunications & Internet Subcommittee=20
members that requiring carriage would drive the=20
adoption of digital TV by changing the message=20
from preserving the status quo to gaining new=20
channels. Chairman Martin has already circulated=20
an order mandating multicast must-carry for a=20
vote by fellow commissioners. He was unable to=20
muster a majority the last time he tried to get a vote on multicast must-ca=
rry.
http://www.broadcastingcable.com/article/CA6492819.html
* FCC Hones In on DTV PSA Mandates
Details are emerging on Federal Communications=20
Commission chairman Kevin Martin's plan to=20
require broadcasters to deliver a set number of=20
public-service announcements about the transition=20
to digital, and the FCC also apparently wants to=20
mandate some of the content of those messages.=20
According to a source familiar with the=20
proposals, the chairman wants each TV station to=20
air four PSAs of at least 15 seconds in length=20
per day, each in a different four-hour daypart,=20
starting in November -- if the mandates are=20
adopted at the upcoming Oct. 31 meeting -- and=20
for six months thereafter. At that time, the=20
number would double to eight PSAs, two in each=20
daypart, plus four crawls, one in each daypart.=20
Six months later, the number would increase to 12=20
PSAs and 12 crawls, three apiece in each daypart.
http://www.broadcastingcable.com/article/CA6492986.html?rssid=3D193

TOP THREE TV RETAILERS COORDINATE FCC FILINGS ON DTV TRANSITION
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
Using the same language template and writing on=20
the same day, Best Buy, Circuit City, and Target=20
have sent statements to the Federal=20
Communications Commission assuring the agency=20
that they're ready for the DTV transition. The=20
filings are not identical, but they're not all=20
that different either. Among their promises: 1)=20
To inform the public about the National=20
Telecommunications Information Administration's=20
NTIA Coupon-Eligible Converter Box CECB program.=20
2) To publicize the campaign on their Web sites.=20
3) All three retailers will distribute DTV=20
pamphlets in their stores, include DTV=20
information in their advertising supplements, and=20
train their sales associates to help customers deal with the transition.
http://www.lasarletter.net/drupal/node/486

NPR CHIEF KEN STERNS RIDES AGAIN
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com]
In an era when commercial radio seems to be=20
floundering, National Public Radio is hitting its=20
stride. Some 25.5 million people tune into its=20
programming each week, up from 13 million a=20
decade ago. It has more than 800 member stations,=20
up from 635 a decade ago. In some places, like=20
Seattle, its "Morning Edition" is consistently=20
the most popular morning drive show on any radio=20
station. It is expanding foreign coverage,=20
winning more underwriting dollars, and forging=20
into the digital age with online streams and=20
podcasts. Much of this growth has occurred under=20
Ken Stern, NPR's chief executive, who joined as=20
executive vice president in 1999. But there are=20
clouds on the horizon. The average listener is=20
getting older each year. Member stations=20
everywhere face more competition from all kinds=20
of new media options that didn't exist a few years ago, like satellite radi=
o.
http://online.wsj.com/article/SB119301180052966496.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

GROUPS WANT NEW LEASED ACCESS RATE FROM MARTIN
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Media Access Project and Public Knowledge met=20
with FCC Chairman Kevin martin asking for new=20
rules designed to reduce the rates that=20
third-party programmers pay to lease channel=20
capacity from cable operators. MAP endorsed a=20
rule that would determine a single, national=20
leased access rate =93using price information from=20
Los Angeles and New York City, currently the two=20
most competitive leased access markets.=94 Leased=20
access programmers may buy time from cable=20
operators as required under federal law and FCC=20
rules. As a concept, leased access has always=20
been at odds with the pay-TV business model,=20
which is predicated on programmers receiving=20
payment from their distributors. Leased access=20
programmers have complained to the FCC that cable=20
incumbents have been difficult negotiators in=20
part because operators are allowed to fill unused=20
leased access channels with their own programming.
http://www.multichannel.com/article/CA6493048.html?rssid=3D196

ADVERTISING

ELECTION '08: TV DEMAND MAY CREATE COMMERCIAL JAMS
[SOURCE: MediaDailyNews, AUTHOR: Wayne Friedman]
With an expected record-breaking $3.0 billion in=20
media to be spent in 2008--up from $2.3 billion=20
in 2006 and $1.7 billion in 2004 -- Evan Tracey,=20
COO of the Campaign Media Analysis Group of TNS=20
Media Intelligence, says inventory may be too=20
tight for some TV stations next year, possibly=20
causing some TV commercial logjams. TNS estimates=20
that 70% to 75% of all campaign dollars will run=20
on either local TV stations or on local cable in=20
2008. Tracey believes that a growing number of=20
presidential candidates will use some national TV=20
-- with much of that going to the cable news and=20
cable financial news channels: Fox News, CNN,=20
CNBC, Fox Business, Headline News [no relation].=20
While political candidates can still request the=20
lowest unit rate from stations, those spots=20
continue to be subject to preemption. But because=20
a number of states will have contests that are=20
close and competitive, political candidates will=20
typically spend more to secure specific TV positions that can't be changed.
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.san&s=...
9478&Nid=3D35449&p=3D368626

FCC COMMISSIONER JONATHAN ADELSTEIN: ADAMANT ABOUT ADS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
FCC Commissioner Jonathan Adelstein has made=20
cracking down on deceptive advertising practices=20
a key issue in his second term at the Commission.=20
Since May 2005, when he made a speech accusing=20
the media of =93marinating children=92s brains in=20
advertising,=94 he has been committed to wiping out=20
unlawful practices. As more than 100 TV stations=20
and some cable operators face potential fines for=20
unidentified video-news releases, Commissioner=20
Adelstein said disclosure remains the answer. In=20
this Q&A, Commissioner Adelstein also addresses=20
1) the digital TV transition, 2) minority media=20
ownership, 3) multicast must-carry, and 4) a=20
recent GAO study finding that the FCC favor industry over consumer groups.
http://www.broadcastingcable.com/article/CA6492972.html?rssid=3D193

GOVERNMENT & COMMUNICATIONS

THE WIRETAP DEAL
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
[Commentary] As the Bush Administration winds=20
down, one of its main tasks is preserving=20
Presidential war-fighting powers against poaching=20
by a hostile Congress and expansive judiciary. On=20
this score, last week's Senate "compromise" on=20
warrantless wiretaps is at best a mixed=20
achievement. In return for Congress's blessing to=20
continue this surveillance, the White House is=20
ceding some of its Constitutional authority to=20
unelected, unaccountable judges. This is not to=20
deny the real policy gains in the measure that=20
was endorsed, in a bipartisan vote, by the Senate=20
Intelligence Committee last week. Most important,=20
the Director of National Intelligence and=20
Attorney General will be able to approve overseas=20
wiretaps without having to get a judge's approval=20
in advance. We realize that, in practice, the=20
FISA court will almost always rubber stamp the=20
Administration's wiretap decisions. And if it=20
doesn't, the government can appeal to a FISA=20
appeals panel and ultimately to the Supreme=20
Court. The White House may believe that these=20
procedural compromises are worth making to stop=20
Congress from trying to undermine=20
intelligence-gathering that is crucial to keeping=20
the country safe. Yet if the President won't=20
protect the Presidency, who will? The Senate deal=20
shows that Democrats realize Mr. Bush has the=20
political whip hand on this issue, and the last=20
thing they want going into an election year is to=20
argue over limiting the U.S. ability to eavesdrop=20
on al Qaeda. Mr. Bush should drive a harder=20
bargain that protects the Constitution, as well as the public.
http://online.wsj.com/article/SB119301628320466605.html?mod=3Dtodays_us_...
nion
(requires subscription)
* Immunity for Telecoms May Set Bad Precedent, Legal Scholars Say
As part of a surveillance package approved=20
Thursday by the Senate intelligence committee,=20
some telecommunications companies would be=20
granted immunity from about 40 pending lawsuits=20
that allege they violated Americans' privacy and=20
constitutional rights by aiding a warrantless=20
surveillance program instituted after the Sept.=20
11, 2001, terrorist attacks. Legal experts say=20
the granting of such retroactive immunity by=20
Congress is unusual, particularly in a case=20
involving private companies. "It's particularly=20
unusual in the case of the telecoms because you=20
don't really know what you're immunizing," said=20
Louis Fisher, a specialist in constitutional law=20
with the Law Library of the Library of Congress.=20
"You don't know what you're cleaning up." "The=20
unfortunate reality is that once you've done it,=20
once you immunize interrogators or phone=20
companies, then it's easy to do it again in=20
another context," said Retired Rear Adm. John=20
Hutson. "It seems to me that as a general rule,=20
retroactive immunity is not a good thing. . . .=20
It's essentially letting Congress handle=20
something that should be handled by the judiciary."
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/21/AR200710...
1041.html
* Immunity demand for telecoms raises questions
[Commentary] As history shows, mass snooping can sweep up innocent citizens.
http://www.usatoday.com/printedition/news/20071022/edit22.art.htm
* Shield the phone companies
[Commentary] Telecom carriers that aided war on=20
terror deserve lawsuit immunity.
http://www.usatoday.com/printedition/news/20071022/oppose22.art.htm

GOVERNMENT SURVEILLANCE THREATENS YOUR FREEDOM,=20
EVEN IF YOU HAVE NOTHING TO HIDE
[SOURCE: AlterNet, AUTHOR: John Dean]
[Commentary] "I've got nothing to hide, so=20
electronic surveillance doesn't bother me. To the=20
contrary, I'm delighted that the Bush=20
Administration is monitoring calls and electronic=20
traffic on a massive scale, because catching=20
terrorists is far more important that worrying=20
about the government's listening to my phone=20
calls, or reading my emails." So the argument=20
goes. It is a powerful one that has seduced too=20
many people. Millions of Americans buy this=20
logic, and in accepting it, believe they are=20
doing the right thing for themselves, their=20
family, and their friends, neighbors, community=20
and country. They are sadly wrong. If you accept=20
this argument, you have been badly fooled.
http://www.alternet.org/stories/65671/

SAY WHAT YOU LIKE, JUST DON'T SAY IT HERE
[SOURCE: New York Times, AUTHOR: Adam Liptak]
The American commitment to free speech is the=20
most robust in the world. But these days that=20
tolerance stops at the border. Two cases pending=20
in federal court in Manhattan will soon test how=20
far the government can go in keeping Americans=20
safe from what a State Department manual calls=20
the =93irresponsible expressions of opinion by prominent aliens.=94
http://www.nytimes.com/2007/10/22/us/22bar.html?ref=3Dtodayspaper
(requires registration)

QUICKLY

LIBRARIES SHUN DEALS TO PLACE BOOKS ON WEB
[SOURCE: New York Times, AUTHOR: Katie Hafner]
Several major research libraries have rebuffed=20
offers from Google and Microsoft to scan their=20
books into computer databases, saying they are=20
put off by restrictions these companies want to=20
place on the new digital collections. The=20
research libraries, including a large consortium=20
in the Boston area, are instead signing on with=20
the Open Content Alliance, a nonprofit effort=20
aimed at making their materials broadly=20
available. Libraries that agree to work with=20
Google must agree to a set of terms, which=20
include making the material unavailable to other=20
commercial search services. Microsoft places a=20
similar restriction on the books it converts to=20
electronic form. The Open Content Alliance, by=20
contrast, is making the material available to any search service.
http://www.nytimes.com/2007/10/22/technology/22library.html?ref=3Dtodays...
er
(requires registration)

CLINTON FINDS WAY TO PLAY ALONG WITH DRUDGE
[SOURCE: New York Times, AUTHOR: Jim Rutenberg]
Matt Drudge came to national prominence a decade=20
ago as a nemesis of the Clintons who used the Web=20
to peddle, gleefully, the latest news and rumor=20
generated by the Monica Lewinsky scandal. Now Sen=20
Hillary Rodham Clinton (D-NY) is learning to play=20
nice with the Drudge Report and the powerful,=20
elusive and conservative-leaning man behind it.=20
Because of the sheer number of people who look at=20
it and because of the attention it gets from the=20
media, what appears on Drudge can, for a few=20
minutes or an entire day, drive what appears=20
elsewhere, making it, =93a force in the political=20
news cycle for both the press and the campaigns,=94=20
said David Chalian, the political director at ABC News.
http://www.nytimes.com/2007/10/22/us/politics/22drudge.html?ref=3Dtodays...
er
(requires registration)

NTIA RENEWS .US DOMAIN CONTRACT WITH NEUSTAR
[SOURCE: National Telecommunications and Information Administration]
The Commerce Department=92s National=20
Telecommunications and Information Administration=20
(NTIA) announced the renewal of a contract to=20
Neustar to manage the .us domain space. NTIA just=20
completed a three-month long competitive=20
procurement process. The domain is the country=20
code top-level domain for the United States=20
(usTLD). Neustar and the Department of Commerce=20
entered into a three-year agreement with two,=20
one-year options, on Friday, Oct. 19, 2007. The=20
company also will continue efforts to improve the=20
customer service and technical management as well=20
as introduce new services. NTIA is responsible=20
for the development of domestic and international=20
telecommunications policy for the Executive Branch.
http://www.ntia.doc.gov/ntiahome/press/2007/Neustar_101907.html

ELIGIBLE SERVICES LIST FOR SCHOOLS AND LIBRARIES
[SOURCE: Federal Communications Commission]
The Federal Communications Commission released=20
the 2008 Eligible Services List for the schools=20
and libraries universal service support=20
mechanism. Some of the changes that have been=20
made: 1) Centrex: In the 2008 ESL, Centrex=20
service is treated as basic telephone service for=20
purposes of the schools and libraries program=20
with the intention of eliminating the requirement=20
that applicants file a technology plan for=20
Centrex service. 2) Internet Access for Distance=20
Learning: The FCC clarifies that basic conduit=20
access to the Internet for the purpose of=20
accessing distance learning and video=20
conferencing is eligible for funding in the=20
Internet access category but distance learning=20
and video conferencing tools are not eligible for=20
funding. 3) Broadband over Power Lines=20
(BPL): The FCC adds BPL under the entry for=20
Digital Transmission Services to allow applicants=20
to seek funding for the transmission component of=20
BPL as a telecommunications service. 3)=20
BPL-enabled Internet access service: The FCC=20
adds BPL-enabled Internet access service under=20
the entry for Internet access to allow applicants=20
to seek funding for BPL-enabled Internet access=20
service under the Internet access category if the=20
service is bundled with Internet access. 4) Web=20
Hosting: The FCC clarifies the eligible components of a web hosting service
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-182A1.doc
* Eligible Services List
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-182A2.doc

PRESIDENT BUSH'S BROADCASTING BOARD NOMINEES
[SOURCE: The White House ]
President George W. Bush announced his intention=20
to nominate the following individuals to serve as=20
members of the Broadcasting Board of Governors,=20
the entity responsible for all US government and=20
government sponsored, non-military, international=20
broadcasting. Joaquin F. Blaya, of Florida, for a=20
term expiring August 13, 2008. (Reappointment);=20
Joaquin F. Blaya, of Florida, August 13, 2011.=20
(Reappointment); Edward E. Kaufman, of Delaware,=20
for a Term Expiring August 13, 2009.=20
(Reappointment); Susan M. McCue, of Virginia,=20
Vice Norman J. Pattiz, term expired; Dennis M.=20
Mulhaupt, of California, for a term expiring=20
August 13, 2008, vice Blanquita Walsh Cullum,=20
term expired; Dennis M. Mulhaupt, of California,=20
for a term expiring August 13, 2011.=20
(Reappointment); Steven J. Simmons, of=20
Connecticut, for a term expiring August 13, 2009. (Reappointment)
http://www.whitehouse.gov/news/releases/2007/10/20071018-9.html
http://www.whitehouse.gov/news/releases/2007/10/20071018-8.html

AT&T SUES VONAGE FOR PATENT INFRINGEMENT
[SOURCE: Reuters]
AT&T is next up to take a whack at the new kid.=20
AT&T has filed patent infringement lawsuit=20
against Vonage, seeking injunctive relief,=20
compensatory and treble damages and attorneys'=20
fees in unspecified amounts. Vonage said the=20
lawsuit was filed in the U.S. District Court of=20
the Western District of Wisconsin on October 17.
http://www.reuters.com/article/technologyNews/idUSWEN179220071019

END GLOBAL INEQUITY: BECOME A LUDDITE
[SOURCE: Financial Times, AUTHOR: Clive Crook]
[Commentary] The new World Economic Outlook the=20
International Monetary Fund finds that incomes of=20
the poor are rising around the world, in=20
industrial and developing countries alike;=20
liberal trade reduces inequality =96 again, in poor=20
countries as well as in rich countries; and=20
technology not globalisation in its own right is=20
the principal driver of inequality. Instead of=20
critics of globalisation the world needs critics=20
of technological progress. If we can only stop or=20
slow that, we can have more equal societies. An=20
impossible dream? By no means. Here are some=20
practical first steps. Punitive taxation is a=20
no-brainer. Include a surtax on scientists and=20
engineers. Restrict postgraduate education to the=20
arts, humanities and the law. In fact, make=20
postgraduate study in those fields compulsory.=20
And dismantle all the legal protections of=20
intellectual property. Ned Ludd was right. The=20
world has put up with progress and its=20
consequences too long. The IMF agrees. It is all there in its report.
http://www.ft.com/cms/s/e17c6aea-7fdf-11dc-b075-0000779fd2ac.html
(requires subscription)
--------------------------------------------------------------
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.
--------------------------------------------------------------

The Role of Competition in a National Broadband Policy


Can we rely on competition to deliver broadband?


Rob Atkinson, Information Technology and Innovation Foundation

TWashington consensus in favor of more broadband competition ignores the fact that broadband displays natural monopoly or duopoly characteristics. Because of the nature of the broadband industry, there are significant tradeoffs between more competition and goals of efficiency, innovation, low prices, and higher speeds and broader deployment. Thus, it’s a mistake for policymakers to assume that if they simply “push the competition lever,” all the problems with broadband policy will be solved. Some problems will recede, but others are likely to emerge. The bottom line is that if policymakers want to maximize not only societal welfare but also consumer welfare, they must balance the push for more competition with the need to maintain and create an efficient broadband industry structure.

This paper starts by reviewing the affordability of broadband in the United States. It then postulates two starkly different views toward broadband competition: the “engineers’ view” and the “economists’ view.” Finally, it reviews the four main policy options toward broadband competition: 1) keep the same number of “pipes”; 2) spur the deployment of more pipes; 3) force incumbents to open up existing pipes to competitors, and 4) regulate “duopoly” pipes. Although each policy track will achieve some benefits, each also brings with it costs and risks. Policymakers need to balance the desire for more competition to enhance consumer welfare in the broadband realm with the need for the most efficient broadband industry structure.

Today's Quote 10.19.07

"To say we have to change the media ownership rules so we can get the Tribune deal done does not strike me as . . . a good way to make public policy."
-- FCC Commissioner Michael J. Copps

Panel Approves Eavesdropping Compromise

PANEL APPROVES EAVESDROPPING COMPROMISE
[SOURCE: New York Times, AUTHOR: Scott Shane & Eric Lichtblau]

Dorgan, Lott Ask Martin to Slow Down on Media Ownership Review

DORGAN, LOTT ASK MARTIN TO SLOW DOWN ON RULE REVIEW
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]

Tribune deal is mired in FCC rift over cross-ownership rules

TRIBUNE DEAL IS MIRED IN FCC RIFT OVER CROSS-OWNERSHIP RULES
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera]

FCC Fines Stations for Sponsorship Identification Infractions

FCC FINES STATIONS FOR SPONSORSHIP IDENTIFICATION INFRACTIONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]

Black Leadership Forum Opposes Spectrum-Leasing Proposal

BLACK LEADERSHIP FORUM OPPOSES SPECTRUM-LEASING PROPOSAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]

NAB and Martin: is the magic gone?

NAB AND MARTIN: IS THE MAGIC GONE?
[SOURCE: tvnewsday, AUTHOR: Harry A. Jessell hajessell@tvnewsday.com]

FCC To Soon Extend Franchise Relief To Cable Companies

FCC TO SOON EXTEND FRANCHISE RELIEF TO CABLE COMPANIES
[SOURCE: DowJones, AUTHOR: Corey Boles corey.boles@dowjones.com]