October 2007

For upcoming media policy events, see http://www.benton.org

FCC
FCC Should Take Steps to Ensure Equal Access to Rulemaking Information

DTV TRANSITION
NTIA's Kneuer: Converter-Box Program Is Fine as-is
FCCLA, Best Buy to Spread DTV Word

BROADCASTING/CABLE
Take Rush Limbaugh Off Armed Forces Radio
Hispanic Tech Group Disses Portable White-Spaces Devices
Federal Judge Stands By Connecticut IPTV Ruling

DIVERSITY
Advocates for Web Access for Blind Pass Legal Hurdle
More work, one role for Arab actors
PBS Hires Diversity Executive

TELECOM
How 2 Guys' Iowa Connection Took Big Telecoms for a Ride
Verizon's TV Figures Questioned
Audits of Universal Service Fund

JOURNALISM
A Needed Shield
Monks Are Silenced, and for Now, Internet Is, Too

DIGITAL CONTENT
Open Internet Coalition Opens New Network-Neutrality Front
Don't give Google double the power

IT WAS 50 YEARS AGO TODAY...
50 years ago, Sputnik changed everything

QUICKLY -- The 16 greatest moments in Web history; AT&T defends plan
to detect customers' Net piracy; Microsoft as Media King?; Media Less
Trusted Than Other Consumers' Opinions

FCC

FCC SHOULD TAKE STEPS TO ENSURE ACCESS TO RULEMAKING INFORMATION
[SOURCE: Government Accountability Office, AUTHOR: Mark Goldstein]
In response to a congressional request on FCC rulemaking, GAO 1)
described FCC's rulemaking process; 2) determined, for specific
rulemakings, the extent to which FCC followed its process; and 3)
identified factors that contributed to some dockets and rulemakings
remaining open. GAO reviewed recent FCC rules, interviewed FCC
officials and stakeholders, and conducted case studies of
rulemakings. To ensure transparency in the rulemaking process, GAO
recommends that the FCC Chairman take steps to ensure equal access to
rulemaking information, particularly in regard to the disclosure of
information about proposed rules that are scheduled to be considered
by the commission, by developing and maintaining 1) procedures to
ensure that nonpublic information will not be disclosed and 2) a
series of actions that will occur if the information is disclosed,
such as referral to the Inspector General and providing the
information to all stakeholders. (GAO-07-1046)
http://www.gao.gov/cgi-bin/getrpt?GAO-07-1046
Highlights - http://www.gao.gov/highlights/d071046high.pdf
* Statement from Rep Ed Markey:
"The FCC has a duty to be above-board in developing and implementing
its rules. When the 'corporate insiders' and 'K-Street' crowd have
the inside track on decisions critical to telecommunications, media,
broadband or wireless policy, then the public and consumers, are at
an inherent disadvantage. Both the law and the public interest,
require that rulemaking decisions adhere to principles of openness
and objectivity. The good news is that the FCC has rules against
disclosing inside information before everyone knows it publicly. The
bad news is that it appears violations of such rules are a daily
reality at the FCC. I believe the FCC should take immediate steps to
protect the integrity of its rulemaking process. The public deserves
to know that these decisions are made on the up-and-up, with no
unfair advantage to any one side in these important policy debate."
http://markey.house.gov/index.php?option=com_content&task=view&id=3121&I...
* Making (and Breaking) FCC Rules
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/03/AR200710...

DTV TRANSITION

NTIA'S KNEUER: CONVERTER-BOX PROGRAM IS FINE AS-IS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
National Telecommunications & Information Administration head John
Kneuer said there should be enough DTV converter box coupons to go
around and a major change proposed Tuesday by Sen. Herb Kohl (D-WI)
is not needed. "I think that if you look at the legislative history
and the record we developed in our public notice and comment to
develop these rules, it was clear that the intent of Congress was
that this was going to be a transition that was going to have huge
impact across consumers and, so, we wanted to have the eligibility
commensurate with the impacted parties," he said. "By having the
second phase of eligibility with the second $500 million," reserved
for over-the-air only households, he added, "we maximize the
likelihood that no household that would otherwise lose a signal will
go without financial assistance if they want it."
http://www.broadcastingcable.com/article/CA6486820.html

FCCLA, BEST BUY TO SPREAD DTV WORD
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Family, Career and Community Leaders of America -- a nonprofit
group whose members are secondary-school students with a focus on
volunteerism and the family -- is teaming up with Best Buy to get out
the word on the digital-TV transition and the need for viewers to
apply for DTV-to-analog converter-box coupons if they need them. Best
Buy is donating $50,000 to FCCLA for a contest to develop FCCLA
outreach efforts in communities across the country. Best Buy will
also enlist its Best Buy Blue Shirt sales associates and Geek Squad
traveling tech-heads to help with the education program.
http://www.broadcastingcable.com/article/CA6486746.html?rssid=193

BROADCASTING/CABLE

TAKE RUSH LIMBAUGH OFF ARMED FORCES RADIO
[SOURCE: Huffington Post, AUTHOR: Ret-Gen Wesley Clark]
[Commentary] Last week, Rush Limbaugh labeled any American soldier
who supports an end to the war in Iraq as "phony." We challenged
Limbaugh through an email campaign to invite VoteVets.org's Jon Soltz
to his show and repeat these same insults to an Iraq war veteran's
face. Over 10,000 people responded and emailed Rush -- but to our
disappointment, he has refused to respond to our request. It's time
to put real pressure on Rush Limbaugh. His show is broadcast on Armed
Forces Radio, and this time we are going to go straight to the
lifeblood of Rush's show -- Congress. Congress has the power to
remove Rush Limbaugh from Armed Forces Radio, and it won't be as easy
for elected officials to ignore our call.
http://www.huffingtonpost.com/gen-wesley-clark/take-rush-limbaugh-off-ar...
* Limbaugh: VoteVets lied to soldier in ad, "strapp[ed] those lies to
his belt," then sent him out "to walk into as many people" as he can
http://mediamatters.org/items/200710020014?src=other

HISPANIC TECH GROUP DISSES PORTABLE WHITE-SPACES DEVICES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Hispanic Technology and Telecommunications Partnership has sent a
letter Federal Communications Commission Chairman Kevin Martin about
the potential impact on Hispanics viewers should the FCC allow
unlicensed devices in the so-called white spaces in the television
spectrum band. HTTP president Manuel Mirabal told Chairman Martin
that allowing the devices -- which broadcasters and some of the FCC's
own testing suggested could interfere with DTV pictures -- could
"undermine the ability of Hispanic television viewers to have access
to interference-free over-the air television in the digital era."
http://www.broadcastingcable.com/article/CA6486470.html?rssid=193

FEDERAL JUDGE STANDS BY CONNECTICUT IPTV RULING
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
Judge Janet Bond Arterton of the U.S. District Court for the District
of Connecticut has rejected AT&T's motion for reconsideration,
standing by her previous ruling that the Connecticut Department of
Public Utility Control erred when it ruled that Internet
protocol-delivered video products are not cable services and can't be
regulated like them.
http://www.multichannel.com/article/CA6486488.html

DIVERSITY

ADVOCATES FOR WEB ACCESS FOR BLIND PASS LEGAL HURDLE
[SOURCE: Wall Street Journal, AUTHOR: James Covert james.covert( at )dowjones.com]
Blind Internet users scored a victory in their battle to gain better
access to what is on the Web. A federal judge in California has
granted class-action status to a lawsuit against Target Corp.
charging that the discount retailer's site is inaccessible to blind
shoppers. The lawsuit already appears to have prodded Target into
making improvements to its site, and industry experts say legal
challenges have proved to be an effective way for blind advocates to
alert Web builders about problems with Internet access. Efforts to
write accessibility requirements into federal Internet guidelines
have hit roadblocks. The majority of corporate initiatives to improve
Internet access to blind and other disabled Web users has been driven
by fear of lawsuits, says David Grant, vice president of marketing
for Watchfire, an Internet-access consultant owned by International
Business Machines Corp.
http://online.wsj.com/article/SB119141557627247599.html?mod=todays_us_ma...
(requires subscription)
* Suit may spur greater Web access for blind
http://www.latimes.com/business/printedition/la-fi-blind4oct04,1,1889405...
(requires registration)

MORE WORK, ONE ROLE FOR ARAB ACTORS
[SOURCE: Los Angeles Times, AUTHOR: Ashraf Khalil]
For most Middle Eastern performers, the Hollywood dilemma is simple:
Play the terrorist or don't get paid.
http://www.latimes.com/news/printedition/front/la-et-arabactors4oct04,1,...
(requires registration)

PBS HIRES DIVERSITY EXECUTIVE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Public Broadcasting Service (PBS) has hired Haydee Rodriguez for
the newly created and temporary post of director of its PBS Diversity
Initiative. In this newly created position, Ms. Rodriguez will
identify opportunities for PBS to encourage diversity throughout
public television. It is a one-year appointment, during which Ms.
Rodriguez will develop a diversity plan designed to engage public
television partners and thought leaders and increase diversity in
ways that impact public television content.
http://www.broadcastingcable.com/article/CA6486826.html?rssid=193
* See press release:
http://www.pbs.org/aboutpbs/news/20071003_pbsdistribution.html

TELECOM

HOW 2 GUYS' IOWA CONNECTION TOOK BIG TELECOMS FOR A RIDE
[SOURCE: Wall Street Journal, AUTHOR: Dionne Searcey dionne.searcey( at )wsj.com]
A look at how small telephone companies are gaming old Federal
Communications Commission regulations at the expense of the largest
telephone companies.
http://online.wsj.com/article/SB119146044026348502.html?mod=todays_us_pa...
(requires subscription)

VERIZON'S TV FIGURES QUESTIONED
[SOURCE: Wall Street Journal, AUTHOR: Christopher Rhoads
christopher.rhoads( at )wsj.com]
Verizon's high-stakes plan to deliver a super-fast fiber-optic
connection to millions of its customers has hit a possible snag: a
lawsuit charging the company with overstating television subscriber
numbers for its new network. Digital Art Services Inc., an
advertising company based in Great River, N.Y., alleged in the suit
that Verizon committed fraud by improperly including so-called
pending customers in its published number of subscribers in the New
York City region to the network, called FiOS. Digital Art Services
claimed the allegedly inflated numbers were used to determine
advertising rates, causing it to pay more than it should have for
advertising on Verizon's network. Pending customers are those who
have signed up for the network but haven't had service installed yet.
Digital Art Services is seeking class-action status for the suit.
http://online.wsj.com/article/SB119144324051248009.html?mod=hps_us_my_in...
(requires subscription)

AUDITS OF UNIVERSAL SERVICE FUND
[SOURCE: Federal Communications Commission]
The Federal Communications Commission's Office of Inspector General
(FCC-OIG) released its initial analysis of audits of the Universal
Service Fund (USF). The USF is administered by the Universal Service
Administrative Company (USAC) on the Commission's behalf. The
FCC-OIG reports contain statistical analyses of 459 audits of USF
program participants. In general, the audits indicated compliance
with the Commission's rules, although erroneous payment rates
exceeded 9% in most USF program segments. The audits resulted in the
following erroneous payments rates: Contributors payments - 5.5%,
Low Income - 9.5%; Schools and Libraries - 12.9%; High Cost Fund -
16.6%; and Rural Health Care - 20.6%. An "erroneous payment" is
defined by the Office of Management and Budget under the IPIA to be
"any payment that should not have been made or that was made in an
incorrect amount under statutory, contractual, administrative, or
other legally applicable requirements.
http://fjallfoss.fcc.gov/edocs_public/attachmatch/DOC-277103A1.doc

JOURNALISM

A NEEDED SHIELD
[SOURCE: Washington Post, AUTHOR: various]
[Commentary] Three commentaries in the WashPost (and more from around
the country) this morning address the Free Flow of Information Act of
2007, sponsored by Sens. Arlen Specter (R-Pa.), Charles E. Schumer
(D-N.Y.) and Richard G. Lugar (R-Ind.). The bill would protect the
relationship between journalists and their confidential sources at
the federal level and bring the federal government in line with 49
states and the District of Columbia.
* A Needed Shield (editorial -- pro)
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/03/AR200710...
* Shield Law Perils . . . (Patrick J. Fitzgerald -- con)
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/03/AR200710...
* . . . Or Safeguards? (Theodore B. Olson -- pro)
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/03/AR200710...
(requires registration)
* Shield law must advance (Editorial -- pro)
[SOURCE: San Francisco Chronicle, AUTHOR: Editorial staff]
[Commentary] The shield measures would bring federal law into line
with the overwhelming majority of states that recognize confidential
sources are essential to reporting the news - and protecting the
public's right to know.
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/10/03/EDO9SHU7U...

MONKS ARE SILENCED, AND FOR NOW, INTERNET IS, TOO
[SOURCE: New York Times, AUTHOR: Seth Mydans]
It was about as simple and uncomplicated as shooting demonstrators in
the streets. Embarrassed by smuggled video and photographs that
showed their people rising up against them, the generals who run
Myanmar simply switched off the Internet. Until Friday television
screens and newspapers abroad were flooded with scenes of tens of
thousands of red-robed monks in the streets and of chaos and violence
as the junta stamped out the biggest popular uprising there in two
decades. But then the images, text messages and postings stopped,
shut down by generals who belatedly grasped the power of the Internet
to jeopardize their crackdown. "Finally they realized that this was
their biggest enemy, and they took it down," said Aung Zaw, editor of
an exile magazine based in Thailand called The Irrawaddy, whose Web
site has been a leading source of information in recent weeks. The
site has been attacked by a virus whose timing raises the possibility
that the military government has a few skilled hackers in its ranks.
http://www.nytimes.com/2007/10/04/world/asia/04info.html?ref=todayspaper
(requires registration)

DIGITAL CONTENT

OPEN INTERNET COALITION OPENS NEW NETWORK-NEUTRALITY FRONT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The network-neutrality issue is raising its hydra-head once again, at
least if some big-name Internet companies have anything to do with
it. The Open Internet Coalition asked House Commerce Committee
Chairman John Dingell (D-MI) to hold hearings on what it said are
recent "patterns of anti-consumer activities" by telephone and cable
companies. In a letter to Chairman Dingell, the coalition -- which
includes Google, eBay, YouTube, TiVo, EarthLink and Public Knowledge,
although no longer Microsoft, Yahoo and some other big names -- said
those actions call into question network arguments "that rules to
protect consumers and preserve an open and interconnected Internet
are unnecessary or unlawful."
http://www.broadcastingcable.com/article/CA6486816.html?rssid=193

DON'T GIVE GOOGLE DOUBLE THE POWER
[SOURCE: San Francisco Chronicle, AUTHOR: Joseph Turow, University of
Pennsylvania]
[Commentary] Google's decision to spend $3.1 billion to buy
little-known DoubleClick will affect the future of American media and
the way advertisers tell stories about you and me. Eventually, if
Google has its way, what we see on the Web, hear on the radio or read
in print will largely be based on decisions Google computers make
about how different we are and why. The Federal Trade Commission
merger review and the upcoming congressional hearings on the subject
must carefully evaluate the union's impact and be ready to act in
support of genuine competition across the new media marketplace.
Ultimately at stake is more than whether we receive ads tailored to
our interests. It's about what kind of news, entertainment and
marketing system we want for our democracy.
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/10/03/EDOOSIHM5...

IT WAS 50 YEARS AGO TODAY...

50 YEARS AGO, SPUTNIK CHANGED EVERYTHING
[SOURCE: Associated Press]
Sputnik, the first artificial satellite, was launched by the Soviets
and circled the globe Oct. 4, 1957. The Space Age was born. And what
followed were changes to everyday life that people now take for
granted. What we see on television, how we communicate with each
other, and how we pay for what we buy have all changed with the birth
of satellites. Communications satellites helped bring wars and
celebrations from thousands of miles away into our living rooms. When
we go outside, weather satellites show us whether we need to carry an
umbrella or flee a hurricane. And global positioning system
satellites even keep us from getting lost on unfamiliar streets.
Sputnik gave birth to more than mere technology. The threat of a
Soviet-dominated space spurred the U.S. government to increase
tenfold money spent on science, education and research. Satellite
pictures of Earth inspired an embryonic environmental movement.
http://www.siliconvalley.com/latestheadlines/ci_7071939
* The Legacy of Sputnik
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] Now there are wistful calls for another Sputnik-like
event to goad a re-invigoration of American education and technology.
Some hope that China's emerging space program will serve as a
catalyst, but it is hard to believe that much fear or awe will be
generated if China retraces the steps we took decades ago. Future
space exploration, involving extremely costly missions to Mars and
the asteroids, will likely require close cooperation with other
nations, not fearful reaction against their achievements.
http://www.nytimes.com/2007/10/04/opinion/04thur3.html?ref=todayspaper
(requires registration)
* Blessings of Sputnik
[SOURCE: The Christian Science Monitor, AUTHOR: Charles A. Stevenson,
John Hopkins University]
[Commentary] The National Academy of Sciences released a report last
year concluding that "US advantages in the marketplace and in science
and technology have begun to erode. A comprehensive and coordinated
federal effort is urgently needed to bolster US competitiveness and
preeminence in these areas." The report called for programs to
improve science and math education, basic research, and the
development and recruitment of scientists and engineers. One analyst
commented, "Today's Sputnik? It's a little bigger. It's called
China." Whether or not such programs are worthwhile, it is notable
that so many people are trying to rekindle the concerns and
cooperation and commitment that we saw in 1957. The unstated premise
is that, back then, we responded well to a worrisome challenge, and
we can and should do it again.
http://www.csmonitor.com/2007/1004/p09s01-coop.html
* Sputnik: An education liftoff
[SOURCE: USAToday, AUTHOR: Greg Toppo]
As Sputnik jump-started the space race, the little aluminum sphere
also jolted the nation's education system. The aftershocks are still
felt today.
http://www.usatoday.com/printedition/life/20071004/sputnik03.art.htm
* How Sputnik changed the world
[SOURCE: USAToday, AUTHOR: Astronaut Mike Mullane]
[Commentary] 50 years ago today, the Soviets launched a 183-pound
wake-up call into space. It was the 9/11 of the day, frightening
Americans and sending the space race into warp speed.
http://www.usatoday.com/printedition/news/20071004/oplede18.art.htm
* Beep . . . Beep . . . Beep
[SOURCE: Los Angeles Times, AUTHOR: Editorial staff]
[Commentary] Sputnik launched the Cold War space race, but the
rocket-fueled U.S. economy finally won the day.
http://www.latimes.com/news/printedition/asection/la-ed-sputnik4oct04,1,...
(requires registration)
* The making of Sputnik (Sergei N. Khrushchev)
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/10/03/EDBJSHTO6...

QUICKLY

THE 16 GREATEST MOMENTS IN WEB HISTORY
[SOURCE: InfoWorld, AUTHOR: Dan Tynan, PC World]
Depending on how you calculate it, the Web has been around for
between 15 and 17 years -- which makes it old enough to ask for the
car keys, but still an awkward teenager growing toward maturity. Yet
it already has a long and storied history (and some prehistory). Its
16 greatest moments are discussed in this article. They include:
Yahoo, blogging Katrina, eBay, Wikipedia, Friendster, Craigslist,
the domain name system, Mosaic, Amazon.com, Google, and the World Wide Web.
http://www.infoworld.com/article/07/10/03/16-greatest-moments-in-Web-his...

AT&T DEFENDS PLAN TO DETECT CUSTOMERS' NET PIRACY
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
An AT&T executive on Wednesday sought to defuse fears that
forthcoming tools aimed at identifying pirates on its network will
harm the average Net surfer's online experience. In June, AT&T
announced that it was collaborating with Hollywood studios and other
copyright holders to come up with technological solutions to prevent
users from swapping massive amounts of content in an unauthorized
manner. The idea is to target and identify the most salient
offenders, according to news reports at the time, but it remains
unclear exactly how the technique will work.
http://www.news.com/8301-10784_3-9790675-7.html

MICROSOFT AS MEDIA KING?
[SOURCE: BusinessWeek, AUTHOR: Jennifer L. Schenker]
Over the next 4 to 10 years, as much as 25% of Microsoft's revenues
are likely to come from advertising, the company estimates.
Microsoft's fastest growth could come from advertising and mobile.
http://www.businessweek.com/globalbiz/content/oct2007/gb2007102_115679.htm

MEDIA LESS TRUSTED THAN OTHER CONSUMERS' OPINIONS
[SOURCE: TVWeek, AUTHOR: Jon Lafayette]
When consumers in 47 markets worldwide were asked, "To what extent do
you trust the following forms of advertising?" 78 percent put some
faith in recommendations from consumers. That topped newspapers,
which came in second with 63 percent; television, with 56 percent;
magazines, also with 56 percent; and radio with 54 percent. Online
forms of advertising are starting to move up the charts. Consumer
opinions posted online were trusted by 61 percent of consumers.
http://www.tvweek.com/news/2007/10/media_less_trusted_than_other.php
(requires free registration)
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While the summaries are factually accurate, their often informal tone
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