January 2008

FCC REFORM
Martin: Reagan Counter-Revolutionary

BROADCASTING/CABLE
Dueling Digital TV Studies
PTC to CBS: Don't Air 'Dexter'
McDowell: FCC Must Be 'Very, Very Careful' on a la Carte

SPECTRUM
Spectrum Auction Update: FCC Hits $10B Mark
Why the Airwaves Auction Matters to Progressives
Public interest groups join call for open wireless service
Google Eyes Free Spectrum
FCC's McDowell Against Hard Date for White-Spaces Devices

INTERNET/BROADBAND
Bush Administration: US Broadband Goal Nearly Reached
U.S. tops new tech usage ranking

DIGITAL CONTENT
Rep Bono Mack: Let ISPs probe for pirates
RIAA: No need to force ISPs by law to monitor piracy
Verizon: We don't want to play copyright cop on our network

MEDIA OWNERSHIP
Belo Reveals Details of TV-Newspaper Split
Hedge Fund Defends Actions In Proxy Battle With Media General
Tribune Property Sale

FCC REFORM

MARTIN: REAGAN COUNTER-REVOLUTIONARY
[SOURCE: tvnewsday, AUTHOR: Kim McAvoy]
Much to the chagrin and surprise of many old-guard Reaganites,
Republican Federal Communications Commission Chairman Kevin Martin
has emerged as one of the most regulatory chairmen in decades. Since
assuming the chairmanship three years ago, Martin has been
aggressively pushing a government-knows-best agenda designed not only
to referee inter-industry relations, but also to shape the content of
broadcasting and cable. His prime target has been cable, but in
recent months, he has turned his sights to broadcasting in an effort
to encourage more local programming. Such regulatory burdens were
cast off during the Reagan Revolution of the 1980s. The idea of
bringing them back is all too much for the man who led that
revolution at the FCC, then-Chairman Mark Fowler. Martin's regulatory
agenda is leading to his increasing isolation. The Democrats on the
Hill will not forgive him for relaxing the newspaper-broadcast
crossownership rule, and neither will liberal media activists. Cable
animosity for Martin has grown to such a point that its chief
lobbyist, National Cable & Telecommunications Association President
Kyle McSlarrow, doesn't shy away from blasting away at Martin in
public. He has nothing to lose. Broadcasters have resented Martin for
what they believe is overzealous indecency enforcement, and they are
increasingly concerned about the localism initiatives.
http://www.tvnewsday.com/articles/2008/01/30/daily.5/

BROADCASTING/CABLE

DUELING DIGITAL TV STUDIES
Consumer Reports and the National Association of Broadcasters
released studies on Americans' awareness and understanding of the
digital television transition in advance of a consumer workshop to be
held by the Federal Communications Commission today.
* Digital Transition Still Foreign To Many TV Viewers
[SOURCE: Multichannel News, AUTHOR: R. Thomas Umstead]
With the transition to digital television looming, nearly one-third
of Americans with analog televisions are unaware of the Feb. 17, 2009
transition and nearly three quarters have major misconceptions about
its impact, according to a Consumer Reports national research study.
The study found that of those with at least one TV affected by the
digital transition, nearly two-thirds (61%) incorrectly believe they
are not affected, do not know that they are affected or are
completely unaware of the transition, which on Feb. 17, 2009 will end
"analog" broadcasts on television in favor of digital signals. Also,
close to one third (31%) of Americans in households that will have no
functioning television after Feb. 17, 2009 were completely unaware
the transition was happening. Among those consumers surveyed by
Consumer Reports aware of the transition, more than half (58%)
believe all TVs will need a digital converter box to function; 48%
believe that only digital televisions will work after 2009; and 24%
believe they will need to throw away all of their analog television
sets. None of those things are true. According to the poll, 15% of
Americans live in households that rely exclusively on over-the-air programming.
http://www.multichannel.com/article/CA6527260.html?nid=4262
* U.S. consumers aware but confused over TV switchover
"As (the broadcasters' survey) notes, the fact that more Americans
are aware of the upcoming transition is a big step in the right
direction," Federal Communications Commission Chairman Kevin Martin
said in a statement. "It is equally important, however, as
highlighted by Consumers Union, that consumers understand how to be
prepared," he added.
http://www.reuters.com/article/domesticNews/idUSN3023341820080130
* Awareness of DTV Transition Reaches 79%
[SOURCE: Media Week, AUTHOR: John Consoli]
About 78 percent of all consumers are aware of the federally-mandated
transition to digital television, which will take place on Feb. 17,
2009, according to a recent survey commissioned by the National
Association of Broadcasters. The survey included a national sample of
television households, including those that do not subscribe or have
access to cable signals and who rely solely on over-the-air TV
signals. In fact, according to the survey, awareness was greater
among exclusively over-the-air households, where 83 percent of
respondents reported that they are aware of the transition. According
to the NAB, awareness of the transition has more than doubled since Jan. 2007.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=10037...
* NAB's Digital TV Study 'Suspect'
[SOURCE: TVpredictions, AUTHOR: Phillip Swan]
[Commentary] According to an article by TWICE Magazine, the National
Association of Broadcasters reports that 79 percent of consumers say
they have "seen, read or heard something about the Feb. 17, 2009,
transition to digital television." A similar NAB survey conducted in
January 2007 found that only 38 percent of people expressed awareness
of the transition. The NAB study said the new study includes viewers
who rely on off-air TV antennas to get their signals, the group
that's most likely to need the converter boxes. In fact, the NAB says
83 percent of that group say they've heard of the transition. Local
stations began airing NAB-produced Public Service Announcements on
the Digital TV transition in response to lawmakers who said they
weren't doing enough to educate their viewers. The NAB does not say
if consumers know what they need to do to prepare for the transition
-- only that they've "seen, read or heard" something about it. That's
meaningless. Ask any group of people if they've "seen, read or heard"
about almost anything and they will answer yes. What good is that?
The real question is whether they are taking steps to be ready for
the transition, which is highly doubtful. (Plus, studies by more
objective sources have shown that consumer awareness of the Digital
TV transition may be 50 percent of what the NAB says it is.) I am
also suspicious that the NAB suddenly produces a study saying that
their local stations' PSA announcements have been effective. In the
research industry, you can get a study to say almost anything you
want by simply phrasing the questions the right way. Or, by not
asking certain questions that might produce an unwanted response. I
suspect that's what happened here.
http://phillipswann.c.topica.com/maajMzjabEAFXbsRVLVeaeQCSn/http://www.t...

* FCC Commissioner Adelstein
"The good news is that surveys from Consumers Union and the broadcast
industry show that more Americans are becoming aware of the DTV
transition. The bad news is there is still a lot of confusion that
could turn into widespread panic if the government doesn't take a
more proactive role. The FCC needs to present a comprehensive
strategy -- a DTV State of the Union -- about how it plans to provide
better guidance to the American people. We need to coordinate and
work closer with the broadcast, cable, satellite and consumer
electronic industries to ensure that no household is left confused by
the DTV transition. The word is getting out, but we need a more
coherent message to align the mixed signals people are getting."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-279893A1.doc

PTC TO CBS: DON'T AIR 'DEXTER'
[SOURCE: tvnewsday]
The Parents Television Council called on CBS to cancel its plans to
air Dexter, a graphically violent show with a serial killer as its
main character, that has aired on premium cable network Showtime for
two seasons and is scheduled to begin airing on CBS on Sunday, Feb.
17. "This show is not suitable for airing on broadcast television; it
should remain on a premium subscription cable network. The biggest
problem with the series is something that no amount of editing can
get around: the series compels viewers to empathize with a serial
killer, to root for him to prevail, to hope he doesn't get
discovered. Dexter introduces audiences to the depths of depravity
and indifference as it chronicles the main character's troubled quest
for vigilante justice by celebrating graphic, premeditated murder."
http://www.tvnewsday.com/articles/2008/01/30/daily.16/

MCDOWELL: FCC MUST BE 'VERY, VERY CAREFUL' ON A LA CARTE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission member Robert McDowell said he sees
the media landscape moving toward a market-driven a la carte world,
"with consumers picking the hour, place and time for accessing
content." He said the pricing of pay video services is a "fragile
economic ecosystem" and the FCC needs to be "very, very careful" as
it considers trying to unbundle cable service at the wholesale level.
He added that after talking with a number of people, he isn't sure
anyone completely understands that marketplace.
http://www.broadcastingcable.com/article/CA6527373.html?rssid=193

SPECTRUM

SPECTRUM AUCTION UPDATE: FCC HITS $10B MARK
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
After 14 rounds in the Federal Communications Commission's
700-megahertz spectrum auction, total bidding stands at $10.1
billion, including a $4.29 billion bid for the C block of 50-state
licenses. The floor price for that block is $4.6 billion. The C block
of 50-state spectrum licenses especially packaged for a national
network now looks certain to meet the floor price, which means that
it won't have to re-auctioned and open-access conditions that were
placed on the block won't be removed. But another block of licenses
for a national network continued to draw no new bids for the 11th
round in a row. The so-called D block bid still stood at $472
million, far short of its $1.3 billion floor price. The commission
continued to hold at a minimum bid of $519 million for the next
round. If any of the five blocks of spectrum do not meet their floor
bids, they will be re-auctioned.
http://www.broadcastingcable.com/article/CA6527217.html
* Public-Safety Airwaves Have Just One Suitor
http://www.washingtonpost.com/wp-dyn/content/article/2008/01/30/AR200801...
(requires registration)

WHY THE AIRWAVES AUCTION MATTERS TO PROGRESSIVES
[SOURCE: The Huffington Post, AUTHOR: Tim Karr]
[Commentary] Believe it or not, we're eight years into the 21st
century and more than half of the people in America have either no
Internet access at home or are stuck on dial-up. In the meantime,
countries in Asia and Europe have outpaced us with faster connections
at far cheaper prices. This situation is unacceptable, but there's
still reason to hope that we can regain our spot as a world leader in
Internet services. Much of this rests on the outcome of a complex
airwaves auction that began less than a week ago.
http://www.huffingtonpost.com/timothy-karr/why-the-airwaves-auction-_b_8...

PUBLIC INTEREST GROUPS JOIN FOR OPEN WIRELESS SERVICE
[SOURCE: The Hill, AUTHOR: Kevin Bogardus]
Free Press is using a Federal Communication Commission spectrum
auction initiated last week to push for broader changes to the FCC's
policy on wireless use. As part of its sale of the 700 MHz spectrum,
considered beachfront property on the radio band, the FCC placed
specific conditions for use on the section of the spectrum known as
the C Block. Companies that buy up portions of that block must open
up their networks so that consumers can use any wireless device or
software they may want. Under these rules, customers who purchased a
Samsung cell phone, for example, could use a variety of wireless
networks. wants the FCC's spectrum auction rules to expand beyond
just the C Block to the entire cell phone world. The watchdog group
argues that cell phone providers have too closely controlled how
their customers access the Internet. "It is pure consumer choice,"
said Ben Scott, Free Press's policy director. "On one hand, we should
be able to choose any device that you want. On the other hand, we
should be able to choose any network that you want."
http://thehill.com/the-executive/public-interest-groups-join-call-for-op...
* Tech companies trying open spectrum too much
Scott Cleland of The Precursor Group believes things like net
neutrality and open access are suppressing bids and limiting the use
for wireless spectrum.
http://www.infoworld.com/article/08/01/30/Critic-says-tech-companies-try...

GOOGLE EYES FREE SPECTRUM
[SOURCE: Forbes.com, AUTHOR: Elizabeth Woyke]
Google intends to be a big player in the airwaves. At the recent
World Economic Conference in Davos, Chief Executive Eric Schmidt said
that mobile devices with location-based advertising could spark a
"huge revolution," more interesting than the personal computer. But
along with taking part in the FCC's auction, Google has also been
trying to get into the so-called "white space"--slivers of
unlicensed, unused spectrum that lie between television channels. And
that makes the telcos nervous. The white space channels were
originally designed to prevent radio waves on adjoining channels from
bleeding into each other. They're considered too narrow to be
auctioned off. Even so, they're in a choice portion of the spectrum
where analog television currently lives, an area that could be used
for data services, much like the 700 MHz spectrum. Use--if
approved--would begin in February 2009.
http://www.forbes.com/2008/01/30/spectrum-auction-google-tech-wire-cx_ew...

FCC'S MCDOWELL AGAINST HARD DATE FOR WHITE-SPACE DEVICES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission member Robert McDowell said
Wednesday that he did not think there should be a hard date for
allowing unlicensed devices to use the so-called white spaces between
digital-TV channels. The FCC is in a second round of testing on the
devices, and Commissioner McDowell pointed out that the first round
didn't go very well. He said he wants science to drive the decision,
adding that the FCC was hoping to move testing out of the lab and
into people's homes in the next few weeks and months.
http://www.broadcastingcable.com/article/CA6527369.html?rssid=193

INTERNET/BROADBAND

BUSH ADMINISTRATION: US BROADBAND GOAL NEARLY REACHED
[SOURCE: Associated Press, AUTHOR: John Dunbar]
The National Telecommunications and Information Administration, an
agency within the Commerce Department that acts as the president's
principal adviser on telecommunications and information policy
issues, has released a report, Networked Nation: Broadband in
America, that offers an upbeat assessment of the Administration's
efforts to spur growth and competition in the high-speed Internet
market. Critics said the report's conclusion is too rosy. The report
concludes that "a reasonable assessment of the available data
indicates" that the objective of affordable access to broadband for
all by 2007 has been realized "to a very great degree." The report
relies on data from the Federal Communications Commission and other
sources. The FCC reported that at least one person in more than 99
percent of all U.S. ZIP codes received broadband service from at
least one provider by the end of 2006. The report paints a picture of
a broadband environment that is becoming increasingly competitive,
for which it credits the president's policies. President Bush has
promoted polices that created "an environment in which broadband
innovation and competition can flourish," the report states. Among
them: a freeze on state and local taxes on Internet access; a policy
of clearing airwaves for use by commercial providers of wireless
broadband service; and continuing efforts to "clear away regulatory
obstacles" that might thwart investment in new technologies.
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/01/30/national/w15...

US TOPS NEW TECH USAGE RANKING
[SOURCE: Reuters, AUTHOR: Tarmo Virki]
The United States, Sweden and Japan topped a new ranking that
measures how well countries use telecommunications technologies --
networks, cell phones and computers -- to boost their social and
economic prosperity. Connectivity Scorecard, created by London
Business School professor Leonard Waverman, and published on
Wednesday, measured countries on around 30 indicators including usage
of communications technology. The Connectivity Scorecard measures the
extent to which governments, businesses and consumers make use of
connectivity technologies -- the copper wires, fiber-optic lines,
mobile phones and PCs that underpin today's information economy -- to
enhance social and economic prosperity.The study said the top-ranking
United States, which has benefited the most from ICT, was rated below
7 out of 10, mostly due to weak usage of vast broadband networks,
indicating there is room for improvement for all countries. "These
results indicate an opportunity for countries to add hundreds of
billions of dollars in economic benefit by rethinking how they
measure and enable connectivity," the study said. Russia topped the
list for developing countries, way ahead of China or India.
http://www.reuters.com/article/technologyNews/idUSL2957064020080130
* For more see:
http://www.nokiasiemensnetworks.com/global/IndustryThemes/ConnectivitySc...

DIGITAL CONTENT

REP BONO MACK: LET ISPs PROBE FOR PIRATES
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Rep. Mary Bono Mack (R-CA) says that Congress must not interfere with
Internet service providers that are trying to filter pirated content
from their networks. "I believe the best chance we have for achieving
any success against digital piracy is to allow those entities and
individuals who manage networks to have the flexibility and agility
to take necessary and lawful steps to stop piracy online before it
starts," said the widow of singer Sonny Bono, who recently took on
the new last name when she married fellow Republican congressman
Connie Mack of Florida. "The battle against digital piracy is a very
fluid exercise. Network operators and digital-property owners should
be free to experiment with and develop antipiracy technologies."
http://www.news.com/8301-10784_3-9861240-7.html?part=rss&subj=news&tag=2...

RIAA: NO NEED TO FORCE ISPs BY LAW TO MONITOR PIRACY
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
It's no secret that Recording Industry Association of America
President Cary Sherman despises piracy, and he's a vocal fan of
proposed laws that would beef up penalties for copyright infringers.
But here's one area where he says the government need not intervene
at this point: forcing Internet service providers to be more
proactive in curbing pirated content on their networks. "I don't
think anyone here is trying to re-legislate this issue," Sherman,
said at an Internet policy conference here on Wednesday. "We're much
more interested in finding a marketplace way of going about this."
http://www.news.com/8301-10784_3-9861460-7.html?tag=nefd.top

VERIZON: WE DON'T WANT TO PLAY COPYRIGHT COP ON OUR NETWORK
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
AT&T may be flirting with filters designed to ferret out pirated
material on its network, but Verizon Communications isn't interested.
It's not that Verizon doesn't believe that it's vitally important to
protect intellectual property, said Executive Vice President Tom
Tauke. Rather, the company is concerned that inspecting individual
packets, as rival AT&T is currently testing, poses potential dangers
to consumer privacy and opens up a host of other potential watchdog
duties that Verizon isn't keen on undertaking. "From a business
perspective, we really don't want to assume the role of being police
on the Internet," said Tauke, a former Iowa Republican congressman.
"We are leery of using these technologies on our networks."
http://www.news.com/8301-10784_3-9861402-7.html?tag=nefd.top

MEDIA OWNERSHIP

BELO REVEALS DETAILS OF TV-NEWSPAPER SPLIT
[SOURCE: TVWeek, AUTHOR: Michele Greppi]
Belo Chairman-CEO Robert Decherd expressed confidence that the plan
to split the group's assets into separate TV and newspaper companies
will be good for both entities. The split "will allow us to focus
more narrowly and efficiently on our two discrete businesses,"
Decherd said Wednesday at a presentation of Belo strategic overviews
in New York. "This transaction will provide shareholders with greater
insight into each business, allowing investors to make decisions most
appropriate for their portfolio. "In the long term, we believe that
[TV-centric] Belo Corp. and [newspaper-centric] A.H. Belo will be
better positioned as stand-alone companies, each possessing
outstanding assets in highly attractive markets capable of supporting
future growth and innovation, which will lead to greater shareholder
value creation," he said. When the spinoff is complete, Belo Corp.
will be one of the nation's largest pure-play, publicly traded
television companies, with annual revenues of approximately $775
million. The company owns and operates 20 TV stations and their
associated Web sites, reaching more than 14% of U.S. TV households in
15 markets. The company also has leveraged its local television
assets to create regional cable news channels in Texas and the Northwest.
http://www.tvweek.com/news/2008/01/belo_reveals_details_of_tvnews.php
(requires free registration)

HEDGE FUND DEFENDS ACTIONS IN PROXY BATTLE WITH MEDIA GENERAL
[SOURCE: Associated Press]
Harbinger Capital Partners defended its plan to nominate members to
Media General's board of directors. The investment group holds an
18.4 percent stake of Class A stock in the company and said its
action last week was neither hostile nor ill-advised as characterized
in a statement by Marshall N. Morton, Media General's president and
chief executive officer. "We have a history of providing long-term
support to companies that face serious challenges or are out of favor
in the investing community," Philip A. Falcone, the group's portfolio
manager, wrote in a letter sent to Morton and filed with the U.S.
Securities and Exchange Commission. Falcone wrote that Media
General's stock has declined 39 percent since it first invested in
the company and said he hopes changes to the board will help improve
profitability.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...

TRIBUNE PROPERTY SALE
[SOURCE: Los Angeles Times, AUTHOR: Roger Vincent]
The original Warner Bros. studio in Hollywood, now home to KTLA-TV
Channel 5 and other Tribune Co. entertainment companies, was sold for
$125 million Wednesday to a Los Angeles real estate investment firm.
Hudson Capital, which owns Sunset Gower Studios a few blocks away,
completed the expected purchase from Tribune, Hudson managing partner
Victor Coleman said. Chicago-based Tribune owns KTLA, the Los Angeles
Times and other media outlets. It was the first major sale of Tribune
property since Chicago real estate mogul Sam Zell took over the
company last month. Tribune said it would use the money from
Wednesday's sale, plus an additional $50 million from other sales, to
buy six other properties, including the downtown Los Angeles
headquarters of The Times, for a total of $175 million. The
properties are now owned by a trust held by members of the Chandler
family, which once owned The Times. They also include buildings that
are home to the Baltimore Sun, the Hartford Courant and Newsday. The
properties have been leased to Tribune since it bought Times Mirror
Co. in 2000.
http://www.latimes.com/business/printedition/la-fi-ktla31jan31,1,5769774...
(requires registration)
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