October 2007

Phone carriers quiet on U.S. surveillance program

PHONE COMPANIES QUIET ON US SURVEILLANCE PROGRAM
[SOURCE: Reuters, AUTHOR: Peter Kaplan]

Approve the shield law

APPROVE THE SHIELD LAW
[SOURCE: Los Angeles Times, AUTHOR: Editorial staff]

Verizon Letter on Privacy Stirs Debate

VERIZON LETTER ON PRIVACY STIRS DEBATE
[SOURCE: New York Times, AUTHOR: Laura Holson]

Nobel in Economics and Spectrum Auctions

NOBEL IN ECONOMICS AND SPECTRUM AUCTIONS
[SOURCE: New York Times, AUTHOR: Steve Lohr]
Roger B. Myerson, a professor at the University of Chicago, will share this year's Nobel prize in Economics for theoretical research on the optimal design of auctions. His work has served as intellectual starting point for others in setting up complex auctions like that used by the Federal Communications Commission for selling radio spectrum so that the government collects ample funds but also reserves some of the spectrum for public use and small businesses.

NEA, PTA to Unveil TV Education Campaign

NEA, PTA TO UNVEIL TV EDUCATION CAMPAIGN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]

FCC Fines Nashville Station for Reporting Failures

FCC FINES NASHVILLE STATION FOR REPORTING VIOLATIONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission proposed fining Meredith's WSMV-TV Nashville, Tenn., $10,000 for violating reporting requirements for children's-programming information.
http://www.broadcastingcable.com/article/CA6491482.html?rssid=193

Consumers Watching More TV Online

CONSUMERS WATCHING MORE TV ONLINE
[SOURCE: Multichannel News, AUTHOR: R. Thomas Umstead]

CAGW Says Government Should Leave the Telecom Industry Alone

CAGW SAYS GOVERNMENT SHOULD LEAVE THE TELECOM INDUSTRY ALONE
[SOURCE: Citizens Against Government Waste press release]
Last week, Citizens Against Government Waste released a report addressing four controversial telecommunications issues: cable a la carte programming, the Internet tax moratorium, network neutrality, and spectrum sales. The group's conclusion: the government should refrain from interfering with innovation and allowing the private sector to provide the best value and services for taxpayers and consumers.
http://www.cagw.org/site/News2?page=NewsArticle&id=11038

Benton's Communications-related Headlines For Tuesday October 16, 2007

On Wednesday morning, FCC Chairman Kevin martin,=20
NTIA head John Kneuer, GAO Director Mark=20
Goldstein, and many more will testify before the=20
House Telecom Subcommittee concerning the Status=20
of the DTV Transition. For this and other=20
upcoming media policy events, see http://www.benton.org/?q=3Devent

MEDIA OWNERSHIP
"It's just research"
Dow Jones Drops CNBC Ads From Web Sites in Favor of Fox Links
Attorney General Looking Into Sale of Connecticut Dailies to Media=
News
YouTube begins public test of anti-piracy database
Scripps to Separate into Two Companies

DIGITAL TV TRANSITION
Martin: Bill Mandating DTV-Education Reporting Would Be Helpful
The digital revolution must be televised nationwide
Broadcasters to use prime time for DTV campaign
NCTA Wants Small Op Dual Carriage Exemption
Auction the spectrum=92s =91white spaces=92
FCC Intergovernmental Advisory Committee Members Named

BROADCASTING/CABLE
Sensationalism is bad for local news ratings
NCTA: Leave Leased-Access and Program-Sales Model Alone
Advertising, Net -- Not Cable -- Playing Big Role in Presidential =
Bids
Regulators order AT&T to apply for cable TV license for 'U-verse'

INTERNET/BROADBAND
New bill may eliminate NH web tax
The power of the click

GOVERNMENT & COMMUNICATIONS
Phone carriers quiet on U.S. surveillance program
Approve the shield law

TELECOM
Verizon Letter on Privacy Stirs Debate

QUICKLY -- Nobel in Economics and Spectrum=20
Auctions; NEA, PTA to Unveil TV Education=20
Campaign; FCC Fines Nashville Station for=20
Reporting Failures; Consumers Watching More TV=20
Online; CAGW Says Government Should Leave the Telecom Industry Alone

MEDIA OWNERSHIP

"IT'S JUST RESEARCH"
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
An interview with Michigan State University=20
College of Law Professor Adam Candeub. He was not=20
interviewed in the FCC Inspector General's=20
investigation into suppressed research on media=20
ownership. Candeub worked with the authors of a=20
study of TV news. He saw as they "kept on=20
drafting and re-drafting, making change after=20
change in response to management's ever-shifting=20
criticism. What was odd was that the critique=20
they received from management became much more=20
caviling and bizarre as time went on. Eventually=20
it became clear that the FCC would never release=20
the study, and the authors were told to keep the=20
wraps on it. And that was that." The IG concluded=20
that personality differences between these=20
authors and management led the authors to=20
experience criticisms of the report as inaccurate=20
and pretextual. Concerning the Draft 2003 Radio=20
Report, the second report accused of being=20
repressed, the IG notes that the then Media=20
Bureau Chief Ken Ferree declared in an e-mail=20
message that the report should not go further=20
because he "[was] not inclined to release this=20
one unless the story can be told in a much more=20
positive way. This is not the time to be stirring=20
the 'radio consolidation' pot . . . All in all=20
this is a really bad time to release something=20
like this." The IG interprets this quote=20
essentially as an attempt to shift priorities to=20
immediate issues that management felt it needed=20
staff to focus on. Candeub responds, "What is=20
most disturbing about the IG's report is its=20
willingness to credit Ferree's and management's=20
claims that they did not stifle the TV report for=20
political reasons=97when there is indisputable=20
evidence that Ferree stifled the radio report for political reasons."
http://www.lasarletter.net/drupal/node/484

DOW JONES DROPS CNBC ADS FROM WEB SITE IN FAVOR OF FOX LINKS
[SOURCE: New York Times, AUTHOR: Bill Carter]
On the day they had contracted to run=20
advertisements placed by CNBC, two Web sites=20
owned by Dow Jones & Company instead ran ads for=20
that cable business channel=92s new competitor, the=20
Fox Business Network. Both MarketWatch and The=20
Wall Street Journal=92s Web site, WSJ.com, filled=20
up the exact spaces CNBC had purchased with=20
rotating ads that included some for Fox Business=20
Network. These were accompanied by links to=20
foxbusiness.com, the Web site of the Fox Business=20
Network. The ads for Fox started running soon=20
after midnight. CNBC, which is owned by NBC=20
Universal (both are units of General Electric),=20
had concluded a deal with Dow Jones more than a=20
month ago to secure those locations for ads=20
supporting CNBC. CNBC paid about $87,000 for the=20
ads. Aware that yesterday was the day that its=20
new rival, Fox Business, was going on the air,=20
CNBC specifically asked for =97 and was granted =97=20
an exclusive position on MarketWatch,=20
guaranteeing that its ads would be seen by=20
everyone who went to the home page. CNBC had also=20
purchased a two-month position on the Markets=20
Data page on WSJ.com. In both cases, ads for Fox=20
Business Network turned up exactly where CNBC had=20
contracted for its ads to be. Fox=92s owner, the=20
News Corporation, agreed to purchase Dow Jones in=20
July, but that deal has not been completed.
http://www.nytimes.com/2007/10/16/business/media/16foxads.html?ref=3Dtod...
paper
(requires registration)

ATTORNEY GENERAL LOOKING INTO SALE OF CONNECTICUT DAILIES TO MEDIANEWS
[SOURCE: Editor&Publisher]
Connecticut Attorney General Richard Blumenthal=20
says he's monitoring reports that one of the=20
country's largest newspaper chains might be=20
interested in buying The Advocate of Stamford and=20
Greenwich Time. MediaNews Group already owns the=20
Connecticut Post in Bridgeport, The News-Times in=20
Danbury, and several weekly papers in Fairfield=20
County. The president of The Hour Publishing=20
Company, which owns The Hour in Norwalk and=20
weekly papers in Wilton and Stamford, wrote to=20
Blumenthal to say MediaNews might have an unfair=20
competitive advantage in southwestern Connecticut=20
if it buys the two papers. They have a combined circulation of 35,000.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003658658

YOUTUBE BEGINS PUBLIC TEST OF ANTI-PIRACY DATABASE
[SOURCE: Reuters, AUTHOR: Eric Auchard]
YouTube, the Google Inc video-sharing site, said=20
on Monday it has begun public testing of a=20
long-awaited video-matching database in its=20
latest bid to ward off lawsuits over video=20
piracy. The world's largest online video-sharing=20
site said the YouTube Video Identification=20
technology is a database that stores reference=20
files of original video content and associated=20
ownership rights and compares it to any video YouTube users attempt to uplo=
ad.
http://www.reuters.com/article/internetNews/idUSN1538371420071015
* Google Blinks, and Today the Internet is a Little Less Free
http://www.publicknowledge.org/node/1217
* Google Takes Step on Video Copyrights
http://www.nytimes.com/2007/10/16/business/16video.html?ref=3Dtodayspaper
* YouTube gets media providers' help foiling piracy
http://www.usatoday.com/printedition/money/20071016/you_tube16.art.htm
* YouTube unveils copyright protection plan
http://www.latimes.com/business/printedition/la-fi-youtube16oct16,1,6860...
.story?coll=3Dla-headlines-pe-business

SCRIPPS TO SEPARATE INTO TWO COMPANIES
[SOURCE: tvnewsday]
E. W. Scripps Co. will split into two publicly=20
traded companies: E.W. Scripps Co. will include=20
its 10 TV stations and newspapers; Scripps=20
Networks Interactive will comprise cable networks and Internet businesses.
http://www.tvnewsday.com/articles/2007/10/16/daily.5/

DIGITAL TV TRANSITION

MARTIN: BILL MANDATING DTV-EDUCATION REPORTING WOULD BE HELPFUL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission Chairman Kevin=20
Martin told Reps. Joe Barton (R-Texas) and Fred=20
Upton (R-Mich.) that he plans to have a draft of=20
FCC digital-TV-education proposals ready for a=20
vote by the other FCC Commissioners by the end of=20
the month, but that a bill requiring broadcasters=20
to report on their DTV-transition efforts and=20
cable to provide bill-stuffers would be helpful.=20
Martin told the ranking members of the House=20
Commerce Committee that it would be "helpful" to=20
have the "additional authority" provided by=20
Barton's and Upton's proposed bill, H.R. 608,=20
which would require broadcasters to report to the=20
Commission every 90 days on their progress in=20
informing viewers about the February 2009 switch=20
to digital broadcasting, although it would not=20
mandate any set number of PSAs they have to run.=20
Cable would be required to include bill-stuffers=20
on the transition. The FCC could levy fines for=20
noncompliance. Chairman Martin also told the=20
legislators that the FCC's next report on video=20
competition has been circulated among the=20
Commissioners for a vote and that it found that=20
fewer than 20% of U.S. households rely solely on=20
over-the-air broadcasting, although it could not=20
break out how many of those had digital TVs that=20
would not need DTV-to-analog converter boxes. The=20
Commission will modify the next competition=20
report to try to ascertain that answer.
http://www.broadcastingcable.com/article/CA6491438.html?rssid=3D193
* FCC Seeks Refined DTV Tuner Adoption Data
http://www.multichannel.com/article/CA6491416.html?rssid=3D196

THE DIGITAL REVOLUTION MUST BE TELEVISED NATIONWIDE
[SOURCE: The Hill, AUTHOR: Sen. Daniel Inouye (D-Hawaii)]
[Commentary] A revolution is coming to television=20
sets across this country. The rewards of a=20
successful digital television (DTV) transition=20
are enormous. Yet a recent poll from the National=20
Association of Broadcasters suggests that only 1=20
in 10 Americans know when the digital transition=20
is coming. To ensure success, we must draw up a=20
battle plan. At the federal level, this=20
responsibility falls principally on the Federal=20
Communications Commission (FCC) and the National=20
Telecommunications and Information Administration=20
(NTIA). The time has come to manage the mechanics=20
of the transition with the American public in=20
mind. First, to get this done right, the=20
administration should establish a federal,=20
interagency DTV Task Force, co-chaired by=20
leadership at the FCC and NTIA. The DTV Task=20
Force would determine how best to marshal=20
existing resources across the federal government=20
and advise Congress as to what additional=20
measures may be necessary to ensure a smooth=20
transition. Second, as we develop this national=20
effort, it is imperative that we match our work=20
with local needs and strategies. Finally, we must=20
enhance transparency and accountability for the=20
digital transition. Indeed, success will require=20
that we regularly measure data in each television market.
http://thehill.com/leading-the-news/the-digital-revolution-must-be-telev...
d-nationwide-2007-10-16.html

BROADCASTERS TO USE PRIME TIME FOR DTV CAMPAIGN
[SOURCE: Reuters]
U.S. broadcasters promised on Monday to air more=20
than $327 million worth of television spots as=20
part of a broad campaign to alert consumers about=20
the approaching switch-over to digital=20
television. The major television networks, as=20
well as 95 station-owning broadcast companies,=20
pledged to run the ads as part of a $697 million=20
campaign designed to keep viewers from being=20
caught off guard when broadcasters switch to=20
digital signals by February 17, 2009. The=20
television spots, including some to be aired=20
during prime time, warn viewers that older,=20
analog televisions will not work after the=20
switch-over and steer them towards possible=20
solutions. The campaign, announced by the=20
National Association of Broadcasters, will also=20
include repeated reminders on local news=20
stations, as well as public relations and other=20
educational programs designed to raise public=20
awareness of about the switch-over.
http://today.reuters.com/news/newsArticle.aspx?type=3DentertainmentNews&...
ryID=3D2007-10-15T231551Z_01_N15390311_RTRUKOC_0_US-BROADCASTERS-DTV.xml&ar=
chived=3DFalse
* NAB Details $700 million DTV Education Push
Every TV network and over 900 stations are on=20
board to inform the public about the switch from=20
analog broadcasting. NAB says the campaign will=20
generate 98 billion audience impressions by Feb. 17, 2009.
http://www.tvnewsday.com/articles/2007/10/15/daily.11/
* NAB: DTV-Education Campaign Valued at $697M
http://www.broadcastingcable.com/article/CA6491479.html?rssid=3D193
* APTS, PBS Continue DTV Transition Initiative
The Association of Public Television Stations and=20
PBS set out the next phase of their initiative to=20
educate viewers about the DTV transition. Member=20
stations will air informational spots across daytime, primetime and weekend=
s.
http://www.tvnewsday.com/articles/2007/10/15/daily.7/
* PBS, NCTA Grab Some DTV-Transition-Education Spotlight
The National Cable & Telecommunications=20
Association announced the production of two new bilingual PSAs.
http://www.broadcastingcable.com/article/CA6491474.html?rssid=3D193
* APTS and PBS press release
http://www.apts.org/upload/PTV%20Consumer%20Education%20Campaign%20relea...
FINAL.doc
* Commerce Secretary Carlos Gutierrez Praises NAB
http://www.ntia.doc.gov/ntiahome/press/2007/DTV_NAB_101507.html
* Chairman Martin Applauds NAB
http://www.fcc.gov/101507/martin101507.pdf

NCTA WANTS SMALL OP DUAL CARRIAGE EXEMPTION
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Small cable operators deserve an automatic=20
exemption from new Federal Communications=20
Commission mandates on the carriage of digital=20
signals of local TV stations in early 2009,=20
National Cable & Telecommunications Association=20
President Kyle McSlarrow is expected to say in=20
Senate testimony Wednesday. Under the rules, all=20
cable systems will need to carry local TV=20
stations that elect mandatory carriage in both=20
analog and digital formats if the systems=20
continue to provide analog programming services=20
to subscribers after Feb. 17, 2009. On that date,=20
all full-power TV station in the U.S. are=20
required by law to shut off their analog signals.=20
In his testimony, McSlarrow said the FCC=92s rules,=20
which were adopted on Sept. 11 but have not been=20
released, should have exempted small operators=20
and low-capacity systems from the dual carriage=20
requirement, to remove economic and technological=20
burdens on companies that lack regional scale like Comcast and Time Warner.
http://www.multichannel.com/article/CA6491499.html?rssid=3D196

AUCTION THE SPECTRUM'S 'WHITE SPACES'
[SOURCE: The Hill, AUTHOR: Rep. Fred Upton (R-Mich.)]
[Commentary] Even after we complete the digital=20
television transition on Feb. 17, 2009,=20
broadcasters will not be using all the spectrum=20
allocated for television. The unused spectrum=20
left over throughout the country has been dubbed=20
the =93white spaces.=94 Some companies are asking=20
that the spectrum be given to them for free to=20
use for unlicensed devices. This would be a=20
mistake. The spectrum should be auctioned.=20
Auctions put spectrum into the hands of those who=20
value it most while letting market forces, rather=20
than regulators, determine the best technologies=20
and services. Auctions provide a predictable=20
environment to ensure companies can invest with=20
certainty. And the licenses that are auctioned=20
protect against interference because license=20
holders have both an incentive and a legal duty to prevent any problems.
http://thehill.com/leading-the-news/auction-the-spectrums-white-spaces-2...
-10-16.html

FCC INTERGOVERNMENTAL ADVISORY COMMITTEE MEMBERS NAMED
[SOURCE: Federal Communications Commission]
The FCC has named members to its=20
Intergovernmental Advisory Committee. There will=20
be four municipality representatives, two county=20
representatives, one city attorney=20
representative, Mississippi Gov Haley Barbour=20
(R), one state public utility commission=20
representative, three state legislative=20
representatives, and three tribal=20
representatives. A principal focus of the IAC for=20
its current term will be the nation's transition=20
to digital television (DTV) as the Commission=20
continues its efforts to assist consumers in=20
understanding and preparing for the transition=20
which, by law, must be completed by February 17,=20
2009. Collaboration and coordination with local,=20
state and tribal governments is crucial to the=20
Commission's goal of ensuring that all consumers,=20
especially elderly, low-income, people with=20
disabilities, people living in rural areas and=20
non-English speaking consumers, are aware of the=20
transition and understand what specific steps, if=20
any, they must take to continue watching=20
television after the transition is complete on=20
February 17, 2009. The Commission looks forward=20
to the valuable insights that the IAC will=20
provide about working effectively with its local,=20
state and tribal partners to educate consumers about the DTV transition.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-277317A1.doc

BROADCASTING/CABLE

NEW RESEARCH CONCLUDES THAT THE SENSATIONALISM=20
SWEEPING LOCAL NEWS IS BAD FOR RATINGS
[SOURCE: The Boston Globe, AUTHOR: Drake Bennett]
The past two decades have seen a marked shift in=20
local television news across the country, away=20
from in-depth coverage and toward speed and=20
spectacle. Broadcast news, envisioned in the=20
early years of television as a means of enriching=20
civic life, has - according to politicians, media=20
watchdog groups, and many TV journalists=20
themselves - degenerated into=20
lowest-common-denominator entertainment. Yet many=20
who work in the industry have grimly accepted=20
this: The market has spoken. But a study=20
published earlier this year - the most exhaustive=20
ever conducted of local television news -=20
suggests that the industry has severely=20
underestimated its audience. In an unprecedented=20
survey, a team of researchers under the auspices=20
of the Project for Excellence in Journalism=20
studied the minute-by-minute Nielsen ratings for=20
newscasts from 154 local television stations over=20
five years, more than 33,000 news stories in all.=20
What they found is that quality sells.=20
Sensationalism, the study suggests, does bring=20
good ratings. But well-done, substantive TV news=20
proves just as popular -- and often earns even=20
better ratings. Viewers, the study found, are=20
perfectly willing to watch stories on education=20
policy or tax debates - in many cases they'll=20
tune in to those stories but flip away from a=20
segment on a celebrity divorce or a deadly=20
highway pileup. And they'll consistently reward=20
in-depth reporting with higher ratings than more=20
cursory stories, no matter what the topic. The=20
findings suggest that the shift to violence and=20
voyeurism has left everyone worse off.
http://www.boston.com/news/education/higher/articles/2007/10/14/news_flash/

NCTA: LEAVE LEASED-ACCESS AND PROGRAM-SALES MODEL ALONE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission Chairman Kevin=20
Martin said last week that he thought the FCC=20
should: 1) re-examine leased-access rules "to=20
better encourage independent programmers,=94 2)=20
lower cable leased-access rates as a way to help=20
minorities get more access to media outlets, and=20
3) unbundle cable programming at the wholesale=20
level. On the same day, in comments filed at the=20
FCC, the National Cable & Telecommunications=20
Association said: A) subscription fees are=20
"critical" to the viability of independent=20
programming services, B) comments from Black=20
Television News Channel point out that "leased=20
access does not support the development of=20
independent national programming," C) cable=20
operators aren't necessarily being compensated=20
sufficiently as it is for the logistics of=20
leasing capacity, and D) there is plenty of=20
competition that provides the spur to cable=20
operators' choice of what channels to deliver to its audience.
http://www.broadcastingcable.com/article/CA6491190.html?rssid=3D193

PRESIDENTIAL HOPEFUL CLINTON HAS MOST WEB VISITORS
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
With a wide open field among Democrats and=20
Republicans ahead of the November 2008 election,=20
candidates are already spending millions of=20
dollars on advertising and the Internet to draw=20
support before the nominating contests early next=20
year. Sen Hillary Clinton (D-NY) has largely=20
steered clear of traditional radio and television=20
advertising in her presidential campaign, instead=20
nurturing the Internet audience and drawing the=20
largest number of online visitors. Sen Clinton=20
had the most visitors to her Web sites in August,=20
almost 760,000, compared to her rivals, but she=20
ran only about 2,200 radio and television spots=20
so far this year, according to Nielsen data=20
released on Monday. Sen. Barack Obama (D-IL), who=20
has consistently run second in national polls,=20
was a close second in the number of Web page=20
visitors with about 750,000 in August, but ran=20
almost double the number of radio and television=20
spots this year with 4,300. The Democrat who ran=20
the most television and radio spots was Gov. Bill=20
Richardson (D-NM) with about 6,000. He has mostly=20
registered in the single digits in polls. He had=20
103,000 Web site visitors in August, Nielsen=20
found. Among Republicans, former Tennessee Sen.=20
Fred Thompson, who officially joined the=20
presidential race in September, had the most=20
separate visitors to his Web site in August, with=20
some 410,000, according to Nielsen.
http://www.reuters.com/article/internetNews/idUSN1535252220071015
* Presidential Candidates Shun Cable Advertising
Both Republicans and Democrats competing in 2008=20
presidential race have largely ignored national=20
cable networks and local cable systems in their=20
attempts to woo voters through political=20
advertising, according to a report from Nielsen=20
Co. Almost 95% of the total 28,725 presidential=20
campaign ads purchased by candidates this year=20
were on local TV stations, and more than 71% of=20
those were placed in Iowa, Nielsen said Monday.
http://www.multichannel.com/article/CA6491464.html?rssid=3D196
* Presidential Hopefuls Still Favor Local TV Ads
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
8398
* Romney outspends presidential rivals
http://www.latimes.com/news/printedition/asection/la-na-money16oct16,1,1...
066.story?coll=3Dla-news-a_section

REGULATORS ORDER AT&T TO APPLY FOR CABLE TV LICENSE FOR 'U-VERSE'
[SOURCE: Associated Press]
State utility regulators on Monday ordered AT&T=20
to get a cable television license for the=20
Internet protocol-based TV service it is=20
currently providing in Connecticut. Department of=20
Public Utility Control commissioners said a=20
recent ruling by a federal judge made it clear=20
that AT&T's "U-verse" constitutes a cable=20
television service, and the company is operating=20
it without proper authorization.
http://www.stamfordadvocate.com/news/local/state/hc-15192355.apds.m0940.bc=
-ct--attoct15,0,2470765.story?coll=3Dhc-headlines-local-wirehttp://www.sta=
mfordadvocate.com/news/local/state/hc-15192355.apds.m0940.bc-ct--attoct15,0=
,2470765.story?coll=3Dhc-headlines-local-wire
* AT&T video rollout hits Conn. regulatory roadblock
http://www.reuters.com/article/technologyNews/idUSN1540001720071016

INTERNET/BROADBAND

NEW BILL MAY ELIMINATE STATE WEB TAX
[SOURCE: Concord Monitor, AUTHOR: Kate Davidson]
New Hampshire is one of nine states that can tax=20
Internet access and currently levies a 7 percent=20
communications tax for Internet access through=20
dial-up service, DSL, cable modem and wireless=20
connections. That could change if Congress=20
approves a bill introduced by Sen. John Sununu=20
(R-NH) that would get rid of the tax for good,=20
and phase out the grandfather clause that allows=20
New Hampshire to collect about $12 million a=20
year. Sen Sununu says the permanent ban would=20
ensure that the Internet remains affordable and=20
continues to grow, which in turn promotes=20
business innovation and helps the economy. But=20
critics say the bill is too broad and could=20
eliminate revenue for state and local governments=20
as more services move to the Internet. They want=20
a temporary extension of the tax moratorium=20
instead. If the two sides can't come to an=20
agreement before Nov. 1, the ban will expire and=20
states could begin passing new taxes. The results=20
could be disastrous, leaders on both sides have said.
http://www.concordmonitor.com/apps/pbcs.dll/article?AID=3D/20071014/BUSI...
S/710140354/1265
* Don't create Internet-tax monster
Commentary from Barry M. Aarons, Institute for Policy Innovation
http://thehill.com/op-eds/dont-create-internet-tax-monster-2007-10-16.html
* The Web Grows Up
[SOURCE: Washington Post, AUTHOR: Editorial staff]
[Commentary] A four-year extension on the=20
Internet tax ban is a more than fair deal for an=20
industry whose claim to special tax treatment is tenuous at best.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/15/AR200710...
1373.html
(requires registration)

THE POWER OF THE CLICK
[SOURCE: Los Angeles Times, AUTHOR: Bill McKibben, Middlebury College]
[Commentary] The Internet is a maturing=20
technology and people are figuring out how to use=20
it for more than gambling, shopping or looking at=20
the scantily clad. In politics, it has been a=20
fundraising tool, but some are trying to use it=20
to get candidates to answer voters' questions=20
before elections. In certain ways, it's a lousy=20
time to be coming of age -- those satellite=20
photos last month of the rapidly melting Arctic=20
ice cap foreshadowed a century that will be spent=20
trying to deal with the greatest threat to=20
stability that human civilization has ever=20
encountered. But the moment has also given us a=20
new set of tools for connection. The fight=20
against global warming requires all kinds of=20
technology -- solar panels and windmills, but also servers and routers.
http://www.latimes.com/news/printedition/opinion/la-oe-mckibben16oct16,1...
33973.story?coll=3Dla-news-comment
(requires registration)

GOVERNMENT & COMMUNICATIONS

PHONE COMPANIES QUIET ON US SURVEILLANCE PROGRAM
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
Major U.S. telephone carriers refused to answer=20
questions from the Democratic-led Congress about=20
their possible participation in President George=20
W. Bush's warrantless domestic spying program,=20
according to documents released by lawmakers on=20
Monday. At issue are reports that surfaced last=20
year that some big telephone companies allowed=20
the U.S. government access to millions of=20
telephone records for Bush's anti-terror efforts=20
following the September 11, 2001 attacks on the=20
United States. Officials from AT&T, Verizon=20
Communications and Qwest Communications=20
International told the House Commerce Committee=20
they could not discuss specifics about their=20
companies' roles in any such effort. The phone=20
companies said it would be illegal for them to=20
discuss the kind of program lawmakers were asking=20
about without permission from the Bush=20
administration. Democrats vowed to push the administration for answers.
http://www.reuters.com/article/technologyNews/idUSN1539292620071015
* Telecommunications Companies Respond to=20
Committee Inquiry into NSA Wiretapping Program Participation
"After reviewing the thoughtful responses of the=20
phone companies to our inquiries about the=20
Administration=92s NSA program, I am now convinced=20
that the Administration =AD as the sponsor of this=20
program and the party preventing the companies=20
from defending themselves =AD is the entity best=20
able to resolve the many outstanding issues,=94=20
said House Commerce Committee Chairman John=20
Dingell (D-MI). =93I look forward to meeting with=20
representatives of the Administration in short=20
order, and I am hopeful that they will be=20
forthcoming with the information Congress needs=20
to properly evaluate this program.=94
http://energycommerce.house.gov/Press_110/110nr106.shtml
* Press release from House Telecom Subcommittee Chairman Markey (D-MA)
"The responses from these telecommunication=20
companies highlight the need for Congress to=20
continue pressing the Bush administration for=20
answers. The water is as murky as ever on this=20
issue and it=92s past time for the administration to come clean."
http://markey.house.gov/index.php?option=3Dcom_content&task=3Dview&id=3D...
6&Itemid=3D141
* AT&T:
http://energycommerce.house.gov/Press_110/110-ltr.101207.TI.ATTrspto1002...
pdf
* Verizon:
http://energycommerce.house.gov/Press_110/110-ltr.101207.Verizonrspto100...
.pdf
* Verizon Says It Turned Over Data Without Court Orders
Verizon Communications, the nation's=20
second-largest telecom company, told=20
congressional investigators that it has provided=20
customers' telephone records to federal=20
authorities in emergency cases without court=20
orders hundreds of times since 2005. The company=20
said it does not determine the requests' legality=20
or necessity because to do so would slow efforts=20
to save lives in criminal investigations.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/15/AR200710...
1857.html
(requires registration)
* Qwest:
http://energycommerce.house.gov/Press_110/110-ltr.101207.TI.Qwestrspto10...
7.pdf
* Computer & Communications Industry Association
http://energycommerce.house.gov/Press_110/110-ltr.101207.TI.CCIArspto100...
.pdf
* Electronic Frontier Foundation:
http://energycommerce.house.gov/Press_110/110-ltr.TI.101207.EFFrspto1002...
pdf
* Phone firms mum on spying
http://www.latimes.com/business/printedition/la-fi-phone16oct16,1,203771...
tory?coll=3Dla-headlines-pe-business
* Phone Utilities Won't Give Details About Eavesdropping
http://www.nytimes.com/2007/10/16/washington/16nsa.html?ref=3Dtodayspaper
* Phone Companies Defend Aiding Government
http://online.wsj.com/article/SB119249883088660212.html?mod=3Dtodays_us_...
e_one
(requires subscription)

APPROVE THE SHIELD LAW
[SOURCE: Los Angeles Times, AUTHOR: Editorial staff]
[Commentary] Today, the House is expected to=20
vote on a proposal that Speaker Nancy Pelosi=20
rightly calls "fundamental to our democracy and=20
fundamental to the security of our country." The=20
Free Flow of Information Act of 2007 would=20
require that federal courts join 33 states and=20
the District of Columbia in recognizing the right=20
of journalists to protect confidential sources.=20
The first order of business is to make the=20
federal government at least as protective of a=20
reporter's privilege as are states that have=20
passed shield laws. That calls for a "yes" vote=20
today -- preferably by a veto-proof margin.
http://www.latimes.com/news/printedition/opinion/la-ed-shield16oct16,1,1...
155.story?coll=3Dla-news-comment
(requires registration)
* When reporters can't shield sources, the public loses out
http://www.usatoday.com/printedition/news/20071016/edit16.art.htm
* Press has enough protection
http://www.usatoday.com/printedition/news/20071016/oppose16.art.htm

TELECOM

VERIZON LETTER ON PRIVACY STIRS DEBATE
[SOURCE: New York Times, AUTHOR: Laura Holson]
Verizon Wireless, one of the nation=92s largest=20
cellphone carriers, has stirred up controversy=20
with a letter it sent to customers recently=20
telling them that it would begin sharing=20
information from their calling records with its=20
=93affiliates, agents and parent companies.=94=20
Verizon is seeking to share that information only=20
among Verizon divisions, so it can better sell=20
new products to existing customers. In the=20
mailing, Verizon gave customers 30 days to =93opt=20
out=94 if they did not want their information=20
shared. But analysts and consumer advocates=20
suggest the company may also be interested in=20
gathering information as it prepares to tailor=20
the advertising it displays on cellphone screens,=20
based on individual customer habits and=20
attributes. Mobile advertising is an untapped=20
source of revenue among mobile phone companies=20
looking to expand their businesses. The concern=20
about the mailing, which spread quickly online=20
and resulted in the company clarifying its=20
position late yesterday, points to the privacy=20
challenges facing communications companies as=20
they seek to deliver information and advertising directly to cellphone user=
s.
http://www.nytimes.com/2007/10/16/business/16phone.html?ref=3Dtodayspaper
(requires registration)

QUICKLY

NOBEL IN ECONOMICS AND SPECTRUM AUCTIONS
[SOURCE: New York Times, AUTHOR: Steve Lohr]
Roger B. Myerson, a professor at the University=20
of Chicago, will share this year's Nobel prize in=20
Economics for theoretical research on the optimal=20
design of auctions. His work has served as=20
intellectual starting point for others in setting=20
up complex auctions like that used by the Federal=20
Communications Commission for selling radio=20
spectrum so that the government collects ample=20
funds but also reserves some of the spectrum for=20
public use and small businesses.
http://www.nytimes.com/2007/10/16/business/16nobel.html?_r=3D1&ref=3Dtod...
paper&oref=3Dslogin
(requires registration)

NEA, PTA TO UNVEIL TV EDUCATION CAMPAIGN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The PTA, the National Education Association and=20
the National Council of Women's Organizations,=20
among others, including some religious groups,=20
plan to steer parents to groups like the Parents=20
Television Council and Common Sense Media for=20
advice on what shows are appropriate family=20
viewing. The goal is not to condemn programing=20
they don't think is family-friendly, but to=20
"shine a light on the best stuff" that isn't=20
getting enough attention in an effort to "change=20
the quality of children=92s television in America."
http://www.broadcastingcable.com/article/CA6491509.html?rssid=3D193

FCC FINES NASHVILLE STATION FOR REPORTING VIOLATIONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission proposed=20
fining Meredith's WSMV-TV Nashville, Tenn.,=20
$10,000 for violating reporting requirements for=20
children's-programming information.
http://www.broadcastingcable.com/article/CA6491482.html?rssid=3D193

CONSUMERS WATCHING MORE TV ONLINE
[SOURCE: Multichannel News, AUTHOR: R. Thomas Umstead]
Nearly 16% of American households who use the=20
Internet watch television broadcasts online,=20
according to a report released Monday by The=20
Conference Board and TNS. The Consumer Internet=20
Barometer survey says more than three out of five=20
online TV viewers cite personal convenience as=20
the major reason for watching TV broadcasts=20
online, while more than one-third choose online=20
viewing in order to avoid watching television=20
commercials. Other reasons sited include=20
portability and a preference for computer viewing.
http://www.multichannel.com/article/CA6491414.html?rssid=3D196

CAGW SAYS GOVERNMENT SHOULD LEAVE THE TELECOM INDUSTRY ALONE
[SOURCE: Citizens Against Government Waste press release]
Last week, Citizens Against Government Waste=20
released a report addressing four controversial=20
telecommunications issues: cable a la carte=20
programming, the Internet tax moratorium, network=20
neutrality, and spectrum sales. The group's=20
conclusion: the government should refrain from=20
interfering with innovation and allowing the=20
private sector to provide the best value and=20
services for taxpayers and consumers.
http://www.cagw.org/site/News2?page=3DNewsArticle&id=3D11038
* Telecommunications: Pulling the Plug on Government Interference
http://www.cagw.org/site/DocServer/Telecom_Paper.pdf?docID=3D2741
--------------------------------------------------------------
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.
--------------------------------------------------------------

Benton's Communications-related Headlines For Tuesday October 16, 2007

On Wednesday morning, FCC Chairman Kevin martin,=20
NTIA head John Kneuer, GAO Director Mark=20
Goldstein, and many more will testify before the=20
House Telecom Subcommittee concerning the Status=20
of the DTV Transition. For this and other=20
upcoming media policy events, see http://www.benton.org/?q=3Devent

MEDIA OWNERSHIP
"It's just research"
Dow Jones Drops CNBC Ads From Web Sites in Favor of Fox Links
Attorney General Looking Into Sale of Connecticut Dailies to Media=
News
YouTube begins public test of anti-piracy database
Scripps to Separate into Two Companies

DIGITAL TV TRANSITION
Martin: Bill Mandating DTV-Education Reporting Would Be Helpful
The digital revolution must be televised nationwide
Broadcasters to use prime time for DTV campaign
NCTA Wants Small Op Dual Carriage Exemption
Auction the spectrum=92s =91white spaces=92
FCC Intergovernmental Advisory Committee Members Named

BROADCASTING/CABLE
Sensationalism is bad for local news ratings
NCTA: Leave Leased-Access and Program-Sales Model Alone
Advertising, Net -- Not Cable -- Playing Big Role in Presidential =
Bids
Regulators order AT&T to apply for cable TV license for 'U-verse'

INTERNET/BROADBAND
New bill may eliminate NH web tax
The power of the click

GOVERNMENT & COMMUNICATIONS
Phone carriers quiet on U.S. surveillance program
Approve the shield law

TELECOM
Verizon Letter on Privacy Stirs Debate

QUICKLY -- Nobel in Economics and Spectrum=20
Auctions; NEA, PTA to Unveil TV Education=20
Campaign; FCC Fines Nashville Station for=20
Reporting Failures; Consumers Watching More TV=20
Online; CAGW Says Government Should Leave the Telecom Industry Alone

MEDIA OWNERSHIP

"IT'S JUST RESEARCH"
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
An interview with Michigan State University=20
College of Law Professor Adam Candeub. He was not=20
interviewed in the FCC Inspector General's=20
investigation into suppressed research on media=20
ownership. Candeub worked with the authors of a=20
study of TV news. He saw as they "kept on=20
drafting and re-drafting, making change after=20
change in response to management's ever-shifting=20
criticism. What was odd was that the critique=20
they received from management became much more=20
caviling and bizarre as time went on. Eventually=20
it became clear that the FCC would never release=20
the study, and the authors were told to keep the=20
wraps on it. And that was that." The IG concluded=20
that personality differences between these=20
authors and management led the authors to=20
experience criticisms of the report as inaccurate=20
and pretextual. Concerning the Draft 2003 Radio=20
Report, the second report accused of being=20
repressed, the IG notes that the then Media=20
Bureau Chief Ken Ferree declared in an e-mail=20
message that the report should not go further=20
because he "[was] not inclined to release this=20
one unless the story can be told in a much more=20
positive way. This is not the time to be stirring=20
the 'radio consolidation' pot . . . All in all=20
this is a really bad time to release something=20
like this." The IG interprets this quote=20
essentially as an attempt to shift priorities to=20
immediate issues that management felt it needed=20
staff to focus on. Candeub responds, "What is=20
most disturbing about the IG's report is its=20
willingness to credit Ferree's and management's=20
claims that they did not stifle the TV report for=20
political reasons=97when there is indisputable=20
evidence that Ferree stifled the radio report for political reasons."
http://www.lasarletter.net/drupal/node/484

DOW JONES DROPS CNBC ADS FROM WEB SITE IN FAVOR OF FOX LINKS
[SOURCE: New York Times, AUTHOR: Bill Carter]
On the day they had contracted to run=20
advertisements placed by CNBC, two Web sites=20
owned by Dow Jones & Company instead ran ads for=20
that cable business channel=92s new competitor, the=20
Fox Business Network. Both MarketWatch and The=20
Wall Street Journal=92s Web site, WSJ.com, filled=20
up the exact spaces CNBC had purchased with=20
rotating ads that included some for Fox Business=20
Network. These were accompanied by links to=20
foxbusiness.com, the Web site of the Fox Business=20
Network. The ads for Fox started running soon=20
after midnight. CNBC, which is owned by NBC=20
Universal (both are units of General Electric),=20
had concluded a deal with Dow Jones more than a=20
month ago to secure those locations for ads=20
supporting CNBC. CNBC paid about $87,000 for the=20
ads. Aware that yesterday was the day that its=20
new rival, Fox Business, was going on the air,=20
CNBC specifically asked for =97 and was granted =97=20
an exclusive position on MarketWatch,=20
guaranteeing that its ads would be seen by=20
everyone who went to the home page. CNBC had also=20
purchased a two-month position on the Markets=20
Data page on WSJ.com. In both cases, ads for Fox=20
Business Network turned up exactly where CNBC had=20
contracted for its ads to be. Fox=92s owner, the=20
News Corporation, agreed to purchase Dow Jones in=20
July, but that deal has not been completed.
http://www.nytimes.com/2007/10/16/business/media/16foxads.html?ref=3Dtod...
paper
(requires registration)

ATTORNEY GENERAL LOOKING INTO SALE OF CONNECTICUT DAILIES TO MEDIANEWS
[SOURCE: Editor&Publisher]
Connecticut Attorney General Richard Blumenthal=20
says he's monitoring reports that one of the=20
country's largest newspaper chains might be=20
interested in buying The Advocate of Stamford and=20
Greenwich Time. MediaNews Group already owns the=20
Connecticut Post in Bridgeport, The News-Times in=20
Danbury, and several weekly papers in Fairfield=20
County. The president of The Hour Publishing=20
Company, which owns The Hour in Norwalk and=20
weekly papers in Wilton and Stamford, wrote to=20
Blumenthal to say MediaNews might have an unfair=20
competitive advantage in southwestern Connecticut=20
if it buys the two papers. They have a combined circulation of 35,000.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003658658

YOUTUBE BEGINS PUBLIC TEST OF ANTI-PIRACY DATABASE
[SOURCE: Reuters, AUTHOR: Eric Auchard]
YouTube, the Google Inc video-sharing site, said=20
on Monday it has begun public testing of a=20
long-awaited video-matching database in its=20
latest bid to ward off lawsuits over video=20
piracy. The world's largest online video-sharing=20
site said the YouTube Video Identification=20
technology is a database that stores reference=20
files of original video content and associated=20
ownership rights and compares it to any video YouTube users attempt to uplo=
ad.
http://www.reuters.com/article/internetNews/idUSN1538371420071015
* Google Blinks, and Today the Internet is a Little Less Free
http://www.publicknowledge.org/node/1217
* Google Takes Step on Video Copyrights
http://www.nytimes.com/2007/10/16/business/16video.html?ref=3Dtodayspaper
* YouTube gets media providers' help foiling piracy
http://www.usatoday.com/printedition/money/20071016/you_tube16.art.htm
* YouTube unveils copyright protection plan
http://www.latimes.com/business/printedition/la-fi-youtube16oct16,1,6860...
.story?coll=3Dla-headlines-pe-business

SCRIPPS TO SEPARATE INTO TWO COMPANIES
[SOURCE: tvnewsday]
E. W. Scripps Co. will split into two publicly=20
traded companies: E.W. Scripps Co. will include=20
its 10 TV stations and newspapers; Scripps=20
Networks Interactive will comprise cable networks and Internet businesses.
http://www.tvnewsday.com/articles/2007/10/16/daily.5/

DIGITAL TV TRANSITION

MARTIN: BILL MANDATING DTV-EDUCATION REPORTING WOULD BE HELPFUL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission Chairman Kevin=20
Martin told Reps. Joe Barton (R-Texas) and Fred=20
Upton (R-Mich.) that he plans to have a draft of=20
FCC digital-TV-education proposals ready for a=20
vote by the other FCC Commissioners by the end of=20
the month, but that a bill requiring broadcasters=20
to report on their DTV-transition efforts and=20
cable to provide bill-stuffers would be helpful.=20
Martin told the ranking members of the House=20
Commerce Committee that it would be "helpful" to=20
have the "additional authority" provided by=20
Barton's and Upton's proposed bill, H.R. 608,=20
which would require broadcasters to report to the=20
Commission every 90 days on their progress in=20
informing viewers about the February 2009 switch=20
to digital broadcasting, although it would not=20
mandate any set number of PSAs they have to run.=20
Cable would be required to include bill-stuffers=20
on the transition. The FCC could levy fines for=20
noncompliance. Chairman Martin also told the=20
legislators that the FCC's next report on video=20
competition has been circulated among the=20
Commissioners for a vote and that it found that=20
fewer than 20% of U.S. households rely solely on=20
over-the-air broadcasting, although it could not=20
break out how many of those had digital TVs that=20
would not need DTV-to-analog converter boxes. The=20
Commission will modify the next competition=20
report to try to ascertain that answer.
http://www.broadcastingcable.com/article/CA6491438.html?rssid=3D193
* FCC Seeks Refined DTV Tuner Adoption Data
http://www.multichannel.com/article/CA6491416.html?rssid=3D196

THE DIGITAL REVOLUTION MUST BE TELEVISED NATIONWIDE
[SOURCE: The Hill, AUTHOR: Sen. Daniel Inouye (D-Hawaii)]
[Commentary] A revolution is coming to television=20
sets across this country. The rewards of a=20
successful digital television (DTV) transition=20
are enormous. Yet a recent poll from the National=20
Association of Broadcasters suggests that only 1=20
in 10 Americans know when the digital transition=20
is coming. To ensure success, we must draw up a=20
battle plan. At the federal level, this=20
responsibility falls principally on the Federal=20
Communications Commission (FCC) and the National=20
Telecommunications and Information Administration=20
(NTIA). The time has come to manage the mechanics=20
of the transition with the American public in=20
mind. First, to get this done right, the=20
administration should establish a federal,=20
interagency DTV Task Force, co-chaired by=20
leadership at the FCC and NTIA. The DTV Task=20
Force would determine how best to marshal=20
existing resources across the federal government=20
and advise Congress as to what additional=20
measures may be necessary to ensure a smooth=20
transition. Second, as we develop this national=20
effort, it is imperative that we match our work=20
with local needs and strategies. Finally, we must=20
enhance transparency and accountability for the=20
digital transition. Indeed, success will require=20
that we regularly measure data in each television market.
http://thehill.com/leading-the-news/the-digital-revolution-must-be-telev...
d-nationwide-2007-10-16.html

BROADCASTERS TO USE PRIME TIME FOR DTV CAMPAIGN
[SOURCE: Reuters]
U.S. broadcasters promised on Monday to air more=20
than $327 million worth of television spots as=20
part of a broad campaign to alert consumers about=20
the approaching switch-over to digital=20
television. The major television networks, as=20
well as 95 station-owning broadcast companies,=20
pledged to run the ads as part of a $697 million=20
campaign designed to keep viewers from being=20
caught off guard when broadcasters switch to=20
digital signals by February 17, 2009. The=20
television spots, including some to be aired=20
during prime time, warn viewers that older,=20
analog televisions will not work after the=20
switch-over and steer them towards possible=20
solutions. The campaign, announced by the=20
National Association of Broadcasters, will also=20
include repeated reminders on local news=20
stations, as well as public relations and other=20
educational programs designed to raise public=20
awareness of about the switch-over.
http://today.reuters.com/news/newsArticle.aspx?type=3DentertainmentNews&...
ryID=3D2007-10-15T231551Z_01_N15390311_RTRUKOC_0_US-BROADCASTERS-DTV.xml&ar=
chived=3DFalse
* NAB Details $700 million DTV Education Push
Every TV network and over 900 stations are on=20
board to inform the public about the switch from=20
analog broadcasting. NAB says the campaign will=20
generate 98 billion audience impressions by Feb. 17, 2009.
http://www.tvnewsday.com/articles/2007/10/15/daily.11/
* NAB: DTV-Education Campaign Valued at $697M
http://www.broadcastingcable.com/article/CA6491479.html?rssid=3D193
* APTS, PBS Continue DTV Transition Initiative
The Association of Public Television Stations and=20
PBS set out the next phase of their initiative to=20
educate viewers about the DTV transition. Member=20
stations will air informational spots across daytime, primetime and weekend=
s.
http://www.tvnewsday.com/articles/2007/10/15/daily.7/
* PBS, NCTA Grab Some DTV-Transition-Education Spotlight
The National Cable & Telecommunications=20
Association announced the production of two new bilingual PSAs.
http://www.broadcastingcable.com/article/CA6491474.html?rssid=3D193
* APTS and PBS press release
http://www.apts.org/upload/PTV%20Consumer%20Education%20Campaign%20relea...
FINAL.doc
* Commerce Secretary Carlos Gutierrez Praises NAB
http://www.ntia.doc.gov/ntiahome/press/2007/DTV_NAB_101507.html
* Chairman Martin Applauds NAB
http://www.fcc.gov/101507/martin101507.pdf

NCTA WANTS SMALL OP DUAL CARRIAGE EXEMPTION
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Small cable operators deserve an automatic=20
exemption from new Federal Communications=20
Commission mandates on the carriage of digital=20
signals of local TV stations in early 2009,=20
National Cable & Telecommunications Association=20
President Kyle McSlarrow is expected to say in=20
Senate testimony Wednesday. Under the rules, all=20
cable systems will need to carry local TV=20
stations that elect mandatory carriage in both=20
analog and digital formats if the systems=20
continue to provide analog programming services=20
to subscribers after Feb. 17, 2009. On that date,=20
all full-power TV station in the U.S. are=20
required by law to shut off their analog signals.=20
In his testimony, McSlarrow said the FCC=92s rules,=20
which were adopted on Sept. 11 but have not been=20
released, should have exempted small operators=20
and low-capacity systems from the dual carriage=20
requirement, to remove economic and technological=20
burdens on companies that lack regional scale like Comcast and Time Warner.
http://www.multichannel.com/article/CA6491499.html?rssid=3D196

AUCTION THE SPECTRUM'S 'WHITE SPACES'
[SOURCE: The Hill, AUTHOR: Rep. Fred Upton (R-Mich.)]
[Commentary] Even after we complete the digital=20
television transition on Feb. 17, 2009,=20
broadcasters will not be using all the spectrum=20
allocated for television. The unused spectrum=20
left over throughout the country has been dubbed=20
the =93white spaces.=94 Some companies are asking=20
that the spectrum be given to them for free to=20
use for unlicensed devices. This would be a=20
mistake. The spectrum should be auctioned.=20
Auctions put spectrum into the hands of those who=20
value it most while letting market forces, rather=20
than regulators, determine the best technologies=20
and services. Auctions provide a predictable=20
environment to ensure companies can invest with=20
certainty. And the licenses that are auctioned=20
protect against interference because license=20
holders have both an incentive and a legal duty to prevent any problems.
http://thehill.com/leading-the-news/auction-the-spectrums-white-spaces-2...
-10-16.html

FCC INTERGOVERNMENTAL ADVISORY COMMITTEE MEMBERS NAMED
[SOURCE: Federal Communications Commission]
The FCC has named members to its=20
Intergovernmental Advisory Committee. There will=20
be four municipality representatives, two county=20
representatives, one city attorney=20
representative, Mississippi Gov Haley Barbour=20
(R), one state public utility commission=20
representative, three state legislative=20
representatives, and three tribal=20
representatives. A principal focus of the IAC for=20
its current term will be the nation's transition=20
to digital television (DTV) as the Commission=20
continues its efforts to assist consumers in=20
understanding and preparing for the transition=20
which, by law, must be completed by February 17,=20
2009. Collaboration and coordination with local,=20
state and tribal governments is crucial to the=20
Commission's goal of ensuring that all consumers,=20
especially elderly, low-income, people with=20
disabilities, people living in rural areas and=20
non-English speaking consumers, are aware of the=20
transition and understand what specific steps, if=20
any, they must take to continue watching=20
television after the transition is complete on=20
February 17, 2009. The Commission looks forward=20
to the valuable insights that the IAC will=20
provide about working effectively with its local,=20
state and tribal partners to educate consumers about the DTV transition.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-277317A1.doc

BROADCASTING/CABLE

NEW RESEARCH CONCLUDES THAT THE SENSATIONALISM=20
SWEEPING LOCAL NEWS IS BAD FOR RATINGS
[SOURCE: The Boston Globe, AUTHOR: Drake Bennett]
The past two decades have seen a marked shift in=20
local television news across the country, away=20
from in-depth coverage and toward speed and=20
spectacle. Broadcast news, envisioned in the=20
early years of television as a means of enriching=20
civic life, has - according to politicians, media=20
watchdog groups, and many TV journalists=20
themselves - degenerated into=20
lowest-common-denominator entertainment. Yet many=20
who work in the industry have grimly accepted=20
this: The market has spoken. But a study=20
published earlier this year - the most exhaustive=20
ever conducted of local television news -=20
suggests that the industry has severely=20
underestimated its audience. In an unprecedented=20
survey, a team of researchers under the auspices=20
of the Project for Excellence in Journalism=20
studied the minute-by-minute Nielsen ratings for=20
newscasts from 154 local television stations over=20
five years, more than 33,000 news stories in all.=20
What they found is that quality sells.=20
Sensationalism, the study suggests, does bring=20
good ratings. But well-done, substantive TV news=20
proves just as popular -- and often earns even=20
better ratings. Viewers, the study found, are=20
perfectly willing to watch stories on education=20
policy or tax debates - in many cases they'll=20
tune in to those stories but flip away from a=20
segment on a celebrity divorce or a deadly=20
highway pileup. And they'll consistently reward=20
in-depth reporting with higher ratings than more=20
cursory stories, no matter what the topic. The=20
findings suggest that the shift to violence and=20
voyeurism has left everyone worse off.
http://www.boston.com/news/education/higher/articles/2007/10/14/news_flash/

NCTA: LEAVE LEASED-ACCESS AND PROGRAM-SALES MODEL ALONE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission Chairman Kevin=20
Martin said last week that he thought the FCC=20
should: 1) re-examine leased-access rules "to=20
better encourage independent programmers,=94 2)=20
lower cable leased-access rates as a way to help=20
minorities get more access to media outlets, and=20
3) unbundle cable programming at the wholesale=20
level. On the same day, in comments filed at the=20
FCC, the National Cable & Telecommunications=20
Association said: A) subscription fees are=20
"critical" to the viability of independent=20
programming services, B) comments from Black=20
Television News Channel point out that "leased=20
access does not support the development of=20
independent national programming," C) cable=20
operators aren't necessarily being compensated=20
sufficiently as it is for the logistics of=20
leasing capacity, and D) there is plenty of=20
competition that provides the spur to cable=20
operators' choice of what channels to deliver to its audience.
http://www.broadcastingcable.com/article/CA6491190.html?rssid=3D193

PRESIDENTIAL HOPEFUL CLINTON HAS MOST WEB VISITORS
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
With a wide open field among Democrats and=20
Republicans ahead of the November 2008 election,=20
candidates are already spending millions of=20
dollars on advertising and the Internet to draw=20
support before the nominating contests early next=20
year. Sen Hillary Clinton (D-NY) has largely=20
steered clear of traditional radio and television=20
advertising in her presidential campaign, instead=20
nurturing the Internet audience and drawing the=20
largest number of online visitors. Sen Clinton=20
had the most visitors to her Web sites in August,=20
almost 760,000, compared to her rivals, but she=20
ran only about 2,200 radio and television spots=20
so far this year, according to Nielsen data=20
released on Monday. Sen. Barack Obama (D-IL), who=20
has consistently run second in national polls,=20
was a close second in the number of Web page=20
visitors with about 750,000 in August, but ran=20
almost double the number of radio and television=20
spots this year with 4,300. The Democrat who ran=20
the most television and radio spots was Gov. Bill=20
Richardson (D-NM) with about 6,000. He has mostly=20
registered in the single digits in polls. He had=20
103,000 Web site visitors in August, Nielsen=20
found. Among Republicans, former Tennessee Sen.=20
Fred Thompson, who officially joined the=20
presidential race in September, had the most=20
separate visitors to his Web site in August, with=20
some 410,000, according to Nielsen.
http://www.reuters.com/article/internetNews/idUSN1535252220071015
* Presidential Candidates Shun Cable Advertising
Both Republicans and Democrats competing in 2008=20
presidential race have largely ignored national=20
cable networks and local cable systems in their=20
attempts to woo voters through political=20
advertising, according to a report from Nielsen=20
Co. Almost 95% of the total 28,725 presidential=20
campaign ads purchased by candidates this year=20
were on local TV stations, and more than 71% of=20
those were placed in Iowa, Nielsen said Monday.
http://www.multichannel.com/article/CA6491464.html?rssid=3D196
* Presidential Hopefuls Still Favor Local TV Ads
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
8398
* Romney outspends presidential rivals
http://www.latimes.com/news/printedition/asection/la-na-money16oct16,1,1...
066.story?coll=3Dla-news-a_section

REGULATORS ORDER AT&T TO APPLY FOR CABLE TV LICENSE FOR 'U-VERSE'
[SOURCE: Associated Press]
State utility regulators on Monday ordered AT&T=20
to get a cable television license for the=20
Internet protocol-based TV service it is=20
currently providing in Connecticut. Department of=20
Public Utility Control commissioners said a=20
recent ruling by a federal judge made it clear=20
that AT&T's "U-verse" constitutes a cable=20
television service, and the company is operating=20
it without proper authorization.
http://www.stamfordadvocate.com/news/local/state/hc-15192355.apds.m0940.bc=
-ct--attoct15,0,2470765.story?coll=3Dhc-headlines-local-wirehttp://www.sta=
mfordadvocate.com/news/local/state/hc-15192355.apds.m0940.bc-ct--attoct15,0=
,2470765.story?coll=3Dhc-headlines-local-wire
* AT&T video rollout hits Conn. regulatory roadblock
http://www.reuters.com/article/technologyNews/idUSN1540001720071016

INTERNET/BROADBAND

NEW BILL MAY ELIMINATE STATE WEB TAX
[SOURCE: Concord Monitor, AUTHOR: Kate Davidson]
New Hampshire is one of nine states that can tax=20
Internet access and currently levies a 7 percent=20
communications tax for Internet access through=20
dial-up service, DSL, cable modem and wireless=20
connections. That could change if Congress=20
approves a bill introduced by Sen. John Sununu=20
(R-NH) that would get rid of the tax for good,=20
and phase out the grandfather clause that allows=20
New Hampshire to collect about $12 million a=20
year. Sen Sununu says the permanent ban would=20
ensure that the Internet remains affordable and=20
continues to grow, which in turn promotes=20
business innovation and helps the economy. But=20
critics say the bill is too broad and could=20
eliminate revenue for state and local governments=20
as more services move to the Internet. They want=20
a temporary extension of the tax moratorium=20
instead. If the two sides can't come to an=20
agreement before Nov. 1, the ban will expire and=20
states could begin passing new taxes. The results=20
could be disastrous, leaders on both sides have said.
http://www.concordmonitor.com/apps/pbcs.dll/article?AID=3D/20071014/BUSI...
S/710140354/1265
* Don't create Internet-tax monster
Commentary from Barry M. Aarons, Institute for Policy Innovation
http://thehill.com/op-eds/dont-create-internet-tax-monster-2007-10-16.html
* The Web Grows Up
[SOURCE: Washington Post, AUTHOR: Editorial staff]
[Commentary] A four-year extension on the=20
Internet tax ban is a more than fair deal for an=20
industry whose claim to special tax treatment is tenuous at best.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/15/AR200710...
1373.html
(requires registration)

THE POWER OF THE CLICK
[SOURCE: Los Angeles Times, AUTHOR: Bill McKibben, Middlebury College]
[Commentary] The Internet is a maturing=20
technology and people are figuring out how to use=20
it for more than gambling, shopping or looking at=20
the scantily clad. In politics, it has been a=20
fundraising tool, but some are trying to use it=20
to get candidates to answer voters' questions=20
before elections. In certain ways, it's a lousy=20
time to be coming of age -- those satellite=20
photos last month of the rapidly melting Arctic=20
ice cap foreshadowed a century that will be spent=20
trying to deal with the greatest threat to=20
stability that human civilization has ever=20
encountered. But the moment has also given us a=20
new set of tools for connection. The fight=20
against global warming requires all kinds of=20
technology -- solar panels and windmills, but also servers and routers.
http://www.latimes.com/news/printedition/opinion/la-oe-mckibben16oct16,1...
33973.story?coll=3Dla-news-comment
(requires registration)

GOVERNMENT & COMMUNICATIONS

PHONE COMPANIES QUIET ON US SURVEILLANCE PROGRAM
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
Major U.S. telephone carriers refused to answer=20
questions from the Democratic-led Congress about=20
their possible participation in President George=20
W. Bush's warrantless domestic spying program,=20
according to documents released by lawmakers on=20
Monday. At issue are reports that surfaced last=20
year that some big telephone companies allowed=20
the U.S. government access to millions of=20
telephone records for Bush's anti-terror efforts=20
following the September 11, 2001 attacks on the=20
United States. Officials from AT&T, Verizon=20
Communications and Qwest Communications=20
International told the House Commerce Committee=20
they could not discuss specifics about their=20
companies' roles in any such effort. The phone=20
companies said it would be illegal for them to=20
discuss the kind of program lawmakers were asking=20
about without permission from the Bush=20
administration. Democrats vowed to push the administration for answers.
http://www.reuters.com/article/technologyNews/idUSN1539292620071015
* Telecommunications Companies Respond to=20
Committee Inquiry into NSA Wiretapping Program Participation
"After reviewing the thoughtful responses of the=20
phone companies to our inquiries about the=20
Administration=92s NSA program, I am now convinced=20
that the Administration =AD as the sponsor of this=20
program and the party preventing the companies=20
from defending themselves =AD is the entity best=20
able to resolve the many outstanding issues,=94=20
said House Commerce Committee Chairman John=20
Dingell (D-MI). =93I look forward to meeting with=20
representatives of the Administration in short=20
order, and I am hopeful that they will be=20
forthcoming with the information Congress needs=20
to properly evaluate this program.=94
http://energycommerce.house.gov/Press_110/110nr106.shtml
* Press release from House Telecom Subcommittee Chairman Markey (D-MA)
"The responses from these telecommunication=20
companies highlight the need for Congress to=20
continue pressing the Bush administration for=20
answers. The water is as murky as ever on this=20
issue and it=92s past time for the administration to come clean."
http://markey.house.gov/index.php?option=3Dcom_content&task=3Dview&id=3D...
6&Itemid=3D141
* AT&T:
http://energycommerce.house.gov/Press_110/110-ltr.101207.TI.ATTrspto1002...
pdf
* Verizon:
http://energycommerce.house.gov/Press_110/110-ltr.101207.Verizonrspto100...
.pdf
* Verizon Says It Turned Over Data Without Court Orders
Verizon Communications, the nation's=20
second-largest telecom company, told=20
congressional investigators that it has provided=20
customers' telephone records to federal=20
authorities in emergency cases without court=20
orders hundreds of times since 2005. The company=20
said it does not determine the requests' legality=20
or necessity because to do so would slow efforts=20
to save lives in criminal investigations.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/15/AR200710...
1857.html
(requires registration)
* Qwest:
http://energycommerce.house.gov/Press_110/110-ltr.101207.TI.Qwestrspto10...
7.pdf
* Computer & Communications Industry Association
http://energycommerce.house.gov/Press_110/110-ltr.101207.TI.CCIArspto100...
.pdf
* Electronic Frontier Foundation:
http://energycommerce.house.gov/Press_110/110-ltr.TI.101207.EFFrspto1002...
pdf
* Phone firms mum on spying
http://www.latimes.com/business/printedition/la-fi-phone16oct16,1,203771...
tory?coll=3Dla-headlines-pe-business
* Phone Utilities Won't Give Details About Eavesdropping
http://www.nytimes.com/2007/10/16/washington/16nsa.html?ref=3Dtodayspaper
* Phone Companies Defend Aiding Government
http://online.wsj.com/article/SB119249883088660212.html?mod=3Dtodays_us_...
e_one
(requires subscription)

APPROVE THE SHIELD LAW
[SOURCE: Los Angeles Times, AUTHOR: Editorial staff]
[Commentary] Today, the House is expected to=20
vote on a proposal that Speaker Nancy Pelosi=20
rightly calls "fundamental to our democracy and=20
fundamental to the security of our country." The=20
Free Flow of Information Act of 2007 would=20
require that federal courts join 33 states and=20
the District of Columbia in recognizing the right=20
of journalists to protect confidential sources.=20
The first order of business is to make the=20
federal government at least as protective of a=20
reporter's privilege as are states that have=20
passed shield laws. That calls for a "yes" vote=20
today -- preferably by a veto-proof margin.
http://www.latimes.com/news/printedition/opinion/la-ed-shield16oct16,1,1...
155.story?coll=3Dla-news-comment
(requires registration)
* When reporters can't shield sources, the public loses out
http://www.usatoday.com/printedition/news/20071016/edit16.art.htm
* Press has enough protection
http://www.usatoday.com/printedition/news/20071016/oppose16.art.htm

TELECOM

VERIZON LETTER ON PRIVACY STIRS DEBATE
[SOURCE: New York Times, AUTHOR: Laura Holson]
Verizon Wireless, one of the nation=92s largest=20
cellphone carriers, has stirred up controversy=20
with a letter it sent to customers recently=20
telling them that it would begin sharing=20
information from their calling records with its=20
=93affiliates, agents and parent companies.=94=20
Verizon is seeking to share that information only=20
among Verizon divisions, so it can better sell=20
new products to existing customers. In the=20
mailing, Verizon gave customers 30 days to =93opt=20
out=94 if they did not want their information=20
shared. But analysts and consumer advocates=20
suggest the company may also be interested in=20
gathering information as it prepares to tailor=20
the advertising it displays on cellphone screens,=20
based on individual customer habits and=20
attributes. Mobile advertising is an untapped=20
source of revenue among mobile phone companies=20
looking to expand their businesses. The concern=20
about the mailing, which spread quickly online=20
and resulted in the company clarifying its=20
position late yesterday, points to the privacy=20
challenges facing communications companies as=20
they seek to deliver information and advertising directly to cellphone user=
s.
http://www.nytimes.com/2007/10/16/business/16phone.html?ref=3Dtodayspaper
(requires registration)

QUICKLY

NOBEL IN ECONOMICS AND SPECTRUM AUCTIONS
[SOURCE: New York Times, AUTHOR: Steve Lohr]
Roger B. Myerson, a professor at the University=20
of Chicago, will share this year's Nobel prize in=20
Economics for theoretical research on the optimal=20
design of auctions. His work has served as=20
intellectual starting point for others in setting=20
up complex auctions like that used by the Federal=20
Communications Commission for selling radio=20
spectrum so that the government collects ample=20
funds but also reserves some of the spectrum for=20
public use and small businesses.
http://www.nytimes.com/2007/10/16/business/16nobel.html?_r=3D1&ref=3Dtod...
paper&oref=3Dslogin
(requires registration)

NEA, PTA TO UNVEIL TV EDUCATION CAMPAIGN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The PTA, the National Education Association and=20
the National Council of Women's Organizations,=20
among others, including some religious groups,=20
plan to steer parents to groups like the Parents=20
Television Council and Common Sense Media for=20
advice on what shows are appropriate family=20
viewing. The goal is not to condemn programing=20
they don't think is family-friendly, but to=20
"shine a light on the best stuff" that isn't=20
getting enough attention in an effort to "change=20
the quality of children=92s television in America."
http://www.broadcastingcable.com/article/CA6491509.html?rssid=3D193

FCC FINES NASHVILLE STATION FOR REPORTING VIOLATIONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission proposed=20
fining Meredith's WSMV-TV Nashville, Tenn.,=20
$10,000 for violating reporting requirements for=20
children's-programming information.
http://www.broadcastingcable.com/article/CA6491482.html?rssid=3D193

CONSUMERS WATCHING MORE TV ONLINE
[SOURCE: Multichannel News, AUTHOR: R. Thomas Umstead]
Nearly 16% of American households who use the=20
Internet watch television broadcasts online,=20
according to a report released Monday by The=20
Conference Board and TNS. The Consumer Internet=20
Barometer survey says more than three out of five=20
online TV viewers cite personal convenience as=20
the major reason for watching TV broadcasts=20
online, while more than one-third choose online=20
viewing in order to avoid watching television=20
commercials. Other reasons sited include=20
portability and a preference for computer viewing.
http://www.multichannel.com/article/CA6491414.html?rssid=3D196

CAGW SAYS GOVERNMENT SHOULD LEAVE THE TELECOM INDUSTRY ALONE
[SOURCE: Citizens Against Government Waste press release]
Last week, Citizens Against Government Waste=20
released a report addressing four controversial=20
telecommunications issues: cable a la carte=20
programming, the Internet tax moratorium, network=20
neutrality, and spectrum sales. The group's=20
conclusion: the government should refrain from=20
interfering with innovation and allowing the=20
private sector to provide the best value and=20
services for taxpayers and consumers.
http://www.cagw.org/site/News2?page=3DNewsArticle&id=3D11038
* Telecommunications: Pulling the Plug on Government Interference
http://www.cagw.org/site/DocServer/Telecom_Paper.pdf?docID=3D2741
--------------------------------------------------------------
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.
--------------------------------------------------------------