April 2008

AT&T Gets Wireless, Data Lift

AT&T posted a 22% rise in first-quarter profit, as strong wireless and data growth eased concerns about the weak U.S. economy's impact on the company. Earnings at the San Antonio, Texas, telecommunications company's wireless unit nearly doubled to $2.9 billion, as revenue increased 18%. The unit's growth was driven by strong subscriber gains and increased average monthly revenue per subscriber. Apple Inc.'s iPhone, for which AT&T has exclusive U.S. service rights, also has been a major factor. AT&T added 1.3 million net wireless subscribers, an increase of 8.7% over the year-earlier period, including 705,000 new post-paid subscribers, or customers who sign service contracts and pay monthly bills. The largest U.S. carrier by subscribers ended the quarter with 71.4 million total customers.
http://online.wsj.com/article/SB120884648236734139.html?mod=todays_us_ma...
(requires subscription)

Led by Wireless Unit, AT& T Reports a 21.5 Percent Gain (Associated Press)
http://www.washingtonpost.com/wp-dyn/content/article/2008/04/22/AR200804...

In China, a battle over Web censorship

The communist government in Beijing is intensifying its efforts to control what its citizens can read and discuss online as political tensions rise ahead of this summer's Olympic Games. Fighting the censors every step of the way is an army of self-described "hacktivists" such as Bill Xia, a Chinese-born software engineer who lives in North Carolina. Xia and others are engaged in a kind of technological arms race, inventing software and using other tactics to allow ordinary Chinese to beat the "Great Firewall of China" and access information on sensitive subjects such as Chinese human rights and Tibet, the province where pro-independence sentiment has boiled over in recent months. Invoking the hit science-fiction movie The Matrix, Xia has compared what he does to giving Chinese Web surfers a "red pill" that lets them see reality for the first time. He spends long nights struggling to outfox an opponent — the Chinese government — that is arguably the world's best at controlling what its people see. "They are very smart," Xia says. "We have to move very quickly." To Americans and other Westerners, it might seem odd that Internet censorship is still possible at a time when YouTube, satellite TV and online chat rooms produce an overwhelming flow of real-time news and data. Yet authoritarian regimes from Cuba to Saudi Arabia to Pakistan rely on a mix of sophisticated technology and old-fashioned intimidation to ensure that dissent can be repressed, even in the Information Age. No one does it quite like China, which has proved that old-school communist apparatchiks could tame something as wild as the Web. China has the world's "most sophisticated" Internet filtering system, according to the OpenNet Initiative, an academic cooperative that tracks censorship issues. At the heart of China's censorship efforts is a delicate balancing act.
http://www.usatoday.com/printedition/news/20080423/1a_cover23.art.htm

Google accused of deception in selling AdSense keyword ads

An advertiser sued Google Inc. in federal court Tuesday claiming the company deceived him and charged for ads displayed on third-party Web sites, even though he left blank an "optional" box that seemed to address the issue. The dispute is over Google's popular AdSense program, which targets ads to keywords in articles and other content at participating sites. The program complements the traditional AdWords program, which runs targeted ads alongside Google's search results. Ads under both programs generate the bulk of Google's revenues. The lawsuit accuses Google of defrauding advertisers out of millions of dollars collectively by "redefining the universally understood meaning of an input form left blank."
http://www.bnd.com/business/technology/story/318234.html

Benton's Communications-related Headlines For Wednesday April 23, 2008

FUTURE OF THE INTERNET HEARING
Senate Network Neutrality Hearing Recap

_Testimony/Statements_
Chairman Inouye: Broadband and the Benefits of=20
the Internet Should Reach All Americans
FCC Chairman Kevin Martin
Public Knowledge Commends Martin On Internet Enforcement Policy
Professor Lawrence Lessig
Michele Combs -- Christian Coalition of America
Robert Hahn -- American Enterprise Institute
Patric Verrone -- Writers Guild of America, West
Justine Bateman -- Actress / Writer / Producer
Kyle McSlarrow -- National Cable & Telecommunications Association

MEDIA OWNERSHIP
Would News Corp. Need FCC Help To Keep Stations, Newsday?
Murdoch Taking on FCC Media Rule
Clear Channel suitors reject offer by banks

ELECTIONS & MEDIA
Obama=92s Winning in Video Views
Political coverage is more noise than news
The Latest Proof that the Karl Rove Playbook Has Become the MSM's Bible

BROADCASTING/CABLE
Fox Asks FCC to Reconsider Indecency Petition Rejection
You Won't Get Fined for Saying 'Frak'

INTERNET/BROADBAND
In China, a battle over Web censorship
Google accused of deception in selling AdSense keyword ads

QUICKLY -- qubo Creates Nutritional Guidelines=20
for Kids=92 Food Advertising; AT&T Gets Wireless, Data Lift

FUTURE OF THE INTERNET HEARING

SENATE NETWORK NEUTRALITY HEARING RECAP
[SOURCE: Benton Foundation]
Federal Communications Commission Chairman Kevin=20
Martin and others testified before the Senate=20
Commerce Committee Tuesday. Chairman Martin=20
fought a bit with lawmakers over whether the FCC=20
has the authority to punish Comcast over charges=20
that it blocks certain kinds of Internet traffic=20
-- a practice Chairman Martin said is more=20
widespread than the company had previously=20
acknowledged. Martin said Comcast's blocking of=20
BitTorrent peer-to-peer traffic appeared to=20
happen when there wasn't network congestion, in=20
contrast to claims from the broadband provider.=20
Comcast's actions, first described by the=20
Associated Press last October, appeared to "block=20
uploads of a significant portion of subscribers"=20
in that part of the network, even during times=20
when the network wasn't congested, Martin said.=20
Chairman Martin resisted calls by Democratic=20
members of the committee to pass a network=20
neutrality law, saying the FCC now has the=20
authority to act on network blocking complaints=20
on a case-by-case basis. The FCC in 2005 adopted=20
a set of open Internet policy principles, and it=20
has responded to traffic-blocking complaints,=20
Martin said. Sen John Kerry (D-MA) is concerned=20
the FCC may face lawsuits if it enforces its=20
Network Neutrality principles without new=20
legislation from Congress. Senate Republicans=20
voiced opposition to new legislation, with Ted=20
Stevens (R-Alaska) saying that "intense=20
regulation" of the Internet would be "entirely unwarranted."
http://benton.org/node/10612

_Testimony/Statements_

Chairman Inouye Seeks to Ensure Broadband and the=20
Benefits of the Internet Reach All Americans
[SOURCE: US Senate Commerce Committee, AUTHOR: Sen Daniel Inouye (D-Hawaii)]
Along with the problems facing individual=20
Americans as they navigate the digital world,=20
there are also challenges facing those who=20
provide services and content via the Internet,=20
and those who build and manage the network=20
infrastructure necessary for the continued=20
expansion and improvement of the Internet. I=20
believe that the government has a responsibility=20
to create a regulatory environment that will one=20
day enable each and every American to have=20
affordable access to reliable broadband service.=20
To achieve this long-term goal, I have introduced=20
the Broadband Data Improvement Act. This act is=20
designed to give us a starting point. It will=20
better define what broadband is, and it will=20
provide us with accurate information on the=20
current status of broadband deployment in the=20
United States. This information is essential if=20
we are to chart the most responsible course=20
toward universal broadband deployment. Another=20
significant responsibility of our government is=20
to ensure that the Internet continues to grow and=20
thrive. The issue of Network Neutrality, and its=20
offspring, nondiscrimination and network=20
management, looms large in this debate. The=20
central question here seems to be how to best=20
balance the right of the American people to=20
uncensored and unfettered access to Internet=20
content and services against the desire of=20
Internet service providers to manage their=20
networks in an efficient and profitable manner.=20
For several years now, policy discussions on this=20
subject have been waged on a rhetorical=20
battlefield. We are told that nothing less than=20
the Future of the Internet is at stake. Yet even=20
in this winner-take-all environment, we see the=20
inklings of progress: the dialogue between cable=20
and peer-to-peer services, the novel open access=20
requirements on the C-block spectrum, and the=20
swift response of a wireless provider to a text=20
messaging snafu that thwarted political speech.=20
It may be early for optimism, but progress=20
deserves praise. In the meantime, I can assure=20
you that this Committee will continue to=20
vigorously exercise its oversight authority over this important issue.
http://commerce.senate.gov/public/index.cfm?FuseAction=3DHearings.Statem...
&Statement_ID=3Dadaa2b80-62cd-471d-88da-afe0a224fa37

Federal Communications Commission Chairman Kevin Martin
[SOURCE: Federal Communications Commission, AUTHOR: FCC Chairman Kevin Mart=
in]
Contrary to some public claims about Commission's=20
approach generally, for the Commission to take=20
enforcement action against a telephone company=20
for blocking and degrading a particular=20
application but refuse to pursue enforcement=20
action against a cable company blocking or=20
degrading a particular application would unfairly=20
favor the cable industry. I believe that the=20
Commission must remain vigilant in protecting=20
consumers' access to content on the=20
Internet. Thus, it is critically important that=20
the Commission take seriously and respond to=20
complaints that are filed about arbitrary limits=20
on broadband access and potential violations of=20
our principles. Indeed, I have publicly stated=20
that the Commission stands ready to enforce this=20
policy statement and protect consumers' access to=20
the Internet.... The Commission should address=20
issues of appropriate network management using a=20
consistent framework. There are several factors=20
that I believe the Commission should use when=20
analyzing complaints and concerns about network=20
management practices by broadband operators: 1)=20
The Commission should consider whether the=20
network management practices are intended to=20
distinguish between legal and illegal activity.=20
2) The Commission should consider whether the=20
network service provider adequately disclosed its=20
network management practices. 3) The Commission=20
should consider whether the network management=20
technique arbitrarily blocks or degrades a particular application.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-281690A1.doc

Public Knowledge Commends Martin On Internet Enforcement Policy
[SOURCE: Public Knowledge, AUTHOR: Gigi Sohn]
FCC Chairman Kevin Martin=92s testimony today=20
before the Senate Commerce Committee was right on=20
the money when he said that the Commission should=20
take very seriously whether Internet network=20
management by a cable or telephone company=20
=91arbitrarily blocks or degrades a particular=20
application.=92 By saying there should be=20
=91heightened scrutiny=92 if it appears that a=20
telephone or cable company is selectively picking=20
out some applications for special treatment,=20
Martin put the companies on notice that their=20
management techniques need to =91further a=20
compelling or at least an important/legitimate=20
interest would need to be tailored to fit the=20
exact interest.=92 The chairman=92s remarks mean that=20
Comcast and other companies are out of bounds=20
when they target a particular protocol, such as=20
peer-to-peer applications, for throttling=20
regardless of the time of day (or night) or the=20
traffic levels on the network. While we continue=20
to support legislation to make certain that the=20
Internet is guided by non-discrimination=20
principles that are well established in law, we=20
are encouraged by the chairman=92s statement today=20
that the he is willing to defend some measure of=20
non-discrimination in proceedings before the agency.
http://www.publicknowledge.org/node/1533

Professor Lawrence Lessig
[AUTHOR: Lawrence Lessig]
[W]hile [Network Neutrlaity] questions are not=20
new, in my view, Congress has yet to address them=20
adequately. For the reasons I outline below, this=20
failure to act continues to threaten the growth=20
and economic vitality of the Internet. Thus, I=20
would urge Congress to enact legislation that=20
sets the basic framework for this critical=20
economic infrastructure in a way that assures the=20
greatest innovation and economic growth. That=20
framework would embed a design principle that=20
gave birth to the Internet =97 network neutrality.=20
In addressing the question before this Committee,=20
I would offer four points to consider. 1) The=20
question of effective regulation for critical=20
economic infrastructure did not begin with the=20
Internet. 2) Policymakers should adopt policies=20
that drive network providers towards business=20
models of broadband abundance rather than=20
business models that exploit scarcity. 3)=20
Investment decisions by venture capitalists are=20
driven by expectations of future, not present,=20
behavior. 4) Congress should direct the FCC to=20
implement, with the minimal regulatory=20
intervention necessary, a policy that drives=20
network providers to a business model of abundance.
http://commerce.senate.gov/public/_files/LessigTestimony.pdf

Michele Combs -- Christian Coalition of America
[SOURCE: Christian Coalition of America, AUTHOR: Michele Combs]
The Christian Coalition does not seek burdensome=20
regulations. We generally believe that less=20
government is better than more government. And,=20
we do not believe that governments should censor=20
speech. But let=92s be clear. Right now, the=20
telephone and cable companies are investing in=20
and using the exact same censorship and content=20
discrimination technologies that are being used=20
by the Chinese government to censor speech. In=20
fact, the Chinese government is currently using=20
these same technologies to block the Christian=20
Coalition=92s speech from being received by its=20
citizens. The Christian Coalition is merely=20
asking Congress to create simple rules of the=20
road that make it clear that it will allow cable=20
and phone companies to block the lawful speech=20
rights of the Christian Coalition and others.
http://commerce.senate.gov/public/_files/ChristianCoalitionStatementfort...
enateCommitteeonCommerceFinal.pdf

Robert Hahn -- American Enterprise Institute
[SOURCE: American Enterprise Institute, AUTHOR: Dr. Robert Hahn]
In its short history, the Internet has grown at=20
an astounding pace. Legislators have
the ability to dramatically affect the future of=20
Internet growth and innovation. Legislators=20
should carefully weigh the benefits and costs of=20
regulatory policies. The economic issues raised=20
in the network neutrality and network management=20
debates can be effectively addressed by using=20
antitrust authority where appropriate, allowing=20
Internet pricing flexibility, and fostering more=20
efficient use of spectrum to facilitate entry=20
into the broadband market. Government should=20
allow firms to experiment with different business=20
models for Internet services. Allowing such=20
market flexibility is likely to be the best way=20
to ensure efficient innovation on the information superhighway.
http://commerce.senate.gov/public/_files/HahnSenateTestimony408V17.pdf

Patric Verrone -- Writers Guild of America, West
[SOURCE: Writers Guild of America, West , AUTHOR: Patric Verrone]
The axiom in Hollywood is that "content is king."=20
But those who control access to the king control=20
the kingdom. Because of federal regulation -- or=20
lack thereof -- that control is in the hands of=20
neither the consumer nor the content creators,=20
but the distributors.... the policy decisions=20
that triggered the consolidation of old media has=20
not yet been made for the new media. There is=20
still time to protect the rights of content=20
producers and consumers. We need to establish=20
clear Net neutrality rules to ensure that the=20
Internet remains a level playing field for all.=20
We dethrone the gatekeepers and once more make content king.
http://commerce.senate.gov/public/_files/Pverronetestimonysenatecommerce...
.pdf

Justine Bateman -- Actress / Writer / Producer
[AUTHOR: Justine Bateman]
In entertainment, I believe we are on the verge=20
of a creative renaissance and the Internet is the=20
new grid upon which this renaissance can rest,=20
because unfortunately the business grid of TV and=20
film today cannot support that. Traditional media=20
is now like a pool over which a pool cover has=20
been placed causing those wild ducks that used to=20
swim around in your pool to go elsewhere. Those=20
ducks now I'm sure have found an open body of=20
water in which to swim, much like we content=20
creators have been found open distribution on the=20
Internet. And the idea of your site succeeding or=20
failing based upon whether or not you paid the=20
telecom companies enough to carry your material=20
or allow quick access is appalling. Honestly, I=20
can't help but think of extortion when I imagine=20
that kind of arrangement. Net neutrality will=20
allow for we creators to continue owning and=20
controlling our content in a way that we have not=20
been able to since the repeal of the financial=20
and syndication rules. A whole new class of small=20
business owners will emerge, providing thousands=20
of new jobs in a sector that desperately needs=20
them. And with innovation comes competition. Net=20
neutrality would insure a level playing field for that.
http://commerce.senate.gov/public/_files/jbatemantestimonysenatecommerce...
.pdf

Kyle McSlarrow -- National Cable & Telecommunications Association
[SOURCE: National Cable & Telecommunications=20
Association, AUTHOR: Kyle McSlarrow]
[W]hile broadband deployment to every community=20
in America merits the full attention of=20
policymakers, legislation calling for =93network=20
neutrality=94 or government intervention into the=20
operation of networks would undermine the goals=20
of broadband deployment and adoption. The=20
development of the Internet, expansion of=20
broadband networks, and creation of innovative=20
Internet applications we have seen would not have=20
occurred at such a rapid pace if providers were=20
restricted in how they could engineer their=20
networks to accommodate these dynamic=20
developments. The government=92s consistent light=20
regulatory touch since the introduction of=20
broadband has worked. And only that continued=20
regulatory freedom is likely to spur the=20
investment and innovation that consumers have come to expect.
http://commerce.senate.gov/public/_files/McSlarrowTestimony_April222008_...
.pdf

MEDIA OWNERSHIP

WOULD NEWS CORP NEED FCC HELP TO KEEP STATIONS, NEWSDAY?
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
There seems to be some question as to whether=20
News Corp. would have to either apply for a=20
Federal Communications Commission waiver or=20
divest its New York TV stations if it decides to=20
buy Newsday. The company already owns two TV=20
stations in the New York market and one local=20
newspaper, the New York Post, as well as national=20
paper The Wall Street Journal, also based in New=20
York City. Old FCC rules prevented News Corp.=20
from owning the stations and paper, but it got a=20
financial-distress waiver because of the ill=20
health of the Post. It is allowed to own the=20
Journal because that is considered a national=20
paper rather than a local one. Even though there=20
are FCC limits on newspaper-broadcast=20
cross-ownership, the company could buy Newsday=20
without the FCC having to approve the deal=20
because no TV or radio license is involved. The=20
FCC does review deals involving newspapers buying=20
stations because those licenses change hands. In=20
addition, owning both would become an issue at=20
license-renewal time no matter whether it was a=20
newspaper buying a broadcast outlet or the other=20
way around. News Corp.'s licenses in New York --=20
WWOR and WNEW -- are currently up for renewal. If=20
the FCC applies the new cross-ownership rule it=20
adopted in December, News Corp. would likely need=20
either a waiver or would have to divest, since=20
the rule specifically said it allows the=20
ownership of one station and one newspaper, not=20
two stations. Of course, News Corp. could wait=20
until its licenses were renewed -- it filed for=20
renewal in February of last year, but there were=20
various challenges to that renewal from activist=20
groups. If so, the issue would not come up again=20
for another eight years -- the term of a license.=20
The new cross-ownership rule went into effect=20
March 20, but it has been challenged in court by=20
broadcasters as too little deregulation and by=20
anti-consolidation activists as too much.
http://www.broadcastingcable.com/article/CA6554117.html?rssid=3D193

MURDOCH TAKING ON FCC MEDIA RULE
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
As he nears completion of a deal to acquire=20
Newsday from the Tribune Company, Rupert Murdoch=20
appears likely to pose the first significant=20
challenge to the media ownership rule that the=20
Federal Communications Commission recently=20
adopted. Even without Newsday, Mr. Murdoch was in=20
the process of seeking waivers to continue to=20
control two newspapers (The Wall Street Journal=20
and The New York Post) and two television=20
stations (WNYW and WWOR) in the New York area.=20
With those waiver requests pending at the FCC,=20
the Newsday deal means that Mr. Murdoch must now=20
apply for a waiver to own the two television=20
stations and three newspapers in the same market.=20
The Newsday deal also becomes public as Congress=20
takes up a measure that would restore the old=20
ownership rule, which generally restricted a=20
company from owning both a newspaper and a=20
television station in the same city, unless the=20
FCC granted a waiver. On Thursday, the Senate=20
Commerce Committee is expected to approve the=20
bill, which is sponsored by Senator Byron L.=20
Dorgan (D-ND). Industry lobbyists say that the=20
measure has a good chance of passing the House=20
and the Senate this year, although President Bush has threatened to veto it.
http://www.nytimes.com/2008/04/23/business/media/23ownership.html?ref=3D...
ayspaper
(requires registration)
* Murdoch Moving to Buy Newsday for $580 Million
http://www.nytimes.com/2008/04/23/business/media/23paper.html?ref=3Dtoda...
aper

CLEAR CHANNEL SUITORS REJECT OFFER BY BANKS
[SOURCE: Financial Times, AUTHOR: Henny Sender]
The latest skirmishes be=ADtween the banks and=20
potential buyers of Clear Channel are raising=20
expectations that the lenders will have to come=20
up with $22bn in debt financing for the buy-out.=20
There are two parallel legal cases stemming from=20
the November 2006 deal under which Bain Capital=20
and Thomas H Lee & Partners agreed to buy the=20
Texas company, which owns radio stations and=20
outdoor advertising sites. One, filed in New York=20
by the private equity firms, would compel the=20
banks to make good on their agreements to fund=20
the deal. Clear Channel filed the other in its=20
home state, alleging that the banks acted=20
improperly and asking for damages of $26bn. The=20
banks offered to settle their legal disputes with=20
the buyers on Tuesday through binding arbitration=20
=96 an offer that the buy-out firms spurned. Wall=20
Street and hedge fund traders betting on whether=20
a deal gets done interpreted the banks=92 offer as a sign of weakness.
http://www.ft.com/cms/s/fe01bd14-10c1-11dd-b8d6-0000779fd2ac.html
(requires subscription)

ELECTIONS & MEDIA

OBAMA'S WINNING IN VIDEO VIEWS
[SOURCE: TVWeek, AUTHOR: Julieanne Smolinski]
Sen. Barack Obama is No. 1 in the Web video race.=20
According to a study released today by Nielsen=20
Online, Sen. Obama=92s Web site had the most unique=20
viewers of video content for the month of March,=20
at 518,000. Sen. Hillary Clinton=92s site followed=20
with 351,000, with Sen. John McCain trailing far=20
behind at 38,000 uniques. The findings were=20
released as part of a study that reports overall=20
growth in Web video consumption. Only 1% of=20
viewers viewed both of the Democratic candidates=92=20
sites, prompting Nielsen to suggest there is=20
minimal overlap in viewing between the two, and=20
that a candidate=92s site is more likely to attract=20
a supporter than a curious undecided voter.
http://www.tvweek.com/news/2008/04/obamas_winning_in_video_views.php
(requires free registration)
* Obama Out-Streams Clinton, McCain
http://www.broadcastingcable.com/article/CA6554123.html?rssid=3D193

POLITICAL COVERAGE IS MORE NOISE THAN NEWS
[SOURCE: St Petersburg Times, AUTHOR: Eric Deggans]
[Commentary] After months spent consuming endless=20
cable TV news coverage of this endless=20
presidential campaign, I've got a theory: The=20
more attention they pay to a subject, the less=20
viewers actually learn. Trying to capitalize on=20
the contentious, percolating viewer magnet that=20
the campaign has become, each big cable news=20
channel has its own evening show focused on the=20
election: Fox's America's Election HQ, MSNBC's=20
Race to the White House and CNN's Election=20
Center. I recorded each show on April 9 and=20
watched closely, eager to test my hypothesis. The=20
timing was good: Deep into the six-week break=20
between primary elections, these shows offered a=20
look at what cable might cover when actual news=20
is in short supply. Unfortunately, I found news=20
programs chewing over morsels of information like=20
grazing cows, taking a sliver of reported fact=20
and massaging it with analysis and supposition=20
until viewers had a tough time separating fact=20
from assumption and opinion. It's the high=20
"signal-to-noise ratio" of cable news, the way=20
punditry and strategy often overwhelm the meat of=20
reportage. Not surprisingly, the show with the=20
highest ratio this day was on Fox News.
http://www.tampabay.com/features/media/article466590.ece

THE LATEST PROOF THAT THE KARL ROVE PLAYBOOK HAS BECOME MSM'S BIBLE
[SOURCE: Huffington Post, AUTHOR: Arianna Huffington]
[Commentary] Huffington's new book discusses the=20
role the media have played in allowing the=20
lunatic fringe now in control of the Republican=20
Party -- the people who believe in torture but=20
don't believe in evolution -- to hijack our=20
democracy. The mainstream media has so=20
internalized the Right's framing and messages=20
they have now become a part of its DNA. The first=20
of the latest round of exhibits proving that the=20
Karl Rove playbook has become the MSM's bible was=20
offered into evidence during last week's ABC=20
debate. The uproar that followed made it seem as=20
if this kind of behavior was an aberration but,=20
in fact, this has been going on for years -- only=20
in a less concentrated form. Next came a=20
double-whammy in Sunday's New York Times. First=20
up was David Barstow's epic revelation of the=20
unseemly complicity between the Pentagon and the=20
mainstream media in delivering the Bush=20
administration's talking points on Iraq via "a=20
kind of Trojan media horse" -- Pentagon-approved,=20
prepped, and financially-enriched "military=20
analysts" dutifully parroting the Bush party=20
line, with nary a raised eyebrow from the TV=20
stations and newspapers offering these=20
highly-decorated sock puppets their prestigious=20
platforms. It was -- and, indeed, continues to be=20
-- a propagandists' field day.
http://www.huffingtonpost.com/arianna-huffington/the-latest-proof-that-t...
b_97862.html

BROADCASTING/CABLE

FOX ASKS FCC TO RECONSIDER INDECENCY PETITION REJECTION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Fox asked the Federal Communications Commission's=20
Enforcement Bureau to rethink its decision not to=20
consider Fox's challenge to indecency fines=20
against 13 stations for an April 7, 2003, airing=20
of Married by America that showed some pixilated=20
body parts of bachelor-party revelers. Fox said=20
the petition rejection was an abuse of its=20
discretion and a ploy to avoid the substance of the petition.
http://www.broadcastingcable.com/article/CA6554131.html?rssid=3D193

YOU WON'T GET FINED FOR SAYING 'FRAK'
[SOURCE: AdAge, AUTHOR: Brian Steinberg]
You can't say that word on TV -- or can you? No=20
one on broadcast TV is supposed to be able to use=20
the four-letter profanity that starts with the=20
letter F and signifies sexual intercourse. Even=20
on basic cable, the word is often edited out of=20
movies and usually not inserted into original=20
scripts. In short, when it comes to that word and=20
TV companies who wish to court mainstream=20
advertisers and audiences, healthy distance is=20
usually helpful. Some networks, however, are cleverly dodging the issue.
http://adage.com/mediaworks/article?article_id=3D126574

INTERNET/BROADBAND

IN CHINA, A BATTLE OVER WEB CENSORSHIP
[SOURCE: USAToday, AUTHOR: Paul Wiseman]
The communist government in Beijing is=20
intensifying its efforts to control what its=20
citizens can read and discuss online as political=20
tensions rise ahead of this summer's Olympic=20
Games. Fighting the censors every step of the way=20
is an army of self-described "hacktivists" such=20
as Bill Xia, a Chinese-born software engineer who=20
lives in North Carolina. Xia and others are=20
engaged in a kind of technological arms race,=20
inventing software and using other tactics to=20
allow ordinary Chinese to beat the "Great=20
Firewall of China" and access information on=20
sensitive subjects such as Chinese human rights=20
and Tibet, the province where pro-independence=20
sentiment has boiled over in recent months.=20
Invoking the hit science-fiction movie The=20
Matrix, Xia has compared what he does to giving=20
Chinese Web surfers a "red pill" that lets them=20
see reality for the first time. He spends long=20
nights struggling to outfox an opponent =97 the=20
Chinese government =97 that is arguably the world's=20
best at controlling what its people see. "They=20
are very smart," Xia says. "We have to move very=20
quickly." To Americans and other Westerners, it=20
might seem odd that Internet censorship is still=20
possible at a time when YouTube, satellite TV and=20
online chat rooms produce an overwhelming flow of=20
real-time news and data. Yet authoritarian=20
regimes from Cuba to Saudi Arabia to Pakistan=20
rely on a mix of sophisticated technology and=20
old-fashioned intimidation to ensure that dissent=20
can be repressed, even in the Information Age. No=20
one does it quite like China, which has proved=20
that old-school communist apparatchiks could tame=20
something as wild as the Web. China has the=20
world's "most sophisticated" Internet filtering=20
system, according to the OpenNet Initiative, an=20
academic cooperative that tracks censorship=20
issues. At the heart of China's censorship efforts is a delicate balancing =
act.
http://www.usatoday.com/printedition/news/20080423/1a_cover23.art.htm

GOOGLE ACCUSED OF DECEPTION IN SELLING ADSENSE KEYWORD ADS
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
An advertiser sued Google Inc. in federal court=20
Tuesday claiming the company deceived him and=20
charged for ads displayed on third-party Web=20
sites, even though he left blank an "optional"=20
box that seemed to address the issue. The dispute=20
is over Google's popular AdSense program, which=20
targets ads to keywords in articles and other=20
content at participating sites. The program=20
complements the traditional AdWords program,=20
which runs targeted ads alongside Google's search=20
results. Ads under both programs generate the=20
bulk of Google's revenues. The lawsuit accuses=20
Google of defrauding advertisers out of millions=20
of dollars collectively by "redefining the=20
universally understood meaning of an input form left blank."
http://www.bnd.com/business/technology/story/318234.html

QUICKLY

QUBO CREATES NUTRITIONAL GUIDELINES FOR KIDS' FOOD ADVERTISING
[SOURCE: Broadcasting&Cable, AUTHOR: P.J. Bednarski]
Bilingual TV and online kids=92 service qubo said=20
Tuesday that it created nutritional guidelines to=20
help its sales staff decide which food=20
advertisers are acceptable for children=92s television.
http://www.broadcastingcable.com/article/CA6554133.html?rssid=3D193

AT&T GETS WIRELESS, DATA LIFT
[SOURCE: Wall Street Journal, AUTHOR: Roger Cheng, Andrew LaVallee]
AT&T posted a 22% rise in first-quarter profit,=20
as strong wireless and data growth eased concerns=20
about the weak U.S. economy's impact on the=20
company. Earnings at the San Antonio, Texas,=20
telecommunications company's wireless unit nearly=20
doubled to $2.9 billion, as revenue increased=20
18%. The unit's growth was driven by strong=20
subscriber gains and increased average monthly=20
revenue per subscriber. Apple Inc.'s iPhone, for=20
which AT&T has exclusive U.S. service rights,=20
also has been a major factor. AT&T added 1.3=20
million net wireless subscribers, an increase of=20
8.7% over the year-earlier period, including=20
705,000 new post-paid subscribers, or customers=20
who sign service contracts and pay monthly bills.=20
The largest U.S. carrier by subscribers ended the=20
quarter with 71.4 million total customers.
http://online.wsj.com/article/SB120884648236734139.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* Led by Wireless Unit, AT& T Reports a 21.5 Percent Gain (Associated Press)
http://www.washingtonpost.com/wp-dyn/content/article/2008/04/22/AR200804...
2921.html
--------------------------------------------------------------
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.
--------------------------------------------------------------

Senate Network Neutrality Hearing Recap

FUTURE OF THE INTERNET HEARING

_Testimony/Statements_
Chairman Inouye: Broadband and the Benefits of the Internet Should Reach All Americans
FCC Chairman Kevin Martin
Public Knowledge Commends Martin On Internet Enforcement Policy
Professor Lawrence Lessig
Michele Combs -- Christian Coalition of America
Robert Hahn -- American Enterprise Institute
Patric Verrone -- Writers Guild of America, West
Justine Bateman -- Actress / Writer / Producer
Kyle McSlarrow -- National Cable & Telecommunications Association

SENATE NETWORK NEUTRALITY HEARING RECAP
[SOURCE: Benton Foundation]
Federal Communications Commission Chairman Kevin Martin and others testified before the Senate Commerce Committee Tuesday. Chairman Martin fought a bit with lawmakers over whether the FCC has the authority to punish Comcast over charges that it blocks certain kinds of Internet traffic -- a practice Chairman Martin said is more widespread than the company had previously acknowledged. Martin said Comcast's blocking of BitTorrent peer-to-peer traffic appeared to happen when there wasn't network congestion, in contrast to claims from the broadband provider. Comcast's actions, first described by the Associated Press last October, appeared to "block uploads of a significant portion of subscribers" in that part of the network, even during times when the network wasn't congested, Martin said. Chairman Martin resisted calls by Democratic members of the committee to pass a network neutrality law, saying the FCC now has the authority to act on network blocking complaints on a case-by-case basis. The FCC in 2005 adopted a set of open Internet policy principles, and it has responded to traffic-blocking complaints, Martin said. Sen John Kerry (D-MA) is concerned the FCC may face lawsuits if it enforces its Network Neutrality principles without new legislation from Congress. Senate Republicans voiced opposition to new legislation, with Ted Stevens (R-Alaska) saying that "intense regulation" of the Internet would be "entirely unwarranted."
(See links to sources below)

_Testimony/Statements_

Chairman Inouye Seeks to Ensure Broadband and the Benefits of the Internet Reach All Americans
[SOURCE: US Senate Commerce Committee, AUTHOR: Sen Daniel Inouye (D-Hawaii)]
Along with the problems facing individual Americans as they navigate the digital world, there are also challenges facing those who provide services and content via the Internet, and those who build and manage the network infrastructure necessary for the continued expansion and improvement of the Internet. I believe that the government has a responsibility to create a regulatory environment that will one day enable each and every American to have affordable access to reliable broadband service. To achieve this long-term goal, I have introduced the Broadband Data Improvement Act. This act is designed to give us a starting point. It will better define what broadband is, and it will provide us with accurate information on the current status of broadband deployment in the United States. This information is essential if we are to chart the most responsible course toward universal broadband deployment. Another significant responsibility of our government is to ensure that the Internet continues to grow and thrive. The issue of Network Neutrality, and its offspring, nondiscrimination and network management, looms large in this debate. The central question here seems to be how to best balance the right of the American people to uncensored and unfettered access to Internet content and services against the desire of Internet service providers to manage their networks in an efficient and profitable manner. For several years now, policy discussions on this subject have been waged on a rhetorical battlefield. We are told that nothing less than the Future of the Internet is at stake. Yet even in this winner-take-all environment, we see the inklings of progress: the dialogue between cable and peer-to-peer services, the novel open access requirements on the C-block spectrum, and the swift response of a wireless provider to a text messaging snafu that thwarted political speech. It may be early for optimism, but progress deserves praise. In the meantime, I can assure you that this Committee will continue to vigorously exercise its oversight authority over this important issue.
http://commerce.senate.gov/public/index.cfm?FuseAction=Hearings.Statemen...

Federal Communications Commission Chairman Kevin Martin
[SOURCE: Federal Communications Commission, AUTHOR: FCC Chairman Kevin Martin]
Contrary to some public claims about Commission's approach generally, for the Commission to take enforcement action against a telephone company for blocking and degrading a particular application but refuse to pursue enforcement action against a cable company blocking or degrading a particular application would unfairly favor the cable industry. I believe that the Commission must remain vigilant in protecting consumers' access to content on the internet. Thus, it is critically important that the Commission take seriously and respond to complaints that are filed about arbitrary limits on broadband access and potential violations of our principles. Indeed, I have publicly stated that the Commission stands ready to enforce this policy statement and protect consumers' access to the internet.... The Commission should address issues of appropriate network management using a consistent framework. There are several factors that I believe the Commission should use when analyzing complaints and concerns about network management practices by broadband operators: 1) The Commission should consider whether the network management practices are intended to distinguish between legal and illegal activity. 2) The Commission should consider whether the network service provider adequately disclosed its network management practices. 3) The Commission should consider whether the network management technique arbitrarily blocks or degrades a particular application.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-281690A1.doc

Public Knowledge Commends Martin On Internet Enforcement Policy
[SOURCE: Public Knowledge, AUTHOR: Gigi Sohn]
FCC Chairman Kevin Martin’s testimony today before the Senate Commerce Committee was right on the money when he said that the Commission should take very seriously whether Internet network management by a cable or telephone company ‘arbitrarily blocks or degrades a particular application.’ By saying there should be ‘heightened scrutiny’ if it appears that a telephone or cable company is selectively picking out some applications for special treatment, Martin put the companies on notice that their management techniques need to ‘further a compelling or at least an important/legitimate interest would need to be tailored to fit the exact interest.’ The chairman’s remarks mean that Comcast and other companies are out of bounds when they target a particular protocol, such as peer-to-peer applications, for throttling regardless of the time of day (or night) or the traffic levels on the network. While we continue to support legislation to make certain that the Internet is guided by non-discrimination principles that are well established in law, we are encouraged by the chairman’s statement today that the he is willing to defend some measure of non-discrimination in proceedings before the agency.
http://www.publicknowledge.org/node/1533

Professor Lawrence Lessig
[AUTHOR: Lawrence Lessig]
[W]hile [Network Neutrlaity] questions are not new, in my view, Congress has yet to address them adequately. For the reasons I outline below, this failure to act continues to threaten the growth and economic vitality of the Internet. Thus, I would urge Congress to enact legislation that sets the basic framework for this critical economic infrastructure in a way that assures the greatest innovation and economic growth. That framework would embed a design principle that gave birth to the Internet — network neutrality. In addressing the question before this Committee, I would offer four points to consider. 1) The question of effective regulation for critical economic infrastructure did not begin with the Internet. 2) Policymakers should adopt policies that drive network providers towards business models of broadband abundance rather than business models that exploit scarcity. 3) Investment decisions by venture capitalists are driven by expectations of future, not present, behavior. 4) Congress should direct the FCC to implement, with the minimal regulatory intervention necessary, a policy that drives network providers to a business model of abundance.
http://commerce.senate.gov/public/_files/LessigTestimony.pdf

Michele Combs -- Christian Coalition of America
[SOURCE: Christian Coalition of America, AUTHOR: Michele Combs]
The Christian Coalition does not seek burdensome regulations. We generally believe that less government is better than more government. And, we do not believe that governments should censor speech. But let’s be clear. Right now, the telephone and cable companies are investing in and using the exact same censorship and content discrimination technologies that are being used by the Chinese government to censor speech. In fact, the Chinese government is currently using these same technologies to block the Christian Coalition’s speech from being received by its citizens. The Christian Coalition is merely asking Congress to create simple rules of the road that make it clear that it will allow cable and phone companies to block the lawful speech rights of the Christian Coalition and others.
http://commerce.senate.gov/public/_files/ChristianCoalitionStatementfort...

Robert Hahn -- American Enterprise Institute
[SOURCE: American Enterprise Institute, AUTHOR: Dr. Robert Hahn]
In its short history, the Internet has grown at an astounding pace. Legislators have
the ability to dramatically affect the future of Internet growth and innovation. Legislators should carefully weigh the benefits and costs of regulatory policies. The economic issues raised in the network neutrality and network management debates can be effectively addressed by using antitrust authority where appropriate, allowing Internet pricing flexibility, and fostering more efficient use of spectrum to facilitate entry into the broadband market. Government should allow firms to experiment with different business models for Internet services. Allowing such market flexibility is likely to be the best way to ensure efficient innovation on the information superhighway.
http://commerce.senate.gov/public/_files/HahnSenateTestimony408V17.pdf

Patric Verrone -- Writers Guild of America, West
[SOURCE: Writers Guild of America, West , AUTHOR: Patric Verrone]
The axiom in Hollywood is that "content is king." But those who control access to the king control the kingdom. Because of federal regulation -- or lack thereof -- that control is in the hands of neither the consumer nor the content creators, but the distributors.... the policy decisions that triggered the consolidation of old media has not yet been made for the new media. There is still time to protect the rights of content producers and consumers. We need to establish clear Net neutrality rules to ensure that the Internet remains a level playing field for all. We dethrone the gatekeepers and once more make content king.
http://commerce.senate.gov/public/_files/Pverronetestimonysenatecommerce...

Justine Bateman -- Actress / Writer / Producer
[AUTHOR: Justine Bateman]
In entertainment, I believe we are on the verge of a creative renaissance and the Internet is the new grid upon which this renaissance can rest, because unfortunately the business grid of TV and film today cannot support that. Traditional media is now like a pool over which a pool cover has been placed causing those wild ducks that used to swim around in your pool to go elsewhere. Those ducks now I’m sure have found an open body of water in which to swim, much like we content creators have been found open distribution on the Internet. And the idea of your site succeeding or failing based upon whether or not you paid the telecom companies enough to carry your material or allow quick access is appalling. Honestly, I can’t help but think of extortion when I imagine that kind of arrangement. Net neutrality will allow for we creators to continue owning and controlling our content in a way that we have not been able to since the repeal of the financial and syndication rules. A whole new class of small business owners will emerge, providing thousands of new jobs in a sector that desperately needs them. And with innovation comes competition. Net neutrality would insure a level playing field for that.
http://commerce.senate.gov/public/_files/jbatemantestimonysenatecommerce...

Kyle McSlarrow -- National Cable & Telecommunications Association
[SOURCE: National Cable & Telecommunications Association, AUTHOR: Kyle McSlarrow]
[W]hile broadband deployment to every community in America merits the full attention of policymakers, legislation calling for “network neutrality” or government intervention into the operation of networks would undermine the goals of broadband deployment and adoption. The development of the Internet, expansion of broadband networks, and creation of innovative Internet applications we have seen would not have occurred at such a rapid pace if providers were restricted in how they could engineer their networks to accommodate these dynamic developments. The government’s consistent light regulatory touch since the introduction of broadband has worked. And only that continued regulatory freedom is likely to spur the investment and innovation that consumers have come to expect.
http://commerce.senate.gov/public/_files/McSlarrowTestimony_April222008_...

Today's Quote 04.22.08

"Howie, I don't know if you're free to come to Washington anytime soon but I have to reach an agreement with Congress on the federal budget. How'd you like to host a $3 trillion dollar 'Deal or No Deal,'"
-- President George W. Bush

Senate Commerce Committee tackles Net Neutrality today

Network neutrality will be at the heart of a full Senate Commerce Committee hearing this morning. With the expansive title "The Future of the Internet," lawmakers will debate "developing applications, consumer expectations, and network operation" in light of new evidence by a Silicon Valley startup company that Internet service providers are widely throttling legal peer-to-peer (p-to-p) file sharing. The unexpected Senate committee hearing may signal that lawmakers are ready to debate Internet bills long languishing in Congress. The Senate hearing comes on the heels of last Thursday's Internet neutrality hearing before the Federal Communications Commission at Stanford University. While there was scant "hard evidence" of Internet service providers mismanaging networks introduced at last week's FCC hearing, Vuze, a peer-to-peer video distributor based in Palo Alto, Calif., on Monday released the first findings of its own analysis of how major ISPs are throttling Internet traffic of 8,000 users participating in Vuze's study during one million hours of Internet time. ISPs use the nonstandard and potentially harmful practice of sending false reset packets to artificially interrupt and abort network connections when people are sending legal digital files. Vuze created a software plug-in that could be installed in the Vuze Platform application to monitor all potential network interruptions that a user experiences due to reset messages, not interruptions specifically related to use of the Vuze platform. The data released Monday covers Jan. 1 through April 13.
http://www.infoworld.com/article/08/04/22/Senate-committee-tackles-Net-n...

Casting a Wide Net (Washington Post)
Sure, you might expect Stanford law professor Lawrence lessig to appear at a Congressional hearing on the future of the Internet, but Justine Bateman? Mallory? The actress, who also is a writer and producer, is slated to be among the witnesses, and to share her concerns about the way creative content is developed and how it will be distributed in years to come. Bateman is a Screen Actors Guild board member and has recurring roles on "Men in Trees" and "Desperate Housewives." Joining her on the panel will be Patric Verrone, president of the Writers Guild of America West, who -- before, during and after the recent Hollywood writers' strike -- has given deep thought to how creative material is distributed online. (A goal of the successful strike was to make sure writers received residuals for programming that appeared on the Internet.) The hearing will focus on developing applications, consumer expectations, network management and discrimination, and how open the Internet should be.
http://www.washingtonpost.com/wp-dyn/content/article/2008/04/21/AR200804...
(requires registration)

Writers stump for net neutrality (Associated Press)
http://www.siliconvalley.com/news/ci_9011164

The Senate Commerce Committee discusses the Future of the Internet today, and FCC Chairman Kevin Martin is a last minute invitee (http://commerce.senate.gov/public/index.cfm?FuseAction=PressReleases.Det...)

For this and other upcoming media policy events, see http://www.benton.org/calendar/2008/4

News Corp. Nears Deal to Buy Newsday

Apparently, the Tribune Company is closing in on an agreement to sell its Long Island newspaper Newsday to News Corp. for about $580 million. Final details are being hammered out and a deal could yet fall apart, but Tribune and News Corp. have informally agreed on key aspects, including the price, structure and governance. Under the terms being discussed, Newsday would be part of a joint venture with News Corp.'s New York Post and various non-newspaper assets owned by News Corp which would own the bulk of the combination, with Tribune retaining a stake of less than 5%. If a deal is struck, it would be Tribune's first major newspaper sale since Chicago real-estate magnate Sam Zell took effective control of the company in December. Zell has been exploring ways to pare the company's heavy debt load, which piled up after it was taken private in an $8.2 billion buyout. It would be the second newspaper acquisition by News Corp. in several months, following the company's $5.16 billion acquisition of The Wall Street Journal's parent, Dow Jones, in December. The Newsday joint venture is expected to wipe out as much as $50 million in annual losses News Corp. now incurs on the Post, with the combined Newsday-Post operation earning roughly $50 million
http://online.wsj.com/article/SB120883219590433735.html?mod=todays_us_ma...
(requires subscription)

Tribune agrees to sell Newsday to Murdoch company, source says (Reuters)
http://www.latimes.com/news/printedition/asection/la-na-newsday22apr22,1...

April 14-20: Obama and Clinton Debate the Debate

Two major story lines drove press coverage in the last full week before the long-awaited Democratic Pennsylvania primary. The first was continued fallout over Obama’s remarks that some economically struggling citizens get “bitter” and “cling” to guns or religion. That subject accounted for 25% of all the campaign coverage last week. The second major story line, which accounted for another 22% of the coverage, was the ABC debate, which sparked its own debate over whether Obama bore the brunt of too many gaffe and “gotcha” questions. Washington Post TV critic Tom Shales, among the critical reviewers, criticized the moderators’ performances as “shoddy” and “despicable.” New York Times columnist David Brooks spoke for the opposing view when he lauded the questions, declaring that the “journalist’s job is to make politicians uncomfortable.” In either event, the controversy marked the clearest example of the media being injected into the middle of the campaign since the much-criticized Feb. 21 New York Times story suggesting an improper relationship between John McCain and a female lobbyist.
http://www.journalism.org/node/10720

As PA primary heats up, more in the media invest in race

Despite concerns that downsizing has left the news media diminished in their ability to report big stories, news outlets have rarely been more ambitious than they are today covering one of the biggest in decades -- the race for the White House. Much has been written this year about 24/7 cable news channels and their wall-to-wall coverage of the candidates. But CNN, MSNBC and Fox are not the only news operations that are committing more resources than ever to politics -- and offering voters more information than during any other election in American history. As Sens. Hillary Clinton and Barack Obama head into the home stretch of their Democratic primary showdown in Pennsylvania on April 22, a wide range of outlets -- from national to regional and local, in new and old media -- are going further than ever to bring viewers, listeners and readers the story.
http://www.baltimoresun.com/entertainment/bal-al.election20apr20,0,24457...