April 2008

With Keystone State Now a Key State, Spend Soars

The Democratic primary was supposed to be over by now, with Pennsylvania voters casting ballots in a decided race and media outlets lucky to get even the scraps of primary season. Instead, the Keystone State could see as much as $25 million in spending as Sens. Hillary Clinton and Barack Obama engage in the first drawn-out negative-ad battles of election '08. With Ms. Clinton trying to save her political life and Mr. Obama trying to seal the deal once and for all, both candidates have been aggressively upping the ante in ad buys. As of early last week, nearly $21 million had been spent in the state -- nearly $18 million on advertising, most of it on broadcast ads, according to TNS Media Intelligence's Campaign Media Analysis Group. Comcast Spotlight, the main vehicle for spot cable, got about $3 million. By Tuesday the total could approach $25 million. (Iowa saw $42 million in broadcast spending but with far more candidates in the race.)
http://adage.com/mediaworks/article?article_id=126534

Voters: Tuned In, Turned Off

At what point do campaign advertisements become counterproductive? As Pennsylvanians finally vote, Sens. Hillary Clinton and Barack Obama might have provided an answer. In one week alone, each candidate unveiled five different television ads. With spending estimated at $20 million state-wide, this battle of primary ads is expected to be one of the biggest ever. On an average day in the state's capital, Harrisburg, 228 television ads ran, according to Campaign Media Analysis Group, a research company owned by TNS Media Intelligence. The candidates ran ads on "Oprah" in the mornings, "Days of Our Lives" in the afternoon and "American Idol" in the evening. Each left a mark on "Without a Trace." There was little escape; 94% of registered Democrats had seen a TV ad for Sen. Obama, and 88% had seen an ad for Sen. Clinton.
http://online.wsj.com/article/SB120882873447033475.html?mod=todays_us_pa...
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CBS's Dem Debate Officially Canceled

CBS News can't catch a break. The network's hopes for hosting a primary debate have been officially dashed. The North Carolina Democratic party announced they are canceling plans for Sunday's debate because they could not get a commitment from Sen. Barack Obama. The face-off was to be moderated by Katie Couric and Bob Schieffer with a plum spot after 60 Minutes.
http://www.mediabistro.com/tvnewser/politics/cbss_dem_debate_officially_...

XM, Sirius Still Have Much to Prove

XM and Sirius Satellite Radio face concerns over subscriber adds, rising churn rates and lower revenue per subscriber. While many expect the Federal Communications Commission to follow in the Justice Department's footsteps in granting regulatory approval, there are fundamental problems that many Wall Street analysts cannot look past as the satellite operators focus more on the merger than on their respective business.

'Free' DTV converter boxes can't be returned?

Have you read the fine print on your National Telecommunications and Information Administration-issued digital-to-analog converter box program coupon? "You will not be able to receive cash or credit for the coupon amount, but you can receive cash or credit for any amount you paid out of pocket, if the store policy permits." But if you get a defective DTV converter box--or even if you don't like the one you bought--you can take it back for another one, depending on the store's return policy. Of course, the best option to make sure you get a good box the first time.
http://www.news.com/8301-10784_3-9924380-7.html?part=rss&subj=news&tag=2...

D Block: Looking back and moving forward

What's next for the D Block spectrum? That’s the predicament facing the Federal Communications Commission in the aftermath of the failure to attract a bidder willing to cough up $1.3 billion for the national commercial/public- safety license in the recently completed 700 MHz auction. A House telecom subcommittee hearing generated a handful of ideas on how to craft rules for the D-Block re-auction. Interspersed in the brainstorming session were assessments of what went right and what went wrong with the auction. In the end, nothing close to a consensus emerged. Whether other wireless issues will muddy the waters in fashioning new D-Block guidelines remains to be seen. Time is not on the FCC’s side. FCC Chairman Kevin Martin told House telecom committee members he wants to re-auction the D Block later this year, a timeframe that roughly coincides with the presidential election. Though bidding rang up a record $19 billion, some lawmakers and one witness suggested the FCC could have generated far more revenue if conditions had not been attached to key 700 MHz licenses.
http://www.rcrnews.com/apps/pbcs.dll/article?AID=/20080419/SUB/607604932...

CTIA Comments on the FCC’s Proposed USF Reforms

The lobbying organization for the wireless industry, CTIA, has filed comments in the Federal Communications Commission current universal service proceeding. CTIA said that the need for reform within the Universal Service Fund (USF) is “urgent,” yet calls for the FCC to look at the success of subsidies in aiding carriers to deploy networks to rural areas. The FCC has been discussing possible solutions to ease the growing demands on the dwindling USF, while still aiding telecoms that provide needed communication services to underserved areas. On Jan. 29, the commission issued three proposed rulemaking reforms for the fund: the Joint Board’s high-cost reform recommendation, identical support rule and reverse auctions proposal. While CTIA says it recognizes that “excessive subsidy levels can be as detrimental…as too little support,” CTIA recommends instead of subsidy caps that the Commission should “adopt specific goals for the program and performance metrics to measure its achievement of those goals.” Specifically CTIA recommends reforms that reward efficiency. CTIA said that it supports the Joint Board’s proposal to set aside dedicated funding for the creation and deployment of mobility and broadband, but urged the Commission to create a functional definition of “broadband” rather than rigid speed requirements, as it plans to better support the deployment of broadband networks in underserved areas.
http://www.wirelessweek.com/article.aspx?id=159370

TIA Supports FCC Proposals for Upgrades to Universal Service Fund

The Telecommunications Industry Association (TIA) vigorously supports pending Federal Communications Commission proposals that call for upgrades to the Universal Service Fund (USF). These upgrades include the establishment of a separate funding mechanism for broadband services. The TIA believes that these changes will facilitate widespread build-out of broadband networks throughout the United States as well as ensure that consumers in underserved and unserved areas can also benefit from next-generation products and services. In its comments, the TIA urges the Commission to create a separate technology and a competitively-neutral broadband fund that will grow as funds are transitioned from support for narrowband services.
http://businessvoip.tmcnet.com/topics/benefits/articles/25637-tia-suppor...

E-rate contract draws fire

A five-year, $28 million contract awarded to Science Applications International Corp. (SAIC) to manage the information systems used to administer the federal E-rate has some E-rate service providers crying foul. Because SAIC also is a service provider under the program, critics say the deal represents a huge conflict of interest and could give SAIC a competitive advantage in bidding for other E-rate-related business. The Universal Service Administrative Company (USAC), the independent, not-for-profit corporation that administers the $2.25 billion-a-year E-rate, says it has put safeguards into place to prevent such abuse. But some E-rate service providers say these safeguards are not enough, and they accuse USAC of applying a double standard: one for the way it conducts its own business, and another, much more stringent standard for E-rate applicants.
http://www.eschoolnews.com/news/top-news/?i=53581;_hbguid=2d2d42d4-e6ce-...

Bush seeks game show help on federal budget

Take the message to the people. That's what President George W. Bush has always been about. That's why he made the highly unusual appearance on US television game show "Deal or No Deal," seeking show host Howie Mandel's help to deal with the federal budget in upcoming talks with Congress.
http://www.reuters.com/article/entertainmentNews/idUSN2148147520080422