April 2008

INTERNET/BROADBAND
Hollywood taking sides in network neutrality debate
FCC dealt setback in broadband-over-power-lines push
Illinois legislators propose flurry of Internet laws
The 10 most important technologies you never think about

BROADCASTING
Ownership Fight Heats Up
Broadcasters File Comments vs. FCC=92s Localism Proposals
NAB Localism Rules Will Have Opposite Effect
ABC Affils on Localism Rules: No Need
Senators Concerned Over Localism Mandates
Public Radio Tries to Reignite Its Public
NPR's war on Low Power FM: the laws of physics vs. politics
The End of Network News as We Know It?

ELECTIONS & MEDIA
Campaign Coverage Index: Post-Pennsylvania Spin Drowns Out McCain
Stations Profiting From Indecision
Ad wars: Obama buys more, Clinton sets tempo
RNC Lawyers Warn Nets Against Airing Anti-McCain Ad

UNIVERSAL SERVICE
FCC set to limit Universal Service Fund for rural phone subsidies

JOURNALISM
Newspaper circulation falls 3.6 percent
The Newspaper Death Watch
How Different Is Murdoch=92s New Wall Street Journal?

SPECTRUM/WIRELESS
Hospital techies urge limits on 'white space' Wi-Fi

QUICKLY -- XM-Sirius Deal Opposed by States;=20
Review Slips to May; Big media to shrug off=20
economic woes, for now; Televisa-Univision trial=20
delayed; Static over the airwaves

INTERNET/BROADBAND

HOLLYWOOD TAKING SIDES IN NETWORK NEUTRALITY DEBATE
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera]
Hollywood believes the Internet is the key to its=20
future. But its constituents are again squabbling=20
over how to get there. As in the recent=20
television writers strike, the major studios are=20
at odds with some members of the creative=20
community over digital distribution. This time=20
it's about a public policy issue known as network=20
neutrality. Some lawmakers, public interest=20
advocates and big technology companies are=20
pushing for federal rules that would prevent=20
Internet service providers from blocking or=20
slowing certain content flowing through their=20
high-speed lines. They worry that cable and phone=20
companies could become gatekeepers of the=20
Internet and impede services that threaten their=20
businesses. Net neutrality is a complicated issue=20
with a wonky name. But as Congress and the=20
Federal Communications Commission consider=20
banning discriminatory practices on the Internet,=20
the entertainment industry is starting to take=20
notice -- and sides. Major movie studios and=20
record labels are concerned that net neutrality=20
could eliminate a potential tool for fighting=20
online piracy. Meanwhile, independent artists=20
want to ensure that they can disseminate their=20
work freely. The net neutrality supporters' cause=20
has been boosted in recent months by allegations=20
that Comcast stopped some of its Internet=20
customers from using BitTorrent, a popular=20
program for downloading videos. Hollywood's=20
involvement could elevate the largely=20
inside-the-Beltway debate, which has smoldered=20
since 2006 among online activists, public=20
interest groups, technology companies and=20
telecommunications giants. How lawmakers and=20
regulators deal with the issue could have major=20
implications for Hollywood's battle against=20
piracy and the burgeoning movement by writers,=20
actors and directors to bypass large media=20
companies by distributing their work online.
http://www.latimes.com/business/printedition/la-fi-neutral29apr29,1,5755...
.story
(requires registration)
* MPAA=92s Glickman: Movies Everywhere, but Legally
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Motion Picture Association of America president=20
Dan Glickman made it clear to a National Press=20
Club audience Monday that movies aren't just for=20
theaters or even traditional television sets=20
anymore, but for wherever the new, tech-savvy=20
generation wants to legally see them. Glickman=20
said consumers still prefer watching movies =93at=20
the movies=94 and that fans of digital-video=20
recorders, HDTV and Internet-protocol TV go to=20
movies in even greater numbers than those with=20
less home technology. Still, he followed that=20
with a "but" and a pitch for a light regulatory=20
hand on Internet regulation given the rise of out-of-theater viewing.
http://www.broadcastingcable.com/article/CA6555581.html?rssid=3D193

FCC DEALT SETBACK IN BROADBAND-OVER-POWER-LINES PUSH
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
In a potential setback for fans of broadband over=20
power lines, a federal appeals court has sided in=20
part with amateur radio operators who challenged=20
rules designed to speed the nascent Internet=20
service's rollout. When setting rules for BPL=20
operators nearly two years ago, the Federal=20
Communications Commission said it was trying to=20
encourage deployment of a "third pipe" to compete=20
with cable and DSL services, while establishing=20
limits aimed at protecting public safety,=20
maritime, radio-astronomy, aeronautical=20
navigation, and amateur radio operators from=20
harmful interference. The American Radio Relay=20
League (ARRL), which represents amateur and ham=20
radio operators, however, promptly sued the=20
agency, contending that the FCC's approach was=20
insufficient to ward off interference with its=20
radios and inconsistent with its previous rules.=20
On Friday, the U.S. Appeals Court for the=20
District of Columbia on Friday issued a ruling=20
that took issue with the way the FCC arrived at=20
its rules. During its rulemaking process, the FCC=20
relied on five scientific studies that measured=20
BPL devices' radio emissions, in an attempt to=20
determine interference risks with other users of=20
the spectrum. Although the agency released those=20
studies during a public comment process required=20
by federal law, it redacted portions of them,=20
arguing they were just "internal" communications=20
that didn't influence its deliberations. But=20
after reviewing the unredacted studies in=20
private, the majority of the judges agreed with=20
the ARRL that it was against federal=20
administrative procedure law to keep those=20
portions under wraps, particularly since they=20
could called the FCC's rules into question.
http://www.news.com/8301-10784_3-9930223-7.html?part=3Drss&subj=3Dnews&tag=
=3D2547-1_3-0-5

ILLINOIS LEGISLATORS PROPOSE FLURRY OF INTERNET LAWS
[SOURCE: Chicago Tribune, AUTHOR: Ashley Wiehle]
It's become an annual rite of spring at the=20
Illinois Capitol (Springfield, if you're playing=20
at home): lawmakers putting forth measure after=20
measure to crack down on troubling aspects of the=20
Internet, dangling the promise of making=20
schoolchildren safer. This year, legislators want=20
to boot more sex offenders out of social=20
networking sites, outlaw computer-based=20
harassment and stop people from buying drugs=20
online without a prescription. But even as they=20
promote what they say are high-impact solutions=20
to new-millennium issues, some lawmakers admit=20
their proposals will only chip away at problems=20
and be difficult to enforce. Much online crime=20
typically takes place in the privacy of the home,=20
behind the cloak of a screen name and outside Illinois.
http://www.chicagotribune.com/news/local/chi-lawmaker-online-28-apr28,1,...
5988.story

THE 10 MOST IMPORTANT TECHNOLOGIES YOU NEVER THINK ABOUT
[SOURCE: InfoWorld, AUTHOR: Neil McAllister]
A look at the 10 technologies that are keys to=20
our digital age. Without realizing it, you've=20
probably used at least one of them already today=20
-- if not all. But whether you're aware of them=20
or not, without these technologies our world=20
would be a very different place. Here's two:=20
High-speed net access -- Where would we be=20
without fast Internet access? It's easy to forget=20
that just 10 years ago, most of us were still=20
using ordinary modems. The broadband revolution=20
ushered in streaming video, MP3 downloads,=20
Internet phone calls, and multiplayer online=20
gaming. And we owe it all to TV. In the 1980s,=20
cable companies were promising 500 channels of=20
round-the-clock programming. Cable was poised to=20
become the most important wire into the house;=20
but the telephone companies had an ace up their=20
sleeve. A new technology could push=20
high-frequency signals over ordinary phone lines,=20
which previously had been good only for=20
low-bandwidth voice calls. The telephone=20
companies saw this as an opportunity to offer=20
video on demand and to compete with the cable=20
companies at their own game. Or so they thought.=20
The plans of the telcos for video on demand dried=20
up by the mid-1990s, but the technology remained.=20
Now called DSL, it had morphed into a high-speed=20
household on-ramp to the Internet. The cable=20
companies followed suit with a comparable=20
technology, and the broadband speed race--for=20
both DSL and cable -- began in earnest. Both=20
cable and DSL still use traditional frequency=20
signaling over copper wires, but new=20
breakthroughs are poised to go mainstream. Fiber=20
to the premises (FTTP) promises lightning-fast=20
network speeds, and WiMax will push broadband=20
into territories that wires can't reach today. As=20
for what applications this next broadband=20
revolution will bring -- well, we have only begun to imagine.
Voice over IP (VoIP): You've made a few Skype=20
calls and you've looked into digital phone=20
service from your broadband provider, but that's=20
as close as you've gotten to VoIP technology. Or=20
so you think. In truth, VoIP is revolutionizing=20
the telecom industry, blurring the lines between=20
voice calls and digital networks. Those prepaid=20
calling cards that offer rock-bottom=20
international rates? VoIP makes them possible.=20
Similarly, a growing number of businesses use=20
VoIP behind the scenes to eliminate long-distance=20
charges between branch offices. Routing calls=20
over the Internet circumvents traditional=20
telephone company charges, and fewer fees and=20
taxes mean lower prices. Digital calls are easier=20
to direct and manage, which makes them attractive=20
even to traditional telephone companies. Don't be=20
surprised if soon the landline you've lived with=20
forever is replaced by an all-digital=20
alternative--though you'll likely be none the wiser.
http://www.infoworld.com/article/08/04/28/10-most-important-technologies...
u-never-think-about_1.html

BROADCASTING

OWNERSHIP FIGHT HEATS UP
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
The odds may be long against Congress overturning=20
new Federal Communications Commission rules that=20
make it easier for newspapers and TV stations in=20
a market to buy each other, but the broadcasting=20
and newspaper industries are concerned enough to=20
attempt to forestall such action. In the face of=20
a Senate Commerce Committee voice vote last week=20
approving a =93resolution of disapproval=94 and an=20
upcoming vote on the matter by the full Senate,=20
proponents of the new rules are planning to=20
fight, even though administration officials have=20
said they would recommend President Bush veto any=20
congressional resolution. A broadcasting industry=20
source who didn't want to be identified said that=20
although the congressional action is unlikely to=20
be successful, =93you never like it to be hanging=20
on the swipe of a pen.=94 The source said the issue is =93very emotional.=
=94
http://www.tvweek.com/news/2008/04/ownership_fight_heats_up.php
(requires free registration)

BROADCASTERS FILE COMMENTS VS FCC'S LOCALISM PROPOSALS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In comments filed at the Federal Communications=20
Commission Monday most broadcasters argued that=20
new localism proposals are unnecessary and=20
burdensome. For example, in a joint filing,=20
Post-Newsweek Stations, Raycom Media, Barrington=20
Broadcasting, Bonten Media Group, Dispatch=20
Broadcast Group and Paxton Media Group said the=20
proposals, while well-intentioned, were "blunt=20
and burdensome instruments" that would lead to=20
the localism goals that both the FCC and the=20
broadcasters shared. They argued that there is=20
little to suggest that any action is needed, but=20
if there is, it needs to be more flexible and=20
less intrusive. Also filing jointly, a group of=20
20 small stations said the changes would create=20
more hardships for smaller stations than for the=20
larger, consolidated groups and would actually=20
harm service to local communities rather than=20
enhancing it. For example, they said, requiring=20
stations to be staffed during all hours of=20
operation would lead to cutbacks in overnight=20
service to avoid the additional cost. Advisory=20
boards, they argued, would reduce their control=20
over programming, saying, "Small broadcasters=92=20
involvement with their local communities is more=20
than sufficient to make them aware of community=20
needs and issues without government oversight."
http://www.broadcastingcable.com/article/CA6555597.html?rssid=3D193

NAB: LOCALISM RULES WILL HAVE OPPOSITE EFFECT
[SOURCE: tvnewsday, AUTHOR: ]
The National Association of Broadcasters filed=20
comments in the Federal Communications=20
Commission's localism proceeding saying,=20
"[I]nstead of achieving the Commission's stated=20
goal of promoting closer contact between=20
broadcasters and their communities, the proposed=20
rule changes will, in many cases, produce the=20
opposite effect, resulting in a broadcasting=20
industry less able to serve the public interest.=20
Especially in light of broadcasters' and other=20
outlets' increasing service to local markets made=20
possible by technological developments, NAB urges=20
the FCC not to return to a regulatory regime from=20
the analog era that would harm rather than help=20
promote our common goal of providing service to our local communities."
http://www.tvnewsday.com/articles/2008/04/28/daily.13/

ABC AFFILS ON LOCALISM RULES: NO NEED
[SOURCE: tvnewsday, AUTHOR: ]
In its comments on the FCC=92s proposed new=20
localism rules, the ABC Television Affiliates=20
Association says they=92re just not necessary. ABC=20
affiliates said they don't want the government=20
forcing networks to provide screeners of their=20
shows to stations before they air. The affiliates=20
point out that their contracts contain the right=20
to reject unsuitable programming. Advance notice=20
is obviously key to that right, and the stations=20
said ABC has given it to them, with the exception=20
of reality programming, which the network said=20
sometimes isn't finished until only a few hours=20
before airtime. The logistics of previewing those=20
shows "underscores the practical concerns that=20
may be implicated by a mandatory rule," the ABC affiliates told the Commiss=
ion.
http://www.tvnewsday.com/articles/2008/04/28/daily.11/
* ABC Stations Oppose Pre-Screening Mandate (Broadcasting&Cable)
http://www.broadcastingcable.com/article/CA6555575.html?rssid=3D193

SENATORS CONCERNED OVER LOCALISM MANDATES
[SOURCE: tvnewsday, AUTHOR: ]
Twenty-three senators have expressed their=20
'substantial concern' over recent proposals by=20
the Federal Communications Commission that "look=20
to bygone regulations for instruction on today's=20
evolving and highly competitive media industry."=20
In a letter dated April 24 to FCC Chairman Kevin=20
Martin, Sen. Pat Roberts (R-Kansas) and 22 Senate=20
colleagues urged the Commission to "heed the=20
concerns of responsible licensees that would be=20
unjustifiably penalized" by such regulations.=20
Additionally, Sen. Mary Landrieu (D-LA) authored=20
her own letter to Chairman Martin asking the=20
Commission to "craft policies that rightly=20
encourage community engagement without inhibiting=20
disaster communications or further burdening=20
already-strained Louisiana business owners."
http://www.tvnewsday.com/articles/2008/04/28/daily.8/
* Read the Roberts letter
http://www.nab.org/xert/corpcomm/pressrel/releases/042408_23Sens_Localis...
df

PUBLIC RADIO TRIES TO REIGNITE ITS PUBLIC
[SOURCE: New York Times, AUTHOR: Elizabeth Jensen]
Public radio is drawing its largest audience=20
ever, some 28 million listeners nationwide each=20
week. But if it=92s a golden era, you wouldn't know=20
it from the frenetic activity to remake the=20
genre. Flush from a $2 million Knight Foundation=20
grant, =93The Takeaway=94 is designed with its=20
partner, Public Radio International, and=20
collaborators including The New York Times, the=20
BBC World Service and the Boston public station=20
WGBH, to be a stark counterpoint to the taped=20
interviews on NPR=92s venerable =93Morning=20
Edition.=94 In the Chicago area, an 11-month-old=20
FM station, :Vocalo, never mentions that it is=20
affiliated with Chicago Public Radio. There=92s no=20
=93All Things Considered=94 or =93Car Talk=94; instead=20
hosts weave together interviews, commentary,=20
reports and music, culled from user submissions=20
to a companion Web site, vocalo.org. NPR itself=20
started the Web-radio hybrid =93Bryant Park=20
Project=94 last fall, hoping younger listeners=20
would like to hear lively hosts banter about news=20
and culture. And NPR=92s year-old midday talk show=20
=93Tell Me More,=94 anchored by the former=20
=93Nightline=94 correspondent Michel Martin, aims at=20
diverse new voices. The urgency to find new=20
formats is driven by audience research that can=20
be read as glass half-empty or half-full. The 28=20
million weekly public radio listeners recorded by=20
Arbitron in spring 2007 topped the previous high=20
of 27.5 million in 2004. But the research also=20
showed that the listeners were tuning in for shorter periods.
http://www.nytimes.com/2008/04/27/arts/television/27jens.html
(requires registration)

NPR'S WAR ON LOW POWER FM: THE LAWS OF PHYSICS VS POLITICS
[SOURCE: Ars Technica, AUTHOR:Matthew Lasar]
National Public Radio continues to move=20
aggressively against Federal Communications=20
Commission proposals that would, if not allow=20
nonprofits to build more Low Power FM stations=20
(LPFM), at least let existing ones survive the=20
intrusion of new full power neighbors. NPR is=20
quite plain about the matter in its FCC filings:=20
it stands opposed to the Low Power exceptions,=20
even though they might help keep FM offerings=20
diverse. NPR charges that the FCC is putting=20
feel-good policies ahead of the laws of physics.
"The laws of physics have not changed, and a=20
system of full power broadcast stations serves=20
many more listeners with less interference=20
compared to low power broadcasting," NPR told the=20
FCC this month. "While LPFM stations may advance=20
the interests of localism and diversity, the=20
Commission cannot assume that LPFM is inherently=20
better than full power service." NPR opposes=20
proposals to strengthen rules allowing LPFMs to=20
obtain channel interference waivers when an=20
"encroaching" full power station arrives on the=20
scene. And the broadcaster decidedly dislikes=20
measures that would require new full power=20
signals to offer technical and even financial=20
help to an LPFM that they've suddenly squatted on=20
(or squatted next to). This is a serious issue,=20
because over the last decade the NPR service has=20
expanded from 635 to 800 affiliated stations.=20
Public radio's stance on this puts it at odds=20
with practically every media reform group in the=20
country. But first, let's recap the history of=20
this bitter struggle, which goes back almost a decade.
http://arstechnica.com/news.ars/post/20080427-nprs-war-on-low-power-fm-t...
laws-of-physics-vs-politics.html

THE END OF NETWORK NEWS AS WE KNOW IT?
[SOURCE: AdAge, AUTHOR: Brian Steinberg]
The big three TV network newscasts lost about 1.2=20
million viewers last year, and advertising on=20
their three big morning news shows fell to an=20
estimated $1.03 billion. The average viewer is 60=20
years old, and the demographic marketers most=20
want to reach is more likely to be facing a=20
computer screen than a TV screen when the evening=20
news comes on. Given that rather sobering=20
picture, maybe the discussion shouldn't be over=20
whether Katie Couric will last at CBS through the=20
election. Maybe it should be whether we need=20
network-TV news at all. None of the networks was=20
even willing to entertain the suggestion that it=20
wasn't completely committed to its evening=20
newscasts, so this isn't a story about how one or=20
the other is about to close down its news=20
division. But the economic incentive to reshape=20
their news departments is pressing. Collectively,=20
ABC, NBC and CBS's network newscasts lost about=20
1.2 million viewers in 2007, according to an=20
analysis of Nielsen data by the Project for=20
Excellence in Journalism, a 5% drop from the year=20
before. Even the audience for the morning news=20
shows -- the most successful of the news=20
departments' endeavors -- fell for the third year=20
in a row, the PEJ study said, down 2% from the=20
year before, its lowest point since 1999. Not=20
surprisingly, ad revenue has followed viewers=20
elsewhere. Spending on the three major morning=20
news shows -- ABC's "Good Morning America," NBC's=20
"Today" and CBS's "Early Show" -- fell to about=20
$1.03 billion in 2007 from about $1.05 billion in=20
2005, according to Nielsen Monitor-Plus. And ad=20
spending on the three major-network evening=20
newscasts tumbled to about $502.8 million from about $538.3 million in 2005.
http://adage.com/mediaworks/article?article_id=3D126660

ELECTIONS & MEDIA

CAMPAIGN COVERAGE INDEX: POST-PENNSYLVANIA SPIN DROWNS OUT MCCAIN
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
The week began with Barack Obama and Hillary=20
Clinton bashing each other with negative TV ads=20
on the eve of the Pennsylvania primary. It ended=20
with the prospect of a longer, tougher contest=20
after Clinton=92s win, and with the volatile issue=20
of race again occupying a prominent place in the=20
media narrative. Given that the coverage of the=20
crucial April 22 Pennsylvania vote accounted for=20
53% of all the campaign stories, last week=92s=20
election news was utterly dominated by the=20
Democrats. Obama was a dominant or significant=20
newsmaker in 70% of the campaign stories,=20
according to PEJ=92s Campaign Coverage Index for=20
April 21-27. Clinton was close behind at 64%,=20
generating her highest level of media attention=20
this year. (Bill Clinton accounted for another 3%).
http://www.journalism.org/node/10824

STATIONS PROFITING FROM INDECISION
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
Television stations in Indiana and North Carolina=20
may receive an advertising windfall of more than=20
$8 million in campaign spots as the Democratic=20
presidential nomination race drags out longer=20
than expected. The prospect of additional ad=20
dollars also is spurring hopes at stations in=20
states with primaries that follow, including=20
Oregon and West Virginia. The unexpected rush of=20
campaign cash will bolster station bottom lines=20
in a year whose first two months brought no=20
revenue growth despite election ad spending. The=20
difficult business environment has led to=20
layoffs, including 160 positions at CBS stations=20
last month. Evan Tracey, chief operating officer=20
of TNS Media Intelligence=92s Campaign Media=20
Analysis Group, said that as of the middle of=20
last week, the Obama campaign had spent $2.9=20
million in Indiana, $1.9 million in North=20
Carolina and $150,000 in Oregon. The Clinton=20
campaign had spent $1 million each in Indiana and North Carolina, he said.
http://www.tvweek.com/news/2008/04/stations_profiting_from_indeci.php
(requires free registration)

AD WARS: OBAMA BUYS MORE, CLINTON SETS TEMPO
[SOURCE: CNN, AUTHOR: Paul Steinhauser]
When it comes to campaign commercials, Sens.=20
Barack Obama (D-IL) and Hillary Clinton (D-NY)=20
are going where no candidate has gone before.=20
"Obama and Clinton have spent a combined $110=20
million on TV ads to this point; we've had a race=20
that's literally gone on since last summer for ad=20
spending," said Evan Tracey of TNS Media=20
Intelligence/Campaign Media Analysis Group, CNN's=20
consultants on campaign commercials. "We're=20
beyond what has been record spending in previous=20
presidential nomination campaigns. John Kerry=20
spent close to $20 million to get the nomination=20
four years ago. Barack Obama's already=20
approaching $70 million." Sen Obama outspent Sen=20
Clinton on ad buys in Pennsylvania by slightly=20
more than 2-to-1, and Tracey says Obama is=20
outspending his rival for the Democratic=20
presidential nomination by about the same ratio=20
in Indiana and North Carolina, which hold=20
primaries May 6. But is Sen Obama getting bang=20
for the buck? Sen Clinton "has been able to=20
dictate the tempo in the last few contests, be=20
that Texas, Ohio and then Pennsylvania," Tracey=20
said. "What she has to continue to do is dictate=20
the tempo of this race with her TV ads. She=20
doesn't have as much money ... but if she's=20
allowed to dictate the tempo, she can make up for that lack of spending."
http://www.cnn.com/2008/POLITICS/04/27/ad.buys/index.html

RNC LAWYERS WARN NETS AGAINST AIRING ANTI-MCCAIN AD
[SOURCE: TPM Election Central, AUTHOR: Eric Kleefeld]
The Republican National Committee has developed a=20
new method for rebutting attack ads against John=20
McCain: Send threatening letters to any cable=20
networks that might run them. RNC chief counsel=20
Sean Cairncross has notified NBC, CNN and MSNBC=20
that he believes the new Democratic ad attacking=20
John McCain's "maybe a hundred" years in Iraq=20
line is illegal on two counts: 1) It is=20
misleading, in that Cairncross says it distorts=20
McCain's words, and 2) It constitutes=20
collaboration between the Clinton and Obama camps=20
and the DNC in fashioning a message against McCain.
http://tpmelectioncentral.talkingpointsmemo.com/2008/04/rnc_lawyers_warn...
ts_against.php

UNIVERSAL SERVICE

FCC SET TO LIMIT UNIVERSAL SERVICE FUND FOR RURAL PHONE SUBSIDIES
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
The Federal Communications Commission was poised=20
on Monday to impose a cap on fast-growing=20
subsidies the government allots to providers of=20
telephone service in rural America. A proposal to=20
limit the phone subsidies moved towards passage=20
as FCC Commissioner Robert McDowell threw his=20
support behind the idea, giving it a crucial=20
third vote on the five- member commission. "Like=20
an unabated fever, expenditures from this fund=20
continue to spike out of control," Commissioner=20
McDowell said. The measure to be adopted by the=20
FCC would cap the fund at March 2008 levels, or=20
about $1.3 billion to $1.4 billion a year=20
according to recent estimates. Commissioner=20
McDowell said he also supports a provision that=20
would exempt phone carriers that serve tribal=20
lands and Alaska native lands. The rural phone=20
subsidies are the largest component in a larger,=20
"universal service" fund administered by the FCC,=20
which is paid for through a surcharge on long=20
distance phone calls that is billed to carriers=20
and typically passed on to their subscribers. In=20
addition to rural service, the fund subsidizes=20
phone service to low-income households, as well=20
as communications services and Internet access=20
for schools, hospitals and libraries.
http://uk.reuters.com/article/technology-media-telco-SP/idUKN28506067200...
28?feedType=3DRSS&feedName=3Dtechnology-media-telco-SP
* FCC May Cap Phone Subsidy Fund
http://online.wsj.com/article/SB120942886620851295.html?mod=3Dtodays_us_...
e_one

JOURNALISM

NEWSPAPER CIRCULATION FALLS 3.6 PERCENT
[SOURCE: Reuters, AUTHOR: Robert MacMillan]
U.S. newspaper circulation fell 3.6 percent in=20
the latest set of figures released by an industry=20
group on Monday, reflecting a migration of=20
readers to the Internet and publishers' efforts=20
to streamline their businesses. The figures were=20
released by the Audit Bureau of Circulations and=20
compared the six months ending in March 2008 with=20
the same period a year earlier. Weekday paid=20
circulation at many of the top 25 U.S. papers=20
fell, though some papers, including Gannett's USA=20
Today and News Corp's Wall Street Journal,=20
reported gains of less than 1 percent.
http://www.reuters.com/article/internetNews/idUSN2846910020080428
* New FAS-FAX: Steep Decline at 'NYT' While 'WSJ' Gains
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003795106
* Newspaper-Circulation Drop Sharpens
http://online.wsj.com/article/SB120938966488449473.html?mod=3Dtodays_us_...
ketplace

THE NEWSPAPER DEATH WATCH
[SOURCE: AdAge, AUTHOR: Nat Ives]
By now you know the story: The business of=20
newspapers is in decline. It's a terminal=20
decline, if you believe experts such as Jeffrey=20
Cole, director of the Center for the Digital=20
Future at the University of Southern California=20
at Annenberg. His research suggests traditional=20
media in general must learn to shrink but=20
newspapers in particular are a special case.=20
"When an offline reader of a paper dies, he or=20
she is not being replaced by a new reader," he=20
said. "How much time do they have? We think they=20
have 20 to 25 years." Of course, newspaper owners=20
aren't going to just give up and wait -- and=20
that's why Ad Age is launching this series about=20
the 1,437 dailies still working hard in the U.S.=20
It'll look at the thought leaders in the=20
industry, their attempts to leave the past -- and=20
even formats -- behind and their strategies for=20
finding new business models. But first the=20
industry's travails, because the news last week was full of them.
http://adage.com/mediaworks/article?article_id=3D126685

HOW DIFFERENT IS MURDOCH'S NEW WALL STREET JOURNAL?
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
Rupert Murdoch has made headlines this week with=20
the resignation of Wall Street Journal managing=20
editor Marcus Brauchli, a reported $580 million=20
bid for Newsday and more talk of how he is=20
transforming the Journal=92s front page coverage to=20
take on the New York Times. How has the=20
119-year-old Journal changed since the Australian=20
media magnate took over the paper on Dec. 13,=20
2007? A Project for Excellence in Journalism=20
examination has the numbers. The study looked at=20
the Journal front page every other weekday. In=20
the first four months of Murdoch=92s stewardship,=20
the Journal=92s front page has clearly shifted=20
focus, de-emphasizing business coverage that was=20
the franchise, while placing much more emphasis=20
on domestic politics and devoting more attention=20
to international issues. But it is not, at least=20
not yet, as broad as the New York Times on the=20
same days. Under the Murdoch regime, the single=20
biggest change in front-page coverage occurred=20
with politics and the presidential campaign. From=20
Dec. 13, 2007 through March 13, 2008, coverage=20
more than tripled, jumping to 18% of the newshole=20
compared with 5% in the four months before the=20
ownership change. Since the front page has a=20
finite amount of space, that increase in=20
political coverage seems to have come largely at=20
the expense of business news. In the Murdoch era,=20
coverage of corporate America has plunged by more=20
than half=97to 14% of the front-page space from 30%=20
in the months before the sale. Among the other=20
notable gainers in the Murdoch era is coverage of=20
foreign events that do not directly involve the=20
U.S., which jumped to 25% from 18%. (Roughly one=20
third of that (9%) is related to overseas=20
economic and business affairs.) Coverage of=20
government also increased a bit, up to 4% from 3%.
http://www.journalism.org/node/10769

SPECTRUM/WIRELESS

HOSPITAL TECHIES URGE LIMITS ON 'WHITE SPACE' WI-FI
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Hospital administrators and medical device=20
manufacturers fear unlicensed use of "white=20
spaces" spectrum between television channels=20
could interfere with medical devices. "If a new=20
white space application that's operating=20
thousands of times more powerfully came online,=20
either in the hospital or outside the hospital,=20
it could very well directly interfere with the=20
telemetry system and prevent patient monitoring,"=20
Tim Kottak, engineering general manager for GE=20
Healthcare's systems and wireless division, said=20
in a telephone interview with CNET News.com this=20
week. "The whole system could be taken out, just=20
like what happened at Baylor." Since the late=20
1980s, medical telemetry devices, as they're=20
known, have been used in virtually every hospital=20
throughout the United States to keep tabs on=20
patients' vital signs, such as their heart rate=20
and blood oxygen levels, Kottak said.
http://www.news.com/8301-10784_3-9930441-7.html?tag=3Dnefd.lede

QUICKLY

XM-SIRIUS DEAL OPPOSED BY STATES; REVIEW SLIPS TO MAY
[SOURCE: Bloomberg, AUTHOR: Todd Shields]
The proposed merger of Sirius Satellite Radio=20
Inc. and XM Satellite Radio Holdings Inc. was=20
opposed by four states that say the combination=20
of the only two pay radio companies poses a=20
threat to competition. Connecticut, Maryland,=20
Ohio and Washington urged the Federal=20
Communications Commission to reject the merger in=20
a letter signed by the states' attorneys general=20
and posted today on the agency's Web site. The=20
FCC is unlikely to take up the matter by the May=20
1 expiration of the companies' merger agreement,=20
which has already been extended, said Paul=20
Gallant, an analyst with Stanford Washington Research Group.
http://www.bloomberg.com/apps/news?pid=3D20601204&sid=3Dakhz0QiKzmCg

BIG MEDIA TO SHRUG OFF ECONOMIC WOES, FOR NOW
[SOURCE: Reuters, AUTHOR: ]
U.S. media conglomerates are expected to shrug=20
off the deteriorating economy in the first=20
quarter thanks to strength in their cable=20
networks, but real pain could hit as early as in=20
the second quarter. Cable TV affiliate fees and=20
advertising have propped up media profits as=20
viewers defected from network TV, analysts said,=20
despite a procession of incrementally dour=20
comments on the economy from top executives of=20
News Corp, Walt Disney Co and Time Warner. "The=20
large cap media companies will show growth in the=20
first quarter," UBS media analyst Michael Morris=20
said, adding the quarter's advertising was likely=20
purchased on budgets from last year, before the=20
onset of the credit crisis. "The expectation is=20
that growth will slow as the year progresses."=20
Concerns about the economy aside, the first=20
quarter results from the world's top two=20
advertising agencies, Omnicom Group Inc and WPP=20
Group Plc, suggest U.S. ad spending is holding up relatively well.
http://www.reuters.com/article/industryNews/idUSN2540910320080428

TELEVISA-UNIVISION TRIAL DELAYED
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
We got you all hyped up yesterday for=20
nothing... A federal judge agreed Monday to=20
delay a much-anticipated trial that would pit one=20
giant of Spanish-language television, Mexico's=20
Grupo Televisa, against another, Univision=20
Communications. The trial, now scheduled for July=20
1, had been slated to begin today. On Monday,=20
however, attorneys from both sides asked U.S.=20
District Judge Philip Gutierrez to grant the=20
delay, probably to give them time to engage in settlement talks.
http://www.latimes.com/business/printedition/la-fi-univision29apr29,1,35...
34.story
(requires registration)

STATIC OVER THE AIRWAVES
[SOURCE: The Christian Science Monitor, AUTHOR: Randy Dotinga]
A review of Alex Foege's new book "Right of the=20
Dial: The Rise of Clear Channel and the Fall of Commercial Radio."
http://www.csmonitor.com/2008/0429/p13s02-bogn.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.
--------------------------------------------------------------