March 2008

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ELECTIONS & MEDIA
Story behind the story: The Clinton myth
The media were intended target for Obama's speech on race
Race For Dollars: Political Spend Boosts TV Station Groups

POLICYMAKERS
Telecom lobbyists tied to McCain
Guessing game begins for next FCC Chairman
Candidates=92 Media Stance: Sen. Barack Obama

SPECTRUM/WIRELESS
Wireless auction yields mixed results for consumers
Verizon Licks Its Cheap Megahertz Pops
Spectrum auction may boost gear makers' future
Spectrum May Translate To Mobile Video For Dish
Call for wireless regulation gets louder
Intel researchers stretch Wi-Fi to cover 60 miles

JOURNALISM
The War Endures, but Where=92s the Media?
Newspapers=92 New Owners Turn Grim
Chill the Press

INDECENCY ENFORCEMENT
The Supreme Court and Indecency
FCC finds itself in another fine mess

QUICKLY -- Beyond ownership; Media Groups Share=20
Content in Ad Deals; Political Pendulum Swings=20
Toward Stricter Regulation; Cable companies cry=20
foul on Verizon; Judge: Nebraska commission=20
cannot collect fees on Internet calls; Buyback=20
programs turn electronic trash to cash

ELECTIONS & MEDIA

STORY BEHIND THE STORY: THE CLINTON MYTH
[SOURCE: Politico, AUTHOR: Jim Vandehei & Mike Allen]
[Commentary] One big fact has largely been lost=20
in the recent coverage of the Democratic=20
presidential race: Hillary Rodham Clinton has=20
virtually no chance of winning. In other words:=20
The notion of the Democratic contest being a=20
dramatic cliffhanger is a game of make-believe.=20
The real question is why so many people are=20
playing. The answer has more to do with media=20
psychology than with practical politics.=20
Journalists have become partners with the Clinton=20
campaign in pretending that the contest is closer=20
than it really is. Most coverage breathlessly=20
portrays the race as a down-to-the-wire sprint=20
between two well-matched candidates, one only=20
slightly better situated than the other to win in=20
August at the national convention in Denver. One=20
reason is fear of embarrassment. In its zeal to=20
avoid predictive reporting of the sort that=20
embarrassed journalists in New Hampshire, the=20
media =97 including Politico =97 have tended to avoid=20
zeroing in on the tough math Clinton faces.=20
Avoiding predictions based on polls even before=20
voters cast their ballots is wise policy. But=20
that's not the same as drawing sober and=20
well-grounded conclusions about the current state=20
of a race after millions of voters have=20
registered their preferences. The media are also=20
enamored of the almost mystical ability of the=20
Clintons to work their way out of tight jams, as=20
they have done for 16 years at the national=20
level. That explains why some reporters are=20
inclined to believe the Clinton campaign when it=20
talks about how she=92s going to win on the third=20
ballot at the Democratic National Convention in=20
August. It=92s also hard to overstate the role the=20
talented Clinton camp plays in shaping the=20
campaign narrative, first by subtly lowering the=20
bar for the performance necessary to remain in=20
the race, and then by keeping the focus on=20
Obama=92s relationships with a political fixer and=20
a controversial pastor in Illinois.
http://www.politico.com/news/stories/0308/9149.html

THE MEDIA WERE INTENDED TARGET FOR OBAMA'S SPEECH ON RACE
[SOURCE: San Francisco Chronicle, AUTHOR: Michael=20
Yaki, U.S. Commission on Civil Rights]
[Commentary] Although he did not write or deliver=20
it, Yaki was nervous before Sen Barack Obama gave=20
his "More Perfect Union" speech last week. The=20
press' treatment of the speech would dictate=20
whether erase the negative environment in which=20
race had been brought up in this election=20
campaign. In many ways, it was not a political=20
speech. There are parts that undoubtedly will be=20
taken out of context for political hit ads. But=20
if you haven't read it, you can't form an=20
informed opinion of it. If you didn't see the=20
whole speech, then you can't understand the=20
context and totality as a whole. But were the=20
media listening to Obama's speech? Did they=20
understand their awesome responsibility in this=20
landmark election to let the candidates debate=20
and define the issues or were they too busy=20
giving themselves pats on the back for outing the=20
senator to address the issue of race? A vigorous=20
free press is a fundamental requirement of=20
democracy. But Yaki has a hard time imagining=20
that a report on yet another person who may have=20
said the wrong thing on behalf of any candidate,=20
who is not the candidate, and whose remarks are=20
disavowed by a candidate, deserves prime time for=20
an entire news cycle. It's time to move on. It's=20
time to get back to the issues. It's time to get back to electing a preside=
nt.
http://www.sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2008/03/20/EDDEVMQP6.DTL

RACE FOR DOLLARS: POLITICAL SPEND BOOSTS TV STATION GROUPS
[SOURCE: MediaDailyNews, AUTHOR: David Goetzl]
Several broadcast groups are experiencing a=20
recent spending lift thanks to contentious=20
political races, according to a new report.=20
Station groups from the larger Hearst-Argyle to=20
the smaller Gray TV appear to be profiting from=20
races in Indiana, North Carolina and Wisconsin.=20
And it's not from the flush dollars in the=20
Democratic Presidential battle--yet.
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.showAr...
le&art_aid=3D78941

POLICYMAKERS

TELECOM LOBBYISTS TIED TO MCCAIN
[SOURCE: USAToday, AUTHOR: Matt Kelley]
Sen John McCain (R-AZ) has condemned the=20
influence of "special interest lobbyists," yet=20
dozens of lobbyists have political and financial=20
ties to his presidential campaign -- particularly=20
from telecommunications companies, an industry he=20
helps oversee in the Senate. Of the 66 current or=20
former lobbyists working for the Arizona senator=20
or raising money for his presidential campaign,=20
23 have lobbied for telecommunications companies=20
in the past decade, Senate lobbying disclosures=20
show. Sen McCain has netted about $765,000 in=20
political donations from those telecom lobbyists,=20
their spouses, colleagues at their firms and=20
their telecom clients during the past decade, a=20
USA TODAY analysis of campaign-finance records=20
shows. Sen McCain is a senior member of the=20
Senate Commerce Committee, which oversees the=20
telecom industry and the Federal Communications=20
Commission. He has repeatedly pushed=20
industry-backed legislation since 2000,=20
particularly during a second stint as committee=20
chairman from 2003 through 2005. His efforts to=20
eliminate taxes and regulations on=20
telecommunications services won him praise from=20
industry executives. People who lobbied for=20
telecom companies on those issues include=20
McCain's campaign manager, his deputy manager,=20
his finance chief, his top unpaid political=20
adviser and his Senate chief of staff. Telecom=20
companies have paid the lobbying firms that=20
employed those top five McCain advisers more than=20
$4.4 million since 1999, lobbying records show.
http://www.usatoday.com/printedition/news/20080324/1a_bottomstrip24_dom....
.htm
* A look at GOP senator's telecom ties
People who work, advise or raise campaign money=20
for Sen John McCain who have lobbied for=20
telecommunications companies since 1999.
http://www.usatoday.com/printedition/news/20080324/a_mccain_lobbylist24....
.htm
* McCain pushed tax ban backed by telecoms
In the fall of 2003, telecommunications companies=20
lobbied for a bill that would ban state and local=20
taxes on Internet access, and they had support in=20
high places. Sen. John McCain, who at the time=20
was chairman of the committee overseeing=20
telecommunications issues, helped write the bill=20
that would outlaw those taxes. McCain's committee=20
sent its version of the bill to the full Senate=20
on Sept. 29, 2003. Four days earlier, AT&T=20
Wireless executives gave McCain's 2004 Senate=20
re-election campaign $10,500, according to=20
campaign-finance records. AT&T Wireless, which=20
offers Internet connections like other telecom=20
companies, says in its 2003 disclosure report to=20
the Senate that it lobbied on the bill.
http://www.usatoday.com/printedition/news/20080324/a_mccaininside24.art.htm

GUESSING GAME BEGINS FOR NEXT FCC CHAIRMAN
[SOURCE: Hollywood Reporter, AUTHOR: Brooks Boliek]
While Federal Communications Commission=20
appointments might not be the plum posts for=20
presidential job-seekers, the person selected has=20
a wide latitude in setting the telecommunications=20
agenda for what is one of the most important=20
government positions in the "knowledge economy."=20
Even as there are still three candidates vying to=20
be leader of the free world, it's not too early=20
to begin speculation who would be chairman of the=20
FCC. If Sen. Hillary Clinton takes the prize,=20
Susan Ness is the name bandied about among the=20
tele-cognesceti. Aside from being close to the=20
Clintons, Ness makes an attractive candidate for=20
the commission's top job as it would allow the=20
first female president to select the first female=20
FCC chairman. If Sen. Barack Obama wins, his=20
campaign and Senate staffs are dotted with people=20
who have close ties to the FCC. Connecting those=20
dots, however, is Julius Genachowski, a former=20
aide to former-FCC Chairmen Reed Hundt and Bill=20
Kennard and a close friend of Obama's since they=20
attended Harvard Law School. He is a major=20
fundraiser for the senator. Aside from commission=20
experience, Genachowski was an executive at Barry=20
Diller's IAC/InterActiveCorp. and a managing=20
director at digital media specialist Rock Creek=20
Ventures and is a special adviser to the=20
private-equity group General Atlantic. Other=20
names associated with Obama include his policy=20
director Karen Kornbluh, who also worked at the=20
commission under Hundt and Kennard, and Don=20
Gipps, an FCC veteran who was former Vice=20
President Al Gore's domestic policy adviser and=20
is now a top executive at Level 3, an Internet=20
"backbone" operator. Larry Stcikling, a former=20
chief of the FCC Common Carrier Bureau and an=20
Obama campaign worker, also has been mentioned=20
for the post. The two Democrats on the FCC --=20
Michael Copps and Jonathan Adelstein -- also=20
can't be ruled out. If Sen. John McCain wins,=20
possibilities include former staffer and current=20
Disney lobbyist Bill Bailey, Google counsel Pablo=20
Chavez, FCC staffer Maureen McLaughlin, Rick=20
Davis, the campaign manager for McCain 2008, and=20
Charles Black, a top political adviser to=20
McCain's campaign. Black is a lobbyist who counts=20
AT&T among his clients, while Davis has lobbied for Verizon and SBC.
http://www.reuters.com/article/industryNews/idUSN2429880620080324

CANDIDATES' MEDIA STANCE: SEN BARACK OBAMA
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
Sen. Barack Obama (D-IL) hasn't been in Congress=20
as long as his rivals in the race for the White=20
House, but he has stepped into some media issues=20
that illuminate how he might govern the industry=20
should he succeed in his bid for the presidency.=20
Sen Obama has joined with Massachusetts Sen. John=20
Kerry to question how media consolidation could=20
affect minority media ownership. He also has=20
suggested TV is responsible for the =93coarsening=20
of our culture.=94 Some of Mr. Obama=92s criticism is=20
of Federal Communications Commission Chairman=20
Kevin J. Martin, whom Mr. Obama has known since=20
both attended Harvard University Law School. Of=20
the three presidential candidates, Mr. Obama is=20
the only one to prominently showcase media issues=20
on his campaign Web site. Perhaps in a sign of=20
the importance he places on the issue, the Web=20
site lists detailed positions on a number of media issues.
http://www.tvweek.com/news/2008/03/candidates_media_stance_sen_ba.php
(requires free registration)

SPECTRUM/WIRELESS

WIRELESS AUCTION YIELDS MIXED RESULTS FOR CONSUMERS
[SOURCE: InfoWorld, AUTHOR: Nancy Gohring]
The completion of the 700MHz wireless spectrum=20
auction on Thursday should bring more choice and=20
new types of services for end users, although the=20
results were not as rosy as some observers had=20
hoped for. The new networks are unlikely to=20
deliver cheaper services for users as some had=20
hoped, however, at least not for a while. The=20
operators will need to pay off the billions of=20
dollars they pledged for the spectrum, in=20
addition to the investment in the new networks.=20
Nor did the auction result in completely new=20
types of companies entering the wireless market,=20
which had been another possibility when the=20
auctions were announced. Some said they expected=20
all along that the incumbent operators would dominate.
http://www.infoworld.com/article/08/03/21/Wireless-auction-yields-mixed-...
ults-for-consumers_1.html
* 700 MHz Aftermath: Assessing A Rather=20
Complicated Result =97 But Not A Disaster As Some Maintain.
[Commentary] "I think Commissioner Adelstein=20
gives a fair assessment when he says we won on=20
revenue and openness and lost on diversity and competition."
http://www.wetmachine.com//item/1119

VERIZON LICKS ITS CHEAP MEGAHERTZ POPS
[SOURCE: New York Times, AUTHOR: Saul Hansell]
Since the winners of the government spectrum=20
auction were released Thursday, analysts have=20
been working overtime on their spreadsheets to=20
figure out who got the best deals. The latest=20
from Rebecca Arbogast, who follows the market=20
closely for Stifel Nicolaus, concludes that=20
Verizon, which went into the auction well behind=20
AT&T in the amount of spectrum it owned, got the=20
best deal. It purchased a total of 8.5 billion=20
MHz pops for $9.36 billion. That comes out to an=20
average $1.10 per MHz pop. That average is made=20
up of the nationwide C block, which was=20
relatively inexpensive, as there was little=20
competition, and some very competitive local=20
licenses. AT&T bought far less capacity for a=20
much higher price. It bought a total of 2.1=20
billion MHz pops for $6.64 billion. That=20
represents $3.15 per MHz pop. The most expensive=20
license was in the Chicago area. After heated=20
bidding among Verizon, AT&T and US Cellular, the=20
regional B block license for Chicago was sold to=20
Verizon for $892 million, or $9.19 per MHz pop.=20
The other expensive regions included Seattle=20
($7.79 per MHz pop to AT&T), Oklahoma City ($7.32=20
per MHz pop to Verizon); Pierce, Wis. ($6.51 per=20
MHz pop to AT&T), Milwaukee ($6.17 per MHz pop to=20
AT&T), and Philadelphia ($6.05 per MHz pop to=20
AT&T). The companies with the third and fourth=20
most winning bids in the auction were Dish=20
Network and Qualcomm. They bought spectrum that=20
is designed mainly for one-way broadcasts,=20
presumably of wireless television service. As=20
this spectrum is less useful, it sold for far=20
lower prices than the spectrum suitable for cellphone calls.
http://bits.blogs.nytimes.com/2008/03/21/verizon-licks-its-cheap-megaher...
pops/
(requires registration)

SPECTRUM AUCTION MAY BOOST GEAR MAKERS' FUTURE
[SOURCE: Reuters]
Wireless network equipment makers may see a=20
flurry of new orders in the next two years after=20
a $19 billion government auction of wireless=20
airwaves, analysts said. The top two U.S. mobile=20
services AT&T Inc and Verizon Wireless were the=20
biggest spenders in the auction. Equipment makers=20
that may benefit include Ericsson,=20
Alcatel-Lucent, Nortel Networks, Nokia Siemens,=20
owned by Nokia and Siemens AG, Motorola Inc,=20
China's Huawei Technologies Co. Ltd and ZTE Corp,=20
analysts said. While some analysts see the=20
outcome as less of a boost than if a newcomer=20
like Google Inc had won spectrum in the auction=20
that ended this week, others say the auction may=20
lead to spending of about $9 billion on network=20
gear in coming years. AT&T, which spent over $6=20
billion in the auction, and Verizon Wireless,=20
which spent more than $9 billion, said they would=20
use the airwaves to expand data services, which=20
include everything from Web surfing to music downloads.
http://www.reuters.com/article/technologyNews/idUSN2043819220080321

SPECTRUM MAY TRANSLATE TO MOBILE VIDEO FOR DISH
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
Dish Network=92s successful spectrum bid this week=20
had Wall Street surprised, and abuzz, about what=20
satellite pioneer Charlie Ergen may be planning.=20
Dish Network Thursday declined to comment on its=20
plans for the spectrum it=92s acquiring with its=20
$711.9 million bid in the government=92s=20
700-Megahertz wireless auction. But on the heels=20
of Dish=92s successful offer, securing 168 licenses=20
in the E block, a number of analysts were laying=20
odds that the satellite provider will be looking=20
to offer mobile video services. The E-block=20
spectrum Dish won in auction does not permit two-way communication.
http://www.multichannel.com/article/CA6543975.html?nid=3D4262

CALL FOR WIRELESS REGULATOR GETS LOUDER
[SOURCE: Chicago Tribune 3/21, AUTHOR: Wailin Wong]
Consumer discontent with wireless service has=20
been brewing for years, resulting in lawsuits=20
across the country and requests for government=20
intervention. Now there's movement at the federal=20
level to address long-standing concerns such as=20
mandatory contract extensions, early termination=20
fees and confusing billing. The latest draft=20
legislation is a wireless consumer protection act=20
from Rep. Edward Markey (D-Mass.) who proposes,=20
among other items, requiring operators to offer a=20
service plan with no early termination fee and=20
letting consumers cancel their contracts within=20
30 days without penalty. Sen. Mark Pryor (D-Ark.)=20
has also floated legislation to set up uniform=20
requirements for wireless customer service.
http://www.chicagotribune.com/business/chi-fri-wireless-backlashmar21,0,...
5484.story?track=3Drss

INTEL RESEARCHERS STRETCH WI-FI TO COVER 60 MILES
[SOURCE: ComputerWorld, AUTHOR: John Cox]
Intel recently demonstrated a modified 802.11=20
radio link with a data rate of around 6 Mbps and=20
a range of more than 60 miles. Intel achieved=20
this extraordinary range using off-the-shelf=20
hardware, including parabolic antennas, for its=20
project, dubbed the rural connectivity platform=20
(RCP). The key innovation was a change, borrowed=20
from cellular networks, to the underlying 802.11=20
media-access-control layer that allowed for a=20
more efficient signal, and translates into longer=20
reach. RCP is one of several research projects=20
intended to extend the Internet into rural areas,=20
especially in developing countries. The idea is=20
to use low-cost, low-power Wi-Fi radios to bridge=20
between wired Internet connections in a city and=20
wired and wireless connections in small, rural=20
villages. RCP's unprecedented range minimizes the=20
need for lots of wireless nodes to span those distances.
http://www.computerworld.com/action/article.do?command=3DviewArticleBasi...
rticleId=3D9070239&source=3Drss_news10

JOURNALISM

THE WAR ENDURES, BUT WHERE'S THE MEDIA?
[SOURCE: New York Times, AUTHOR: Richard Perez-Pena]
Five years later, the United States remains at=20
war in Iraq, but there are days when it would be=20
hard to tell from a quick look at television=20
news, newspapers and the Internet. Media=20
attention on Iraq began to wane after the first=20
months of fighting, but as recently as the middle=20
of last year, it was still the most-covered=20
topic. Since then, Iraq coverage by major=20
American news sources has plummeted, to about=20
one-fifth of what it was last summer, according=20
to the Project for Excellence in Journalism. The=20
drop in coverage parallels -- and may be=20
explained by -- a decline in public interest.=20
Surveys by the Pew Research Center show that more=20
than 50 percent of Americans said they followed=20
events in Iraq =93very closely=94 in the months just=20
before and after the war began, but that slid to=20
an average of 40 percent in 2006, and has been=20
running below 30 percent since last fall. Experts=20
offer many other explanations for the declining=20
media focus, like the danger and expense in=20
covering Iraq, and shrinking newsroom budgets. In=20
the last year, a flagging economy and the most=20
competitive presidential campaign in memory have=20
diverted attention and resources.
http://www.nytimes.com/2008/03/24/business/media/24press.html?ref=3Dtoda...
aper
(requires registration)

NEWSPAPERS' NEW OWNERS TURN GRIM
[SOURCE: New York Times, AUTHOR: David Carr]
Critics of newspapers say that part of the=20
problem is that the industry has lost its ability=20
to surprise. Tell that to the guys who have just=20
bought in. =93The news business is something worse=20
than horrible. If that=92s the future, we don't=20
have much of a future,=94 Sam Zell, who bought the=20
Tribune Company last year, said recently in The=20
Baltimore Sun. =93I'm an optimist, but it is very=20
hard to be positive about what=92s going on,=94 said=20
Brian P. Tierney, who bought The Philadelphia=20
Inquirer and The Philadelphia Daily News in 2006.=20
=93The near term and medium term at the paper is=20
more negative than what we expected,=94 said OhSang=20
Kwon of Avista Capital Partners, which bought The=20
Minneapolis Star-Tribune in late 2006. These are=20
all smart businesspeople, with significant=20
success in other endeavors, who took a hard look=20
at the wave-tossed publishing sector and=20
appointed themselves as life savers. And very=20
soon after jumping in, they too began foundering in the tall waves.
http://www.nytimes.com/2008/03/24/business/media/24carr.html?ref=3Dtoday...
per
(requires registration)

CHILL THE PRESS
[SOURCE: Washington Post, AUTHOR: Editorial staff]
[Commentary] With a 20-page opinion handed down=20
March 7, U.S. District Judge Reggie B. Walton=20
sent a shudder through journalists and their=20
would-be sources. He found former USA Today=20
reporter Toni Locy in contempt of court for not=20
revealing the identities of people she talked to=20
for a May 2003 story on the 2001 anthrax attacks=20
and ordered her to pay the fine he had imposed --=20
as much as $45,000 -- out of her own pocket. Even=20
worse, Judge Walton barred others from assisting=20
Ms. Locy. A stay of the penalty pending an appeal=20
was granted by the U.S. Court of Appeals for the=20
D.C. Circuit on March 11. We hope it presages a=20
move by the court to reverse Judge Walton's=20
sweeping and unjustified order. Judge Walton's=20
opinion removes any protection that government=20
news sources have come to rely on. If allowed to=20
stand, it would seriously impair the ability of=20
journalists not only to expose malfeasance and=20
corruption but also to provide thorough coverage=20
of institutions such as the Justice Department.=20
Reporters rely on regular confidential sources to=20
burrow into their beats; if they can be=20
arbitrarily required to identify all their=20
sources, it's likely they won't have any. Ms.=20
Locy might not be in this predicament if the=20
federal government had what 49 states and the=20
District of Columbia have: protection of the=20
relationship between reporters and their sources.=20
A proposed federal shield law is stuck in the=20
Senate. Maybe Ms. Locy's plight will finally spur senators to take action.
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/23/AR200803...
1427.html
(requires registration)

INDECENCY ENFORCEMENT

THE SUPREME COURT AND INDECENCY
[SOURCE: New York Times 3/23, AUTHOR: Editorial staff]
[Commentary] The Supreme Court is throwing itself=20
back into the debate over indecency on=20
television, and that may not be a good thing. It=20
agreed last week to review the Federal=20
Communications Commission=92s policy of punishing=20
broadcasters for airing =93fleeting expletives=94 =97 a=20
few isolated bad words. A federal appeals court=20
wisely struck down the FCC=92s harsh rules, which=20
have done serious damage to free speech. We hope=20
the Supreme Court does not authorize the FCC to=20
return to its censorial policies.
http://www.nytimes.com/2008/03/23/opinion/23sun1.html
(requires registration)

FCC FINDS ITSELF IN ANOTHER FINE MESS
[SOURCE: Variety, AUTHOR: William Triplett]
While preparing to take Fox Television to the=20
Supreme Court over a handful of expletives, the=20
Federal Communications Commission let expire a=20
separate indecency fine against the network for=20
airing a movie with multiple repetitions of one=20
of the same expletives. The FCC blamed a recent=20
federal appeals court decision, saying it has=20
created confusion over how the agency can enforce=20
its indecency rules. In March 2006, the FCC=20
issued a Notice of Apparent Liability to Fox=20
station KTVI St. Louis, Mo., proposing a $27,500=20
fine for a 2003 airing of the movie =93The Pursuit=20
of D.B. Cooper,=94 which contained numerous=20
instances of =93shit=94 and its variations, including=20
=93bullshit,=94 =93holy shit=94 and =93owl shit,=94 according=20
to an FCC investigation into the lone complaint=20
that was lodged. But the agency never followed up=20
with a formal notice of forfeiture -- a demand=20
for payment that the Justice Dept. is authorized=20
to collect. The statute of limitation for=20
collecting on a forfeiture is five years from=20
date of the offending broadcast. Because the FCC=20
never issued a forfeiture notice and because KTVI=20
broadcast the film on March 15, 2003, U.S.=20
attorneys saw their chance to enforce any fine=20
against KTVI expire nine days ago.
http://www.variety.com/article/VR1117982791.html?categoryid=3D14&cs=3D1

QUICKLY

BEYOND OWNERSHIP
[SOURCE: Financial Times, AUTHOR: Editorial staff]
[Commentary] Ownership is an outmoded concept=20
for some products of the digital age. Once music,=20
movies or this newspaper are turned into digital=20
bits and reproduction and distribution costs fall=20
essentially to zero, rights of access become more=20
important than rights of ownership. Yet old=20
consumer mindsets around ownership have been one=20
barrier to the creation of more stable business=20
models in the digital media industry, especially=20
music. Subscription and advertising-supported=20
businesses that grant blanket rights of access to=20
entire libraries of content make more sense in=20
the long run, yet most consumers still want the=20
comfort of feeling that they =93own=94 their digital=20
music outright. While that has turned Apple=92s=20
iTunes store into the second-biggest US music=20
retailer, it has also had the more devastating=20
effect of making music piracy rampant.
http://www.ft.com/cms/s/c23122ea-f8ff-11dc-bcf3-000077b07658.html
(requires subscription)

MEDIA GROUPS SHARE CONTENT IN AD DEALS
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
Media companies are sharing more than advertising=20
sales as they form networks of like-minded sites=20
to combat the growing ad-selling might of major=20
Internet portals. Sharing news headlines and=20
other content is a component of many of the=20
revenue-sharing partnerships being forged to give=20
marketers an alternative to Google Inc. and other=20
tech-centered advertising vendors when they want=20
to reach an audience larger than any single site=20
could deliver. By letting blogs carry the=20
headlines along with the ads, media companies can=20
leverage the trust and reputation they have=20
earned from their offline channels. The=20
cooperation also helps the traditional media=20
organizations compete against online-only=20
operations such as Glam Media Inc., which are=20
also vying to draw ad money from the larger=20
portals by building portfolios of sites around specific topics.
http://customwire.ap.org/dynamic/stories/O/ONLINE_AD_SHOWDOWN_CONTENT?SITE=
=3DRIWAR&SECTION=3DBUSINESS&TEMPLATE=3DDEFAULT&CTIME=3D2008-03-23-15-28-40

POLITICAL PENDULUM SWINGS TOWARD STRICTER REGULATION
[SOURCE: Wall Street Journal, AUTHOR: Elizabeth Williamson]
The idea that less regulation is better for the=20
economy has held sway in Washington since the=20
Reagan administration. Now that consensus is=20
crumbling, posing a potentially costly challenge=20
to business no matter who wins the White House in=20
November. The crisis in the nation's housing=20
market, the recent turmoil on Wall Street and a=20
series of safety scares involving food, drugs and=20
toys are driving both political parties to=20
reconsider how much companies and markets should=20
be relied upon to police themselves. Even under=20
the pro-business Bush administration, it appears=20
the question isn't whether the government will=20
enact tougher rules for various parts of the=20
economy, but just how much stricter those rules=20
will be. The new climate has some business groups=20
girding for battle against what they fear could be onerous new requirements.
http://online.wsj.com/article/SB120631764481458291.html?mod=3Dtodays_us_...
e_one
(requires subscription)

CABLE COMPANIES CRY FOUL ON VERIZON
[SOURCE: USAToday, AUTHOR: Paul Davidson]
The battle between phone and cable companies is=20
getting uglier. Three cable giants are accusing=20
Verizon of illegally using proprietary=20
information it obtains as a wholesale telecom=20
provider to retain customers who had planned to=20
switch to the cable providers for their phone=20
service. Since last June, Verizon has deployed=20
the tactic to hold on to "thousands" of=20
subscribers in the Northeast and Mid-Atlantic, as=20
well as parts of the Midwest, South, Texas and=20
California, allege Comcast, Time Warner and=20
Bright House. In a recent Federal Communications=20
Commission filing, the companies asked the agency=20
to crack down on the practice. Verizon says that=20
it's doing nothing illegal and that its marketing is good for consumers.
http://www.usatoday.com/printedition/money/20080324/1b_phone_wars24.art.htm

JUDGE: NEBRASKA COMMISSION CANNOT COLLECT FEES ON INTERNET CALLS
[SOURCE: Associated Press]
The Nebraska Public Service Commission has until=20
April 2 to decide whether it will appeal a=20
federal court order barring it from collecting a=20
state fee from Internet phone service provider=20
Vonage Holdings Corp. The court order is the=20
latest victory for Vonage in its fight to keep=20
its customers from having to pay into state=20
universal service funds. Vonage offers a service=20
called Voice over Internet Protocol -- or VoIP --=20
which converts the sound of a voice into packets=20
of data, sends them across the Internet, and=20
reassembles them into sound on the other end of a=20
call. In a U.S. District Court lawsuit filed in=20
Lincoln, Vonage argued that the Nebraska Public=20
Service Commission and its officials should not=20
be allowed to force Vonage to pay into the=20
state's Universal Service Fund because the=20
company offers an information service rather than a telecommunications serv=
ice.
http://www.siouxcityjournal.com/articles/2008/03/21/news/nebraska/357b23...
b856375862574130011381d.txt

BUYBACK PROGRAMS TURN ELECTRONIC TRASH TO CASH
[SOURCE: Reuters, AUTHOR: Antony Bruno]
Leave it to the gadget industry to turn concern=20
over electronic waste into a sales opportunity.=20
Simply put, they're offering to buy back old=20
devices to recycle or resell, in return for cash=20
or in-store credit. Coming to consumer electronic=20
retailers nationwide this spring is the ecoNEW=20
program from NEW Customer Service Cos., the=20
company that provides extended warranty plans and=20
protection programs for such retailers as Best Buy and Wal-Mart.
http://www.reuters.com/article/technologyNews/idUSN2222683520080323
--------------------------------------------------------------
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.
--------------------------------------------------------------