January 2008

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GOVERNMENT & COMMUNICATIONS
GOP Unable to Force Vote on Bush Surveillance Bill
Greater Use of Privilege Spurs Concern
Is mobile network big brother surveillance tool?

ELECTIONS & MEDIA
Political Ad Spending Less Than Expected
Clinton Finishes Third in Battle for Campaign Coverage (But it=92s Bill!!!)

SPECTRUM
Spectrum Auction Update: $6.1B in Total Bids Through Round Eight

INTERNET/BROADBAND
Keeping a lid on broadband
What if the Internet went down...and didn't come back up?

BROADCASTING
Praise, Criticism for FCC "NYPD Blue" Decision
TV Watching About the Same as Before WGA Strike, Survey Says

TELECOM
District Court Bars the Sale of Consumers=92 Telephone Records to Third Pa=
rties

QUICKLY -- Key Accomplishments of the House=20
Subcommittee on Telecommunications; Music=20
industry tries carrot after years of stick;=20
Former FCC Chairman Powell Endorses McCain

GOVERNMENT & COMMUNICATIONS

GOP UNABLE TO FORCE VOTE ON BUSH SURVEILLANCE BILL
[SOURCE: Washington Post, AUTHOR: Paul Kane]
The Senate yesterday left the fate of a new=20
electronic surveillance law backed by the Bush=20
administration up in the air, as a Republican-led=20
effort to cut off a Democrat-led debate and=20
proceed to a vote on the bill failed, mostly=20
along party lines. Heightening the drama=20
surrounding expiration of the existing=20
surveillance law at midnight Thursday, the Senate=20
also failed to approve a Democratic effort to=20
extend the deadline by 30 days -- a move that the=20
White House has opposed because the law already=20
was extended last summer for a six-month run. "To=20
protect America, we need to know who the=20
terrorists are talking to, what they are saying,=20
and what they are planning," President Bush said=20
last night in his State of the Union speech to=20
Congress. "This means that if you do not act by=20
Friday, our ability to track terrorist threats=20
will be weakened." Congress broadly supports=20
passing a new version of the controversial=20
legislation at issue, named the Protect America=20
Act by its sponsors. But congressional Democrats=20
and the White House are battling over President=20
Bush's demands that any bill include immunity for=20
telecommunications companies that cooperated with=20
intelligence agencies in warrantless wiretaps=20
after the attacks of Sept. 11, 2001. The=20
telecommunications companies are now the targets=20
of dozens of lawsuits alleging that they violated=20
privacy rights by aiding the government's surveillance.
http://www.washingtonpost.com/wp-dyn/content/article/2008/01/28/AR200801...
2557.html
(requires registration)
* Wiretapping debate in Congress resumes Tuesday
http://www.news.com/8301-13578_3-9859982-38.html?tag=3Dnefd.top
* Wiretrapped
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
"Let's debate right up to November whether judges=20
should have to give their approval before our=20
spooks can listen in on al Qaeda. Then maybe the=20
American people can decide if holding our=20
war-fighting capability hostage to the left and=20
the tort bar makes them feel safer."
http://online.wsj.com/article/SB120156604267623753.html?mod=3Dtodays_us_...
nion
(requires subscription)

GREATER USE OF PRIVILEGE SPURS CONCERN
[SOURCE: Washington Post, AUTHOR: Josh White]
The U.S. government has been increasing its use=20
of the state secrets privilege to avoid=20
disclosure of classified information in civil=20
lawsuits, prompting legislation in the Senate=20
that would provide more congressional oversight=20
of the practice. Though there have been modest=20
increases in the use of the state secrets=20
privilege every decade since the 1960s, some=20
legal scholars and members of Congress contend=20
that the Bush administration has employed it=20
excessively as it intervened in cases that could=20
expose information about sensitive programs.=20
These include the rendition of detainees to=20
foreign countries for interrogation and cases=20
related to the National Security Agency's use of=20
warrantless wiretaps. The privilege allows the=20
government to argue that lawsuits -- and the=20
information potentially revealed by them -- could=20
damage national security. It gives judges the=20
power to prevent information from reaching public=20
view or to dismiss cases even if they appear to have merit.
http://www.washingtonpost.com/wp-dyn/content/article/2008/01/28/AR200801...
2430.html
(requires registration)
* The US federal government is given increased=20
authority to monitor the Internet
[SOURCE: C-Net|News.com, AUTHOR: Matt Asay]
[Commentary] Earlier this month President Bush=20
signed a directive that gives the National=20
Security Agency (NSA) and other intelligence=20
agencies to monitor Internet traffic to protect=20
all government computer systems. As the=20
Washington Post reports, this is causing=20
particular concern because the NSA's focus has=20
traditionally been on overseas activity, not domestic.
http://blogs.cnet.com/8301-13505_1-9859242-16.html?tag=3Drsspr.6228017&p...
=3Drss&subj=3Dnews

IS MOBILE NETWORK BIG BROTHER SURVEILLANCE TOOL?
[SOURCE: China Post, AUTHOR: Adam Plowright, AFP]
Serious concerns were raised in Davos last week=20
about the ability of the Chinese government to=20
spy on the country's 500 million mobile phone users.
The head of China's biggest mobile phone company,=20
which has more than 300 million subscribers,=20
stunned delegates by revealing that the company=20
had unlimited access to the personal data of its=20
customers and handed it over to Chinese security=20
officials when demanded. The admission, described=20
as "bone-chilling" by U.S. Congressman Ed Markey=20
(D-MA), sent shivers through an audience of=20
telecom experts at the World Economic Forum who=20
immediately saw the potential for misuse and=20
surveillance. "We know who you are, but also=20
where you are," said the CEO of China Mobile=20
Communications Corporation, Wang Jianzhou, whose=20
company adds six million new customers to its=20
network each month and is already the biggest=20
mobile group in the world by users. He was=20
explaining how the company could use the personal=20
data of its customers to sell advertising and=20
services to them based on knowledge of where they=20
were and what they were doing. When pressed about=20
the privacy and security implications of this, he=20
added: "We can access the information and see=20
where someone is, but we never give this=20
information away ... only if the security authorities ask for it."
http://www.chinapost.com.tw/china/2008/01/28/140851/Is-mobile.htm

ELECTIONS & MEDIA

POLITICAL AD SPENDING LESS THAN EXPECTED
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz and Jonathan Lemonnier]
There are growing indications that the pace of=20
political ad spending is starting to slip as the=20
presidential candidates ramp up for the biggest=20
day in the primary season Feb. 5. At the same=20
time, both Hillary Clinton and Barack Obama=92s=20
campaigns have started asking about buying=20
national advertising time on broadcast TV=20
networks. Traditionally, TV ad buys for the=20
presidential primaries have been the exclusive=20
purview of local TV stations and spot cable. With=20
more than 20 states slated to hold primaries and=20
caucuses Feb. 5 political observers and media=20
trackers had expected both Democrats and=20
Republicans to be spending aggressively on local=20
TV outlets. The Clinton and Obama campaigns are=20
doing just that, but Republicans appear to be=20
falling far short of projections. The result:=20
Unless there are drastic changes, overall=20
spending post-New Hampshire could be closer to=20
$50 million than the early projected $80 million.=20
Forty million dollars of that spending now is=20
expected on the Democratic side alone.
http://www.tvweek.com/news/2008/01/political_ad_spending_less_tha.php
(requires free registration)

CLINTON FINISHES THIRD IN BATTLE FOR CAMPAIGN COVERAGE (BUT IT'S BILL)
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
=93I can't tell who I'm running against sometimes,=94=20
said Sen Barack Obama (D-IL) last week. It was a=20
reference to the aggressive campaigning before=20
the Jan. 26 South Carolina Democratic primary by=20
both Hillary and Bill Clinton. Last week=92s=20
election coverage suggests he had a point.=20
Although the landslide winner in South Carolina=20
was the leading newsmaker of the week, he was=20
certainly outdone in the race for media exposure=20
by the Clinton tag team. Obama edged Hillary=20
Clinton by the narrowest of margins. But her=20
surrogate and husband=97whose aggressive attacks on=20
Obama and increasingly conspicuous role have been=20
manna for political pundits=97was the third-most=20
prominent newsmaker in the race for President=20
last week, January 21 through 27. That period=20
began two days after the Nevada caucuses and=20
ended the day after the Democrats=92 South Carolina=20
primary. The man who would be First Spouse made=20
more news last week than any Republican, or than=20
the other Democratic contender, John Edwards.
http://www.journalism.org/node/9512

SPECTRUM

SPECTRUM AUCTION UPDATE: $6.1B IN TOTAL BIDS THROUGH ROUND EIGHT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The bids for a block of spectrum that could be=20
used for a new, nationwide wireless network=20
continued to rise Monday, with the top bid in the=20
eighth round of the Federal Communications=20
Commission auction reaching $2.976 billion and=20
the new minimum bid for round nine, which begins=20
Tuesday morning, set at $3.419 billion. After=20
eight rounds Monday, the bid total for all five=20
blocks of spectrum up for grabs was $6.1 billion=20
for all five blocks -- well more than halfway to=20
the $10 billion total the FCC must take in from=20
its auction of 700-megahertz spectrum, which is=20
being reclaimed in the switch to digital TV. But=20
while the so-called C block of spectrum continued=20
to draw interest and push toward the minimum bid=20
of $4.6 billion, another national license that=20
must be shared with first-responders was stuck at=20
the same bid price. The bid for that so-called D=20
block of spectrum was $472 million -- the same as=20
it has been since round 2 -- with the minimum bid=20
set at $519 million. That was the same it was for=20
round 7, but it had previously been reduced=20
several times. The final bid for the D block must=20
be well over $1 billion or the FCC will reauction=20
that block of spectrum, as it will any of the=20
other five blocks that don't meet their minimums.
http://www.broadcastingcable.com/article/CA6526496.html?rssid=3D193
* FCC's Auction: Not Going According to Plan?
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif]
Now that various players have had four days to=20
place bids for various chunks of airwaves that=20
the Federal Communications Commission (FCC) made=20
available in Auction 73, it appears this auction=20
isn't going according to FCC=92s plan. But Kharif=20
went back to look at what bidding looked like at=20
FCC=92s Auction 66 -- another overhyped auction of=20
wireless airwaves that took place back in 2006.=20
That auction ended up netting nearly $14 billion=20
after 161 rounds of bidding that took place over=20
29 days. At Auction 66, initial bids were also=20
quite low, but kept rising at double digits after=20
each round. Back then, it also became clear=20
relatively quickly which pieces of spectrum the=20
buyers were after, and which pieces of spectrum=20
no one wanted to touch. If Auction 73 proves to=20
be at all similar to Auction 66, open wireless=20
networks initiatives may be in trouble. Right=20
now, bidders don't seem to be overly excited=20
about chunks of spectrum with the FCC-mandated=20
open provisions. Bidding on the C and D blocks is=20
going slowly. Already, analysts speculate that=20
block D may end up without any takers. As=20
wonderful as open network ideas may sound to=20
consumers, it appears that they don't sound like=20
music to the ears of wireless businesses -- at=20
least, at this stage of the bidding game.
http://www.businessweek.com/the_thread/techbeat/archives/2008/01/fccs_au...
on_no.html?campaign_id=3Drss_blog_techbeat

INTERNET/BROADBAND

KEEPING A LID ON BROADBAND
[SOURCE: ComputerWorld, AUTHOR: Robert L. Mitchell]
Deregulation of telecommunications has been=20
nothing less than an unmitigated disaster for=20
U.S. businesses. If the broadband mess isn't=20
hurting your business today, it soon will be.=20
It=92s time to do something about it. In 1996, the=20
government agreed to free the Baby Bells to=20
compete in the long-distance market if they met=20
certain conditions. Among other things, the Bells=20
promised to share their facilities with other=20
providers and pledged to run fiber to every home.=20
=93Almost every one of them reneged on their=20
promises,=94 says David Passmore, an analyst at=20
Burton Group. Ironically, the rate relief the=20
carriers were given over the years in return for=20
their empty promises -- by some estimates as high=20
as $70 billion -- would have gone a long way=20
toward running fiber to every home in the U.S.=20
=93The politicians gave away the store, and all of=20
the networks that were paid for by the rate=20
[payers] were handed over to the Verizons of the=20
world,=94 says Passmore. Businesses should pressure=20
the telecommunications/cable duopoly and=20
regulators to make a competitively priced,=20
nationwide, guaranteed 100Mbit/sec. broadband=20
infrastructure a priority -- and 1Gbit/sec. the=20
goal. Furthermore, all ISPs should be required to=20
contribute to the Universal Service Fund just as=20
land-line carriers do. Unless those subsidies are=20
replenished, high-speed Internet access will=20
never be fully extended to the 20% of businesses=20
and homes in rural areas left behind by the=20
market. Business also has a stake in promoting=20
Net neutrality. You -- not the telecommunications=20
or cable TV companies -- should control your=20
content. Finally, businesses should demand that=20
the FCC require the winning bidders in this=20
month=92s auction for 700-MHz spectrum (which=20
television broadcasters will abandon in 2009)=20
provide open access. A clear separation of the=20
basic Internet access infrastructure from the=20
services that ride upon it is the only way to=20
prevent today=92s carriers and cable companies from=20
continuing to act as gatekeepers to the Internet=20
-- and stifling innovation in an Internet economy=20
that will be critical to U.S. business growth in the future.
http://www.computerworld.com/action/article.do?command=3DviewArticleBasi...
rticleId=3D310785&source=3Drss_news50

WHAT IF THE INTERNET WENT DOWN... AND DIDN'T COME BACK UP?
[SOURCE: NetworkWorld, AUTHOR: Lynn Greiner, CIO.com]
[Commentary] Imagine, if you will, a world with=20
no Internet. No e-mail. No e-commerce. And no=20
BlackBerrys. E-mail would be supplanted by snail=20
mail; cell phones by land lines. Now imagine what=20
the future would look like. Futurists say virtual=20
business services of all sorts, accounting,=20
payroll and even sales would come to a halt, as would many companies.
http://www.networkworld.com/news/2008/012208-internet-went-down.html

BROADCASTING

PRAISE, CRITICISM FOR FCC "NYPD BLUE" DECISION
The Parents Television Council, which has been=20
feeling like a red-headed stepchild of late due=20
to the Federal Communications Commission's=20
relative quiet on indecency enforcement, praised=20
the Commission's proposed $1.4 million fine=20
against ABC stations for a Feb. 25, 2003, episode=20
of NYPD Blue. PTC president Tim Winter was quick=20
to try to leverage that move, saying that ABC=20
parent Disney should "step up" and pay the fine=20
-- due Feb. 11 -- and that Congress should take=20
action on a stalled bill that would give the FCC=20
express authority to go after fleeting nudity and=20
profanity. The American Civil Liberties Union, a=20
longtime critic of government regulation of=20
expression, labeled the FCC's latest fine=20
"paternalism at its worst." =93This is just another=20
government attempt to trump our own good judgment=20
and determine what we=92re mature enough to see,"=20
ACLU counsel James Tucker said in a statement=20
Monday. "NYPD Blue aired well past the bedtime of=20
most children -- at 10 p.m. in most markets. Only=20
those affiliates that aired the program between=20
the hours of 6 p.m.-10 p.m. would be subject to=20
the fine, which just goes to show the fickle=20
nature of the FCC=92s rules. By their logic, airing=20
a shot of a bare behind at 10:30 p.m. is fine,=20
but the same shot at 9:30 p.m. is worth millions=20
in fines and penalties." He continued, =93It=92s also=20
worth noting that ABC included a warning before=20
NYPD Blue indicating that the program was=20
intended for mature audiences only. Such warnings=20
allow audiences to decide for themselves whether=20
they want to see the content or permit their=20
children to see the content. Instead, the=20
government is stepping in to chill free speech=20
and the free expression of ideas by =91parenting the parents.=92"
PTC Praises FCC=92s Proposed NYPD Blue Fine
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6526181.html?rssid=3D193
* PTC statement
http://www.parentstv.org/PTC/publications/release/2008/0125.asp
* ACLU Lashes Out at FCC for NYPD Blue Fine
http://www.broadcastingcable.com/article/CA6526436.html?rssid=3D193
* ACLU statement
http://www.aclu.org/freespeech/33823prs20080128.html

TV WATCHING ABOUT THE SAME AS BEFORE WGA STRIKE, SURVEY SAYS
[SOURCE: TVWeek, AUTHOR: Jon Lafayette]
Most viewers say they are watching the same=20
amount of television as they did before the=20
Writers Guild of America strike began, according=20
to a new survey conducted for ad buyer Carat: 72%=20
said they were watching the same amount of=20
prime-time TV as they did before the strike,=20
while 25% said they were watching less. The other=20
3% said they were watching more TV. But consumers=20
are changing what they=92re watching in prime time=20
when new episodes of their favorite shows aren't=20
available. Only 16% of those surveyed said they=20
would watch repeats of their favorite shows.=20
Among those who said they wouldn't or might not=20
watch reruns, 54% said they would go online; 51%=20
said they would channel-surf until they found=20
something else to watch; 42% said they would rent=20
or watch DVDs; 38% said they would watch DVDs=20
they already owned; 32% said they would watch=20
other prime-time shows; and 20% said they would play video games.
http://www.tvweek.com/news/2008/01/tv_watching_about_the_same_as.php
(requires free registration)

TELECOM

DISTRICT COURT BARS THE SALE OF CONSUMERS' TELEPHONE RECORDS TO THIRD PARTI=
ES
[SOURCE: Federal Trade Commission press release]
A federal judge has barred the illegal operation=20
of an information broker who advertised and sold=20
confidential consumer telephone records to third=20
parties without the consumers=92 knowledge or=20
consent. In entering summary judgment for the=20
Federal Trade Commission, Judge William F. Downes=20
of the U.S. District Court for the District of=20
Wyoming also required the defendants to give up=20
nearly $200,000 in ill-gotten gains derived from=20
the consumer phone records they sold, and ordered=20
that the individuals whose records were sold be=20
notified. In his ruling, Judge Downes found that=20
the defendants=92 obtaining and selling of=20
confidential phone records without consumers=92=20
knowledge or consent was =93necessarily=20
accomplished through illegal means,=94 and that=20
defendants knew that the phone records were being=20
obtained surreptitiously. The court further found=20
that this practice caused substantial injury to=20
consumers, including: serious health and safety=20
risks experienced by some consumers from stalkers=20
and abusers; economic harm associated with=20
changing telephone carriers and upgrading=20
security on their accounts; and a host of=20
=93substantial and real=94 emotional harms. The court=20
concluded that consumers had no way to avoid=20
these harms. =93In fact,=94 Judge Downes wrote, =93the=20
evidence presented before the court indicates=20
that confidential consumer phone records were=20
sold through Abika.com despite considerable=20
efforts by consumers to maintain the privacy of=20
those records.=94 Finally, the court found no=20
countervailing benefits to consumers or=20
competition that could be derived from defendants=92 practice.
http://www.ftc.gov/opa/2008/01/telrec.shtm
* Update: Court bars company from online sale of phone records
http://www.infoworld.com/article/08/01/28/Court-bars-company-from-online...
le-of-phone-records_1.html

QUICKLY

KEY ACCOMPLISHMENTS OF THE HOUSE SUBCOMMITTEE ON=20
TELECOMMUNICATIONS AND THE INTERNET
[SOURCE: House of Representatives Commerce Committee]
The House Commerce Committee wants you to know=20
what it has been doing on your behalf for the=20
last year. Highlighted accomplishments of the=20
Telecommunications and the Internet Subcommittee=20
include the Broadband Census of America Act of=20
2007 (H.R. 3919), the Proper Forbearance=20
Procedures Act of 2007 (H.R. 3914) and oversight=20
of the Federal Communications Commission and the digital television transit=
ion.
http://energycommerce.house.gov/membios/110-cmte_accomplishments-TI.shtml

MUSIC INDUSTRY TRIES CARROT AFTER YEARS OF STICK
[SOURCE: Reuters, AUTHOR: Kate Holton]
Away from the headlines of job losses, grumbling=20
artists and falling global sales, the music=20
industry is trying new business models to boost=20
digital sales and offset the decline in CDs. At=20
the annual industry meeting on the French coast=20
this week, Janus Friis, who once terrified the=20
media industry with file-sharing network KaZaa,=20
told the Midem conference that the industry was=20
beginning to move from the "stick" to the=20
"carrot" approach, citing legal online services=20
Last.fm and Imeem as leading examples.
http://www.reuters.com/article/technologyNews/idUSL2734632920080128

FORMER FCC CHAIRMAN POWELL ENDORSES McCAIN
[SOURCE: tvnewsday]
Sen John McCain (R-AZ) once helped get Michael=20
Powell nominated to serve on the Federal=20
Communications Commission, so it may not come as=20
a surprise that the former FCC Chairman is=20
returning the favor and helping Sen McCain win=20
the nomination to serve as US president. "Senator=20
McCain has a deep and principled understanding of=20
how the digital revolution is transforming the=20
social and economic landscape," Powell said in a=20
statement. "More than any other candidate, he=20
knows what is needed to calm the turbulent=20
economic waters and to steer the new economy in a=20
direction that will bring growth, opportunity and=20
prosperity to all Americans."
http://www.tvnewsday.com/articles/2008/01/27/daily.3/
See:
* Out of Commission
Al Kamen; The Washington Post; Feb 21, 1997; A.19;
http://pqasb.pqarchiver.com/washingtonpost/access/11101246.html?dids=3D1...
1246:11101246&FMT=3DCITE&FMTS=3DCITE:FT&fmac=3D&date=3DFeb+21%2C+1997&autho=
r=3DAl+Kamen&desc=3DOut+of+Commission
--------------------------------------------------------------
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.
--------------------------------------------------------------