October 2007

For upcoming media policy events, see=20
http://www.benton.org/event/2007/10/25/week/all/all/1

NEWS FROM CONGRESS
Panel Approves Eavesdropping Compromise
Dorgan, Lott Ask Martin to Slow Down on Media Ownership Review

NEWS FROM THE FCC
Tribune deal is mired in FCC rift over cross-ownership rules
FCC Fines Stations for Sponsorship Identification Infractions
Black Leadership Forum Opposes Spectrum-Leasing Proposal
NAB and Martin: is the magic gone?
FCC To Soon Extend Franchise Relief To Cable Companies
FCC may freeze funds for rural cell phone service
Emergency Communications Advisory Committee

CABLE/SATELLITE
AT&T says =91no=92 to Conn. cable franchise
Satellite Companies Praise Axing of Ohio Tax

DIGITAL CONTENT
Media companies in copyright pact, Google absent
Standing Up To Takedown Notices
Google Under Fire Over a Controversial Site
Media Companies Regain Appetite for Taking Risks in Tech Start-Ups

QUICKLY -- Paraguay accused of attacking net=20
neutrality; Broadcast Station Totals

NEWS FROM CONGRESS

PANEL APPROVES EAVESDROPPING COMPROMISE
[SOURCE: New York Times, AUTHOR: Scott Shane & Eric Lichtblau]
The Senate Intelligence Committee voted Thursday=20
night to approve compromise legislation that=20
would strengthen court oversight of eavesdropping=20
on Americans while granting telephone and=20
Internet companies legal immunity for their role=20
in assisting government surveillance programs=20
since 2001. After nearly five hours of closed=20
discussions, Senator John D. Rockefeller IV of=20
West Virginia, the Democratic chairman, and=20
Senator Christopher S. Bond of Missouri, the=20
Republican vice chairman, emerged to announce=20
that the measure had been approved in a 13-to-2=20
vote. But passage in the committee came with one=20
unexpected hitch. In an interview after the=20
closed session, Sen Wyden said he had succeeded,=20
by a vote of 9 to 6, in adding an amendment that=20
would offer additional protections by requiring=20
that the government get a warrant whenever it=20
wanted to wiretap an American outside the=20
country, like an American soldier based overseas or a business person.
http://www.nytimes.com/2007/10/19/washington/19nsa.html?ref=3Dtodayspaper
(requires registration)
* Wiretap Bill Clears Senate Panel
http://online.wsj.com/article/SB119275435174164275.html?mod=3Dtodays_us_...
e_one
* Senate Panel Approves New Surveillance Bill
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/18/AR200710...
2482.html
* Senate panel OKs spying legislation
http://www.latimes.com/news/printedition/asection/la-na-fisa19oct19,1,68...
42.story?coll=3Dla-news-a_section
* Dodd to block vote on eavesdropping bill
Sen. Chris Dodd, D-Conn., said Thursday that he=20
will block a Senate vote on a White House-backed=20
surveillance bill because it would include legal=20
immunity for telecommunications companies that=20
helped intelligence agencies carry out warrantless surveillance of American=
s.
http://www.usatoday.com/printedition/news/20071019/a_fisa19.art.htm

DORGAN, LOTT ASK MARTIN TO SLOW DOWN ON RULE REVIEW
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Here's the first delivery of wood. Sens Byron=20
Dorgan (D-ND) and Trent Lott (R-Miss) on Tuesday=20
sent FCC Chairman Kevin Martin a letter asking=20
him to delay a decision on media ownership rules=20
until a separate proceeding on the effects of=20
consolidation on broadcast localism can be fully=20
vetted. They also asked the Commission to propose=20
rules related to the localism report and then to=20
give commenters "at least 90 days" prior to a=20
vote on a general media ownership rule rewrite.=20
Chairman Martin had earlier agreed to "fully=20
include" the localism findings in the overall=20
media ownership review, but Sens Dorgan and Lott=20
have long called for a separate localism review=20
on its own track and timetable.
http://www.broadcastingcable.com/article/CA6492521.html?desc=3Dtopstory
* Senators Seek to Delay FCC Vote (Associated Press)
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/18/AR200710...
2436.html
* Senators urge FCC to go slow on media ownership
http://www.usatoday.com/printedition/money/20071019/fcc19.art.htm
* Dorgan Working Up Media-Ownership Bill
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Sen Byron Dorgan (D-ND) is working quickly on a=20
bill dealing with media-ownership rules the=20
Federal Communications Commission is currently reviewing.
http://www.broadcastingcable.com/article/CA6492609.html?rssid=3D193

NEWS FROM THE FCC

TRIBUNE DEAL IS MIRED IN FCC RIFT OVER CROSS-OWNERSHIP RULES
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera]
The $8.2-billion deal to take Tribune Co.=20
private has become entangled in a newly inflamed=20
debate over media ownership rules at the Federal=20
Communications Commission that could pose=20
problems for the transaction. Tribune needs FCC=20
waivers to complete the deal because it owns=20
newspapers and TV stations in Los Angeles and=20
four other markets in violation of rules that=20
prevent such cross-ownership. Tribune owns the=20
Los Angeles Times and KTLA-TV Channel 5 as well=20
as other newspapers, TV stations and the Chicago=20
Cubs baseball team. Now, trying to capitalize on=20
Tribune's push to complete the deal by year's end=20
and its support from some key lawmakers, FCC=20
Chairman Kevin J. Martin has indicated that he=20
won't grant any waivers pending a vote on major=20
revisions to the commission's media ownership=20
rules. "He's tying the fate of the Tribune deal=20
that he wants to a large proceeding on media=20
ownership," said FCC Commissioner Michael J.=20
Copps, a Democrat who opposes loosening the rule.=20
"To say we have to change the media ownership=20
rules so we can get the Tribune deal done does=20
not strike me as . . . a good way to make public policy."
http://www.latimes.com/business/printedition/la-fi-fcc19oct19,1,7137960....
ry?coll=3Dla-headlines-pe-business
(requires registration)

FCC FINES STATIONS FOR SPONSORSHIP IDENTIFICATION INFRACTIONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission issued its=20
first fines for stations airing Armstrong=20
Williams=92 plugs for the =93No Child Left Behind=94=20
initiative, plugs paid for by the Department of=20
Education. The revelation of those payments=20
caused a firestorm of criticism and a=20
dressing-down of the DOE, and it led to payola=20
complaints by Free Press at the FCC. The FCC=20
Thursday fined Sonshine's WBPH-TV Bethlehem, Pa.,=20
for airing five episodes (a total of 10 times) of=20
The Right Side with Armstrong Williams, and=20
Sinclair a total of $76,000 for airing America's=20
Black Forum. Both were cited for violating the=20
FCC's sponsorship-identification rules. Sonshine=20
admitted to being paid $100 for each show, but it=20
argued that it was a nominal consideration and=20
that it had no knowledge that Williams'=20
production company had been paid to include any=20
messages in the broadcast and had "no basis on=20
which to conclude that a sponsorship announcement=20
was required." Station-owner Sinclair Broadcast=20
Group doesn't plan to pay the fine and said it=20
will take the Commission to court.
http://www.broadcastingcable.com/article/CA6492542.html?rssid=3D193
* FCC Notice
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-152A1.doc
* FCC Commissioners Adelstein and Copps: "Growing=20
abuses of the public trust in recent years are=20
shaking Americans' confidence in the press. When=20
pundits are paid to promote a corporate or=20
government agenda while the public is never told,=20
all commenters and journalists become=20
suspect. The repeated revelations of advertisers=20
paying their way onto news programming without=20
disclosure undercut the credibility of all=20
journalists. When budget cuts in newsrooms lead=20
broadcasters to substitute advertisements=20
disguised by slick public relations firms as news=20
instead of paying for their own work, viewers and=20
listener wonder what they can believe. When=20
newsrooms are too strapped or sloppy to perform=20
their due diligence and provide disclosure=20
announcements, as required by law, it leads to a=20
crisis of confidence. So we now face a crisis in=20
American journalism. That is why today's action=20
by the Commission is so important. It sends a=20
clear message that the public has a right to know=20
who is trying to persuade them so they can make=20
up their own minds about what is presented to them."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-152A2.doc
* FCC Finally Fines Stations for Armstrong Williams Payola (Free Press)
"Although a small price to pay given the scope of=20
Armstrong Williams=92 deception, the fines were=20
long overdue. Using taxpayer-funded propaganda to=20
shape popular opinion is illegal, unethical and=20
an insult to the public. Broadcasters who allow=20
such propaganda on the air should be dealt with=20
strictly and swiftly. Let=92s hope today=92s action=20
ends Williams=92 career as a pundit-for-hire and=20
sends a message to Sinclair and every other=20
broadcaster that propaganda won't be tolerated on the public airwaves."
http://www.freepress.net/press/release.php?id=3D284
* FCC Fines Stations for Cover-Up
http://online.wsj.com/article/SB119276417618064625.html?mod=3Dtodays_us_...
e_one

BLACK LEADERSHIP FORUM OPPOSES SPECTRUM-LEASING PROPOSAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Black Leadership Forum wrote the Federal=20
Communications Commission arguing that a variety=20
of proposals from FCC Chairman Kevin Martin would=20
"damage" the business models of minority=20
programmers. One of those is a digital-TV=20
spectrum-leasing arrangement the chairman=20
circulated for a vote recently. In the letter,=20
the group took aim at cable a la carte, which=20
they said would be "inimical" to minority=20
programmers; at mandatory cable carriage of a=20
broadcasters' multicast channels, which it called=20
puzzling and unjustified; and at a proposal to=20
lease DTV spectrum to designated entries=20
including women and minorities, which it called a=20
"consolation prize for all of the other FCC=20
efforts to undermine minority programmers" that=20
relegates them to second-class status.
http://www.broadcastingcable.com/article/CA6492587.html?rssid=3D193

NAB AND MARTIN: IS THE MAGIC GONE?
[SOURCE: tvnewsday, AUTHOR: Harry A. Jessell hajessell( at )tvnewsday.com]
[Commentary] Although television broadcasters=20
have unveiled a $700 million consumer education=20
campaign, FCC Chairman Kevin Martin told Congress=20
Wednesday that the Commission may still require=20
TV stations to air public service announcements=20
about the digital television transition. Why? At=20
the National Association of Broadcasters press=20
conference about the education campaign, NAB=20
President David Rehr and Barrington=92s Jim Yager,=20
who was there to represent the station community,=20
danced around questions about when PSAs would=20
air. You couldn't pin them down on how many would=20
be seen in primetime. Asked about it, Yager=20
talked about the importance of reaching viewers=20
in other dayparts. That=92s true enough, but it=20
sounded like he really wasn't interested in=20
giving up any of his primo spots. But if Chairman=20
Martin and Members of Congress don't trust=20
broadcasters, the thing for them to do is buy=20
time right where they want it, right where it=20
will have the most impact, right in the middle of=20
American Idol. "A total TV budget of $700 million=20
sounds just about right to me," Jessell concludes.
http://www.tvnewsday.com/articles/2007/10/18/daily.7/

FCC TO SOON EXTEND FRANCHISE RELIEF TO CABLE COMPANIES
[SOURCE: DowJones, AUTHOR: Corey Boles corey.boles( at )dowjones.com]
The Federal Communications Commission will=20
shortly extend the same regulatory relief to the=20
cable industry that it granted to telephone=20
companies earlier this year. FCC Chairman Kevin=20
Martin told the other four commissioners to be=20
ready to vote on the matter at the agency's=20
meeting Oct. 31. There is a chance a majority of=20
the commissioners could vote in favor of the item=20
before the meeting. The vote is likely to be=20
along party lines, as it was in December for the=20
initial changes, with the two Democratic=20
commissioners opposed. It is unclear whether the=20
move would impact cable companies immediately or=20
when their franchises come up for renewal, generally every 10 years or so.
http://money.cnn.com/news/newsfeeds/articles/djf500/200710181411DOWJONESDJ=
ONLINE000978_FORTUNE5.htmhttp://money.cnn.com/news/newsfeeds/articles/djf5=
00/200710181411DOWJONESDJONLINE000978_FORTUNE5.htm

FCC MAY FREEZE FUNDS FOR RURAL CELL PHONE SERVICE
[SOURCE: Marshfield (WI) News-Herald, AUTHOR: Liz Welter]
The Federal Communications Commission probably=20
will freeze the money it contributes to the=20
delivery of cell phone service in rural=20
areas. fee on customers' monthly bills raises=20
the money to support cellular phone service in=20
rural areas through the FCC's universal service=20
fund. Each phone service provider pays 11 percent=20
of their long distance charges into the service=20
fund. But the FCC's universal fund is not keeping=20
pace with the booming demand for cellular phone=20
access. By capping the fund at the current level=20
for one year, the FCC will have time to explore=20
funding options. "We have to make sure that rural=20
residents in Wisconsin don't get left behind,"=20
said Richard Stadelman, executive director of the=20
Wisconsin Towns Association. "Limiting federal=20
support for wireless growth will not only widen=20
the technological gap faced by Wisconsin's rural=20
residents, it will hinder economic development and jeopardize public safety=
."
http://www.marshfieldnewsherald.com/apps/pbcs.dll/article?AID=3D/2007101...
NH0101/710180410/1980
* Federal government urged to provide cell towers in rural areas
[SOURCE: Capitol News Service, AUTHOR: Charlotte Eby]
U.S. Cellular and a leading Iowa law enforcement=20
official are urging the federal government to=20
preserve funding that helps pay to build cell=20
phone towers in rural areas. Some rural areas of=20
Iowa still remain without cell phone coverage.=20
Clay County Sheriff Randy Krukow said that is an=20
important public safety issue. "This stuff is=20
critical. I mean, you're talking life or death,"=20
said Krukow, who is president of the Iowa State=20
Sheriffs' and Deputies' Association.
http://www.midiowanews.com/site/tab1.cfm?newsid=3D18927480&BRD=3D2700&PAG=
=3D461&dept_id=3D554432&rfi=3D6

EMERGENCY COMMUNICATIONS ADVISORY COMMITTEE
[SOURCE: Federal Communications Commission]
Federal Communications Commission Chairman Kevin=20
J. Martin and U.S. Commerce Department Assistant=20
Secretary for Communications and Information John=20
M. R. Kneuer have appointed the members of a=20
Joint Advisory Committee on Communications=20
Capabilities of Emergency Medical and Public=20
Health Care Facilities. The Joint Committee is=20
scheduled to hold its first meeting on Monday,=20
October 29, 2007, starting at 10:00 a.m. in the=20
Commission Meeting Room (TW-C305), Federal=20
Communications Commission, 445 12th Street, SW,=20
Washington, DC 20554. At its first meeting, the=20
Joint Committee will discuss its committee=20
structure (e.g., working groups, etc.) and a=20
process for completing its task by February 4,=20
2008. The Joint Committee will also introduce=20
and receive brief statements from committee=20
members and may receive presentations from=20
invited representatives of organizations that=20
address health care communications issues.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-07-4325A1.doc

CABLE/SATELLITE

AT&T SAYS 'NO' TO CONNECTICUT CABLE FRANCHISE
[SOURCE: Telephony Online, AUTHOR: Carol Wilson]
AT&T is fully prepared to cut off service to more=20
than 7000 U-verse customers in Connecticut and=20
stop all video service in that state rather than=20
file for a statewide cable license. The company,=20
known for tough stands on the franchise issue, is=20
taking its toughest stand to date, staring down=20
consumer groups and a state attorney general=20
determined to make AT&T accept tougher terms for=20
the right to offer video service. On AT&T=92s side=20
is a statewide video service law, passed this=20
summer, that separates legacy cable operations=20
from new video service providers and imposes=20
fewer requirements on the new competitors. In=20
Connecticut Attorney General Richard Blumenthal=92s=20
corner is a July 29 ruling from a federal judge=20
that AT&T=92s U-Verse is a cable offering.
http://telephonyonline.com/broadband/regulatory/att_cable_connecticut_10...
7/

SATELLITE COMPANIES PRAISE AXING OF OHIO TAX
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Ohio Judge Daniel Hogan has ruled that a state=20
sales tax on satellite TV service was=20
discriminatory because it did not apply to other=20
multichannel-video providers. Satellite companies=20
are using the ruling as an opportunity to plug=20
the State Video Tax Fairness Act, which was=20
introduced three weeks ago in the House by, among=20
others, Judiciary Chairman John Conyers (D-MI).=20
The act would essentially codify the judge's=20
decision in statute by expressly prohibiting any=20
state from imposing "a discriminatory tax on any=20
means of providing multichannel-video=20
programming-distribution services, including=20
Internet protocol (or any successor protocol),=20
direct-broadcast satellite delivery and=20
cable-television services." Translation: A state=20
could not charge a tax on satellite that it did=20
not charge on cable, telco or other equivalent multichannel-video services.
http://www.broadcastingcable.com/article/CA6492500.html

DIGITAL CONTENT

MEDIA COMPANIES IN COPYRIGHT PACT, GOOGLE ABSENT
[SOURCE: Reuters, AUTHOR: Kenneth Li]
Viacom Inc, Walt Disney Co, Microsoft Corp and=20
other media companies have agreed to a set of=20
guidelines to protect copyrights online but=20
Google Inc, owner of the Web's biggest video=20
site, was notably absent from the pact. The=20
companies agreed to use technology to eliminate=20
copyright-infringing content uploaded by Web=20
users and to block any pirated material before it is publicly accessible.
http://www.reuters.com/article/technologyNews/idUSN1844627720071018
* Media Cos. Release Digital-Copyright Principles
http://www.broadcastingcable.com/article/CA6492545.html?rssid=3D193
* Web, media companies issue copyright use principles
http://www.infoworld.com/article/07/10/18/Web-media-companies-issue-copy...
ht-use-principles_1.html

STANDING UP TO TAKEDOWN NOTICES
[SOURCE: Washington Post, AUTHOR: Catherine Rampell]
Companies have been pursuing copyright violations=20
for decades, but technology -- and the=20
proliferation of online venues like YouTube that=20
allow self-publishing -- has created=20
opportunities both for infringement and for ways=20
to identify alleged violations. With more=20
self-publishing sites comes a boom in "takedown=20
notices," warnings that the material is=20
infringing a copyright and needs to be removed.=20
YouTube, which has been sued by many parties for=20
hosting videos alleged to violate copyright, this=20
week started using a filter to try to identify=20
such content before copyright holders notice it.=20
A group of other content holders, including NBC=20
Universal and Microsoft, yesterday announced=20
standards for how companies should deal with=20
material that people post online. But recently --=20
in part because of backlash among users and=20
advocacy groups who say copyright holders are=20
abusing the law and wrongfully taking down=20
content -- the challenges to these copyright=20
claims also appear to be increasing.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/18/AR200710...
2453.html
(requires registration)

GOOGLE UNDER FIRE OVER A CONTROVERSIAL SITE
[SOURCE: Wall Street Journal, AUTHOR: Antonio=20
Regalado antonio.regalado( at )wsj.com and Kevin J. Delaney]
In Brazil, Google is embroiled in an embarrassing=20
episode over its efforts to profit from social=20
networking, one of the fastest-growing activities=20
online. Google has gotten in hot water over its=20
Web site Orkut, which like other=20
social-networking sites allows people to swap=20
information and create personal Web pages. While=20
many Americans have never heard of it, Orkut is a=20
powerhouse overseas, with more than half its 25=20
million monthly visitors in Brazil. By some=20
measures, it ranks among the top 10 sites on the=20
Web in popularity, alongside other heavily used=20
social-networking sites such as News Corp.'s=20
MySpace and Facebook. For most of its history=20
Orkut was ad-free. Then, when Google tried=20
putting ads on the site, it ran into trouble.=20
Critics in Brazil released a report showing=20
advertisements on Orkut alongside pictures of=20
naked children and abused animals. Google=20
immediately suspended the ads, but the Mountain=20
View, Calif., company is still grappling with the=20
fallout from critics' Orkut campaign.
http://online.wsj.com/article/SB119273558149563775.html?mod=3Dtodays_us_...
e_one
(requires subscription)

MEDIA COMPANIES REGAIN APPETITE FOR TAKING RISKS IN TECH START-UPS
[SOURCE: New York Times, AUTHOR: Matt Richtel]
Media companies are often criticized for not=20
taking enough risks in choosing television shows,=20
authors, movies and musicians. But when it comes=20
to technology start-ups, their appetite for risk=20
appears to be on the rise. A growing number of=20
media conglomerates have established divisions to=20
take minority stakes in small Internet and=20
technology companies. Other media companies that=20
already have such venture capital arms are=20
expanding. The development sets up something of a=20
clash of cultures. Media companies are known for=20
reacting swiftly to mass market tastes and have=20
little patience for the unpopular or the slow=20
developing. Venture capitalists typically wait=20
more than five years to see if an investment is a=20
hit =97 and almost always it is not. Yet media=20
companies say there are significant reasons to=20
develop expertise in early-stage investments. The=20
media business, they say, increasingly revolves=20
not just around developing content but keeping=20
pace with delivery technology and new media.
http://www.nytimes.com/2007/10/19/business/media/19venture.html?ref=3Dto...
spaper
(requires registration)
See also --
* In California, a Second Internet Gold Rush
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/18/AR200710...
2462.html

QUICKLY

PARAGUAY ACCUSED OF ATTACKING NET NEUTRALITY
[SOURCE: Association for Progressive Communications]
=93An attack on net neutrality and an act of=20
censorship,=94 was how Miguel Acosta, editor of New=20
York-based Paraguayan newspaper Mirador=20
Paraguayo, referred to the measure taken by the=20
Paraguayan Communication Company (COPACO) to=20
block the session initiation protocol as of 22=20
June 2007. This protocol allows access to=20
Internet telephony or voice over Internet=20
protocol (VoIP) at costs well below those of=20
traditional phone companies. In a related=20
development, a recent report by the state-owned=20
Importers and Exporters Network of Paraguay=20
recommended eliminating COPACO=92s monopoly in=20
access to international optical fibre cables, and=20
drastically changing the position on Internet=20
telephony =93in order to overcome technological=20
backwardness=94. However, for the country=92s=20
president, =93this is not the right moment.=94 VoIP=20
is not a =93service=94 that can be provided and=20
controlled by telephone companies. It is a freely=20
available technology over Internet protocol which=20
greatly reduces the cost of voice communication.=20
This system became very popular precisely because=20
of its low cost, and caused controversy in=20
Paraguay and elsewhere due to the competition=20
created for conventional private and state telephone company monopolies.
http://www.apc.org/english/news/index.shtml?x=3D5245900

BROADCAST STATION TOTALS
[SOURCE: Federal Communications Commission]
For you scoring at home, as on September 30,=20
there were 13, 939 full power radio stations in=20
the US and 1,760 full power TV stations. In all,=20
there are more than 29,450 broadcast stations in the US.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-277449A1.doc
--------------------------------------------------------------
...and we're outta here. Run over Des Moines, Steph!
--------------------------------------------------------------
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.
--------------------------------------------------------------