December 2007

Congress is back so the locale for media policy=20
action shifts to Capitol Hill this week. The=20
action kicks off tomorrow in the Senate with=20
consideration of a bill to slow down the change=20
in FCC media ownership rules. See http://www.benton.org/?q=3Devent

AGENDA
Lawmakers return to a packed schedule

MEDIA OWNERSHIP
FCC Grants Applications for Transfer of Control of Tribune Company
Biggest hurdles await Tribune
Martin Gets Three Votes for 30% Cable Cap
Vivendi Games to combine with Activision
Middle Easterners Ready to Pounce on U.S. Media

SPECTRUM/WIRELESS/TELECOM
Airwave sale sparks a scramble
Google to Join Spectrum Auction
A Cellular Sea Change
Start-Ups Prep for Wireless Auction
FCC Examining Forbearance Petition Review Process

BROADCASTING/CABLE
FCC Takes TV for Ride on Rereg Time Machine
GAO worries that retailers won't keep up with DTV schedule
Broadcasters Launch Black Church DTV Push
NBC to Pay for Blocks of Programs
Hot Numbers: FCC=92s 70/70 Data Source Explains the Data

INTERNET/BROADBAND
EFF: Comcast continues to block P-to-P
CA: Facebook's Beacon more intrusive than previously thought
Digital developments could be tipping point for MP3
Is the Exaflood Coming?
Seven in 10 Dutch homes have broadband

QUICKLY -- FCC Commissioner Adelstein nominated=20
for a second term; U.S. slump casts pall over=20
media, entertainment; Media Predictions for 2008;=20
The Candidate's 'Catch Me if You Can'; Debates, not issues, are the newsmak=
ers

AGENDA

LAWMAKERS RETURN TO A PACKED SCHEDULE
[SOURCE: The Hill, AUTHOR: Manu Raju]
Congressional Democrats and Republicans are=20
gearing up for battle over a packed agenda that=20
will dominate the Capitol until Christmas Day,=20
and are kicking off the year-end push by=20
escalating their rhetoric over funding for the=20
Iraq war. With less than four weeks until=20
Christmas, Congress will attempt to clear all 11=20
remaining appropriations bills, a patch of the=20
Alternative Minimum Tax (AMT), a bicameral energy=20
bill, the stalled farm bill, a bill to overhaul=20
the Foreign Intelligence Surveillance Act and a=20
free trade agreement with Peru. Meanwhile,=20
President Bush=92s $196 billion wartime=20
supplemental spending package remains stalled,=20
and both sides are trying to pin the blame on the=20
other for holding up dollars for military=20
operations in Iraq. Fresh back from a=20
congressional visit to Latin America, Senate=20
Majority Leader Harry Reid (D-Nev.) plans to come=20
out swinging Monday at a Capitol Hill news=20
conference highlighting Democratic efforts to=20
provide funding for troops. The senator will=20
almost certainly blame Republicans for blocking=20
last month a $50-billion Iraq bill that called=20
for troops to return home by the end of 2008.
http://thehill.com/leading-the-news/lawmakers-return-to-a-packed-schedul...
007-12-01.html
* Congress, Returning From Break, Has Much Work to Finish Before the Next O=
ne
http://www.nytimes.com/2007/12/03/washington/03cong.html?ref=3Dtodayspaper
* Old Tensions Test Congress
http://online.wsj.com/article/SB119664099934911173.html?mod=3Dtodays_us_...
e_one
* President, Congress Ready to Begin the Next Round
http://www.washingtonpost.com/wp-dyn/content/article/2007/12/02/AR200712...
2256.html
* Post-Thanksgiving, Congress still has a full plate
http://www.usatoday.com/printedition/news/20071203/a_congress03.art.htm

MEDIA OWNERSHIP

FCC GRANTS APPLICATIONS FOR TRANSFER OF CONTROL OF TRIBUNE COMPANY
[SOURCE: Federal Communications Commission]
The Federal Communications Commission authorized=20
the transfer of control of Tribune Company from=20
the existing shareholders to Sam Zell, The=20
Tribune Employee Stock Ownership Plan, and=20
EGI-TRB, LLC. Tribune requested indefinite=20
waivers of the existing newspaper/broadcast=20
cross-ownership (NBCO) rule in several=20
markets. Although the Commission's Order denies=20
this request, it grants time-limited waivers for=20
these markets under certain circumstances. In=20
granting time-limited waivers, the Commission=20
concludes that it is not appropriate to require=20
divestiture while litigation is=20
ongoing. Specifically, the Commission notes that=20
it is currently considering a proposal to alter=20
the NBCO rule and that the rule has been the=20
subject of extensive litigation. In addition,=20
the Commission notes that Tribune may challenge=20
the denial of Tribune's request for indefinite=20
waivers in court. Thus, while litigation could=20
be ongoing, the Order grants Tribune waivers for=20
two years, or for 6 months after the end of=20
litigation, whichever is longer. The Order grants=20
a permanent waiver of the NBCO rule in the=20
Chicago market. In that market, the combination=20
of the Chicago Tribune, WGN(AM), and WGN-TV dates=20
back decades, long before the existence of the=20
NBCO rule, and was grandfathered when the rule=20
was originally adopted. In light of the large=20
and diverse nature of the market and the uniquely=20
long-term symbiotic relationship between the=20
broadcast stations and the newspaper, the Order=20
concludes that a permanent waiver of the rule is=20
warranted. Finally, if a new NBCO rule is adopted=20
before January 1, 2008, the Order grants Tribune=20
two years to come into compliance with the new=20
rule in the New York, Los Angeles, Miami, and Hartford markets.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-278619A1.doc
FCC Order: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-211A1.d=
oc
* Tribune Waivers Get FCC Go-Ahead
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6508738.html?rssid=3D193
* Tribune Deal Now A Lock -- As FCC Grants License Waivers Friday
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003679955
* FCC Grants Waivers To Aid Tribune Deal
http://online.wsj.com/article/SB119664634931211287.html?mod=3Dtodays_us_...
ketplace
* Tribune deal gets go-ahead from FCC
Technically, the FCC denied Tribune's request for=20
indefinite waivers of rules against newspaper and=20
broadcast combinations. For Tribune, that affects=20
five markets. But the FCC granted a permanent=20
exemption in Chicago and effectively gave the=20
company at least a two-year pass in New York, Los=20
Angeles, South Florida and Hartford, Conn. If=20
Tribune challenges the denial of its request in=20
court, the FCC order said, the company will get=20
waivers of the cross-ownership rules for at least=20
two years and as long as six months beyond the=20
end of litigation. And if new cross-ownership=20
rules are adopted before Jan. 1, the FCC's action=20
Friday gives Tribune two years to comply.
http://www.chicagotribune.com/business/chi-sat_fcc1201dec01,0,6966257.st...
?track=3Drss
http://www.latimes.com/business/printedition/la-fi-tribune1dec01,1,38901...
tory?coll=3Dla-headlines-pe-business
* Commissioner Copps: "If this Order were a=20
newspaper, the banner headline would read 'FCC=20
Majority Uses Legal Subterfuge to Push for Total=20
Elimination of Cross-Ownership Ban'.... To argue=20
now that the passage of time argues for a=20
permanent waiver is a brazen reversal of thirty years of settled precedent."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-211A2.doc
* Commissioner Adelstein: "Faced with any merger,=20
it is our obligation to analyze the record=20
evidence and determine whether the public will be=20
served better by the transaction being approved=20
or being denied, and what conditions, if any, may=20
be necessary to mitigate harms to consumers. The=20
box being checked off by the majority for Today's=20
order reads "None of the above." Instead,=20
today's order is a regulatory hostage taking -- a=20
desperate maneuver to use the Tribune transaction=20
as a human shield, while the Commission marches=20
down the treacherous path toward greater media=20
consolidation. Notwithstanding congressional=20
rebuke and widespread public opposition, this=20
Commission is determined to use any conceivable=20
ploy to achieve its misguided goals."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-211A3.doc
* Commissioner Tate: "This is a good day for the=20
20,000 employees whose jobs depend on the outcome=20
of this transaction, and for the Chicago Tribune=20
newspaper, a Chicago landmark since 1924."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-211A4.doc
* Commissioner McDowell: "Approving this=20
transaction allows the new owners to breathe new=20
life into Tribune's newspapers and broadcast=20
properties. Tribune's readers, viewers and=20
listeners will benefit from its strengthened and=20
more efficient news-gathering=20
operations. Allowing for continued=20
cross-ownership of the company's newspapers and=20
broadcast stations furthers the Commission's=20
statutory duty to promote competition, diversity=20
and localism by invigorating a voice that might=20
otherwise fade. Our Order today also allows=20
Tribune to compete against a growing chorus of=20
new media voices in the information, opinion and=20
entertainment market place that do not live, and=20
would not have developed, under a multi-platform cross-ownership ban."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-211A5.doc
* Media Access Project: "Tribune was given more=20
than it requested in a decision which is=20
deceptively packaged to make it seem more reasonable than it really is."
http://www.mediaaccess.org/
* Benton Foundation: "The season of giving began=20
early this year when FCC Chairman Kevin Martin=20
gave a gift worth hundreds of millions of dollars=20
to billionaire Sam Zell and the Tribune Co. For=20
the public, however, the decision is the equivalent of three lumps of coal."
http://www.benton.org/node/8266

BIGGEST HURDLES AWAIT TRIBUNE
[SOURCE: Chicago Tribune, AUTHOR: Michael Oneal mdoneal( at )tribune.com ]
The Federal Communications Commission granted=20
exemptions Friday that should allow real estate=20
magnate Sam Zell to finally close his $8.2=20
billion deal to take the media conglomerate=20
private, but closing the transaction may prove to=20
be the easy part. With indications that the=20
economy is teetering on the brink of recession=20
and several of Tribune's key markets overwhelmed=20
by the real estate crash, making the deal pay off=20
remains a monumental challenge. Tribune's outlook=20
has darkened considerably since the deal was=20
announced in April, and it is clear that the same=20
structure would have trouble passing muster with=20
banks or investors today. Banks are likely to=20
wait until the end of the month in order to see=20
how Tribune's financial results unfold. For=20
equity investors, all that matters is that the=20
deal closes and Tribune pays them $34 a share as=20
promised. But for Zell, debtholders and Tribune=20
employees, who will become owners of the company=20
via an employee stock ownership plan, the real=20
risk is what happens after the papers are signed.=20
Having enough cash flow to seal the transaction=20
and stay within debt covenants is not the same=20
thing as having enough cash to pay down debt.=20
Zell has yet to articulate in detail how he=20
expects to overcome these dismal trends. But from=20
what he has said, it appears his strategy likely=20
will move in two broad directions -- creating=20
incentives to boost revenue (such as developing=20
new products both in print and online) and=20
examining each and every asset on Tribune's books=20
looking for ways to squeeze out more cash.
http://www.chicagotribune.com/business/chi-sun_tribune1202dec02,0,344361...
tory?track=3Drss
-- SEE ALSO --
* U.S. slump casts pall over media, entertainment
(below)

MARTIN GETS THREE VOTES FOR 30% CABLE CAP
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Apparently, a majority of the Federal=20
Communications Commission=92s members voted to=20
impose a cap on cable system ownership. Not all=20
of the votes have been cast, a Commission source=20
said, so the cap is not technically a done deal=20
and it may not be released for several weeks as=20
the Commissioners work on their statements. When=20
the vote does become official, it will likely be=20
taken to court by the cable industry.
http://www.broadcastingcable.com/article/CA6506809.html

FCC Commissioner Michael Copps vs. "Big Media"
FCC COMMISSIONER MICHAEL COPPS VS "BIG MEDIA
[SOURCE: Salon, AUTHOR: Louise Witt]
A Q&A with Federal Communications Commission=20
Commissioner Michael Copps. He is trying to=20
defeat FCC chairman Kevin J. Martin's last-minute=20
proposal to loosen media ownership rules, which=20
will be voted on by Dec. 18. As it stands now, a=20
company can't own both a daily newspaper and a=20
broadcast outlet -- a radio or TV station -- in=20
the same market without a waiver. In an Op-Ed=20
piece in the New York Times on Nov. 13, Martin=20
wrote that media companies in the 20 largest=20
markets should be allowed to own both in the same=20
market to bolster journalism. The public,=20
however, won't have much time to express its own=20
diverse viewpoints on Martin's proposed rules. He=20
unveiled his plan in the Times four days after=20
the FCC's sixth, and last, hearing of the year on=20
media ownership. The public has only until Dec.=20
11 to comment on the new rules, with the FCC=20
voting on them within the following week.
http://www.salon.com/news/feature/2007/12/03/media_consolidation/

VIVENDI GAMES TO COMBINE WITH ACTIVISION
[SOURCE: CNNMoney]
Vivendi SA said Sunday that it plans to acquire a=20
controlling stake in Activision Inc. and combine=20
the video game publisher with Vivendi Games in a=20
deal the companies valued at $18.9 billion. The=20
combination of Santa Monica-based Activision,=20
whose titles include "Guitar Hero," "Call of=20
Duty" and the "Tony Hawk" series, and Vivendi=20
Games, which publishes "Crash Bandicoot" and owns=20
the online role-playing franchise "World of=20
Warcraft," would create the world's largest=20
pure-play online and console game publisher, the companies said.
http://money.cnn.com/rssclick/2007/12/02/news/companies/vivendi.ap/index...
m?section=3Dmoney_technology

MIDDLE EASTERNERS READY TO POUNCE ON US MEDIA
[SOURCE: TheStreet.com, AUTHOR: Liz Rappaport]
Middle Eastern investors are interested in more=20
than just plowing money into U.S. financial firms=20
such as Citigroup. They're looking to break into=20
the U.S. media arena. Commercial real estate=20
investment firm Blumberg Capital Partners is=20
planning to launch its first fund to invest in=20
U.S. media companies, and its investor base will=20
consist of Middle East-based entities. The fund,=20
for which CEO Philip Blumberg says there is=20
interest amounting to at least $500 million,=20
would target newspapers as well as Hollywood=20
movie studios, online media outfits, broadcast=20
news and possibly radio businesses. Including the=20
use of leverage, the fund will have buying power=20
of approximately $1.5 billion and could kick off=20
by the second quarter next year, Blumberg says.=20
The interest in U.S. media firms from the Middle=20
East comes as foreign investors take advantage of=20
a deflated U.S. dollar to buy into cash-strapped=20
U.S. entities or firms that appear cheap.
http://www.thestreet.com/s/middle-easterners-ready-to-pounce-on-us-media...
wsanalysis/businessinsurance/10392306.html

SPECTRUM/WIRELESS

AIRWAVE SALE SPARKS SCRAMBLE
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera and Jessica Guynn]
They're the superheroes of the airwaves,=20
invisible signals that can carry data faster than=20
a speeding bullet, powerful enough to penetrate=20
the thickest walls of homes and office buildings,=20
able to leap long distances between transmission=20
towers in a single bound. The federal=20
government's decision to auction off this prime=20
public spectrum next month could change the=20
wireless world. The complicated auction run by=20
the Federal Communications Commission will take=20
weeks to complete and is expected to raise upward=20
of $20 billion for the U.S. Treasury. It has the=20
potential to make talking on a cellphone, surfing=20
the Web on a mobile device and even watching=20
television on your handset easier and cheaper.=20
Even though the coveted airwaves won't be=20
available until early 2009, when TV broadcasters=20
give them up as they convert to all-digital=20
signals, they're already transforming the mobile=20
marketplace. Federal officials hope the spectrum=20
will produce another national competitor to=20
existing wireless companies and lead to the=20
creation of the long-desired "third pipe" of=20
high-speed Internet access to consumers to vie with phone and cable service.
http://www.latimes.com/business/printedition/la-fi-spectrum1dec01,1,5217...
.story?coll=3Dla-headlines-pe-business
(requires registration)

GOOGLE TO JOIN SPECTRUM AUCTION
[SOURCE: New York Times 12/1, AUTHOR: Brad Stone]
Seeking to shake up the wireless industry, Google=20
said Friday that it was preparing to take part in=20
the federal government=92s auction of radio=20
frequencies that could be used to deliver the=20
next generation of Internet and mobile phone=20
services to consumers. Google said it would file=20
its application on Monday to bid on the valuable=20
700-megahertz spectrum, which is being vacated by=20
television networks as they convert their signals=20
to digital. The formal bidding process is=20
scheduled to begin on Jan. 24. Google has said it=20
will bid for the so-called C Block of the=20
auction, which it could use to offer nationwide=20
wireless broadband service that competes with=20
digital subscriber line service and cable=20
Internet access. Other bidders are expected to=20
file their intentions with the Federal=20
Communications Commission on Monday. Both AT&T=20
and Verizon Wireless have indicated that they=20
will also bid on the spectrum. Industry analysts=20
also expect major cable operators to bid for some=20
of the smaller pieces of the spectrum. Whoever=20
wins, the auction is expected to usher in a new=20
wave of flexible wireless computing.
http://www.nytimes.com/2007/12/01/technology/01google.html?ref=3Dtodaysp...
(requires registration)
* Google versus the telecoms
http://www.news.com/Google-versus-the-Telecoms/2100-1039_3-6220909.html?...
=3Dhtml.alert.hed
* Google to bid for U.S. mobile airwaves
http://www.reuters.com/article/technologyNews/idUSN3029570020071130
* Google's Goals in Spectrum Race Remain Obscure
With the winning bidder obligated to offer an=20
open network that will support the myriad=20
wireless plans of Google, why would the search=20
and advertising giant want to become a wireless carrier?
http://www.eweek.com/article2/0,1895,2225816,00.asp

A CELLULAR SEA CHANGE
[SOURCE: New York Times 12/1, AUTHOR: Editorial staff]
[Commentary] These are interesting times in the=20
world of mobile technology. Pressures of all=20
kinds =97 consumer demand, regulation, lawsuits,=20
technological advancements =97 are driving American=20
cellular service providers in surprising and=20
welcome new directions. The most dramatic example=20
is Verizon, which announced earlier in the week=20
that it would open its network and software=20
platform to a wider array of phones and=20
applications than it currently offers. Verizon=92s=20
decision recognizes the new power of openness as=20
a model in the world of mobile technology. There=20
is a deep common sense behind the openness that=20
is being forced on the world of mobile technology=20
providers. If nothing else, it unleashes the twin=20
powers of consumer choice and consumer desire. It=20
gets carriers out of the business of telling us=20
what tools we should want on our cellphones, and=20
it frees cellphone manufacturers from the=20
restrictions placed upon them by the carriers.=20
The logical end of mobile openness is a set of=20
shared, even convergent standards that may mean=20
faster communication for consumers using any=20
phone, any software, and any carrier. And that is=20
where the real revolution in mobile computing will begin.
http://www.nytimes.com/2007/12/01/opinion/01sat3.html?ref=3Dtodayspaper
(requires registration)

START-UPS PREP FOR WIRELESS AUCTION
[SOURCE: Washington Post, AUTHOR: Kim Hart]
As Google and other major companies line up to=20
participate in an auction of coveted airwaves for=20
high-speed wireless, smaller firms are waiting in=20
the wings for their piece of the action. Two=20
lesser-known local start-ups -- Frontline=20
Wireless and Cyren Call -- are positioning=20
themselves to help build a network to be shared=20
with public safety agencies. Companies planning=20
to participate in next year's auction, which is=20
expected to raise about $15 billion for the=20
government, must file their application to the=20
Federal Communications Commission by today. At=20
stake is the last big swath of radio spectrum=20
available for the foreseeable future, key to many=20
companies' plans to offer new mobile Internet=20
features. Under the auction's terms, a certain=20
portion of the airwaves sold must be available=20
for emergency use. Frontline's goal is to build a=20
national network for emergency responders and=20
lease excess capacity to other carriers in order=20
to sell speedy Internet service to consumers.=20
Cyren Call is advising public safety agencies as=20
they negotiate with companies, including=20
Frontline, that are interested in bidding on the=20
spectrum. If it wins, Frontline would work=20
closely with Cyren Call to hammer out the details=20
of building the network. The FCC boosted=20
Frontline's chances of success when it changed=20
the rules two weeks ago to allow the company to=20
resell wireless service to other companies,=20
rather than having to sell directly to consumers.=20
This would be cheaper for Frontline because it=20
would not have to set up stores and market the=20
services. The company would also get a 25 percent=20
discount on its bid because it is considered a small business.
http://www.washingtonpost.com/wp-dyn/content/article/2007/12/02/AR200712...
1484.html
(requires registration)

FCC EXAMINING FORBEARANCE PETITION REVIEW PROCESS
[SOURCE: Federal Communications Commission]
The Federal Communications Commission is=20
examining whether there is a need for new=20
procedures governing its review of petitions=20
requesting forbearance from regulation.
Under the Telecommunications Act of 1996, the=20
Commission is required to forbear from any=20
statutory provision or regulation if it=20
determines that the regulation is not needed to=20
protect consumers or to ensure just and=20
reasonable rates and practices by carriers. The=20
NPRM seeks comment on a number of proposed rules=20
that the petitioners claim would help the=20
Commission evaluate forbearance petitions,=20
including: 1) Whether new rules should govern the=20
format and content of forbearance petitions, 2)=20
Whether new notice and comment rules, such as=20
default comment periods and time limits on ex=20
parte filings, should be adopted, and 3) Whether=20
other rules would facilitate the participation of=20
state commissions, as well as other parties, in=20
forbearance proceedings. The NPRM also seeks=20
comment on whether forbearance is an effective=20
means for the Commission to make changes to its regulations.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-278395A1.doc
NPRM: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-202A1.doc
* Commissioner Copps: "My experience with=20
forbearance over the last two and a half years=20
has been that it is a process that leaves much to=20
be desired. Too often forbearance has resulted=20
in industry driving the FCC's agenda rather than the reverse being true."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-202A2.doc
* Commissioner Adelstein: "The Commission's=20
recent history on forbearance petitions -=20
including failing to even issue an order=20
addressing the merits of a sweeping petition - is=20
not one to be envied. This approach has cast=20
open the floodgates for industry-filed petitions,=20
inviting parties to make end runs around the=20
Congressional framework for telecommunications services."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-202A3.doc
* Commissioner Tate: "An integral part of the=20
pro-competitive, de-regulatory national policy=20
framework established by Congress in the 1996 Act=20
is the section 10 forbearance provision."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-202A4.doc
* Commissioner McDowell: "By all accounts, most=20
Members of Congress, most proponents of=20
individual forbearance petitions, most opponents=20
of forbearance petitions, and a majority of the=20
FCC all agree that the forbearance petition=20
process is flawed and should be fixed. Only=20
Congress can amend Section 10, which is simple=20
and clear in its mandate; but the Commission can=20
take steps to improve its implementation. And=20
that is what we are doing today by initiating this rulemaking."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-202A5.doc

BROADCASTING

FCC TAKES TV FOR RIDE ON REREG TIME MACHINE
[SOURCE: tvnewsday, AUTHOR: Harry A. Jessell]
[Commentary] Last month, the Federal=20
Communications Commission voted to require TV=20
stations to fill out standardized forms each=20
quarter showing how much FCC-preferred=20
programming they aired. The principal reason=20
stations need to be concerned is that these=20
=93enhanced disclosure=94 requirements move stations=20
back toward the first quarter century of TV when=20
they had to offer the right kinds of so-called=20
public interest programming in order to get their=20
licenses renewed. There is real danger in the=20
categories of programming on the standardized=20
form. The categories, it seems to me, come real=20
close to the FCC telling stations that this is=20
the kind of programming that they need to air to=20
win license renewal. It=92s a wonder that such a=20
regulatory item ever made it on to the FCC=20
agenda, given the Republican majority. The=20
proceeding was launched by Chairman Bill Kennard=20
during the waning days of the Clinton=20
Administration over the objection of then=20
Republican Commissioner Michael Powell. It had=20
been gathering dust for seven years. Although=20
Kevin Martin may fit in with the big-government=20
neocon types in the Bush Administration, he must=20
be a growing embarrassment to the old-fashioned,=20
Reagan-style Republicans. The NAB allowed these=20
rules to fall into place without much fuss. I=20
guess the thinking among the TV broadcasters that=20
run the place is that they do plenty of the kinds=20
of programming that the FCC is looking for and=20
having nothing to hide. Maybe so, but are they=20
going to want to be backed into providing airtime=20
for =93independently produced programming=94=20
(whatever that means) and religious programming?=20
Good lord. Doesn't an implicit requirement to=20
offer religious programming on the public=20
airwaves violate the Establishment Clause of the=20
First Amendment? Somebody call a Constitutional=20
lawyer. Broadcasters who shrug their shoulders at=20
this should also consider this. Once all this=20
material is on the Web, anybody will be able to=20
peer into the any station=92s file, see what it has=20
been doing and how it stacks up against every other station.
http://www.tvnewsday.com/articles/2007/11/30/daily.6/
-- See also --
Disclosure important, but PIOs needed, too (Benton Foundation)
http://www.benton.org/node/8202

GAO WORRIES THAT RETAILERS WON'T KEEP UP WITH DTV SCHEDULE
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
The Government Accountability Office (GAO)=20
released a letter warning that the U.S.=20
analog-to-digital TV or "DTV" transition schedule=20
"faces challenges that could affect the outcome=20
of the program." Specifically, the GAO says that=20
TV retailers may not be able to start selling=20
converter set top boxes to the public by January=20
1st, 2008, as planned. "Retailers told us that=20
March or April of 2008 -- 3 to 4 months after=20
consumers can begin requesting coupons=97is a=20
likely time frame for retailers to be ready to=20
participate in the program," the document=20
explains. GAO says that retailers told the agency=20
that "participating in the converter box subsidy=20
program could require a considerable amount of=20
effort for a one-time program with a product that=20
has a limit shelf life and a low profit margin."=20
The retailers also said that: 1) since retail=20
participation in the program is voluntary,=20
consumers may be not be able to find retailers=20
willing and able to coupon-quality stock=20
converter boxes, 2) uncertainty about the demand=20
for the set top boxes could impact the quantity=20
manufactured for retail sale, and 3) they were=20
concerned "about the possibility of a coupon=20
redemption system that would affect their=20
point-of-sale systems, noting that modifying=20
these systems can be time-consuming,=20
resource-intensive, and expensive, and can affect other financial systems."
http://www.lasarletter.net/drupal/node/517
* Digital Television Transition: Questions on=20
the DTV Converter Box Subsidy Program and a DTV=20
Inter-Agency Task Force. (GAO-08-297R)
http://www.gao.gov/cgi-bin/getrpt?GAO-08-297R

BROADCASTERS LAUNCH BLACK CHURCH DTV PUSH
[SOURCE: tvnewsday]
One hundred churches in the Washington, DC area=20
have received educational literature about the=20
DTV transition to be distributed through their=20
church bulletins. The National Association of=20
Broadcasters and the National Black Church=20
Initiative is a pilot program that may be=20
implemented nationwide as part of the NAB's=20
multiplatform, multifaceted marketing campaign.=20
The program complements a variety of other=20
initiatives undertaken by broadcasters to educate=20
consumers about the nation's switch to digital broadcasting.
http://www.tvnewsday.com/articles/2007/12/03/daily.1/

NBC TO PAY FOR BLOCKS OF PROGRAMS
[SOURCE: New York Times, AUTHOR: Bill Carter]
NBC has made an ambitious deal, apparently the=20
first of its kind, to buy a two-hour =97 or perhaps=20
even three-hour =97 block of prime-time programming=20
from outside producers, including Thom Beers, the=20
creator of adventure documentary series like=20
=93Deadliest Catch=94 and =93Ice Road Truckers.=94 Under=20
the plan, NBC has agreed to broadcast at least=20
two new hours produced by Mr. Beers back to back=20
on a single night, with many more hours possible.=20
The terms guarantee Mr. Beers and his partners 30=20
hours of programs on NBC =97 three separate=20
10-episode series. These 30 hours would come at a=20
fraction of the cost of standard network scripted=20
or reality programming, a factor that made the=20
deal attractive to NBC. The project is not=20
related to the current strike by Hollywood=20
writers but the background forces are somewhat=20
similar as networks struggle to revise their=20
financial formulas to face a future of=20
diminishing ratings and growing uncertainties=20
about how the Internet will figure in viewers=92=20
choices. The programs, which are all documentary=20
in style, would not have staff writers.
http://www.nytimes.com/2007/12/03/business/media/03nbc.html?ref=3Dtodays...
er
(requires registration)
* NBC strikes deal to air prime-time docudramas
http://www.latimes.com/business/printedition/la-fi-nbc3dec03,1,5992795.s...
y?coll=3Dla-headlines-pe-business
(requires registration)

HOT NUMBERS: FCC'S 70/70 DATA SOURCE EXPLAINS THE DATA
[SOURCE: Broadcasting&Cable, AUTHOR: Jon Hemingway]
Dan Warren perked up when he realized that=20
Federal Communications Commission Chairman Kevin=20
Martin was using his company's data to reach the=20
"70/70" cable decision. According to Warren, the=20
FCC called Michael Taliaferro, the editor of=20
Warren=92s TV and Cable Fact Book, last summer=20
looking for some raw data on the cable industry=20
but gave no indication of how it would be used.=20
Taliaferro supplied two metrics for cable systems=20
with 36 channels or more: the total number of=20
basic subscribers, at 67.16 million, and the=20
total number of homes passed, at 94.18 million.=20
That amounts roughly to a 71% penetration rate.=20
But while the data can be useful for modeling and=20
extrapolation, Dan Warren said he would have=20
issued some caveats to the FCC had the company=20
known the intended use. Since some cable systems=20
did not respond to the survey, the data aren't=20
complete -- indeed, they could be lower than the=20
actual numbers. For the commission to draw an=20
accurate conclusion about penetration, Warren=20
explained, it would have to "fill in the blanks."
http://www.broadcastingcable.com/article/CA6508846.html?rssid=3D193

INTERNET/BROADBAND

EFF: COMCAST CONTINUES TO BLOCK P-TO-P
[SOURCE: InfoWorld, AUTHOR: Grant Gross]
Comcast continues to slow down customers'=20
connections to some P-to-P (peer-to-peer)=20
applications, using hacker-like techniques=20
against its own subscribers, according to a=20
report released by the Electronic Frontier=20
Foundation (EFF). But Comcast officials, first=20
accused of blocking P-to-P application BitTorrent=20
and other traffic in an October Associated Press=20
story, insisted they're not stopping any Web=20
traffic from getting to their customers. The=20
cable broadband provider does manage its network,=20
which would slow to a crawl if it did not manage=20
bandwidth-hogging P-to-P connections during times=20
of heavy congestion, a company official said. At=20
times, Comcast will delay P-to-P traffic, but the=20
traffic will eventually go through, said Charlie=20
Douglas, Comcast's director of corporate=20
communications. But the EFF defined Comcast's=20
actions differently. Comcast, the second largest=20
ISP in the U.S., uses a technique called packet=20
forgery to slow some subscriber traffic, the EFF=20
said in a report released Thursday. Comcast=20
appears to be injecting RST, or reset, packets=20
into customers' connections, causing connections to close, the EFF said.
http://www.infoworld.com/article/07/11/30/Comcast-continues-to-block-P-t...
_1.html

CA: FACEBOOK'S BEACON MORE INTRUSIVE THAN PREVIOUSLY THOUGHT
[SOURCE: InfoWorld, AUTHOR: Juan Carlos Perez]
A CA security researcher is sounding the alarm=20
that Facebook's controversial Beacon online ad=20
system goes much further than anyone has imagined=20
in tracking people's Web activities outside the=20
popular social networking site. Beacon will=20
report back to Facebook on members' activities on=20
third-party sites that participate in Beacon even=20
if the users are logged off from Facebook and=20
have declined having their activities broadcast=20
to their Facebook friends. That's the finding=20
published on Friday by Stefan Berteau, senior=20
research engineer at CA's Threat Research Group=20
in a note summarizing tests he conducted. Of=20
particular concern is that users aren't informed=20
that data on their activities at these sites is=20
flowing back to Facebook, nor given the option to=20
block that information from being transmitted, Berteau said.
http://www.infoworld.com/article/07/11/30/CA-says-facebooks-Beacon-more-...
rusive-than-previously-thought_1.html
* Facebook=92s decision doesn't address key privacy concerns
[SOURCE: Digital Destiny, AUTHOR: Jeff Chester]
[Commentary] Facebook still doesn't really want=20
to face-up to its many privacy problems. While it=20
modified one aspect of the Beacon system as a=20
result of organized pressure and regulatory=20
concerns, serious safeguards will be necessary to=20
address the range of practices in Facebook=92s new targeted marketing system
http://www.democraticmedia.org/jcblog/?p=3D413

DIGITAL DEVELOPMENTS COULD BE TIPPING POINT FOR MP3
[SOURCE: Billboard, AUTHOR: Ed Christman]
A yearlong download promotion planned between=20
Pepsi and Amazon, Billboard has learned, is among=20
several developments forcing further=20
consideration by Warner Music Group (WMG) and=20
Sony BMG Music Entertainment to follow EMI and=20
Universal Music Group's lead in distributing=20
music in the MP3 format, which forgoes=20
restrictive digital rights management technology.=20
News of the Pepsi promotion, which is expected to=20
be announced February 3 during the Super Bowl,=20
coincides with Wal-Mart's ultimatum that major=20
labels supply walmart.com with their music in MP3.
http://www.reuters.com/article/technologyNews/idUSN0132743320071202

IS THE EXTRAFLOOD COMING?
[SOURCE: New York Times/BITS, AUTHOR: Steve Lohr]
Are we facing a capacity crunch that will soon=20
clog the global network, as it is overwhelmed by=20
what some warn is a coming =93exaflood=94 of demand?=20
This is far more than a technical question.=20
Regulatory and tax policy for the=20
telecommunications industry hinges on the answer.=20
If the threat of an exaflood is imminent, the=20
argument for tax incentives to stimulate=20
investment becomes stronger. So does the hand of=20
the telecommunications lobby in its opposition to=20
so-called Net neutrality (all bit users treated=20
equally). The telecom carriers claim that the=20
corporate bit-hogs like Google and its subsidiary=20
YouTube should pay more because they use so much=20
network capacity. A The report by Nemertes=20
Research -- =93The Internet Singularity, Delayed:=20
Why Limits in Internet Capacity Will Stifle=20
Innovation on the Web" -- projects that user=20
demand for the Internet could outpace network=20
capacity by 2010. Andrew Odlyzko, a professor at=20
the University of Minnesota, debates the numbers.
http://bits.blogs.nytimes.com/2007/11/30/is-the-exaflood-coming/
(requires registration)

SEVEN IN 10 DUTCH HOMES HAVE BROADBAND: SURVEY
[SOURCE: Reuters, AUTHOR: Foo Yun Chee]
Seven in 10 homes in the Netherlands had a=20
broadband Internet connection at the end of the=20
third quarter, with the total number of connected=20
households topping 5.43 million, a survey found=20
on Friday. The Netherlands, with 16 million=20
people, has one of the highest broadband=20
penetrations in the world. Former telecoms=20
monopoly KPN was the top broadband operator with=20
a 44 percent market share, nearly double the 23.4=20
percent share of next ranked supplier Zesko.
http://www.reuters.com/article/internetNews/idUSL3067832320071130

QUICKLY

FCC COMMISSIONER ADELSTEIN NOMINATED FOR A SECOND TERM
[SOURCE: Reuters]
President George Bush (R) has nominated Federal=20
Communications Commission Commissioner Jonathan=20
Adelstein for a second, five-year term to expire=20
on June 30, 2013. Adelstein was first sworn in as=20
an FCC commissioner on December 3, 2002.
http://www.reuters.com/article/politicsNews/idUSN3064935220071201
* White House Renominates FCC's Adelstein
Adelstein: "I am deeply honored that the=20
president has announced his intention to nominate=20
me to serve another term as commissioner of the=20
Federal Communications Commission. I would also=20
like to express my deep appreciation to [Senate]=20
Majority Leader Harry Reid [D-Nev.] for his support and faith in me."
http://www.broadcastingcable.com/article/CA6508819.html
* White House press release
http://www.whitehouse.gov/news/releases/2007/11/20071130-8.html

US SLUMP CASTS PALL OVER MEDIA, ENTERTAINMENT
[SOURCE: Reuters, AUTHOR: Kenneth Li]
A U.S. economic recession could hammer those=20
media and entertainment companies that rely=20
heavily on advertising next year, curtailing=20
experimentation when the industry needs it most.=20
Just how severe the impact of a sinking U.S.=20
housing market, global credit crunch and possible=20
slowdown in consumer spending will be depends on=20
many factors, including how deeply embedded a=20
company's product are in people's homes. Goldman=20
Sachs predicts the risk of recession in '08 is=20
45% and that could cause ad revenue among=20
traditional media companies to tumble 10 percent,=20
compared with current estimates of flat to 1 percent growth.
http://www.reuters.com/article/internetNews/idUSN2921008520071130

MEDIA PREDICTIONS FOR 2008
[SOURCE: BusinessWeek, AUTHOR: Jon Fine]
Could these be the big stories of 2008? 1) At=20
least one daily newspaper in a top-100 US market=20
will stop publishing on Saturdays. 2) A major=20
band will release a digital version of their=20
album on a pay-what-you-want basis. 3) Wall=20
Street Journal readers and staffers concede that=20
the News Corp. purchase has not destroyed their=20
paper. 4) AOL explores a broad partnership and/or=20
deal with either Microsoft, Google, or Yahoo! 5)=20
Technological issues continue to make cell phones=20
an undernourished and disappointing media=20
platform in America. 6) FCC Chairman Martin's=20
half-a-loaf bid to undo the laws preventing=20
newspapers from owning television stations in the=20
same market goes nowhere. 7) General Electric=20
considers selling NBC Universal. 8) Google takes=20
a first tentative crack at designing an operating=20
platform for cable operators' set-top boxes.
http://www.businessweek.com/magazine/content/07_50/b4062088817684.htm?chan=
=3Dmagazine+channel_opinion

THE CANDIDATE'S 'CATCH ME IF YOU CAN'
[SOURCE: Washington Post 11/30, AUTHOR: Howard Kurtz]
National correspondents are increasingly=20
frustrated by a lack of access to Sen Hillary=20
Clinton (D-NY). They spend much of their time in=20
rental cars chasing her from one event to the=20
next, because the campaign usually provides no=20
press bus or van. Life on the bus means=20
journalists don't have to worry about luggage or=20
directions or getting left behind, since they are=20
part of the official motorcade. News=20
organizations foot the bill for such=20
transportation, but campaigns have to staff and=20
coordinate the buses -- and deal with the=20
constant presence of their chroniclers. With rare=20
exceptions -- John McCain chats endlessly with=20
reporters aboard his bus -- leading presidential=20
candidates take a wary approach to the press,=20
doling out access in carefully limited=20
increments. Journalists sometimes question=20
whether it is worth the time and energy to trail=20
politicians who rarely engage them. In this=20
regard, Clinton differs only in her degree of=20
discipline, honed during eight years of often=20
testy media relations in her husband's White House.
http://www.washingtonpost.com/wp-dyn/content/article/2007/11/29/AR200711...
2165.html
(requires registration)

DEBATES, NOT ISSUES, ARE NEWSMAKERS
[SOURCE: Reuters, AUTHOR: Paul J. Gough]
Ever notice that no matter how much news is made=20
among the candidates this primary season, the=20
debate itself tends to take center stage?
http://today.reuters.com/news/articlenews.aspx?type=3DtelevisionNews&sto...
D=3D2007-12-03T115542Z_01_N02375097_RTRIDST_0_TELEVISION-DEBATES-DC.XML
--------------------------------------------------------------
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.
--------------------------------------------------------------