March 2008

http://en.wikipedia.org/wiki/Casimir_Pulaski_Day

GOVERNMENT & COMMUNICATIONS
Deal Close on Wiretap Law, a Top Democrat Tells CNN
Rhetoric: High; Anxiety: Low
White House E-Mail Gone Missing
Judge Reverses His Order Disabling Web Site
Bush Aide Resigns After Admitting Plagiarism
Time for a Shield Law

ELECTIONS & MEDIA
Next FCC Must Grasp Change =97 and Truly Understand History
Anchor uses own newscast to unveil run for office, stirs criticism
Latino Stations Win Big in Texas
The '60s Fetish
'Soft' Press Sharpens Its Focus on Obama

BROADCASTING/CABLE
Meredith Baker=92s Exit from NTIA Causes Concern
Stations Will Pay a Price for New FCC Rules
FCC Has Chilling Effect on Shows

INTERNET/BROADBAND
AT&T Raising Wholesale Loop Prices
In Boston: A Shot Heard 'Round the Internet
Civil rights groups: FCC should allow network management
Comcast Backed By NBC, Viacom In Network Neutrality Dispute
Hollywood, Silicon Valley and AT&T? It=92s a Deal

SPECTRUM/WIRELESS
FCC's Airwaves Sale May Fail to Create Public-Safety Network
FCC Releases Three Studies on Unlicensed Spectrum

POLICYMAKERS
Have You Heard? Kevin Martin Dislikes Comcast
Sen Reid Urges The White House To Work With Democrats On Nominations
Michael Powell speaks about leadership

MEDIA OWNERSHIP
XM and Sirius extend merger deadline by 2 months
Will Democrats Act to Save "Free" Mass Media?
Malone's Next Battleground: NAB

QUICKLY -- More Americans turning to Web for news

GOVERNMENT & COMMUNICATIONS

DEAL CLOSE ON WIRETAP LAW, A TOP DEMOCRAT TELLS CNN
[SOURCE: New York Times, AUTHOR: Jason DeParle]
The chairman of the House Intelligence Committee=20
hinted Sunday that a battle over an expired=20
eavesdropping law might be moving toward a=20
conclusion that gave phone companies the=20
retroactive legal protections long sought by=20
President Bush. The chairman, Representative=20
Silvestre Reyes, Democrat of Texas, said in an=20
interview on CNN that the committee had been=20
talking to the companies =93because if we=92re going=20
to give them blanket immunity, we want to know=20
and understand what it is we=92re giving immunity=20
for.=94 Chairman Reyes did not specify what=20
provisions a House bill might contain. But his=20
use of the words =93blanket immunity=94 suggested=20
that he might be moving toward a Senate bill,=20
backed by Mr. Bush, that would protect phone=20
companies that assisted in a federal program of=20
wiretapping without warrants after the Sept. 11,=20
2001, terrorist attacks. =93I have an open mind=20
about that,=94 Chairman Reyes said. =93We=92re very=20
close,=94 he added. =93Probably within the next week,=20
we'll be able to move hopefully to bring it to a vote.=94
http://www.nytimes.com/2008/03/03/washington/03fisa.html?ref=3Dtodayspaper
(requires registration)
* Lawmakers Hope Rockefeller Can Forge Surveillance Pact
The only lawmaker allied with Republicans,=20
Democrats and the White House, Sen. Rockefeller,=20
70 years old, has become a crucial link between=20
two sides hardly on speaking terms. As the House=20
and Senate attempt again to find common ground=20
this week, his support will be crucial to any final agreement.
http://online.wsj.com/article/SB120451119707106821.html?mod=3Dtodays_us_...
e_one
* Top U.S. Democrat: accord near on spy bill, immunity
http://www.reuters.com/article/politicsNews/idUSN0228952920080302

RHETORIC: HIGH; ANXIETY: LOW
[SOURCE: New York Times 3/1, AUTHOR: Eric Lichtblau]
The warnings from President Bush and his senior=20
aides have grown more urgent over the last few=20
weeks, now that Congress has let a temporary=20
wiretapping law expire. But there is little sign=20
of anxiety among many intelligence and phone=20
industry officials. Indeed, for all the heated=20
rhetoric in Washington about the government=92s=20
wiretapping powers, the debate over what a new=20
surveillance law should look like has little to=20
do with the present or the future and almost=20
everything to do with the past. At its crux, the=20
debate is about whether Mr. Bush can give=20
retroactive legal protection to telephone=20
carriers that cooperated in the program of=20
wiretapping without warrants he authorized weeks=20
after the Sept. 11, 2001, attacks, a program that critics charge was illega=
l.
http://www.nytimes.com/2008/03/01/us/01fisa.html?ref=3Dtodayspaper
(requires registration)

WHITE HOUSE E-MAIL GONE MISSING
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] Historians eager to search through=20
the daily minutiae of the Bush administration can=20
expect scandalously little help from the White=20
House=92s shoddy and suspiciously gap-ridden e-mail=20
archives. Estimates of the number of missing=20
e-mail messages range into the millions. The gaps=20
coincide with critical periods like the run-up to=20
the Iraq war =97 and the rollout of specious=20
intelligence =97 as well as the period when the=20
White House was leaking the identity of the=20
former C.I.A. operative Valerie Plame Wilson.=20
Also missing are communications from Karl Rove,=20
the president=92s former political guru, and 50=20
other White House staffers who used e-mail=20
accounts at the Republican National Committee.=20
The threat to the nation=92s historical record is=20
severe. The administration=92s latest archive=20
expert has promised to get =93to the bottom of=20
this.=94 Representative Henry Waxman, chairman of=20
the House committee investigating the matter, may=20
have spoken for history when he described the=20
administration running out the clock on itself=20
and =93sandbagging=94 the public interest.
http://www.nytimes.com/2008/03/01/opinion/01sat3.html?ref=3Dtodayspaper
(requires registration)

JUDGE REVERSES HIS ORDER DISABLING WEB SITE
[SOURCE: New York Times, AUTHOR: Jonathan Glater]
On Friday Judge Jeffrey S. White of Federal=20
District Court in San Francisco withdrew his=20
earlier order disabling a Web site that allows=20
the anonymous posting of documents to discourage=20
unethical behavior in governments and=20
corporations. On Feb 15, Judge White ordered the=20
American address of the site, Wikileaks.org, to=20
be disabled at the request of Bank Julius Baer &=20
Company, a Swiss banking company, and its Cayman=20
Islands subsidiary. They charged that Wikileaks=20
had posted confidential, personally identifiable=20
account information on some of the bank=92s=20
customers. The judge=92s action drew criticism --=20
and court filings -- from numerous organizations=20
concerned that the order violated the First=20
Amendment protection of free speech. Because=20
Wikileaks operates sites, like Wikileaks.cx, in=20
other countries, the documents were and are still=20
widely available, both in the United States and=20
elsewhere. In reversing himself at a hearing here=20
on Friday, Judge White acknowledged that the=20
bank=92s request posed serious First Amendment=20
questions and might constitute unjustified prior=20
restraint. He also appeared visibly frustrated=20
that technology might have outrun the law and=20
that, as a result, the court might not be able to=20
rein in information once it had been disclosed online.
http://www.nytimes.com/2008/03/01/us/01wiki.html?ref=3Dtodayspaper
(requires registration)

BUSH AIDE RESIGNS AFTER ADMITTING PLAGIARISM
[SOURCE: New York Times, AUTHOR: Sheryl Gay Stolberg]
Tim Goeglein, a longtime aide to President Bush=20
who wrote occasional guest columns for his=20
hometown newspaper, resigned on Friday evening=20
after admitting that he had repeatedly=20
plagiarized from other writers. The White House=20
called his actions unacceptable. Goeglein had=20
worked for Mr. Bush since 2001, as a liaison to=20
social and religious conservatives, an important=20
component of the president=92s political base. Mr.=20
Goeglein was influential in decisions on a range=20
of questions important to that constituency,=20
including stem cell research, abortion and=20
faith-based initiatives. A blogger in Mr.=20
Goeglein=92s hometown, Fort Wayne (IN), found the plagiarism.
http://www.nytimes.com/2008/03/01/us/01aide.html?ref=3Dtodayspaper
(requires registration)
* Fort Wayne Paper Finds White House Aide Plagiarized 20 Columns
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003718269
* White House aide admits to plagiarism, resigns
http://www.reuters.com/article/politicsNews/idUSN2942736320080301

TIME FOR A SHIELD LAW
[SOURCE: Washington Post, AUTHOR: Editorial staff]
[Commentary] There are laws or court decisions in=20
49 states and the District of Columbia that=20
protect the relationship between reporters and=20
their sources. Yet no such safeguard exists on=20
the federal level. The House passed such a bill,=20
but the Senate measure that cleared the Judiciary=20
Committee last October still awaits a vote on the=20
floor. More than 40 reporters have been=20
questioned by federal prosecutors about their=20
sources, notes and reports in civil and criminal=20
cases in recent years. Without protection on the=20
federal level, the public's right to know will=20
surely be diminished. The Senate must act to ensure that doesn't happen.
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/02/AR200803...
1767.html
(requires registration)

ELECTIONS & MEDIA

NEXT FCC MUST GRASP CHANGE -- AND TRULY UNDERSTAND HISTORY
[SOURCE: Common Dreams, AUTHOR: Ryan Blethen, Seattle Times]
[Commentary] The press is missing a chance to=20
examine where the remaining presidential=20
candidates stand on media policy, especially=20
issues before the Federal Communications=20
Commission. So far, the press corps has whiffed=20
on a media-policy softball served up by The New=20
York Times last week. The article gave readers a=20
glimpse of how the FCC might look and work in a=20
John McCain presidency. What emerges from the=20
piece is disturbing. Sen McCain (R-AZ) used his=20
considerable power as chairman of the Commerce=20
Committee to force the FCC into approving the=20
sale of a Pittsburgh television station to a=20
major contributor in his 2000 presidential=20
campaign. Lobbyists and donors snuggling up to=20
politicians is not new, rare or shocking. Sen=20
McCain has further to fall, though. He has=20
branded himself as a fighter against the=20
influence of special interests in politics. Sen=20
McCain=92s close relations with the corporations=20
that had business before the regulatory agency he=20
oversaw is troublesome. It raises questions as to=20
who will head the agency in a Sen McCain=20
administration, and what will be tolerated. The=20
next president has a chance to reshape the FCC.=20
For too long the agency has chipped away - or=20
gutted - rules essential to democracy. The FCC is=20
a partisan body pegged to the White House. Three=20
seats for the party that holds the presidency,=20
two for second place. Many of the issues dealt=20
with by the commission are nonpartisan, or should=20
be. This is an important election for the FCC.=20
The public deserves a commission filled with=20
people who can grasp the rapidly-changing media,=20
yet understand the historical and structural=20
importance of the press and media to our=20
democratic system. It is time the press divert=20
its attention from speculation over an affair and=20
focus on the candidates=92 vision for one of=20
America=92s most important regulatory agencies.
http://www.commondreams.org/archive/2008/02/29/7372/
* McCain's FCC Dealings Draw Renewed Scrutiny
FCC lawyers said Sen McCain had broken rules in intervening.
http://www.npr.org/templates/story/story.php?storyId=3D87783425&ft=3D1&f...

ANCHOR USES OWN NEWSCAST TO UNVEIL RUN FOR OFFICE, STIRS CRITICISM
[SOURCE: Associated Press]
Rick Dancer, a longtime anchorman on an Oregon=20
television station, led off a newscast with news=20
that he would be running to be the Oregon=20
Secretary of State. After ABC's Academy Awards=20
coverage ended Sunday, its Eugene, Oregon,=20
affiliate spent the first three minutes of its=20
newscast on Dancer's candidacy, including a=20
question-and-answer session with an on-air=20
colleague. Quite a bit of high-profile coverage=20
for a second-tier state race. Which brings up a=20
question: What about Dancer's four Democratic=20
rivals? "I was stunned that this man who was in=20
my living room every night announced his=20
candidacy on the evening news," said one of those=20
candidates, state Sen. Vicki Walker. "It just=20
didn't seem like something you could do." The=20
station's CEO, Carolyn Chambers, is a staunch=20
Republican who has given nearly $90,000 to=20
Republican causes and candidates over the last 13 years.
http://www.cnn.com/2008/POLITICS/02/28/anchor.candidate.ap/index.html

LATINO STATIONS WIN BIG IN TEXAS
[SOURCE: Broadcasting&Cable, AUTHOR: David Goetzl]
The Democratic nomination may well hinge on the=20
Latino vote in the March 4 Texas primary. So it's=20
no wonder Spanish-language broadcasters statewide=20
have been drinking in a gush of Texas tea. For=20
the past three weeks, Barack Obama and Hillary=20
Clinton have been buying up time in the Lone Star=20
State from Amarillo in the Panhandle to=20
Brownsville on the Mexican border, yielding an=20
unexpected and most welcome windfall for station=20
groups that thought primary dollars would dry up=20
with a swift Clinton victory. The airwaves on=20
Univision, Telemundo and Azteca stations have=20
been filled with spots featuring former San=20
Antonio mayor (and Univision board member) Henry=20
Cisneros urging Latinos to participate in=20
pro-Clinton early voting, and Obama reading the=20
mandated candidate-approval message in Spanish:=20
=93Yo soy Barack Obama y apruebo esta mensaje.=94=20
Univision and Telemundo both have=20
owned-and-operated stations in Houston and San=20
Antonio that are benefiting from political ads,=20
while affiliate groups such as Azteca's Una Vez=20
Mas have collected their share. Spending across=20
Texas could reach $2 million, a real boon for the Spanish outlets.
http://www.broadcastingcable.com/article/CA6537171.html

THE '60s FETISH
[SOURCE: National Journal, AUTHOR: William Powers]
[Commentary] Some say that the media have fallen=20
hard for Barack Obama. Others note that=20
journalists once carried a torch for John McCain=20
and may well do so again. Watch the coverage=20
closely, however, and it turns out that the most=20
powerful media bias in this campaign is not for a=20
person but for a decade. The 1960s are alive all=20
over again in the Baby Boomer-run media, as=20
reporters and pundits try to make sense of this=20
political moment by returning repeatedly to a=20
moment four decades old. The'60s fetish has been=20
with us for a long time and was a motif of the=20
2004 presidential campaign. But it's back now in=20
a new and more powerful way, thanks in part to=20
the rise of Obama. If the news outlets of the=20
early '60s had been this backward-looking, JFK's=20
candidacy would have been all about the 1920s.=20
"Gosh, doesn't that young Kennedy fellow remind=20
you of flappers, the Lost Generation, and Warren=20
Harding?" But then, that would have been silly.
http://nationaljournal.com/powers.htm

'SOFT' PRESS SHARPENS ITS FOCUS ON OBAMA
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
[Commentary] Has the time of the media going=20
easy on Sen Barack Obama ended? The Illinois=20
senator still hasn't faced the sort of negative=20
onslaught that generally envelops presidential=20
front-runners. But after a year of defying the=20
laws of journalistic gravity, he is being brought=20
back to earth. Some of this involves recycled=20
reporting that didn't get much traction the first=20
time around. Obama spokesman Bill Burton=20
maintains the media have "consistently examined=20
both his public and personal record." Burton=20
calls suggestions of soft treatment "a false=20
premise that is advocated by a couple of members=20
of the media and the Clinton campaign. The=20
investigative teams at the networks, major=20
national news organizations and the Chicago=20
papers would take great issue with the notion=20
they haven't examined Barack Obama's record." The=20
Chicago newspapers have been the most aggressive by far.
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/02/AR200803...
2476.html
(requires registration)
* Obama's Web marketing triumph
[SOURCE: Fortune, AUTHOR: Devin Leonard]
Why does Barack Obama appear to be outmaneuvering=20
Hillary Clinton in the Democratic presidential=20
primary? Part of the reason is his campaign's=20
mastery of the Internet, says Rishad Tobaccowala=20
of Publicis. He uses Obama's come-from-behind=20
primary and caucus victories against a brand name=20
like Clinton as a cautionary case study for his market-leading clients.
http://money.cnn.com/2008/02/29/technology/leonard_politics.fortune/inde...
tm?section=3Dmoney_technology

BROADCASTING

MEREDITH BAKER'S EXIT FROM NTIA CAUSES CONCERN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Apparently National Telecommunications and=20
Information Administration head Meredith Atwell=20
Baker is exiting because she was not going to get=20
the nomination to replace John Kneuer as=20
full-time head of the agency -- a decision that=20
had some NTIA watchers in Washington, D.C.,=20
shaking their heads last week. The NTIA is=20
playing a crucial role in the transition to=20
digital television -- handling the $1.5 billion=20
DTV-to-analog converter-box-coupon program. A=20
source familiar with her decision said she=20
expressed her desire to make sure the program was=20
left in good hands and so would not be leaving=20
immediately. =93I don=92t expect her to be gone by=20
March 15 or anything like that,=94 the source=20
added. Kneuer left abruptly just before=20
Thanksgiving and only six weeks or so before the=20
kickoff of the coupon program Jan. 1. Baker, who=20
had been working on the coupon program at the=20
NTIA for several years, was immediately named=20
acting NTIA head and got good reviews inside the=20
agency and on Capitol Hill for being someone they=20
could work with. The news of Baker=92s exit broke=20
only 10 days after the NTIA began processing the=20
coupon requests. That date was marked by an event=20
in Washington, D.C., where, somewhat surprisingly=20
at the time, Baker did not speak, although her=20
boss, Secretary of Commerce Carlos Gutierrez,=20
did. Andrew J. Schwartzman, president of Media=20
Access Project, said, "I'm very concerned. It is=20
evident that the administration places a low=20
priority on the DTV transition. Otherwise, it=20
would ensure that there was consistency of=20
leadership and adequate resources devoted to=20
those tasks.=94 That concern was echoed by Federal=20
Communications Commission member Michael Copps:=20
=93I don't see how changing NTIA leadership one=20
more time does anything to inspire confidence or=20
to move us toward the kind of integrated=20
private-public partnership we need to ensure a smooth DTV transition."
http://www.broadcastingcable.com/article/CA6536927.html?rssid=3D193

STATIONS WILL PAY A PRICE FOR NEW FCC RULES
[SOURCE: tvnewsday, AUTHOR: Mary Collins]
[Commentary] Increased time and, probably staff,=20
look to be the only way broadcast stations will=20
be able to compile, store and post online the=20
"enhanced disclosure" information mandated by the=20
Federal Communications Commission.
http://www.tvnewsday.com/articles/2008/02/29/daily.2/

FCC HAS CHILLING EFFECT ON SHOWS
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
Federal Communications Commission Chairman Kevin=20
Martin may be winning the fight he has picked=20
with TV networks that air racy programming.=20
Martin=92s agency lost the last major indecency=20
court case in federal appeals court and he=92s=20
awaiting the Supreme Court=92s decision on whether=20
it will resuscitate that action against Fox.
But the FCC=92s legal setbacks aside, groups that=20
represent show creators say the agency=92s=20
crackdown is affecting which shows end up on=20
broadcast TV, and which shots or lines get=20
pulled. Does that mean that without winning a=20
decisive battle, the FCC is winning the war?
http://www.tvweek.com/news/2008/03/fcc_has_chilling_effect_on_sho.php
(requires free registration)

INTERNET/BROADBAND

AT&T RAISING WHOLESALE LOOP PRICES
[SOURCE: BroadbandReports.com]
[Commentary] AT&T is raising the wholesale loop=20
charges 44-46% for ISPs who do business with=20
them. It looks like the changes should officially=20
start on May 16, 2008, but you may start seeing=20
your independent ISP raising DSL prices before=20
then if they work with AT&T. Small ISPs, for whom=20
it's already hard enough to do business, aren't=20
pleased. "The problem for many ISPs is that=20
they've given customers 12 months assurances of=20
price, and they won't be able to pass this price=20
hike along until those contracts are up," says a=20
high-level ISP executive. "For ISPs that offer=20
customers some sort of re-rate contract it could=20
mean nearly 12 months of down side." "For an ISP=20
with 5,000 customers, they'd be out $16,500/mo,=20
for an "average" of nine months (presuming an=20
average 3/4 of a year contract worth of liability=20
per customer). That's potentially a $150,000 hit=20
to the small example ISP." All of this of course=20
eventually gets passed on to you, the consumer.=20
And as you are seeing rate hikes, this is a=20
service that's getting less and less costly for=20
AT&T to deploy. "Bandwidth is getting cheaper,=20
DSLAM ports are cheaper, modems are cheaper and=20
fiber infrastructure (from RTs to COs, and=20
between COs to POPs where Internet bandwidth is=20
purchase) now has virtually limitless capacity=20
thanks to DWDM," says one source. Of course he=20
reminds us that hikes aren't based on cost, but=20
what the market will bear. In other words, AT&T=20
is simply raising rates because they can. And=20
they can because they aren't seeing healthy=20
competition in the U.S. market. It's good to be the king.
http://www.dslreports.com/shownews/ATT-Raising-Wholesale-Loop-Prices-92229

IN BOSTON: A SHOT HEARD 'ROUND THE INTERNET
[SOURCE: The Huffington Post, AUTHOR: Timothy Karr, Free Press]
[Commentary] Something may have been lost in this=20
week's brief media frenzy over "seat-gate" -- the=20
much discussed incident where Comcast hired=20
people off the street to keep out the public from=20
Monday's FCC hearing in Boston. But while=20
Comcast's seat-warmers slept, a collection of=20
Cambridge scholars, Internet advocates, industry=20
leaders, engineers and policymakers nearly all=20
agreed that Internet blocking has serious=20
consequences for each and every one of us. On=20
Capitol Hill, Congressmen Ed Markey and Chip=20
Pickering have introduced the bipartisan=20
"Internet Freedom Preservation Act" (HR 5353)=20
that would establish Net Neutrality protections=20
for the next generation of Internet networks.=20
Supporting this bill is a good place to start.
http://www.huffingtonpost.com/timothy-karr/in-boston-a-shot-heard-_b_891...
html

CIVIL RIGHTS GROUPS: FCC SHOULD ALLOW NETWORK MANAGEMENT
[SOURCE: InfoWorld, AUTHOR: Grant Gross]
The National Black Chamber of Commerce, Latinos=20
in Information Sciences and Technology=20
Association, League of Rural Voters, and National=20
Council of Women's Organizations have filed joint=20
comments at the Federal Communications Commission=20
arguing that the FCC should allow broadband=20
providers to manage their networks and slow=20
"bandwidth hogs," despite concerns that such=20
practices arbitrarily target some customers. Net=20
neutrality rules for broadband providers would=20
protect bandwidth hogs at the expense of other=20
customers and civic organizations, the groups=20
say. "Regulations prohibiting network management=20
risk undermining free speech on the Internet by=20
allowing P2P traffic to overwhelm the network and=20
prevent non-P2P traffic from reaching its=20
destination," the coalition said in its filing.=20
"The effective prioritization of P2P traffic=20
would represent an altogether new type of 'back=20
of the bus' second-class status for our speech on=20
broadband networks -- and ought to be resoundingly rejected."
http://www.infoworld.com/article/08/02/29/Civil-rights-groups-FCC-should...
low-network-management_1.html

COMCAST BACKED BY NBC, VIACOM IN NETWORK NEUTRALITY DISPUTE
[SOURCE: Dow Jones, AUTHOR: Corey Boles corey.boles( at )dowjones.com]
Comcast has found allies in its fight to convince=20
the Federal Communications Commission that it was=20
doing nothing wrong when it slowed customers'=20
access to certain applications on its high speed=20
Internet network. Broadcasters NBC Universal Inc.=20
and Viacom Inc. (VIA) filed comments at the FCC=20
supporting Comcast's right to engage in=20
reasonable network management. The companies=20
argued that if Internet network operators are not=20
permitted to manage their networks it will hamper=20
their abilities to fight the flow of pirated content on the Web.
http://money.cnn.com/news/newsfeeds/articles/djf500/200802291827DOWJONES...
NLINE000996_FORTUNE5.htm

HOLLYWOOD, SILICON VALLEY AND AT&T? IT'S A DEAL
[SOURCE: New York Times, AUTHOR: Laura Holson]
On Monday, the William Morris Agency, the=20
Hollywood talent shop, will announce that it is=20
teaming up with the Silicon Valley venture=20
capital firms Accel Partners and Venrock to=20
invest in digital media start-up companies based=20
in Southern California. What makes the=20
combination unusual, though, is the addition of=20
AT&T as a limited partner. While there has been a=20
spate of deals recently as entertainment and=20
technology companies try to capitalize on their=20
shared interest in new media, many people view=20
wireless carriers as too controlling,=20
particularly when it comes to offering new=20
software and content on today=92s more=20
sophisticated, Web-friendly cellphones. This deal=20
is an indication of how quickly online and mobile=20
entertainment are transforming the wireless=20
carriers and perhaps a recognition =97 on all sides=20
=97 that a failure to act now could leave the=20
partners vulnerable to interlopers who seek to=20
upend their traditional businesses.
http://www.nytimes.com/2008/03/03/business/media/03morris.html?ref=3Dtod...
paper
(requires registration)

SPECTRUM/WIRELESS

FCC'S AIRWAVES SALE MAY FAIL TO CREATE PUBLIC-SAFETY NETWORK
[SOURCE: Bloomberg, AUTHOR: Molly Peterson mpeterson9( at )bloomberg.net]
The biggest U.S. sale of mobile- phone airwaves=20
may fail in its goal of creating a national=20
wireless network for emergency communications=20
during disasters. The auction so far has raised=20
almost $20 billion as bids surpassed government=20
projections on all airwaves except the set=20
designed to be shared with police and fire=20
officials. For that group, the only bid is=20
two-thirds less than the $1.3 billion minimum set=20
by the government. "The price, coupled with the=20
restrictions, was too much for any bidder to=20
stomach," said Carol Mattey, managing director of=20
telecom regulatory consulting at Deloitte &=20
Touche. "One or the other of those things has to change."
http://www.bloomberg.com/apps/news?pid=3D20601103&sid=3Dau9.oGl2LZEo&refer=
=3Dus

FCC RELEASES THREE STUDIES ON UNLICENSED SPECTRUM
[SOURCE: Federal Communications Commission]
The FCC's Office of Strategic Planning and Policy=20
Analysis released three working papers on two=20
important spectrum management issues: Working=20
Paper #41, "Enhancing Spectrum's Value Via=20
Market-informed Congestion Etiquettes" and=20
Working Paper #42, "Modeling the Efficiency of=20
Spectrum Designated to License Use and Unlicensed=20
Operations," examine ways in which spectrum=20
designated to licensed and unlicensed use can be=20
more efficiently used. Working Paper #43, "A=20
Market-based Approach to Establishing Licensing=20
Rules: Licensed Versus Unlicensed Use of=20
Spectrum," examines the feasibility of employing=20
a market mechanism to determine whether spectrum=20
should be designated to either licensed or=20
unlicensed use. The full text of each working=20
paper is available at=20
http://www.fcc.gov/osp/workingp.html. OSP=20
contact: Mark Bykowsky, 202-418-1695.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-280520A1.doc

POLICYMAKERS

HAVE YOU HEARD? KEVIN MARTIN DISLIKES COMCAST
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
[Commentary] Federal Communications Commission=20
chairman Kevin Martin dragged his agency all the=20
way to Harvard Law School last Monday to make the=20
same point he=92s made in just about every U.S. ZIP=20
code: He dislikes and distrusts Comcast. The=20
Harvard session was billed a as discussion on=20
broadband network-management practices. Instead,=20
Martin turned it into a federally sanctioned=20
sandbagging of the country=92s largest cable=20
company. It didn=92t take deep packet inspection to=20
notice that the witness table was stacked against=20
Comcast. Martin, for example, filled three of six=20
seats on the second (and last) panel with=20
cable-bashers from MIT. Martin=92s assault on fair=20
play, performed in broad daylight, was just=20
astounding. One can only imagine what goes on at=20
the Internal Revenue Service and the FBI on days=20
when someone there decides it=92s vendetta time.=20
Martin=92s idea of striking a balance was to line=20
up Comcast executive vice president David Cohen=20
against six Comcast-hostile witnesses.=20
Introductory comments in support of net=20
neutrality were spoken by Rep. Edward Markey=20
(D-Mass.) and were later echoed by FCC Democrats=20
Michael Copps and Jonathan Adelstein.
http://www.multichannel.com/article/CA6537234.html?nid=3D4262

SEN REID URGES THE WHITE HOUSE TO WORK WITH DEMOCRATS ON NOMINATIONS
[SOURCE: Senate Majority Leader Harry Reid (D-NV)]
Nevada Senator Harry Reid sent a following letter=20
to White House Chief of Staff Joshua Bolten,=20
giving his view of the Administration=92s=20
stonewalling and refusal to negotiate on=20
non-judicial nominations. Sen Reid has the=20
statutory authority to make recommendations to=20
the President for Democratic positions on=20
independent boards and commissions like the Federal Communications Commissi=
on.
http://reid.senate.gov/newsroom/record.cfm?id=3D293935&
* Party Squabbles Leave Nominations Deadlocked
Senate Majority Leader Harry M. Reid and=20
President Bush both say they are ready to clear a=20
backlog of presidential nominations needing=20
Senate confirmation, but that goal appears=20
increasingly harder to achieve as the end of Bush's tenure draws near.
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/02/AR200803...
2224.html

MICHAEL POWELL SPEAKS ABOUT LEADERSHIP
[SOURCE: The Daily Texan, AUTHOR: Sabrina Vera]
Former Federal Communications Commission Chairman=20
Michael Powell said he watched the 2004 Super=20
Bowl with his family, only to be horrified by the=20
wardrobe malfunction during the halftime show. "I=20
didn't know the next day would be the worst day=20
of my life," Powell said. "It was."
http://media.www.dailytexanonline.com/media/storage/paper410/news/2008/0...
9/University/Powell.Speaks.About.Leadership-3244205.shtml

MEDIA OWNERSHIP

XM AND SIRIUS EXTEND MERGER DEADLINE BY 2 MONTHS
[SOURCE: Reuters, AUTHOR: Franklin Paul]
XM Satellite Radio Holdings and Sirius Satellite=20
Radio have extended by two months a deadline to=20
potentially terminate without penalty Sirius's=20
year-old proposed acquisition of its bigger=20
rival. Under the original terms of their deal,=20
first announced in February 2007, the companies=20
could have walked away after March 1 if they did=20
not receive regulatory approval. U.S. regulators,=20
including the Federal Communications Commission=20
and Department of Justice, have yet to decide=20
whether to approve the merger. Both companies=20
said this week that they are optimistic both agencies will approve the deal.
http://www.reuters.com/article/technologyNews/idUSWNAS317020080229
* XM, Sirius Extend Merger Agreement Until May 1
http://www.broadcastingcable.com/article/CA6537030.html?rssid=3D193

WILL DEMOCRATS ACT TO SAVE "FREE" MASS MEDIA
[SOURCE: Huffington Post, AUTHOR: Norman Horowitz]
A Federal Communications Commission observer for=20
40 years, Horowitz believes FCC Chairman Kevin=20
Martin isn't doing what the believes to be the=20
right thing to do. He blames the "evil hands" of:=20
1) General Electric, the Walt Disney Company,=20
CBS/Viacom, and News Corp all of whom want to get=20
bigger and to have more power and make more=20
money; 2) lobbyists retained by these companies=20
to do what they do; 3) legislators who rely on=20
these lobbyists to raise money for their=20
reelection campaign; and 4) the Bush=20
Administration who will continue to operate in=20
the dark and in secret as long as they can.
http://www.huffingtonpost.com/norman-horowitz/is-the-democratic-congres_...
9321.html

MALONE'S NEXT BATTLEGROUND: NAB
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Liberty Media chairman John Malone last week got=20
federal approval to buy nearly 40% of DirecTV=20
Group. At the same time, he bought into something=20
else: A big fight with the National Association=20
of Broadcasters. That=92s nothing new for Malone,=20
who spent a good deal of his business life=20
sparring with the TV-station lobby when he ran=20
the No. 1 cable company, Tele-Communications,=20
more than a decade ago. The battle, probably=20
beginning next year, will be about the need for=20
DirecTV, the largest U.S. satellite-TV provider,=20
to provide local TV service to all 210 markets.=20
The company, which serves 16.8 million customers,=20
provides local signals in 144 markets but has no=20
plan to add more than another six, citing the=20
need to husband bandwidth for HD services in the=20
big markets. The NAB is pushing for DirecTV to=20
add the remaining 66 unserved markets by the end=20
of 2008. While Malone=92s Liberty was seeking FCC=20
approval to acquire a controlling stake in=20
DirecTV, NAB lobbyists urged it to withhold=20
consent until DirecTV agreed to service every=20
market. The agency rejected that proposal.
http://www.multichannel.com/article/CA6537233.html?nid=3D4262

QUICKLY

MORE AMERICANS TURNING TO WEB FOR NEWS
[SOURCE: Reuters]
A new We Media/Zogby Interactive online poll=20
claims nearly 70 percent of Americans believe=20
traditional journalism is out of touch, and=20
nearly half are turning to the Internet to get their news.
http://www.reuters.com/article/internetNews/idUSN2824760420080301
--------------------------------------------------------------
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.
--------------------------------------------------------------