October 2007

Busy, busy telecom policy week next week. Starts with CPB Board of
Directors and an online chat with FCC Commissioner Copps on Monday.
For these and other upcoming media policy events, see
http://www.benton.org/event/2007/11/02/week/all/all/1

OWNERSHIP
Group of House Democrats Decry Martin's Media-Ownership Plan
FCC's Copps Calls for News Corp.-Wall Street Journal Inquiry
Tribune Selling 2 Papers to Hearst -- With MediaNews Running Them
How FCC Decisions on Media Ownership Will Impact Minority Ownership

INTERNET/BROADBAND
Senate passes 7-year extension of moratorium on Net access taxes
FCC Grants Embarq, Frontier and Citizens Forbearance
Congressman to Comcast: Stop interfering with BitTorrent
Get Your Hands Off the Web
Vonage, Verizon settle patent spat for up to $120 million
Broadband Networks Critical For Regional Viability, Growth
Mainstream Blogs Open Floodgates for Political Coverage

BROADCASTING/CABLE
PTC Asks FCC to Review KUTV's License
Sen. Clinton Weighs In on Cable-Contract Issue

OWNERSHIP

GROUP OF HOUSE DEMOCRATS DECRY MARTIN'S MEDIA-OWNERSHIP PLAN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Forty-one US House Representatives have written Federal
Communications Commission Chairman Kevin Martin to express "grave
shock and dismay" over the news that Chairman Martin was looking to
bring the 18-month review of media ownership to a close by the end of
the year -- a timetable that surprised some and angered many who do
not favor Martin's deregulatory course. Many expect the FCC majority
to approve rules that would lift the ban on newspaper-broadcast
cross-ownership and perhaps loosen the rules on station ownership.
"We believe such actions are reminiscent of the bad behavior that
resulted in an intervention by the Third Circuit of the United States
Court of Appeals in your agency's efforts on media ownership three
years ago," the legislators wrote. "Therefore, we hope you will
immediately take steps to resolve significant shortcomings in your
plan regarding accountability, transparency and scientific
integrity." They also echoed complaints about the 10 FCC-commissioned
media-ownership studies and their peer-review process, as well as the
inadequate time for public comment if the FCC adopted new rules by December.
http://www.broadcastingcable.com/article/CA6494494.html?rssid=193
* AFTRA Slams Media Ownership Timetable
The American Federation of Television and Radio Artists said Thursday
that more than 2,000 of its members sent e-mails to legislators
asking them to "stop the FCC from fast-tracking the relaxation of
media-ownership regulations."
http://www.broadcastingcable.com/article/CA6494548.html

FCC'S COPPS CALLS FOR NEWS CORP-WALL STREET JOURNAL INQUIRY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission's Michael Copps asked FCC
Chairman Kevin Martin to open an inquiry into News Corp.'s purchase
of The Wall Street Journal. Commissioner Copps said he is concerned
that the $5.6 billion combination, which is not currently before the
FCC for consideration, would result in control of a network and two
of the nation's five largest newspapers by a single company and would
result in the ownership of two newspapers and two TV stations in New
York, the nation's top market. Saying this was unprecedented in the
history of the FCC, Commissioner Copps proposed opening a proceeding
to determine "whether approval of this transaction accords without
public-interest responsibilities" and, taking the opportunity to make
a subtle pitch for regulation, posed the question of whether "our
existing media-ownership rules and precedents are adequate to deal
with this proposed transaction." The FCC is not reviewing the News
Corp.-WSJ transaction because as a "national newspaper," the Journal
does not run afoul of the newspaper-broadcast cross-ownership ban,
which applies to local papers and stations in the same market. But
Commissioner Copps said that precedent should not preclude the FCC
from analyzing the merger in the broader context of its
responsibility to consider the public-interest implications for
localism, diversity and competition."
http://www.broadcastingcable.com/article/CA6494541.html?desc=topstory
* FCC member seeks review of Dow Jones deal
http://www.latimes.com/business/printedition/la-fi-fcc26oct26,1,6351524....
* Copps' letter
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-277576A1.pdf

TRIBUNE SELLING 2 PAPERS TO HEARST -- WITH MEDIANEWS RUNNING THEM
[SOURCE: Editor&Publisher, AUTHOR: Joe Strupp]
The Tribune Company is selling its two southern Connecticut daily
papers, the Greenwich Time and The Advocate of Stamford, to Hearst
Corp. for $62.4 million. Under an unusual arrangement with MediaNews
Group, the papers will be managed by MediaNews.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
* Tribune to sell 2 Conn. papers to Hearst
http://www.chicagotribune.com/business/chi-071025tribune,0,2399464.story...

HOW FCC DECISIONS ON MEDIA OWNERSHIP WILL IMPACT PEOPLE OF COLOR AND
MINORITY OWNERSHIP
[SOURCE: Free Press]
The Federal Communications Commission is currently in the last stages
of considering whether to allow further consolidation of local media
markets throughout the country by relaxing our nation's broadcast
ownership rules. Many civil rights groups and congressional leaders,
however, have called on the FCC to first address the issue of
minority ownership before moving forward with any new rules.
Currently, people of color own just 7 percent of our nation's
broadcast stations even though they make up close to 35 percent of
the U.S. population. And independent studies show that consolidation
reduces the number of minority owners. Free Press has assembled a
panel to discuss the latest developments at the FCC and in Congress
regarding changes to our nation's broadcast ownership rules and
efforts to increase minority ownership. Date: Nov. 1, 2007 Time: 12
noon to 1:30 p.m. Location: B-369 Rayburn HOB Lunch will be served.
http://www.benton.org/node/7782

INTERNET/BROADBAND

SENATE PASSES 7-YEAR EXTENSION OF MORATORIUM ON NET ACCESS TAXES
[SOURCE: Associated Press]
The Senate on Thursday night approved a seven-year extension of a
moratorium on state and local taxes on Internet access.
The Senate voice vote came a little over a week after the House
passed a bill calling for a four-year moratorium. The tax ban, first
approved in 1998, is set to expire Nov. 1. Attempts in both the House
and Senate to make the ban permanent in recent weeks were
unsuccessful despite strong support for the idea. The two chambers
will have to reach a compromise on the length of the ban and other
differences before the bill can be sent to the White House for
President Bush's signature.
http://www.siliconvalley.com/latestheadlines/ci_7285660
* Web Tax Triumph
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
While accepting less than a permanent ban, Mr. Sununu and his
pro-Internet allies won additional provisions authored by Mr. Wyden
to protect consumers. A report yesterday from the Congressional
Research Service revealed that the House had botched the drafting of
its four-year extension by leaving open the possibility of new taxes
on email services if they weren't marketed along with Internet access
service. Kudos to Senators Sununu, McConnell and Wyden. If the House,
as expected, passes the Senate bill early next week, President Bush
can sign it into law before the current ban expires November 1.
http://online.wsj.com/article/SB119336627623472570.html?mod=todays_us_op...
(requires subscription)

FCC GRANTS EMBARQ, FRONTIER AND CITIZENS FORBEARANCE
[SOURCE: Federal Communications Commission]
The FCC issued an Order regarding the applications of Embarq and
Frontier requesting the Commission forbear from applying Title II of
the Act and the Computer Inquiry rules to certain broadband services.
Consistent with its recent AT&T Title II and Computer Inquiry
Forbearance Order, the Commission granted substantial forbearance
relief to Embarq and Frontier with regard to their existing
packet-switched broadband telecommunications services and their
existing optical transmission services. Embarq and Frontier are
relieved of their tariffing obligations under the Computer Inquiry
rules in connection with these services, but must comply with the
Computer Inquiry obligations that apply to all non-incumbent local
exchange carrier (LEC), facilities-based wireline carriers. The
Commission did not forbear from any statutory or regulatory
requirement that applies to common carriers or LECs generally
regardless of whether they are incumbents or competing carriers. In
addition, Embarq and Frontier must continue to meet their public
policy obligations under Title II and the Commission's implementing
rules with respect to the services at issue. The Order is effective
on October 24, 2007.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-184A1.doc
* Chairman Martin statement:
"Broadband access is essential to an expanding Internet-based
information economy. Promoting broadband deployment is one of the
highest priorities of the FCC. To accomplish this goal, the
Commission seeks to establish a policy environment that facilitates
and encourages broadband investment, allowing market forces to
deliver the benefits of broadband to consumers. Today, we take
another step in establishing a regulatory environment that encourages
such investments and innovation."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-184A2.doc
* Copps and Adelstein Joint Statement:
"This Order addresses two more in the queue of far-reaching
forbearance requests for exemption from Title II and Computer Inquiry
obligations for self-styled "broadband enterprise services." Much as
we found the evidence to support forbearance in the previous cases
altogether underwhelming, we also find that this Order fails to meet
the standards set out by Congress in Section 10 of the Act. The
Commission's unwillingness to engage in a serious examination of the
facts is particularly disappointing here, because it appears that
these petitioners may be able to present a distinctly different
portrait of competitive conditions in their markets. In this case,
the Commission's failure to insist that parties be explicit in their
requests or detailed in the data they provide has certainly not
helped the petitioners make their case. Moreover, this Order makes
no attempt to grapple with the limited local market data filed in
this proceeding."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-184A3.doc

CONGRESSMAN TO COMCAST: STOP INTERFERING WITH BITTORRENT
[SOURCE: C-Net|News.com, AUTHOR: Chris Soghoian]
[Comentary] While a class action lawsuit is definitely one way to get
Comcast to behave, another perhaps more productive way to do so is to
have politicians step in and regulate. "Comcast has made a major
mistake in attempting to hinder peer-to-peer file sharing as an
aspect of its network management," Rep Rick Boucher (D-VA) said. "The
inability of customers to (share files) significantly diminishes
their ability to utilize the Internet for one of its most important
applications, which is user-to-user content." He also noted that
"file sharing is already being used for a wide variety of perfectly
lawful and appropriate applications." Discussing the realities of
limited resources that the company faces, Rep Boucher said, "Comcast
obviously needs to engage in some aspect of network management. The
company has limited bandwidth, and there are times when there is more
demand for service than the infrastructure can support." However, the
congressman stressed that "(the) management needs to occur in a more
evenhanded way" and that "(Comcast) should not engage in a blanket
disqualification of any category of lawful applications."
http://www.cnet.com/8301-13739_1-9804158-46.html?tag=nefd.blgs

GET YOUR HANDS OFF THE WEB
[SOURCE: BusinessWeek, AUTHOR: Stephen H. Wildstrom]
[Comentary] The behavior of the top telecommunications companies,
especially Verizon Communications and AT&T, has convinced me that
more government involvement is needed to keep communications free of
corporate interference. There's a certain irony here. The carriers
warn that without premiums to pay for advanced services, the U.S.
risks falling behind other nations in broadband. But the U.S. is
already losing ground to the rest of the industrialized world in
broadband speed and percentage of homes served. Last year the U.S.
fell from 12th to 15th in broadband penetration among 29 countries
ranked by the Organization for Economic Cooperation & Development.
Most of those nations are enthusiastic regulators. The hands-off
approach hasn't served consumers well. And the Web is far too
important to entrust the free flow of information to the shifting
whims of a few big companies. Government must step in and tell them
to leave our content alone.
http://www.businessweek.com/technology/content/oct2007/tc20071024_623695...

VONAGE, VERIZON SETTLE PATENT SPAT FOR UP TO $120 MILLION
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Vonage on Thursday said it had resolved an ongoing patent dispute
with Verizon Communications at a price tag of up to $120 million,
ending what has been a mostly gloomy saga for the struggling Internet
phone company. The precise amount of Vonage's final payout to Verizon
depends on whether the federal appeals court grants a rehearing
Vonage has requested on the two central patents. If Vonage wins a
rehearing or manages to secure relief from an injunction affecting
one or both of the two core patents, it has agreed to pay Verizon $80
million. If Vonage is not granted a rehearing or if the injunction,
which is currently on hold, is reinstated, Vonage said it will pay
$120 million, of which $2.5 million will be "payable to certain
charities." Vonage said it has already deposited $88 million into an
escrow account.
http://www.news.com/8301-10784_3-9804709-7.html

BROADBAND NETWORKS CRITICAL FOR REGIONAL VIABILITY, GROWTH
[SOURCE: MidwestBusiness.com, AUTHOR: Jim Carlini]
[Commentary] If your municipality isn't looking at creative ways to
develop new strategies that include having a state-of-the-art network
infrastructure to support economic growth and development, they will
be stagnating your property value and quality of life in your area.
Simply put, the three most important words in real estate ("location,
location, location") have turned into "location, location,
connectivity" in urban, suburban and rural America.
http://www.midwestbusiness.com/news/viewnews.asp?newsletterID=18229

MAINSTREAM BLOGS OPEN FLOODGATES FOR POLITICAL COVERAGE
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
The mushrooming number of political blogs on newspaper and magazine
Web sites has altered the terrain of the 2008 election. Campaign
officials have learned to feed the bottomless pit of these constantly
updated compilations, leaking favorable tidbits -- a new poll result
or television ad -- and quickly disputing negative items. In short,
journalists and political strategists find themselves sparring more
and more over smaller and smaller items on shorter and shorter
deadlines. When he worked for John Kerry's 2004 campaign, says
Clinton spokesman Phil Singer, "we were essentially at the mercy of
the so-called Old Media. You had to struggle to get something into
the paper. With the advent of these blogs, it's much easier to get
your message out through accredited newspaper channels." The
Washington Post ("The Trail"), New York Times ("The Caucus"), Chicago
Tribune ("The Swamp"), Los Angeles Times ("Top of the Ticket"),
Boston Globe ("The Primary Source"), Time ("Swampland") and the cable
news networks, among others, have A-team writers contributing
breaking news, analysis and lighter fare to their blogs. And these
journalists write with more attitude online than in tradition-bound
publications.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/25/AR200710...
(requires registration)

BROADCASTING/CABLE

PTC ASKS FCC TO REVIEW KUTV'S LICENSE
[SOURCE: tvnewsday]
The Parents Television Council is asking the Federal Communications
Commission to review the license of CBS affiliate, KUTV Salt Lake
City, Utah, for "failing to adhere to its community standards of
decency." PTC points out that less than a month after the CBS signed
a consent decree agreeing to pay a fine and take remedial action in
the event that it violated the broadcast decency law CBS re-aired a
Without a Trace episode that prompted thousands of indecency
complaints due to scenes of a teen orgy party. According to PTC
President Tim Winter, "CBS' response to the FCC's inquiry is utterly
disgraceful. By saying they did nothing wrong by not taking any
action after receiving the NAL, they have openly and defiantly
breached both the spirit and the letter of the agreement that they
freely negotiated with the FCC. Remember that the CBS Consent Decree
summarily dismissed thousands of broadcast indecency complaints
related to the original broadcast of the Without a Trace episode at
issue; so then how could its re-airing not trigger the remedial
action specified in the Consent Decree?"
http://www.tvnewsday.com/articles/2007/10/25/daily.9/

SEN CLINTON WEIGHS IN ON CABLE-CONTRACT ISSUE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Sen Hillary Clinton (D-NY) the Federal Communications Commission in
support of an effort to invalidate exclusive contracts between cable
companies and apartment and condominium buildings. She said
prohibiting the exclusive contracts could "help to close the gap" in
the deployment of broadband service and provide "access to more
capable technology and more diverse content at lower prices." Sen
Clinton argued for making the change applicable to both new contracts
and retroactively to existing ones, saying that she hoped the "new
set of rules will ensure that the exclusive access arrangements are
properly curbed both retrospectively and prospectively." Why is
Clinton weighing into the regulatory underbrush of MDU contracts? She
said in the letter that she had heard from "many" of her New York
constituents about the "need for consumer choice in their video and
broadband options," pointing out that New York had a high proportion
of apartment dwellers, including minorities.
http://www.broadcastingcable.com/article/CA6494421.html?rssid=193
* Clinton, Martin A Ticket On MDUs
http://www.multichannel.com/article/CA6494546.html?rssid=196
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...and we're outta here. Have a great weekend. How's the weather in Denver?
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Communications-related Headlines is a free online news summary
service provided by the Benton Foundation (www.benton.org). Posted
Monday through Friday, this service provides updates on important
industry developments, policy issues, and other related news events.
While the summaries are factually accurate, their often informal tone
does not always represent the tone of the original articles.
Headlines are compiled by Kevin Taglang headlines( at )benton.org -- we
welcome your comments.
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