December 2007

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POLICYMAKERS
House Inquiry into Transparency of FCC Regulatory Process
FCC Inspector General Report: Nothing on Allegedly Suppressed Studies

SPECTRUM/WIRELESS
700MHz spectrum filing deadline: What's next?
Comcast Will Not Bid on Wireless Spectrum
Time Warner Cable Holds Off On Spectrum, Stake in Subsidiary
Tweens Going Mobile

MEDIA OWNERSHIP
The future of media
Georgetown Partners Files Documents vs. XM-Sirius Merger
Web search for nudity is ruled 'fair use'

BROADCASTING
FCC Releases Emergency Alert Handbooks
FCC Dismisses WGN-TV License Challenge
Supreme Court Extends Deadline for Indecency Responses
NARUC Launches DTV Web Site
Morning TV Veers From News to Frills

TELECOM
FCC to rule on Verizon forbearance
AT&T Exits Pay Phones, Seeing Writing on Booth
Cell phone firms remain among most unpopular

POLICYMAKERS

HOUSE INQUIRY INTO TRANSPARENCY OF FCC REGULATORY PROCESS
[SOURCE: House of Representatives Commerce Committee]
House Commerce Committee Chairman John Dingell=20
(D-MI) wrote to Federal Communications Commission=20
Chairman Kevin Martin raising concerns about a=20
breakdown in proper procedure at the FCC and=20
launching an inquiry by the Subcommittee on=20
Oversight and Investigations to ensure that the=20
agency=92s processes are fair, open, and=20
transparent and serve the public interest.=20
Chairman requested a firm commitment from=20
Chairman Martin to publishing proposed rules in=20
advance of Commission meetings, providing=20
sufficient time to review proposed orders and=20
rules, and providing Commissioners with all of=20
the relevant information on which proposed orders=20
and rules are based. Chairman Dingell requests=20
Chairman Martin respond to a series of five=20
questions by Monday December 10, 2007.
http://energycommerce.house.gov/Press_110/110nr133.shtml
* Letter:=20
http://energycommerce.house.gov/Press_110/110-ltr.120307.FCC.Martin.tran...
rency.pdf
* Dingell Opens Probe of Martin=92s FCC
http://www.multichannel.com/article/CA6509140.html?desc=3Dtopstory
* House to hold inquiry on FCC processes
http://www.tvnewsday.com/articles/2007/12/03/daily.19/
* House Committee Chairman Orders Inquiry Into FCC (Associated Press)
(requires registration)

FCC INSPECTOR GENERAL REPORT: NOTHING ON ALLEGEDLY SUPPRESSED STUDIES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission's Office of=20
the Inspector General released its semiannual=20
report to Congress on how it was doing its job,=20
but there was nothing on the most recent flap=20
over allegations that the FCC suppressed draft=20
studies for political purposes under a previous=20
administration. IG Kent Nilsson in October=20
released the result of its investigation=20
concluding that the evidence did not support=20
allegations that the FCC under former chairman=20
Michael Powell suppressed or destroyed drafts of=20
two media-ownership reports by staff economists.=20
There were some complaints from media activists=20
over that conclusion, but the IG report did not=20
address them in the report released Monday=20
because they fell outside of the time frame of=20
the report, which was for six months ended Sept. 1.
http://www.broadcastingcable.com/article/CA6509125.html
* See report:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-278589A1.pdf

SPECTRUM/WIRELESS

700MHZ SPECTRUM FILING DEADLINE: WHAT'S NEXT?
[SOURCE: InfoWorld, AUTHOR: Grant Gross]
Companies wishing to bid in the upcoming 700MHz=20
auctions at the U.S. Federal Communications=20
Commission were largely silent about their plans=20
Monday, the deadline for submitting bid=20
applications. AT&T, Verizon Wireless and Google=20
are in. Comcast and Sprint Nextel will not bid on=20
what is often called "beach front" property=20
because it can carry wireless broadband signals=20
three to four times farther than some other=20
spectrum bands. The FCC plans to make the names=20
of the auction applicants public by Dec. 28. For=20
one of the first times, the FCC is conducting an=20
anonymous bidding process, so it will not=20
disclose what sections of spectrum applicants=20
intend to bid on. The auctions begin on Jan. 24,=20
but they could last several weeks. Auctions go on=20
as long as bidders keep bidding; the FCC's last=20
major auctions, its advanced wireless services=20
auctions in 2006, lasted about five weeks. If=20
reserve prices aren't met on parts of spectrum,=20
the FCC will re-auction those bands. The 700MHz=20
auctions represent the last large chunk of=20
spectrum available for the FCC to auction in the=20
foreseeable future. In addition, the spectrum,=20
now used to carry over-the-air television=20
signals, can be used to carry long-range wireless=20
broadband traffic. Many people, including FCC=20
chairman Kevin Martin, have said the auction=20
represents a golden opportunity to create a=20
nationwide broadband network in competition with=20
the providers of cable modem and DSL and=20
fiber-based services. Some consumer groups have=20
called the auctions the "last, best hope" for a=20
third pipe that competes with cable operators=20
such as Comcast and DSL and fiber-based providers=20
such as AT&T and Verizon Communications.
http://www.infoworld.com/article/07/12/03/700MHz-auction-filing-deadline...
ats-next_1.html

COMCAST WILL NOT BID ON WIRELESS SPECTRUM
[SOURCE: Broadcasting&Cable, AUTHOR: Jon Hemingway]
Comcast, the nation=92s largest cable operator,=20
said it will not be a bidder in the upcoming=20
700-megahertz wireless-spectrum auction. The=20
700-MHz spectrum is being made available as a=20
result of the government-mandated switchover for=20
local TV stations to discontinue analog=20
broadcasts by Feb. 17, 2009. The FCC is=20
auctioning off 62 MHz of spectrum in the band,=20
which is considered a valuable piece of wireless=20
real estate with long-range and can be used for voice, video and data.
http://www.broadcastingcable.com/article/CA6509047.html?rssid=3D193
* Comcast Won't Bid on 700-MHz Spectrum
http://www.multichannel.com/article/CA6509033.html?rssid=3D196

TIME WARNER CABLE HOLDS OFF ON SPECTRUM, STAKE IN SUBSIDIARY
[SOURCE: Broadcasting&Cable, AUTHOR: Jon Hemingway]
Time Warner Cable Chairman and CEO Glenn Britt=20
said Monday morning that the company will not buy=20
out parent Time Warner=92s stake in subsidiary TW=20
NY Holding or participate in the upcoming auction=20
of wireless spectrum. Time Warner Cable -- which=20
earlier this year made a bid for cable operator=20
Insight Communications -- will continue to=20
consider acquisitions. =93The question has been do=20
consumers, will consumers want to buy cell-phone=20
service from the people they buy the triple-play=20
from?=94 Britt said, noting the cable operator=92s=20
market testing with Sprint Nextel. =93So far, we=20
have not seen great demand for that.=94
http://www.broadcastingcable.com/article/CA6509043.html?rssid=3D193

TWEENS GOING MOBILE
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
In its report, Kids on the Go: Mobile Usage by=20
U.S. Teens and Tweens, Nielsen estimates that 35%=20
of kids between 8 and 12 own a mobile phone, 20%=20
of tweens have used text messaging and 21% have=20
used ring and answer tones, 5% access the=20
Internet over their phone each month, 41% of=20
tween mobile Internet users say they do so while=20
commuting or traveling, 48% of tweens said they=20
spend less than one hour per day online, and 70%=20
of tweens use the Internet for gaming.
http://www.multichannel.com/article/CA6509024.html?rssid=3D196

MEDIA OWNERSHIP

THE FUTURE OF MEDIA
[SOURCE: Los Angeles Times, AUTHOR: Editorial]
[Commentary] The Federal Communications=20
Commission's latest effort to relax the rules on=20
media ownership is so modest, it's surprising how=20
much flak the agency has taken for it.=20
Nevertheless, critics complain that the proposal=20
would lead to more media consolidation at the=20
expense of minority and female owners. The best=20
thing government can do to broaden diversity in=20
media is to improve the public's access to the=20
Internet and other open publishing platforms.=20
That includes promoting competition in broadband=20
and making it easier for programmers to get onto=20
cable and wireless networks. As newspaper=20
circulation and TV viewership continue to=20
decline, the battle that matters won't be to=20
control those outlets. It will be to replace=20
them. (We at The Times have an interest in=20
eliminating that ban. Our parent company, Tribune=20
Co., owns a local newspaper and one or more=20
broadcasters in five markets, including Los Angeles.)
http://www.latimes.com/news/printedition/opinion/la-ed-fcc4dec04,1,73817...
story?coll=3Dla-news-comment
(requires registration)

GEORGETOWN PARTNERS FILES DOCUMENTS VS XM-SIRIUS MERGER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Minority-owned private equity firm Georgetown=20
Partners Monday filed a raft of documents with=20
the Justice Department against the merger of XM=20
Satellite Radio and Sirius Satellite Radio.=20
Georgetown is specifically unhappy with reports=20
that while the Justice Department's antitrust=20
division's lawyers and economists have=20
recommended blocking the merger, Thomas Barnett,=20
the head of the antitrust division, was looking=20
for more analysis from the same economists in an=20
effort to apply regulatory "Band-Aids" to what it=20
called a "fundamentally flawed monopoly=20
structure." "DOJ approval of the proposed merger=20
would represent nothing less than an abdication=20
of DOJ's responsibilities to protect the economic=20
welfare of American consumers," and a=20
"repudiation" of basic horizontal merger=20
guidelines, Georgetown said.=20
http://www.broadcastingcable.com/article/CA6509098.html?rssid=3D193

WEB SEARCH FOR NUDITY IS RULED 'FAIR USE'
[SOURCE: Los Angeles Times, AUTHOR: Dawn C. Chmielewski]
The U.S. 9th Circuit Court of Appeals on Monday=20
reaffirmed its earlier support for the socially=20
redeeming value of searching the Internet for=20
nude pictures. The San Francisco court, in=20
reviewing a case it initially considered in May,=20
reiterated its finding that Google could display=20
tiny versions of photographs by Perfect 10 Inc.,=20
a Beverly Hills-based adult publisher, in search=20
results, even when those images were copyrighted.=20
The court focused on the legal question of which=20
party holds the burden of proving whether=20
Google's use of Perfect 10's images constituted a=20
"fair use" under copyright law. Fair use is a=20
defense that allows the use of copyrighted works,=20
under certain circumstances, without the owner's=20
consent. The appeals court initially said=20
Perfect 10 had the burden of proving that Google=20
couldn't make its case. It corrected itself=20
Monday, saying it was up to Google to articulate=20
its defense, even in a case such as this one,=20
which dealt with whether the courts could issue a=20
preliminary injunction. Nevertheless, the court=20
said, Google met that test. The justices ruled=20
that a larger public interest in searching for=20
information -- or, in this case, images of=20
partially clad women -- amounted to a=20
"transformative use" that trumped Perfect 10's copyright claims.
http://www.latimes.com/business/printedition/la-fi-image4dec04,1,1238614...
ory?coll=3Dla-headlines-pe-business
(requires registration)

BROADCASTING

FCC RELEASES 2007 EAS HANDBOOKS
[SOURCE: tvnewsday]
The Federal Communications Commission's Public=20
Safety and Homeland Security Bureau (PSHSB)=20
released the 2007 Emergency Alert System (EAS)=20
Handbooks include newly developed guidance for=20
satellite digital audio radio, direct broadcast=20
satellite and wireline video service=20
providers. In addition, the existing handbooks=20
have been updated for analog and digital=20
television and radio stations, as well as cable=20
systems. The handbooks provide guidance and=20
instructions for national, state and local EAS=20
activations and highlight appropriate testing=20
procedures. The materials also include sample=20
scripts that may be used by broadcasters and=20
other participants during EAS activations and=20
tests. The Commission=92s rules require that copies=20
of the handbooks be located at =93normal duty=20
positions or EAS equipment locations when an=20
operator is required to be on duty and be=20
immediately available to staff responsible for=20
authenticating messages and initiating actions.=94
http://www.tvnewsday.com/articles/2007/12/03/daily.15/
* Press release:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-278628A1.doc
http://www.fcc.gov/pshs/eas/Welcome.html

FCC DISMISSES WGN-TV LICENSE CHALLENGE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission dismissed=20
an informal license challenge to WGN-TV Chicago.=20
A viewer had claimed that the station aired=20
"skewed news, trashy entertainment, inadequate=20
children=92s programming and was overly=20
commercial.=94 The FCC dismissed the complaint,=20
saying that it was not empowered to take action=20
against "skewed news" even if that were the case,=20
and that the complainant had not made a case for=20
indecency, that he had failed to show how relying=20
on Baby Looney Tunes and Sabrina failed to meet=20
its core educational kids=92 show obligations and,=20
as for overly commercial, pointed out that except=20
for kids=92 programming, the FCC does not regulate=20
the amount or type of commercial.
http://www.broadcastingcable.com/article/CA6509112.html?rssid=3D193
* FCC decision:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-07-4852A1.doc

SUPREME COURT EXTENDS DEADLINE FOR INDECENCY RESPONSES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Monday was the deadline for filing responses to=20
the FCC=92s and Justice Department's decision to=20
seek Supreme Court review of the lower-court=20
decision on swearing on Fox's Billboard Music=20
Awards. But Fox sought, and the court granted, a=20
30-day extension that will take everyone past the=20
holidays. Such extensions are fairly routinely=20
asked for and granted around the holidays. The=20
FCC's profanity-enforcement policy is likely to=20
remain in limbo through much of 2008.
http://www.broadcastingcable.com/article/CA6509119.html?desc=3Dtopstory

NARUC LAUNCHES DTV WEB SITE
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
The National Association of Regulatory Utility=20
Commissioners is launching=20
http://www.naruc.org/DTV/ intended to help=20
consumers adjust to the Feb. 17, 2009 transition=20
to digital television. The Web page contains=20
basic information about the switch, why it is=20
happening and how the public can prepare. It=20
offers information from the Federal=20
Communications Commission, the National=20
Telecommunications and Information Administration and industry groups.
http://www.multichannel.com/article/CA6509012.html?rssid=3D196

MORNING TV VEERS FROM NEWS TO FRILLS
[SOURCE: New York Times, AUTHOR: Alessandra Stanley]
Morning programs like =93Today=94 on NBC and =93The=20
View=94 on ABC are the modern equivalents of the=20
old Barbizon Hotel for Women, a frilly haven=20
where men were not allowed above the first floor=20
=97 or here, after the first hour =97 and viewers are=20
treated to diet tips, ambush makeovers, cancer=20
health scares, relationship counseling and, of=20
course, shopping. And the fourth hour of =93Today,=94=20
which was introduced this fall, has blurred the=20
distinction between consumer news and product=20
promotion even further. Especially now, in the=20
Christmas holiday marketing frenzy, it is=20
sometimes hard to tell the NBC program from those=20
on ShopNBC or QVC. Product placement is hardly a=20
new phenomenon, and the morning shows long ago=20
mastered the quid pro quo of daily television:=20
Actors give interviews timed to their latest=20
projects; authors are recruited as experts just=20
as their books hit the stores. Oprah, Ellen and=20
the women of =93The View=94 specialize in audience=20
giveaways =97 anything from a Dodge Caravan to a=20
$150 gift certificate toward a Barbour wax=20
jacket. But the fourth hour of =93Today=94 has tipped=20
the balance of the program: The more newsy first=20
hour, with the hosts Matt Lauer and Meredith=20
Vieira, and Al Roker on the weather, is=20
front-loaded with information and interviews with=20
public officials and, of course, with husbands of=20
missing wives like Drew Peterson, and people who=20
survive freak accidents (lightning bolts or=20
nail-gun injuries). That first hour seems=20
increasingly at odds with the long, tranquilizing=20
estrogen stretch that follows.
http://www.nytimes.com/2007/12/04/arts/television/04watc.html?ref=3Dtoda...
aper
(requires registration)

TELECOM

FCC TO RULE ON VERIZON FORBEARANCE
[SOURCE: Pittsburg Tribune-Review, AUTHOR: Kim Leonard]
Telephone companies that have to lease parts of=20
Verizon's network to do business are awaiting a=20
Federal Communications Commission decision by=20
Wednesday that could determine their future in=20
the market. Verizon Communications Corp. wants=20
the FCC to drop a requirement that the company=20
provide access to some of its lines in Pittsburgh=20
and five other cities to other telecommunications=20
companies at government-capped rates. Those much=20
smaller competitors are worried that Verizon will=20
shut them off from its telephone network, or=20
raise rates so high that they'll be forced to=20
pull up stakes or downsize. That could result in=20
fewer choices for thousands of consumers and=20
small businesses, and raise their costs by $177=20
million a year, according to one study. Rep. Mike=20
Doyle's office has "heard some favorable things,"=20
meaning the decision could go against New York-based Verizon.
http://pittsburghlive.com/x/pittsburghtrib/business/s_540983.html?source...
rss&feed=3D7

AT&T EXITS PAY PHONES, SEEING WRITING ON BOOTH
[SOURCE: Wall Street Journal, AUTHOR: Jeffry=20
Bartash jeffry.bartash( at )dowjones.com]
The first public pay-telephone station was set up=20
in 1878, just two years after Alexander Graham=20
Bell invented the talking device. The first=20
coin-operated pay phone was installed in=20
Hartford, Conn., in 1889. But, for AT&T, the=20
nation's largest telephone company, the days of=20
pay phones will soon end. The San Antonio=20
telecommunications company said its pay phones=20
will be phased out during the next year. A=20
company spokeswoman declined to say how much=20
revenue the pay-phone business generates, but the=20
number is small and declining. In a country full=20
of BlackBerrys, cellphones and iPhones, it isn't=20
surprising. Most Americans, rich or poor, now=20
have wireless handsets, and pay phones have=20
become increasingly scarce. AT&T operates 65,000=20
pay phones in the 13 states formerly served by=20
the local phone company SBC Communications, which=20
acquired the old Ma Bell in 2005 and took its name.
http://online.wsj.com/article/SB119669199338311803.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* AT&T to hang up on pay phones
About 5% of all U.S. households, and 8% of those=20
with annual incomes under $20,000, have access to=20
neither wireless nor land-line phones.
http://www.latimes.com/business/printedition/la-fi-payphones4dec04,1,672...
6.story?coll=3Dla-headlines-pe-business
(requires registration)
* AT&T to Exit Pay Phones as the Business Shrinks (Associated Press)
http://www.nytimes.com/2007/12/04/business/04phone.html?ref=3Dtodayspaper
(requires registration)

CELL PHONE FIRMS REMAIN MOST UNPOPULAR
[SOURCE: San Francisco Chronicle, AUTHOR: Ryan Kim]
According to the latest survey by Consumer=20
Reports released Monday, cell phone operators are=20
making slow progress addressing a number of=20
issues including call quality, poor coverage,=20
unsatisfactory customer service and contracts.=20
The cellular industry notched a satisfaction=20
score of 67 out of 100, up a point from last year=20
and up two points from 2002, when Consumer=20
Reports began surveying its subscribers. The=20
industry is about as popular as cable television=20
operators and computer repair shops. "The survey=20
tells us that the cell phone companies are not=20
delivering as much satisfaction as other=20
companies," said Jeff Blyskal, senior editor for=20
Consumer Reports. "Even the best of them have to=20
focus on improving customer service. Even the best of them are not very goo=
d."
http://www.sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2007/12/03/BU2UTNFDM.DTL
--------------------------------------------------------------
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.
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