April 2008

The Senate Commerce Committee discusses the=20
Future of the Internet today, and FCC Chairman=20
Kevin Martin is a last minute invitee=20
(http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.Det=
ail&PressRelease_id=3D59628780-7507-4260-b6c6-24c2b028613e&Month=3D4&Year=
=3D2008)=20
See more on the hearing below. For this and other=20
upcoming media policy events, see http://www.benton.org/calendar/2008/4

INTERNET/BROADBAND
Senate Commerce Committee tackles Net Neutrality today
TIA Supports FCC Proposals for Upgrades to Universal Service Fund

ELECTIONS & MEDIA
April 14-20: Obama and Clinton Debate the Debate
As PA primary heats up, more in the media invest in race
With Keystone State Now a Key State, Spend Soars
Voters: Tuned In, Turned Off
CBS's Dem Debate Officially Canceled

MEDIA OWNERSHIP
News Corp. Nears Deal to Buy Newsday
XM, Sirius Still Have Much to Prove

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

WIRELESS/SPECTRUM
D Block: Looking back and moving forward
CTIA Comments on the FCC=92s Proposed USF Reforms

QUICKLY -- E-rate contract draws fire; Bush=20
seeks game show help on federal budget

INTERNET/BROADBAND

SENATE COMMITTEE TACKLES NET NEUTRALITY TODAY
[SOURCE: InfoWorld, AUTHOR: Mary A.C. Fallon]
Network neutrality will be at the heart of a full=20
Senate Commerce Committee hearing this morning.=20
With the expansive title "The Future of the=20
Internet," lawmakers will debate "developing=20
applications, consumer expectations, and network=20
operation" in light of new evidence by a Silicon=20
Valley startup company that Internet service=20
providers are widely throttling legal=20
peer-to-peer (p-to-p) file sharing. The=20
unexpected Senate committee hearing may signal=20
that lawmakers are ready to debate Internet bills=20
long languishing in Congress. The Senate hearing=20
comes on the heels of last Thursday's Internet=20
neutrality hearing before the Federal=20
Communications Commission at Stanford University.=20
While there was scant "hard evidence" of Internet=20
service providers mismanaging networks introduced=20
at last week's FCC hearing, Vuze, a peer-to-peer=20
video distributor based in Palo Alto, Calif., on=20
Monday released the first findings of its own=20
analysis of how major ISPs are throttling=20
Internet traffic of 8,000 users participating in=20
Vuze's study during one million hours of Internet=20
time. ISPs use the nonstandard and potentially=20
harmful practice of sending false reset packets=20
to artificially interrupt and abort network=20
connections when people are sending legal digital=20
files. Vuze created a software plug-in that could=20
be installed in the Vuze Platform application to=20
monitor all potential network interruptions that=20
a user experiences due to reset messages, not=20
interruptions specifically related to use of the=20
Vuze platform. The data released Monday covers Jan. 1 through April 13.
http://www.infoworld.com/cgi-bin/redirect?source=3Drss&url=3Dhttp://www....
oworld.com/article/08/04/22/Senate-committee-tackles-Net-neutrality_1.html
* Casting a Wide Net (Washington Post)
Sure, you might expect Stanford law professor=20
Lawrence lessig to appear at a Congressional=20
hearing on the future of the Internet, but=20
Justine Bateman? Mallory? The actress, who also=20
is a writer and producer, is slated to be among=20
the witnesses, and to share her concerns about=20
the way creative content is developed and how it=20
will be distributed in years to come. Bateman is=20
a Screen Actors Guild board member and has=20
recurring roles on "Men in Trees" and "Desperate=20
Housewives." Joining her on the panel will be=20
Patric Verrone, president of the Writers Guild of=20
America West, who -- before, during and after the=20
recent Hollywood writers' strike -- has given=20
deep thought to how creative material is=20
distributed online. (A goal of the successful=20
strike was to make sure writers received=20
residuals for programming that appeared on the=20
Internet.) The hearing will focus on developing=20
applications, consumer expectations, network=20
management and discrimination, and how open the Internet should be.
http://www.washingtonpost.com/wp-dyn/content/article/2008/04/21/AR200804...
2816.html
(requires registration)
* Writers stump for net neutrality (Associated Press)
http://www.siliconvalley.com/news/ci_9011164

TIA SUPPORTS FCC PROPOSALS FOR UPGRADES TO UNIVERSAL SERVICE FUND
[SOURCE: TMCNet, AUTHOR: Susan J. Campbell]
The Telecommunications Industry Association (TIA)=20
vigorously supports pending Federal=20
Communications Commission proposals that call for=20
upgrades to the Universal Service Fund (USF).=20
These upgrades include the establishment of a=20
separate funding mechanism for broadband=20
services. The TIA believes that these changes=20
will facilitate widespread build-out of broadband=20
networks throughout the United States as well as=20
ensure that consumers in underserved and unserved=20
areas can also benefit from next-generation=20
products and services. In its comments, the TIA=20
urges the Commission to create a separate=20
technology and a competitively-neutral broadband=20
fund that will grow as funds are transitioned=20
from support for narrowband services.
http://businessvoip.tmcnet.com/topics/benefits/articles/25637-tia-suppor...
fcc-proposals-upgrades-universal-service-fund.htm

ELECTIONS & MEDIA

APRIL 14-20: OBAMA AND CLINTON DEBATE THE DEBATE
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
Two major story lines drove press coverage in the=20
last full week before the long-awaited Democratic=20
Pennsylvania primary. The first was continued=20
fallout over Obama=92s remarks that some=20
economically struggling citizens get =93bitter=94 and=20
=93cling=94 to guns or religion. That subject=20
accounted for 25% of all the campaign coverage=20
last week. The second major story line, which=20
accounted for another 22% of the coverage, was=20
the ABC debate, which sparked its own debate over=20
whether Obama bore the brunt of too many gaffe=20
and =93gotcha=94 questions. Washington Post TV critic=20
Tom Shales, among the critical reviewers,=20
criticized the moderators=92 performances as=20
=93shoddy=94 and =93despicable.=94 New York Times=20
columnist David Brooks spoke for the opposing=20
view when he lauded the questions, declaring that=20
the =93journalist=92s job is to make politicians=20
uncomfortable.=94 In either event, the controversy=20
marked the clearest example of the media being=20
injected into the middle of the campaign since=20
the much-criticized Feb. 21 New York Times story=20
suggesting an improper relationship between John McCain and a female lobbyi=
st.
http://www.journalism.org/node/10720

AS PA PRIMARY HEATS UP, MORE IN THE MEDIA INVEST IN RACE
[SOURCE: Baltimore Sun, AUTHOR: David Zurawik]
Despite concerns that downsizing has left the=20
news media diminished in their ability to report=20
big stories, news outlets have rarely been more=20
ambitious than they are today covering one of the=20
biggest in decades -- the race for the White=20
House. Much has been written this year about 24/7=20
cable news channels and their wall-to-wall=20
coverage of the candidates. But CNN, MSNBC and=20
Fox are not the only news operations that are=20
committing more resources than ever to politics=20
-- and offering voters more information than=20
during any other election in American history. As=20
Sens. Hillary Clinton and Barack Obama head into=20
the home stretch of their Democratic primary=20
showdown in Pennsylvania on April 22, a wide=20
range of outlets -- from national to regional and=20
local, in new and old media -- are going further=20
than ever to bring viewers, listeners and readers the story.
http://www.baltimoresun.com/entertainment/bal-al.election20apr20,0,24457...
story

WITH KEYSTONE STATE NOW A KEY STATE, SPEND SOARS
[SOURCE: AdAge, AUTHOR: Ira Teinowitz]
The Democratic primary was supposed to be over by=20
now, with Pennsylvania voters casting ballots in=20
a decided race and media outlets lucky to get=20
even the scraps of primary season. Instead, the=20
Keystone State could see as much as $25 million=20
in spending as Sens. Hillary Clinton and Barack=20
Obama engage in the first drawn-out negative-ad=20
battles of election '08. With Ms. Clinton trying=20
to save her political life and Mr. Obama trying=20
to seal the deal once and for all, both=20
candidates have been aggressively upping the ante=20
in ad buys. As of early last week, nearly $21=20
million had been spent in the state -- nearly $18=20
million on advertising, most of it on broadcast=20
ads, according to TNS Media Intelligence's=20
Campaign Media Analysis Group. Comcast Spotlight,=20
the main vehicle for spot cable, got about $3=20
million. By Tuesday the total could approach $25=20
million. (Iowa saw $42 million in broadcast=20
spending but with far more candidates in the race.)
http://adage.com/mediaworks/article?article_id=3D126534

VOTERS TUNED IN, TURNED OFF
[SOURCE: Wall Street Journal, AUTHOR: Clare Ansberry, Suzanne Vranica]
At what point do campaign advertisements become=20
counterproductive? As Pennsylvanians finally=20
vote, Sens. Hillary Clinton and Barack Obama=20
might have provided an answer. In one week alone,=20
each candidate unveiled five different television=20
ads. With spending estimated at $20 million=20
state-wide, this battle of primary ads is=20
expected to be one of the biggest ever. On an=20
average day in the state's capital, Harrisburg,=20
228 television ads ran, according to Campaign=20
Media Analysis Group, a research company owned by=20
TNS Media Intelligence. The candidates ran ads on=20
"Oprah" in the mornings, "Days of Our Lives" in=20
the afternoon and "American Idol" in the evening.=20
Each left a mark on "Without a Trace." There was=20
little escape; 94% of registered Democrats had=20
seen a TV ad for Sen. Obama, and 88% had seen an ad for Sen. Clinton.
http://online.wsj.com/article/SB120882873447033475.html?mod=3Dtodays_us_...
e_one
(requires subscription)

CBS'S DEM DEBATE OFFICIALLY CANCELED
[SOURCE: MediaBistro]
CBS News can't catch a break. The network's hopes=20
for hosting a primary debate have been officially=20
dashed. The North Carolina Democratic party=20
announced they are canceling plans for Sunday's=20
debate because they could not get a commitment=20
from Sen. Barack Obama. The face-off was to be=20
moderated by Katie Couric and Bob Schieffer with a plum spot after 60 Minut=
es.
http://www.mediabistro.com/tvnewser/politics/cbss_dem_debate_officially_...
celed_82906.asp
* CBS Democratic Debate Canceled
http://www.broadcastingcable.com/article/CA6553564.html

MEDIA OWNERSHIP

NEWS CORP NEARS DEAL TO BUY NEWSDAY
[SOURCE: Wall Street Journal, AUTHOR: Merissa Marr]
Apparently, the Tribune Company is closing in on=20
an agreement to sell its Long Island newspaper=20
Newsday to News Corp. for about $580 million.=20
Final details are being hammered out and a deal=20
could yet fall apart, but Tribune and News Corp.=20
have informally agreed on key aspects, including=20
the price, structure and governance. Under the=20
terms being discussed, Newsday would be part of a=20
joint venture with News Corp.'s New York Post and=20
various non-newspaper assets owned by News Corp=20
which would own the bulk of the combination, with=20
Tribune retaining a stake of less than 5%. If a=20
deal is struck, it would be Tribune's first major=20
newspaper sale since Chicago real-estate magnate=20
Sam Zell took effective control of the company in=20
December. Zell has been exploring ways to pare=20
the company's heavy debt load, which piled up=20
after it was taken private in an $8.2 billion=20
buyout. It would be the second newspaper=20
acquisition by News Corp. in several months,=20
following the company's $5.16 billion acquisition=20
of The Wall Street Journal's parent, Dow Jones,=20
in December. The Newsday joint venture is=20
expected to wipe out as much as $50 million in=20
annual losses News Corp. now incurs on the Post,=20
with the combined Newsday-Post operation earning roughly $50 million
http://online.wsj.com/article/SB120883219590433735.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* Tribune agrees to sell Newsday to Murdoch company, source says (Reuters)
http://www.latimes.com/news/printedition/asection/la-na-newsday22apr22,1...
61665.story

XM, SIRIUS STILL HAVE MUCH TO PROVE
[SOURCE: TheStreet.com, AUTHOR: Robert Holmes]
XM and Sirius Satellite Radio face concerns over=20
subscriber adds, rising churn rates and lower=20
revenue per subscriber. While many expect the=20
Federal Communications Commission to follow in=20
the Justice Department's footsteps in granting=20
regulatory approval, there are fundamental=20
problems that many Wall Street analysts cannot=20
look past as the satellite operators focus more=20
on the merger than on their respective business.
http://www.thestreet.com/_more/s/xm-sirius-still-have-much-to-prove/news...
lysis/hardware/10412753.html?

BROADCASTING

'FREE' DTV CONVERTER BOXES CAN'T BE RETURNED?
[SOURCE: C-Net|News.com, AUTHOR: ]
Have you read the fine print on your National=20
Telecommunications and Information=20
Administration-issued digital-to-analog converter=20
box program coupon? "You will not be able to=20
receive cash or credit for the coupon amount, but=20
you can receive cash or credit for any amount you=20
paid out of pocket, if the store policy permits."=20
But if you get a defective DTV converter box--or=20
even if you don't like the one you bought--you=20
can take it back for another one, depending on=20
the store's return policy. Of course, the best=20
option to make sure you get a good box the first time.
http://www.news.com/8301-10784_3-9924380-7.html?part=3Drss&subj=3Dnews&tag=
=3D2547-1_3-0-5

WIRELESS/SPECTRUM

D BLOCK: LOOKING BACK AND MOVING FORWARD
[SOURCE: RCRWireless News, AUTHOR: Jeffrey Silva]
What's next for the D Block spectrum? That=92s the=20
predicament facing the Federal Communications=20
Commission in the aftermath of the failure to=20
attract a bidder willing to cough up $1.3 billion=20
for the national commercial/public- safety=20
license in the recently completed 700 MHz=20
auction. A House telecom subcommittee hearing=20
generated a handful of ideas on how to craft=20
rules for the D-Block re-auction. Interspersed in=20
the brainstorming session were assessments of=20
what went right and what went wrong with the=20
auction. In the end, nothing close to a consensus=20
emerged. Whether other wireless issues will muddy=20
the waters in fashioning new D-Block guidelines=20
remains to be seen. Time is not on the FCC=92s=20
side. FCC Chairman Kevin Martin told House=20
telecom committee members he wants to re-auction=20
the D Block later this year, a timeframe that=20
roughly coincides with the presidential election.=20
Though bidding rang up a record $19 billion, some=20
lawmakers and one witness suggested the FCC could=20
have generated far more revenue if conditions had=20
not been attached to key 700 MHz licenses.
http://www.rcrnews.com/apps/pbcs.dll/article?AID=3D/20080419/SUB/6076049...
1005/whitepapers

CTIA COMMENTS ON THE FCC'S PROPOSED USF REFORMS
[SOURCE: WirelessWeek, AUTHOR: Teresa von Fuchs]
The lobbying organization for the wireless=20
industry, CTIA, has filed comments in the Federal=20
Communications Commission current universal=20
service proceeding. CTIA said that the need for=20
reform within the Universal Service Fund (USF) is=20
=93urgent,=94 yet calls for the FCC to look at the=20
success of subsidies in aiding carriers to deploy=20
networks to rural areas. The FCC has been=20
discussing possible solutions to ease the growing=20
demands on the dwindling USF, while still aiding=20
telecoms that provide needed communication=20
services to underserved areas. On Jan. 29, the=20
commission issued three proposed rulemaking=20
reforms for the fund: the Joint Board=92s high-cost=20
reform recommendation, identical support rule and=20
reverse auctions proposal. While CTIA says it=20
recognizes that =93excessive subsidy levels can be=20
as detrimental=85as too little support,=94 CTIA=20
recommends instead of subsidy caps that the=20
Commission should =93adopt specific goals for the=20
program and performance metrics to measure its=20
achievement of those goals.=94 Specifically CTIA=20
recommends reforms that reward efficiency. CTIA=20
said that it supports the Joint Board=92s proposal=20
to set aside dedicated funding for the creation=20
and deployment of mobility and broadband, but=20
urged the Commission to create a functional=20
definition of =93broadband=94 rather than rigid speed=20
requirements, as it plans to better support the=20
deployment of broadband networks in underserved areas.
http://www.wirelessweek.com/article.aspx?id=3D159370

QUICKLY

E-RATE CONTRACT DRAWS FIRE
[SOURCE: eSchool News, AUTHOR: Dennis Pierce]
A five-year, $28 million contract awarded to=20
Science Applications International Corp. (SAIC)=20
to manage the information systems used to=20
administer the federal E-rate has some E-rate=20
service providers crying foul. Because SAIC also=20
is a service provider under the program, critics=20
say the deal represents a huge conflict of=20
interest and could give SAIC a competitive=20
advantage in bidding for other E-rate-related=20
business. The Universal Service Administrative=20
Company (USAC), the independent, not-for-profit=20
corporation that administers the $2.25=20
billion-a-year E-rate, says it has put safeguards=20
into place to prevent such abuse. But some E-rate=20
service providers say these safeguards are not=20
enough, and they accuse USAC of applying a double=20
standard: one for the way it conducts its own=20
business, and another, much more stringent standard for E-rate applicants.
http://www.eschoolnews.com/news/top-news/?i=3D53581;_hbguid=3D2d2d42d4-e...
-4a88-9f99-25477152a42a

BUSH SEEKS GAME SHOW HELP ON FEDERAL BUDGET
[SOURCE: Reuters, AUTHOR: Dean Goodman]
Take the message to the people. That's what=20
President George W. Bush has always been about.=20
That's why he made the highly unusual appearance=20
on US television game show "Deal or No Deal,"=20
seeking show host Howie Mandel's help to deal=20
with the federal budget in upcoming talks with Congress.
http://www.reuters.com/article/entertainmentNews/idUSN2148147520080422
--------------------------------------------------------------
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.
--------------------------------------------------------------