December 2007

The Senate Commerce Committee will hold an FCC=20
oversight hearing on Thursday. For this and other=20
upcoming media policy events, see=20
http://www.benton.org/event/2007/12/07/month/all/all

GOVERNMENT & COMMUNICATIONS
Help Me Spy on Al Qaeda
Rights That Travel

TELECOM
Court denies Sprint's petition against FCC ruling
Web founder warns of short-termism
Company brings offline data to Web ads
Albany: Spitzer Names Broadband Panel

BROADCASTING
Politics could go primetime
So That=92s Why They Drink Coke on TV
LPTV Group Challenges DTV Box Program
NRB's Wright Concerned About Senate Inquiry Into TV Ministries

CABLE
V for Vendetta
Comcast Takes FCC To Court On Program Access
FCC=92s Adelstein Blasts Martin Over Small Cable Regs
=91S.O.S.=92 Digital-Transition Proposal Lacks Support

MEDIA OWNERSHIP
Tribune Wants It Now and Never
HDNet Drops FCC Request for Conditions on Liberty-DirecTV Deal
International Herald Tribune and Reuters in News Alliance

POLICYMAKERS
Criticism of the FCC's chairman is widely aired
FCC=92s Martin Needs Lesson in Transparency
House Commerce Committee Republican Leadership Shuffled;

GOVERNMENT & COMMUNICATIONS

HELP ME SPY ON AL QAEDA
[SOURCE: New York Times, AUTHOR: Mike McConnell,=20
director of national intelligence]
[Commentary] The Protect America Act, enacted in=20
August, has lived up to its name and objective:=20
making the country safer while protecting the=20
civil liberties of Americans. Under this new law,=20
we now have the speed and agility necessary to=20
detect terrorist and other evolving national=20
security threats. Congress needs to act again.=20
The Protect America Act expires in less than two=20
months, on Feb. 1. Without the legislation=20
experts will be diverted from tracking foreign=20
threats to writing lengthy justifications to=20
collect information from a person in a foreign=20
country, simply to satisfy an outdated statute=20
that does not reflect the ways our adversaries=20
communicate. The intelligence community needs: 1)=20
a law that does not require a court order for=20
surveillance directed at a foreign intelligence=20
target reasonably believed to be outside the=20
United States, regardless of where the=20
communications are found, 2) an efficient means=20
to obtain a FISA court order to conduct=20
surveillance in the United States for foreign=20
intelligence purposes, and 3) liability=20
protection for private parties that are sued only=20
because they are believed to have assisted us after Sept. 11, 2001.
http://www.nytimes.com/2007/12/10/opinion/10mcconnell.html?ref=3Dtodaysp...
(requires registration)

RIGHTS THAT TRAVEL
[SOURCE: Washington Post, AUTHOR: Sen Ron Wyden (D-OR)]
[Commentary] For nearly 30 years, the Foreign=20
Intelligence Surveillance Act of 1978 (FISA) has=20
represented the ultimate balance between our=20
needs to fight terrorism ferociously and to=20
protect the constitutional rights of Americans.=20
It is an important balance and one that should=20
not be eliminated simply because an American=20
leaves U.S. soil. Shouldn't it mean something to=20
be an American, even outside the United States?=20
In the digital age, it makes little sense that an=20
individual's relationship with his or her=20
government should depend on that individual's=20
physical location. Congress and the president=20
have an opportunity to recognize this and to=20
affirm that no matter where an American is in the=20
world, it always means something to be an American.
http://www.washingtonpost.com/wp-dyn/content/article/2007/12/09/AR200712...
0913.html
(requires registration)

TELECOM/BROADBAND

COURT DENIES SPRINT'S PETITION AGAINST FCC RULING
[SOURCE: Associated Press 12/7]
A federal court on Friday denied a petition by=20
Sprint Nextel Corp. challenging a 2006 decision=20
that gave Verizon Communications Inc. relief from=20
pricing caps and other regulations on high-speed=20
Internet access and services. The U.S. Court of=20
Appeals for the District of Columbia Circuit said=20
even though the Federal Communications Commission=20
deadlocked at a 2-2 vote on Verizon's request in=20
March 2006, "Congress had spelled out the legal=20
effect: the petition 'shall be deemed granted."'=20
The court said that when the FCC failed to take=20
action either way, the request, according to the=20
law, immediately won approval. In its challenge,=20
wireless carrier and Verizon competitor Sprint=20
argued that since a majority of the FCC=20
commissioners failed to approve Verizon's=20
request, its deadlocked vote meant the request was denied.
http://money.cnn.com/rssclick/2007/12/07/technology/sprint_fcc.ap/index....
?section=3Dmoney_technology
* U.S. court lets stand Verizon deregulation
http://today.reuters.com/news/newsArticle.aspx?type=3DindustryNews&storyID=
=3D2007-12-07T173653Z_01_N07307207_RTRIDST_0_INDUSTRY-VERIZON-FCC-DC.XML
Reps John Dingell (D-MI) and Ed Markey (D-MA):=20
"The Court found what we already knew: On the=20
critical matter of protecting consumers, the FCC=20
failed to do its job. The decision casts the=20
spotlight on the need to reform the forbearance=20
process to ensure written opinions and to=20
eliminate the ability of a forbearance petition=20
to be =91deemed granted=92 simply by agency inaction."
http://energycommerce.house.gov/Press_110/110nr137.shtml
* D.C. Circuit Denies FCC Forbearance Challenge
http://www.broadcastingcable.com/article/CA6510847.html?rssid=3D193
* Verizon Gets Win in Court Over Broadband
http://online.wsj.com/article/SB119705599992217408.html?mod=3Dtodays_us_...
ketplace

WEB FOUNDER WARNS OF SHORT-TERMISM
[SOURCE: Financial Times, AUTHOR: Richard Waters and Kevin Allison]
Sir Tim Berners-Lee, the man credited with=20
inventing the World Wide Web, says Internet=20
companies are taking a dangerously short-term=20
view and ignoring big potential risks and=20
opportunities as the online medium becomes a more=20
central part of everyday life. He also criticized=20
the lack of support for long-term research into=20
these issues, which he said marks a break from=20
the traditional approach technology companies=20
have taken. According to Sir Tim, research on the=20
future of the web needs to draw on experts from a=20
mix of backgrounds, including technologists,=20
economists, psychologists and sociologists. What=20
is lacking are =93the people who could be really=20
rethinking a new form of web interaction, a new=20
way of organizing society, something to replace=20
the existing forms of democracy=94, he said.
http://www.ft.com/cms/s/51c753fe-a43f-11dc-a28d-0000779fd2ac.html
(requires subscription)

COMPANY BRINGS OFFLINE DATA TO WEB SITES
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
Information about your online and offline=20
activities, formerly kept separate for marketing=20
purposes, is starting to blend, perhaps without=20
you even realizing it. Marketing data provider=20
Acxiom Corp. is bringing to the Internet the=20
consumer profiles for which it and other data=20
providers are known among direct-mail companies=20
and telemarketers =97 who prize knowing where to=20
find "early parents," "penny pinchers" and other=20
types of households for credit-card promotions=20
and other offers. Privacy advocates are taking=20
notice. "It violates average users'=20
expectations," said Ari Schwartz, deputy director=20
of the Center for Democracy and Technology. "It's=20
such a sea change in the way users use information online."
http://news.yahoo.com/s/ap/20071209/ap_on_hi_te/targeting_offline_meets_...
ine

ALBANY: SPITZER NAMES BROADBAND PANEL
[SOURCE: Associated Press]
New York Governor Eliot Spitzer (D) announced the=20
formation of a state panel to develop strategies=20
to allow all New Yorkers to get access to=20
high-speed Internet service. The panel, the New=20
York State Council for Universal Broadband, will=20
recommend ways to extend high-speed access beyond=20
traditional methods and to extend broadband=20
connections to underserved rural and urban areas=20
and will be led by the state=92s chief information=20
officer, Melodie Mayberry-Stewart.
http://www.nytimes.com/2007/12/07/nyregion/07mbrfs-INTERNET.html?_r=3D1&...
f=3Dslogin
* Gov Spitzer's remarks
http://www.ny.gov/governor/keydocs/1206071_speech.html

BROADCASTING

POLITICS COULD GO PRIMETIME
[SOURCE: The Hollywood Reporter, AUTHOR: Paul J. Gough]
A prolonged writers strike could spark something=20
of a revival in the kind of political coverage on=20
the broadcast networks that has long been ceded=20
to cable. At least one broadcast network -- NBC=20
-- is allocating a minimum of an hour in=20
primetime to cover the so-called "Super Duper=20
Tuesday" string of 20 primaries across the U.S.=20
that ultimately could determine each party's=20
presidential candidate. While that was in the=20
works before the strike, the networks aren't=20
ruling out an increase in airtime to the news=20
division that night or in early January with the=20
Iowa caucus and the New Hampshire primary. As the=20
only broadcast network with a fully distributed=20
cable news platform, NBC's political unit will be=20
up and running full blast no matter what. MSNBC,=20
like Fox News Channel and CNN, already is=20
planning wall-to-wall coverage of the primaries.
http://www.hollywoodreporter.com/hr/content_display/television/news/e3i5...
a3606862e9735166c609dfc46a89

SO THAT'S WHY THEY DRINK COKE ON TV
[SOURCE: New York Times 12/9, AUTHOR: Louise Story]
[Commentary] Advertising is often like a game of=20
cat and mouse. Consumers try as hard as they can=20
to run away from sales pitches and commercial=20
jingles, so marketers continually seek new ways=20
to hunt them down. One of the more popular tricks=20
=97 umm, make that tactics =97 advertisers are using=20
today is branded entertainment, which ranges from=20
plopping a Pepsi can into a scene to writing=20
entire television scripts based around Oreo=20
cookies. They like this approach so much that=20
they=92re increasing the money they spend on=20
so-called product integrations at double-digit=20
rates, making it one of the faster growth areas=20
for an otherwise stalled television industry. But=20
does product integration dupe consumers? The=20
Federal Communications Commission is considering=20
investigating this question, and the=20
commissioners may add it to their public agenda=20
as early as Tuesday. Some of the proposed=20
solutions to the problem sound more annoying than=20
the product placements themselves. For example,=20
every time Paula Abdul takes a sip from a giant=20
red cup splashed with the Coca-Cola logo on=20
=93American Idol,=94 a disclaimer box could be=20
superimposed over the cup. When young guys flirt=20
with beautiful babes on =93The Game Killers=94 on=20
MTV, a banner on the bottom of the screen could=20
say, =93This program was co-created by Unilever=92s=20
Axe deodorant.=94 Other proposals include a partial=20
ban on branded entertainment during the day and=20
early evening to keep children from viewing it,=20
or even a total ban. But it=92s hard to imagine=20
advertisers agreeing to any of that, and,=20
remember, they hold the purse strings.
http://www.nytimes.com/2007/12/09/business/media/09maker.html?ref=3Dtoda...
aper
(requires registration)

LPTV GROUP CHALLENGES DTV BOX PROGRAM
[SOURCE: tvnewsday]
The Community Broadcasters Association, a trade=20
group representing more than 2,600 low power TV=20
stations, yesterday asked the FCC to declare=20
unlawful any analog-to-digital DTV converters=20
that are not able to pass through analog signals.=20
According to the CBA, any box built without the=20
pass-through feature would violate the=20
All-Channel Receiver Act, a federal law that says=20
that says that all receivers of over-the-air=20
signals must be able to receive all channels. The=20
CBA sees the pass-through feature as critical to=20
low-power TV stations and translators since many=20
of them will continue broadcasting analog signals=20
long after the Feb. 17, 2009, cut-off of analog by full power stations.
http://www.tvnewsday.com/articles/2007/12/07/daily.5/

NPB'S WRIGHT CONCERNED ABOUT SENATE INQUIRY INTO TV MINISTRIES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Frank Wright, president of National Religious=20
Broadcasters, is concerned that a Senate inquiry=20
into media ministries could impinge on=20
constitutional protections of freedom of religion.
http://www.broadcastingcable.com/article/CA6510603.html?rssid=3D193

CABLE

V FOR VENDETTA
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
National Cable & Telecommunications Association=20
President Kyle McSlarrow has taken off the=20
gloves. The face of the nation's biggest cable=20
operators says flatly that FCC Chairman Kevin=20
Martin is on a vendetta to hurt the cable=20
industry. That's not the sort of rhetoric=20
lobbyists usually direct toward powerful=20
government officials who control their fates. But=20
McSlarrow says the chairman is continuing to push=20
an anti-cable agenda with =93hyper-regulatory zeal=94=20
and no rational justification. But while=20
McSlarrow has been talking loudly about the=20
chairman, he has also been talking quietly with=20
the unlikeliest of fellow trade lobbyists: David=20
Rehr, the head of the National Association of=20
Broadcasters. These strange bedfellows have met=20
about how to work together in the digital age in=20
order to find a win-win blueprint for delivering=20
TV service. McSlarrow's goal is to keep chairman=20
Martin and the FCC out of that equation.
http://www.broadcastingcable.com/article/CA6510927.html

COMCAST TAKES FCC TO COURT ON PROGRAM ACCESS
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Comcast became the second cable operator to=20
challenge the Federal Communications Commission=92s=20
decision to keep forcing cable operators to share=20
some of their TV networks with pay-TV=20
distribution rivals. Comcast filed its appeal on=20
Dec. 3 in the U.S. Court of Appeals for the=20
District of Columbia Circuit, the same venue=20
selected by Cablevision Systems Corp when it=20
filed its appeal in October. The FCC=92s rules,=20
adopted in September, require cable operators to=20
sell their satellite-delivered networks to=20
DirecTV, EchoStar, AT&T and Verizon until 2012.=20
The rules cover Comcast=92s Golf Channel and=20
Cablevision=92s Madison Square Garden Network. But=20
the rules do not force cable operators to share=20
programming that is distributed by terrestrial=20
means, which cable rivals call a =93loophole=94 that=20
FCC Chairman Kevin Martin has proposed to close.
http://www.multichannel.com/article/CA6510951.html?rssid=3D196

FCC'S ADELSTEIN BLASTS MARTIN OVER SMALL CABLE REGS
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Federal Communications Commission Commissioner=20
Jonathan Adelstein is accusing FCC Chairman Kevin=20
Martin of trying to swamp small cable operators=20
with needless regulation while giving a pass to a=20
colossal telecom players like Verizon. In a=20
statement Thursday, Commissioner Adelstein noted=20
that the FCC issued Verizon a waiver from=20
expensive cable set-top box mandates but didn't=20
do the same for many mom-and-pop cable companies=20
that lack the resources to buy consumer equipment=20
in bulk or hire lawyers to fight Washington=20
bureaucrats. =93We,=94 Commissioner Adelstein began,=20
referring to hand-picked Martin aides in the=20
Media Bureau, =93gave a waiver to a new market=20
entrant that is bigger than the entire cable=20
industry and has over 300,000 subscribers, while=20
smaller cable operators are required to deploy=20
much more expensive set-top boxes to their customers.=94
http://www.multichannel.com/article/CA6510954.html?rssid=3D196

'SOS' DIGITAL-TRANSITION PROPOSAL LACKS SUPPORT
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
Back in June, Ohio-based Massillon Cable TV first=20
met with federal regulators to discuss its=20
so-called =93Save Our Sets,=94 or S.O.S., plan, which=20
was meant to ease the pain of the transition to=20
the all-digital delivery of broadcast signals on=20
Feb. 17, 2009. But the proposal that operators=20
provide free cable TV service in exchange for=20
carriage of a broadcasters=92 signals has failed to=20
muster support from the cable industry. Some=20
cable operators don't like the idea of offering=20
TV service for free; Under S.O.S., operators=20
would bear the cost of maintaining and connecting homes and all their TV se=
ts.
http://www.multichannel.com/article/CA6510628.html?rssid=3D196

MEDIA OWNERSHIP

TRIBUNE WANTS IT NOW AND NEVER
[SOURCE: Broadcasting&Cable, AUTHOR: P.J. Bednarski]
A Q&A with CEO Dennis FitzSimons about the=20
cross-ownership battle. Tribune would like the=20
cross-ownership rule eliminated arguing that=20
newspapers as television station owners would=20
increase the amount of local news on TV.
http://www.broadcastingcable.com/article/CA6510946.html

HDNET DROPS FCC REQUEST FOR CONDITIONS ON LIBERTY-DIRECTV DEAL
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
HDNet has withdrawn its request to the Federal=20
Communications Commission that special conditions=20
be set on Liberty Media=92s $11 billion purchase of=20
News Corp.=92s 40% stake in DirecTV, saying that=20
the Mark Cuban-owned company has settled its=20
dispute with DirecTV, the nation=92s largest=20
satellite provider. Under the settlement, HDNet=20
will remain on DirecTV=92s broadly distributed=20
$9.99 HD Access package of more than 80 HDTV=20
channels. HDNet Movies will move onto the new HD=20
Extra Pack, which is $4.99 a month on top of the=20
$9.99 for HD Access. Originally, DirecTV wanted=20
to move both networks to the second tier.
http://www.multichannel.com/article/CA6510657.html?rssid=3D196

INTERNATIONAL HERALD TRIBUNE AND REUTERS IN NEWS ALLIANCE
[SOURCE: New York Times, AUTHOR: Doreen Carvajal]
The International Herald Tribune, owned by the=20
New York Times, is to announce plans on today to=20
transform its financial section online and in=20
print next month by forging an alliance with the=20
news agency Reuters. The daily business section=20
of IHT.com and the print editions =97 which will be=20
renamed Business with Reuters =97 will publish news=20
from both organizations. The agreement between=20
Reuters and The Herald Tribune will give the news=20
agency a broader presence in the paper=92s entire=20
business section. Reuters replaces its fierce=20
rival, Bloomberg, which since 2002 has maintained=20
a business partnership with The Herald Tribune in=20
financial sections called Business Asia by=20
Bloomberg (in the newspaper=92s Asian editions) and=20
Marketplace by Bloomberg (in Europe).
http://www.nytimes.com/2007/12/10/business/media/10venture.html?ref=3Dto...
spaper
(requires registration)
* Reuters Sets Unusual Deal With Newspaper
http://online.wsj.com/article/SB119724356049018743.html?mod=3Dtodays_us_...
ketplace

POLICYMAKERS

CRITICISM OF THE FCC'S CHAIRMAN IS WIDELY
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera]
Employees at your Federal Communications=20
Commission said tensions were bogging down the=20
panel. Reviews of corporate mergers and sales=20
frequently stretch longer than the six months the=20
agency aims for. Critics have complained that=20
important issues -- such as the 2009 transition=20
to digital television and reforming a fund that=20
subsidizes phone and Internet service for=20
low-income and rural residents -- are taking a=20
back seat to bickering. "There's budding upheaval=20
here if some of these abuses don't get=20
addressed," said an FCC official who requested=20
anonymity to avoid irritating the Commission's=20
Chairman, Kevin Martin. The infighting does not=20
bode well for the agency's effectiveness during=20
what is likely to be Martin's last year as=20
chairman with a new administration taking power=20
in 2009. Commission employees said that Chairman=20
Martin, chairman since 2005, keeps his plans=20
tightly wrapped, believing there's a tactical=20
advantage in springing them on other=20
commissioners with little notice. For example,=20
last month commissioners learned the details of=20
his proposal to ease restrictions on owning a=20
newspaper and broadcast station in the same=20
market when they read about it in an opinion=20
article by Martin in the New York Times. "He is a=20
lone operator," said an FCC insider who did not=20
want to publicly criticize Martin. "Sometimes=20
even his own staff doesn't really know what he's=20
thinking and what's he's going to do next."
http://www.latimes.com/business/printedition/la-fi-fcc10dec10,1,4586613....
ry?coll=3Dla-headlines-pe-business
(requires registration)

FCC'S MARTIN NEEDS LESSON IN TRANSPARENCY
[SOURCE: TVWeek, AUTHOR: Editorial staff]
[Commentary] It may seem early to start writing a=20
bureaucratic obituary for Federal Communications=20
Commission Chairman Kevin Martin, given he has at=20
a minimum a year left to serve. But recent weeks=20
have provided fresh evidence that Mr. Martin,=20
while perhaps well-intentioned, still isn't=20
effective in pulling the levers of power in=20
Washington. Mr. Martin needs to slow down and=20
make the operations of the FCC more transparent.=20
If he doesn't adopt better tactics, history is=20
unlikely to treat him well. Chairman Martin=20
should consider holding off on the Dec. 18 media=20
ownership vote until he can assure Congress and=20
his colleagues at the FCC that the process by=20
which the proposal was generated was fair and=20
transparent. While he will still face opposition=20
on policy grounds, he might mute critics who take exception to his tactics.
http://www.tvweek.com/news/2007/12/editorial_fccs_martin_needs_le.php
(requires free registration)

HOUSE COMMERCE COMMITTEE REPUBLICAN LEADERSHIP SHUFFLED
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Former House Commerce Committee Chairman Joe=20
Barton is shuffling the leadership team on the=20
panel. Rep Cliff Stears (R-FL) will serve as the=20
ranking member on the Telecommunications and=20
Internet Subcommittee, Rep. Ed Whitfield (R-KY)=20
will be the ranking member of the Subcommittee on=20
Commerce, Trade and Consumer Protection; and Rep=20
John Shimkus will be the ranking member of the=20
Oversight and Investigations Subcommittee. The=20
Energy subcommittee, which was led on the=20
GOP-side by former House Speaker Dennis Hastert=20
(R-IL), will now have Rep Fred Upton as its=20
ranking member. All uniform numbers remain the=20
same, if you are scoring at home.
http://www.broadcastingcable.com/article/CA6510703.html?rssid=3D193
* Rep. Stearns to Lead GOP On Telecom Panel
http://www.multichannel.com/article/CA6510692.html?rssid=3D196
* Rep Stearns' bio
http://www.house.gov/stearns/Congressman/Biography.html
--------------------------------------------------------------
Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
through Friday, this service provides updates on=20
important industry developments, policy issues,=20
and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
--------------------------------------------------------------