October 2007

The Senate Commerce Committee will hear testimony=20
on the DTV transition today. Witnesses will=20
include FCC Commissioner Jonathan Adelstein, NTIA=20
head John Kneuer and representatives of DirecTV,=20
public television stations, the National Cable=20
Television association, consumer electronics=20
retailers and the National Association of=20
Broadcasters. For today's many media policy=20
events, see http://www.benton.org/?q=3Devent

NEWS FROM CONGRESS
House passes measure to protect reporters
House backs 4-yr extension of Internet tax ban
Budget impasse hurts census planning
White House threatens veto of wiretap bill
TV Gets More Hill Support over White Spaces
Yahoo execs asked to testify at House hearing

INTERNET/BROADBAND
FCC's Wireline Broadband Order Upheld
Facebook settles New York child safety probe
Silicon Valley Start-Ups Awash in Dollars, Again
EBay's Founder Bets on 'Participatory Media'

ADVERTISING
Public Radio Station Halts Planned Parenthood Spots
Firm Mines Offline Data To Target Online Ads
Answer to Vexing Question: Who's Not Watching Ads

TELECOM
Can You Hear Us Now?

QUICKLY -- RadioShack Fined for Label Omissions;=20
AT&T changes fee policy for customer contracts;=20
Closed Captioning Consumer Advisory; Creative=20
Voices Talks About Censorship, Consolidation and=20
Broadband; Time Warner customers misled by AT&T=20
ad; Maybe e-mail isn't such a great idea, after=20
all; Snow Sees First Amendment Threat From Media Practices

NEWS FROM CONGRESS

HOUSE PASSES MEASURE TO PROTECT REPORTERS
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
The House of Representatives defied a White House=20
veto threat on Tuesday and overwhelmingly passed=20
legislation that would protect reporters from=20
being jailed for refusing to reveal confidential=20
sources. By a vote of 398 to 21, the House sent=20
to the Senate a bill that would prohibit=20
prosecutors from forcing reporters to reveal=20
confidential sources, except under limited=20
circumstances. The margin of the House vote was=20
more than the two-thirds majority needed to=20
override a possible veto by President George W.=20
Bush. The bill was prompted by prosecutors'=20
threats to jail reporters who didn't cooperate in=20
several high-profile cases, including the BALCO=20
steroid scandal in San Francisco and the CIA leak=20
investigation in Washington. The White House said=20
the bill would hurt national security by making=20
it too difficult to prosecute leaks of classified information.
http://www.reuters.com/article/domesticNews/idUSN1622517620071016
* House Passes Shield Law
http://www.broadcastingcable.com/article/CA6491955.html?rssid=3D193
* White House Threatens to Veto Shield Law
http://www.broadcastingcable.com/article/CA6491947.html?rssid=3D193
* House Passes Bill to Protect Confidentiality of Reporters' Sources
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/16/AR200710...
1298.html
* House extends federal shield law for reporters
http://www.latimes.com/news/printedition/asection/la-na-shield17oct17,1,...
69.story?coll=3Dla-news-a_section
-- See also --
* Crackdowns On Bloggers Increasing, Survey Finds
[SOURCE: Washington Post, AUTHOR: Nora Boustany]
Government repression in some countries has=20
shifted from journalists to bloggers, with the=20
vitality of the Internet triggering a more=20
focused crackdown as blogs increasingly take the=20
place of mainstream news media, according to=20
Lucie Morillon, Washington director of the=20
advocacy group Reporters Without Borders.=20
"Countries that were not sentencing journalists=20
to prison terms anymore have been doing it these=20
last months for bloggers. This is the case in=20
Egypt and Jordan," she said yesterday as the=20
group released its sixth annual Worldwide Press=20
Freedom Index. Egypt ranked 146th and Jordan=20
122nd in press freedom among the 169 countries=20
for which data were available. Reporters Without=20
Borders said major industrialized countries,=20
including the United States, made slight=20
progress, moving up several notches, with the=20
exception of Russia. Iceland topped the list for=20
press freedom in the survey, and Eritrea ranked last.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/16/AR200710...
1843.html
(requires registration)

HOUSE BACKS 4-YEAR EXTENSION OF INTERNET TAX BAN
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
The House of Representatives approved legislation=20
on Tuesday to extend a moratorium on state=20
Internet access taxes for four years, brushing=20
aside calls by some lawmakers for a permanent=20
ban. The House voted 405-2 to continue the ban,=20
which is scheduled to expire on November 1.=20
Attention now shifts to the Senate, where similar=20
legislation has been stalled in the Senate=20
Commerce Committee over a dispute on whether to=20
extend the ban temporarily or permanently. The=20
House vote provoked criticism from some=20
lawmakers, including many Republicans, who said a=20
permanent ban on Internet taxes is needed to spur=20
more investment by broadband service providers.=20
The four-year extension is backed by the National=20
Governors Association. It includes a=20
"grandfather" clause that would allow a handful=20
of states to continue imposing Internet taxes --=20
those states that already had a tax enacted in 1998.
http://www.reuters.com/article/internetNews/idUSN1618418020071016
* House votes to extend ban on Internet taxes
http://www.latimes.com/business/printedition/la-fi-nettax17oct17,1,76773...
story?coll=3Dla-headlines-pe-business

BUDGET IMPASSE HURTS CENSUS PLANNING: OFFICIAL
[SOURCE: Reuters, AUTHOR: Richard Cowan]
U.S. Census Bureau Director Charles Kincannon=20
told the House Oversight and Government Reform=20
subcommittee that the budget fight between=20
President George W. Bush and Congress has set=20
back complicated preparations for the 2010=20
national census, which will decide the number of=20
seats each state has in the House of=20
Representatives. Already, several "dress=20
rehearsal" census activities have been canceled=20
because additional funding, which had been=20
expected with the October 1 start of the new fiscal year, has been delayed.
http://www.reuters.com/article/politicsNews/idUSN1646607220071016

WHITE HOUSE THREATENS VETO OF WIRETAP BILL
[SOURCE: Reuters, AUTHOR: Randall Mikkelsen]
The White House threatened to veto wiretap=20
legislation a day before Wednesday's planned vote=20
in Congress, and said that restrictions on=20
government authority would hamper its fight=20
against terrorism. The bill would set rules for=20
the warrantless surveillance of foreigners and=20
safeguards over the rights of Americans in their=20
international conversations. The measure "falls=20
far short of providing the intelligence community=20
with the tools it needs to collect foreign=20
intelligence effectively from individuals outside=20
the United States," the White House budget office=20
said on Tuesday. It said National Intelligence=20
Director Michael McConnell and other advisers=20
would recommend that President George W. Bush=20
veto the bill if passed in its current form.
http://www.reuters.com/article/politicsNews/idUSN1630815420071016
--See Also --
* White House to Give Senate Panel Surveillance Program Documents
[SOURCE: Washington Post, AUTHOR: Ellen Nakashima and Paul Kane]
The White House agreed yesterday to give Senate=20
intelligence committee members and staff access=20
to internal documents related to its domestic=20
surveillance program in a bid to win Democratic=20
lawmakers' support for the administration's=20
version of an intelligence measure. The move was=20
meant in part to defuse a months-long clash=20
between Congress and the Bush administration over=20
access to legal memoranda and presidential=20
decisions underpinning the Terrorist Surveillance=20
Program, which allowed the government to=20
eavesdrop without court warrants on=20
communications between people in the United=20
States and abroad when one of the parties is a=20
terrorism-related suspect. Some of the documents=20
had been demanded by Senate Judiciary Committee=20
members as a condition for considering the=20
administration's nomination of former judge=20
Michael B. Mukasey as the nation's 81st attorney=20
general. Sen. Patrick J. Leahy (D-VT), the=20
committee's chairman, dropped that condition=20
weeks ago but said yesterday that he still wants to see the documents.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/16/AR200710...
2361.html
(requires registration)

TV GET MORE HILL SUPPORT OVER WHITE SPACES
[SOURCE: tvnewsday, AUTHOR: Kim McAvoy]
Sens Johnny Isakson (R-GA), Saxby Chambliss=20
(R-GA), Charles Grassley (R-Iowa), Lindsey Graham=20
(R-SC) and Mary Landrieu (D-LA) have written FCC=20
Chairman Kevin Martin expressing concerns about=20
the agency=92s possible approval of unlicensed=20
devices like wireless laptops and PDAs that would=20
share the =93white spaces=94 or vacant areas between=20
DTV channels. The senators are worried about=20
potential interference from the unlicensed=20
devices. The lawmakers also emphasized that the=20
device could interrupt the digital transition.
http://www.tvnewsday.com/articles/2007/10/16/daily.10/

YAHOO EXECS ASKED TO TESTIFY AT HOUSE HEARING
[SOURCE: Reuters]
House Foreign Affairs Committee Chairman Tom=20
Lantos (D-CA) has kindly requested the pleasure=20
of the company of top Yahoo executives at a Nov 6=20
hearing to discuss the company's disclosure of=20
information to Chinese authorities about the case=20
of Shi Tao. Chairman Lantos said a Yahoo=20
executive gave "false information" about what the=20
company knew of the Chinese government's=20
investigation of Shi at a 2006 congressional hearing.
http://www.reuters.com/article/politicsNews/idUSN1622709720071016

INTERNET/BROADBAND

FCC'S WIRELINE BROADBAND ORDER UPHELD
[SOURCE: Third Judicial Circuit]
A federal appeals court on Tuesday refused to=20
overturn the Federal Communications Commission=92s=20
2005 ruling to deregulate high-speed Internet=20
access service that phone companies offer to=20
consumers. The ruling, handed down by a=20
three-judge panel of the U.S. Court of Appeals=20
for the 3rd Circuit in Philadelphia, affirmed the=20
regulatory status quo in which neither cable nor=20
phone companies need to share their networks with=20
companies that would also like to provide=20
broadband access. The U.S. Court of Appeals for=20
the Third Circuit in Time Warner Telecom, Inc. et=20
al., v. FCC has denied a petition for review of=20
the FCC's Wireline Broadband Order. FCC Chairman=20
Martin responded saying, "I am pleased that the=20
Court affirmed the FCC's decision to remove=20
outdated, decades-old regulations from today's=20
broadband services. By removing such=20
regulations, the Commission encouraged broadband=20
investment and fostered competition. As a result=20
of the Commission's deregulatory policies,=20
broadband adoption has increased and consumers=20
have benefited in the form of lower prices and improved broadband service."
* Court Agrees With FCC On DSL Deregulation
http://www.multichannel.com/article/CA6491979.html
* Court Upholds FCC Call on Broadband Access
http://www.broadcastingcable.com/article/CA6491965.html?rssid=3D193
* Court Ruling
http://www.ca3.uscourts.gov/opinarch/054769p.pdf
* Chairman Martin
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-277407A1.doc

FACEBOOK SETTLES NEW YORK CHILD SAFETY PROBE
[SOURCE: Reuters]
New York Attorney General Andrew Cuomo announced=20
that Facebook, the fast-growing social network=20
Web site, has agreed to settle a child safety=20
probe. The site has come under fire from state=20
regulators for failing to do more to police their=20
sites against adults who prey on teenagers, one=20
of the biggest groups using social network sites.=20
Under the terms of the settlement, Facebook has=20
agreed to begin addressing any complaint within=20
24 hours of being told of inappropriate content=20
-- involving such things as nudity, profanity or=20
harassment -- by a user or e-mail correspondent.=20
The company will tell the complaining party the=20
steps it has taken within 72 hours when the=20
complaint has been submitted via an independent=20
e-mail. In addition, the company has agreed to=20
allow an independent examiner to oversee how=20
Facebook handles such complaints. The attorney=20
general will have a say in who gets hired as=20
examiner. The examiner will report to the New=20
York attorney general every six months over a=20
two-year period on Facebook's compliance.
http://www.reuters.com/article/internetNews/idUSN1539478220071016
* As Facebook Settles Case, Sites Move on Child Safety
http://online.wsj.com/article/SB119255635594460765.html?mod=3Dtodays_us_...
sonal_journal
* Facebook agrees to shield minors
http://www.latimes.com/business/printedition/la-fi-facebook17oct17,1,256...
4.story?coll=3Dla-headlines-pe-business

SILICON VALLEY START-UPS AWASH IN DOLLARS, AGAIN
[SOURCE: New York Times, AUTHOR: Brad Stone & Matt Richtel]
Internet companies with funny names, little=20
revenue and few customers are commanding high=20
prices. And investors, having seemingly forgotten=20
the pain of the first dot-com bust, are=20
displaying symptoms of the disorder known as=20
irrational exuberance. More broadly, Internet=20
start-ups are drawing investment based on their=20
ability to build an audience, not bring in=20
revenue =97 the very alchemy that many say led to=20
the inflation and bursting of the dot-com bubble.=20
The surge in the perceived value of some=20
start-ups has even surprised some entrepreneurs who are benefiting from it.
http://www.nytimes.com/2007/10/17/business/media/17bubble.html?ref=3Dtod...
paper
(requires registration)

EBAY'S FOUNDER BETS ON 'PARTICIPATORY MEDIA'
[SOURCE: Wall Street Journal, AUTHOR: George Anders george.anders( at )wsj.com]
Pierre Omidyar, the founder of eBay, explains why=20
he wants to build "participatory media"=20
companies, in which vast numbers of ordinary=20
citizens call the shots. To him, that's the=20
future of media, even if it won't always be profitable.
http://online.wsj.com/article/SB119258407551361463.html?mod=3Dtodays_us_...
e_one
(requires subscription)

ADVERTISING

PUBLIC RADIO STATION HALTS PLANNED PARENTHOOD SPOTS
[SOURCE: New York Times, AUTHOR: Sean Hamil]
WDUQ, a Pittsburgh public radio station, stopped=20
running underwriting messages from Planned=20
Parenthood and returned its $5,000 donation after=20
the station=92s license holder, Duquesne=20
University, decided the organization was =93not=20
aligned with our Catholic identity.=94 The decision=20
came in the midst of the station=92s fall pledge=20
drive, and it appears to be costing the station=20
contributions. The decision has also started a=20
heated public debate, which Planned Parenthood=20
has encouraged, over whether the station=92s news=20
content is independent and, ultimately, whether=20
the station should separate itself from Duquesne,=20
which founded it 58 years ago.
http://www.nytimes.com/2007/10/17/us/17radio.html?ref=3Dtodayspaper
(requires registration)

FIRM MINES OFFLINE DATA TO TARGET ONLINE ADS
[SOURCE: Wall Street Journal, AUTHOR: Kevin J.=20
Delaney kevin.delaney( at )wsj.com and Emily Steel]
Acxiom Corp. knows a lot about you. It has=20
scoured public records for how many cars you own=20
and what your house is worth. It has accumulated=20
surveys that show if you are married and how many=20
children you have. And for years Acxiom sold that=20
information to marketers eager to use it to send=20
mailings and make telephone pitches to consumers=20
most likely to buy. Now, the Little Rock, Ark.,=20
company is putting those hundreds of millions of=20
bits of data in the service of customizing which=20
display ads to show people browsing the Web -- a=20
development that has raised red flags with some privacy advocates.
http://online.wsj.com/article/SB119258320189661423.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

ANSWER TO VEXING QUESTION: WHO'S NOT WATCHING ADS
[SOURCE: Wall Street Journal, AUTHOR: Rebecca=20
Dana rebecca.dana( at )wsj.com and Stephanie Kang]
As much as one-fifth of the audience for=20
television's most popular shows are skipping the=20
commercials, according to the first round of=20
commercial data for the new fall season, released=20
yesterday by Nielsen Media Research. The data=20
were for the week of Sept. 24, the week most fall=20
shows premiered. The ratings track the number of=20
viewers watching advertisements during the live=20
broadcast of a show and during playbacks of the=20
show from digital-video-recording devices for=20
three days thereafter. The figures underscore=20
concerns expressed by marketers about the=20
effectiveness of TV advertising given the rising=20
use of digital video recorders, now in nearly 20%=20
of households. The figures show wide variations=20
in the proportion of an audience skipping=20
commercials, with the highest rate of ad skipping=20
occurring among some of the most high-profile network shows.
http://online.wsj.com/article/SB119258237478561380.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

TELECOM

CAN YOU HEAR US NOW?
[SOURCE: Washington Post, AUTHOR: Nancy Keenan and Roberta Combs]
[Commentary] The presidents of NARAL Pro-Choice=20
America and the Christian Coalition of America=20
co-authored this op-ed in opposition to Verizon's=20
refused to approve NARAL Pro-Choice America's=20
application for a text-messaging "short code," a=20
program that enables people to voluntarily sign=20
up to receive updates by texting a five-digit=20
code. When NARAL Pro-Choice America protested,=20
the nation's second-largest wireless carrier=20
initially claimed the right to block any content=20
"that, in its discretion, may be seen as=20
controversial or unsavory." When it comes to=20
censoring free speech, sorry just isn't good=20
enough. Whatever your political views --=20
conservative or liberal, Republican or Democrat,=20
pro-choice or pro-life -- it shouldn't be up to=20
Verizon to determine whether you receive the=20
information you requested. Why should any company=20
decide what you choose to say or do over your=20
phone, your computer or your BlackBerry?=20
Technologies are converging in our communications=20
system, but the principles of free expression and=20
the rights of all Americans to speak without=20
intervention should remain paramount. This issue=20
is broader than one organization, one company or=20
one topic. The issue is how communications=20
companies can believe they have the authority to=20
block content in the first place.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/16/AR200710...
1536.html
(requires registration)

QUICKLY

RADIOSHACK FINED FOR LABEL OMISSIONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC Tuesday fined a half-dozen retail stores,=20
including RadioShack, almost $100,000 for failing=20
to properly label their TV sets. RadioShack was=20
fined $16,000 for what the FCC said were willful=20
and repeated violations. The company disputed=20
that characterization. Five other less-well-known=20
stores were fined for failure to label their sets=20
properly. All had been given citations over the=20
summer, with the FCC saying its Enforcement=20
Bureau had followed up only to find that all, to=20
greater or lesser extents, had continuing=20
violations. The biggest fines were levied against=20
Fred Meyer and Ultimate Electronics ($24,000=20
apiece), followed by $16,000 apiece for=20
RadioShack and Boscov's and $8,000 apiece for=20
Gregg Appliances and Trans World Entertainment.
http://www.broadcastingcable.com/article/CA6491624.html?rssid=3D193

AT&T CHANGES FEE POLICY FOR CUSTOMER CONTRACTS
[SOURCE: Reuters]
AT&T, the biggest U.S. mobile service, said on=20
Tuesday that it will reduce some fees for=20
customers who exit phone contracts before they=20
are completed, in an effort to offer users more=20
flexibility. AT&T said customers who choose to=20
exit their contracts early will no longer be=20
required to pay a flat early termination fee, but=20
instead will pay based upon the amount of time=20
that has passed since the contract was signed.
http://www.reuters.com/article/technologyNews/idUSWEN168820071016

CLOSED CAPTIONING CONSUMER ADVISORY
[SOURCE: Federal Communications Commission]
Some consumers have expressed concern about how=20
digital-to-analog TV converter boxes will work=20
and whether consumers will continue to receive=20
closed captions after the transition to digital=20
television takes place. The FCC wishes to=20
reassure consumers that its rules do require=20
digital-to-analog converter boxes to pass through=20
closed captions. This advisory explains how=20
consumers will be able to access closed captions using these converter boxe=
s.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-277165A1.doc

CREATIVE VOICES TALKS ABOUT CENSORSHIP, CONSOLIDATION AND BROADBAND
[SOURCE: Center for Creative Voices in Media]
Jonathan Rintels, executive director of Creative=20
Voices, talks about censorship, the FCC,=20
consolidated media, the telco/cable duopoly, and=20
about the need for universal and true high-speed=20
broadband access. Interview recorded October 15,=20
2007 by Marc Strassman, Etopia News Channel.
http://www.creativevoices.us/php-bin/news/showArticle.php?id=3D190

TIME WARNER CUSTOMERS MISLED BY AT&T AD
[SOURCE: Los Angeles Times, AUTHOR: David Lazarus]
An ad from AT&T that ran the other day in the Los=20
Angeles Times and elsewhere warned that some Time=20
Warner Cable customers are in danger of losing=20
phone service as the cable giant makes some=20
technical changes. The ad -- which sneeringly=20
declared, "You got cabled" -- was certainly=20
attention-getting. It also was apparently wrong,=20
and at least one state regulator is mighty=20
cheesed that AT&T is spreading what he called=20
false information among consumers.
http://www.latimes.com/business/printedition/la-fi-lazarus17oct17,1,6280...
.column?coll=3Dla-headlines-pe-business
(requires registration)

MAYBE E-MAIL ISN'T SUCH A GREAT IDEA, AFTER ALL
[SOURCE: The Christian Science Monitor, AUTHOR: Tom Regan]
Management consultant Ken Siegel says e-mail has=20
become the perfect way to avoid solving problems.=20
"E-mail is not a communication device, it's a=20
broadcasting device," says Siegel. "It will=20
actually truncate communication. And in the=20
truest sense of the word, it has become a=20
psychological dependency. We have convinced=20
ourselves that we can't live without it."
http://www.csmonitor.com/2007/1017/p16s01-stct.html

SNOW SEES FIRST AMENDMENT THREAT FROM MEDIA PRACTICES
[SOURCE: Broadcasting & Cable, AUTHOR: John Eggerton]
Former White House Press Secretary Tony Snow says=20
there is a threat to the First Amendment, and it=20
comes from within. "There is an ideological=20
sameness to major news organizations and that=20
makes for bad journalism and bad business, and=20
it's bad for the First Amendment," he says,=20
"which was designed for ferocious competition of ideas and not orthodoxy."
http://www.broadcastingcable.com/article/CA6491983.html
--------------------------------------------------------------
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.
--------------------------------------------------------------