April 2008

Reforming Universal Service: What Should Be Done=20
And How To Do It -- today at noon on Capitol=20
Hill. For this and other upcoming media policy=20
events, see http://www.benton.org/calendar/2008/4

MEDIA OWNERSHIP
Zuckerman Matches Murdoch=92s Bid for Newsday
At Journal, the Words Not Spoken
Satellite killers
Google optimistic regulators won't bar Yahoo
Grupo Televisa's spat with Univision to unfold in court

WIRELESS/SPECTRUM
Report clears adviser's role in wireless auction
Satellite Is Sexy Again

INTERNET/BROADBAND
AT&T: We don't throttle P2P traffic
FBI's Net surveillance proposal raises privacy, legal concerns
Internet economy looks strong, some experts say
EarthLink To Shut Down New Orleans' Municipal Wi-Fi

ELECTIONS & MEDIA
Media Jump Ship From Obama To Clinton
McCain says N.C. Republicans out of touch over ad
Clinton Earns Points for Pennsylvania Tactics
Big Loser in Pennsylvania Primary: Cable News Networks
Bill Clinton =91Woefully Unprepared for 21st Century Media=92

CABLE/BROADCASTING
Martin's 75-Cent Solution
Still Apart On A La Carte
Converter boxes to bring better quality,=20
but different screen setups to older TVs
The Public and Broadcasting

QUICKLY -- Qwest wants to shed U.S. regulations;=20
Reluctantly, a Daily Stops Its Presses, Living Online

MEDIA OWNERSHIP

ZUCKERMAN MATCHES MURDOCH'S BID FOR NEWSDAY
[SOURCE: New York Times, AUTHOR: Tim Arango]
Mortimer B. Zuckerman, the owner of The Daily=20
News, believes he can snatch Newsday from Rupert=20
Murdoch without offering a dime more than the=20
$580 million already on the table. Late Friday=20
afternoon Zuckerman submitted a bid of $580=20
million for the Long Island-based newspaper. The=20
bid sets up a potential bargaining battle by the=20
owners of New York=92s two tabloids: The Daily News=20
and The New York Post. Zuckerman opted not to=20
submit a higher bid. Instead, he will make the=20
argument to the Tribune Company, the debt-laden=20
parent company of Newsday, that his bid is more=20
attractive because it does not have the potential=20
to fall into regulatory limbo. Murdoch=92s offer=20
would almost certainly be scrutinized by the=20
Federal Communications Commission under its new media ownership rule.
http://www.nytimes.com/2008/04/26/business/media/26paper.html?ref=3Dtoda...
aper
(requires registration)
* Zuckerman submits $580 mln Newsday bid
http://www.reuters.com/article/industryNews/idUSWEN523620080425

AT JOURNAL, THE WORDS NOT SPOKEN
[SOURCE: New York Times, AUTHOR: David Carr]
Back in December, Rupert Murdoch mounted a small=20
podium made of cardboard boxes in The Journal=92s=20
newsroom and told his new employees, =93I just=20
wanted to say that we do know and understand the=20
tremendous values of Dow Jones and particularly,=20
of course, The Wall Street Journal, and the very=20
high bar you have set yourselves.=94 Robert J.=20
Thomson, the paper=92s new publisher, spoke, and so=20
did Leslie Hinton, the company=92s new chief=20
executive. Marcus W. Brauchli, the paper=92s=20
managing editor, went unmentioned and was left=20
standing silently by. Editorial safeguards were=20
rendered moot with a flick of nomenclature: it=20
was clear the publisher could be running=20
editorial operations. After that, Murdoch and=20
Thomson quickly set about the work of making the=20
newspaper=92s articles shorter, its coverage=20
broader and truncating its trademark front-page=20
narratives. =93Murdoch has always talked about how=20
much he liked The Journal,=94 said one reporter who=20
spoke last week on the condition of anonymity.=20
=93But he=92s changing so much that you have to=20
wonder what he liked.=94 There is certainly no=20
evidence that Mr. Murdoch has turned the=20
newspaper into a tool of his business or=20
political interests =97 something that had been=20
widely feared and predicted. But there are clear=20
signs that a sui generis business paper is fast=20
becoming a very common general-interest paper,=20
albeit one with a really dynamite business=20
section. Further changes were unveiled last week,=20
but they seemed to reflect a broader range of=20
stated interests without any additional staff or=20
expertise. The Project for Excellence in=20
Journalism completed a content survey last week=20
and found that the newspaper=92s front-page=20
coverage of politics had tripled and that=20
front-page coverage of business had been cut in half.
http://www.nytimes.com/2008/04/28/business/media/28carr.html?ref=3Dtoday...
per
(requires registration)

SATELLITE KILLERS
[SOURCE: TheDeal.com, AUTHOR: Ron Orol]
The National Association of Satellite Radio=20
Killers. That's what former National Association=20
of Broadcasters president Eddie Fritts joked the=20
terrestrial radio and television lobbying group's=20
name should be changed to. The label aptly=20
describes the group's intense campaign to nix the=20
$13 billion hookup between XM Satellite Radio=20
Holdings and Sirius Satellite Radio. The radio=20
industry believes the deal will be a major threat=20
to its listenership and advertisement revenue.=20
The future of the merger is at the Federal=20
Communications Commission. The FCC is unlikely to=20
reject the deal -- it typically approves=20
transactions the DOJ has already OK'd -- but=20
ferocious quarreling will likely take place among=20
the agency's Republican and Democratic=20
commissioners over possible concessions. FCC=20
Chairman Kevin Martin wanted commissioners to=20
vote on the matter at the agency's May 14=20
meeting, although that now looks unlikely. The=20
internal FCC clashes reflect a larger battle=20
taking place in Washington among public interest=20
groups, broadcasters and the satellite radio=20
companies over the future of radio (and=20
television, if XM-Sirius rolls out satellite TV=20
to the car). NAB's pressure will strengthen the=20
broadcasters' campaign to make sure the agency=20
doesn't let XM-Sirius provide local news and=20
current affairs programming. Local programming by=20
satellite radio could be a "killer" of=20
terrestrial broadcasters' core advertisement=20
revenue base, as well as their effort to provide=20
more programming through digital radio. Blocking=20
satellite from local content doesn't sit well=20
with some Washington insiders. "I would argue=20
that [terrestrial broadcasters] have a monopoly=20
on local programming and let's bring some=20
competition," says Gigi Sohn, director of=20
consumer advocacy group Public Knowledge.
http://www.thedeal.com/dealscape/2008/04/satellite_killers.php

GOOGLE OPTIMISTIC REGULATORS WON'T BAR YAHOO
[SOURCE: Reuters, AUTHOR: Anupreeta Das]
Apparently, Google believes regulators would not=20
bar a potential business deal with Yahoo Inc=20
because it would be "non-exclusive" and falls=20
short of an outright merger. Yahoo is exploring=20
alternatives to Microsoft Corp's $42.7 billion=20
takeover offer, which the Web pioneer has=20
rejected for being too low. The U.S. Justice=20
Department is questioning the companies about=20
potential competitive issues raised by a=20
partnership, sources said this week, as Yahoo=20
completed a two-week test of Google's system for=20
selling ads alongside Yahoo's own Web search=20
results. Google believes such a partnership would=20
not be anti-competitive because it would be an=20
arrangement in which Yahoo would use Google's=20
more profitable search advertising platform to=20
make more money for itself. A deal would be no=20
different from partnerships Google has with other=20
Web companies including Time Warner Inc's AOL and IAC/InterActiveCorp.
http://www.reuters.com/article/internetNews/idUSN2543490820080425

GRUPO TELEVISA'S SPAT WITH UNIVISION TO UNFOLD IN COURT
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
Some of the best Spanish-language television=20
dramas delve into the ambitions and rancorous=20
relationships within powerful Latino families.=20
Instead of playing each night on TV screens,=20
though, this tale of a tumultuous 16-year=20
marriage, fraught with allegations of treachery=20
and bad faith, will begin to unfold this week in=20
a federal courtroom in Los Angeles. Grupo=20
Televisa -- the Mexico City-based entertainment=20
conglomerate that is the world's preeminent=20
producer of sensational Spanish-language soap=20
operas, or telenovelas -- claims in a suit filed=20
three years ago that it has been cheated out of=20
more than $100 million in royalties by its=20
partner, Univision Communications. The trial is=20
set to begin Tuesday, pitting Televisa's=20
40-year-old media scion Emilio Azcarraga Jean=20
against Univision's new owners, led by Los=20
Angeles billionaire Haim Saban, the company's=20
chairman. Televisa is demanding that it be=20
allowed to sever all ties with Univision, which=20
has become the dominant Spanish-language=20
broadcaster in the U.S. largely because it can=20
run Televisa's popular programming.
http://www.latimes.com/business/printedition/la-fi-televisa28apr28,1,274...
4.story
(requires registration)

WIRELESS/SPECTRUM

REPORT CLEAR'S ADVISOR'S ROLE IN WIRELESS AUCTION
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
An investigation has cleared Cyren Call, a=20
for-profit adviser of any blame for tripping up=20
U.S. government plans to create a wireless=20
network that could be shared with emergency=20
workers. The Federal Communications Commission's=20
inspector general said on Friday the evidence did=20
not support concerns that the company advising=20
public safety groups had scared away bidders from=20
meeting a $1.3 billion price for the airwaves.=20
"Rather, the many layers of uncertainty and risk,=20
and the growing prospect of high network costs...=20
were responsible for potential bidders' decisions=20
not to bid," said the report by FCC Inspector=20
General Kent Nilsson. Lack of bidder interest in=20
the public safety spectrum was the lone failure=20
in an otherwise successful 700-megahertz auction=20
that raised over $19 billion by the time it ended=20
in March. The FCC is now studying plans to=20
re-auction the public safety airwaves known as=20
the D-block. Gigi B. Sohn, president and=20
co-founder of Public Knowledge, said, "[T]his=20
narrow investigation showed that the D-block=20
auction was fatally flawed by terms and=20
conditions set both by the Commission and by the=20
public safety community. The controversial $50=20
million lease payments suggested by the=20
public-safety community to potential bidders were=20
only one factor. While the Inspector General=20
found that none of this was against the rules,=20
the conclusion needs to be drawn that the auction=20
was doomed to failure. The Commission should take=20
a more active role in future auctions to make=20
certain public safety receives the spectrum it deserves."
http://www.reuters.com/article/internetNews/idUSN2537614020080425
* Nilsson's D Block Investigation Report
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-281791A1.doc
* Report sheds light on failure to sell safety spectrum
http://www.infoworld.com/article/08/04/25/Report-sheds-light-on-failure-...
sell-safety-spectrum_1.html
* Public Knowledge statement
http://www.publicknowledge.org/node/1540
* The Cyren Call Investigation (Harold Feld)
http://www.wetmachine.com//item/1166http://www.wetmachine.com//item/1166

SATELLITE IS SEXY AGAIN
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif]
Some of the biggest names in tech have tried=97and=20
failed=97to win at satellite communications.=20
Remember Teledesic, a venture begun by wireless=20
pioneer Craig McCaw and Microsoft co-founder Bill=20
Gates aimed at constructing a constellation of=20
hundreds of satellites that transmit high-speed=20
Internet services? Or how about Iridium, or ICO=20
Global Communications, or Globalstar? Those are=20
among myriad efforts to use satellites to beam=20
phone calls and broadband access that were=20
ultimately scrapped or ended up in bankruptcy=20
court, having lost billions of dollars. "Over the=20
history of the industry, there have been a number=20
of ventures that have been restructured and=20
scratched," says Rich Power, an analyst at=20
consulting firm Pike & Fischer. Yet somehow,=20
satellites are sexy again. Many of the companies=20
that ended up in Chapter 11 have reemerged and=20
are once again drawing investors' interest. In=20
the past half-year, private equity firms=20
including Harbinger Capital Partners and Silver=20
Lake have poured billions of dollars into=20
satellite companies. In February, BC Partners,=20
Silver Lake, Intelsat management, and other=20
investors acquired satellite broadband provider=20
Intelsat for $17 billion. In March, the Gores=20
Group and other private equity investors snapped=20
up satellite services and networking provider=20
Gilat Satellite Networks for $475 million.
http://www.businessweek.com/technology/content/apr2008/tc20080427_919917...
m?campaign_id=3Drss_tech

INTERNET/BROADBAND

AT&T: WE DON'T THROTTLE P2P TRAFFIC
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
AT&T on Friday denied using forged reset packets=20
to interfere with network connections of Vuze=20
file-sharing platform users, as Comcast has been=20
accused of doing with BitTorrent traffic. The=20
statement came in response to a report released=20
earlier this week by Vuze, which offers a=20
BitTorrent-based client primarily used for=20
distributing video. The start-up has asked the=20
Federal Communications Commission to impose=20
regulations prohibiting broadband operators from=20
blocking or degrading peer-to-peer traffic.=20
Vuze's report claimed to document the median=20
reset rates experienced by more than 1,200=20
"autonomous system numbers," which are unique=20
identifiers for individual IP networks and=20
routers, as monitored using a plug-in Vuze began=20
offering last month. (It tracks all possible=20
network interruptions, not just ones related to=20
the Vuze platform.) According to Vuze's data, a=20
number of Comcast connections recorded the most=20
frequent interruptions, but the top 20 highest=20
reset rates also included users with Cablevision,=20
BellSouth (an AT&T property), and AOL=20
subscriptions. Vuze said it planned to ask those=20
Internet service providers to be more transparent=20
about the cause of those reset packets and=20
disclose whether they are using a "false reset=20
message" technique. Meanwhile, it filed its=20
preliminary report with the FCC, acknowledging=20
that its results weren't definitive and that the=20
documented disruptions could have occurred for a=20
multitude of reasons. AT&T bit back on Friday,=20
denying using "false reset messages" to manage=20
its network and arguing that Vuze's measurements were "misleading."
http://www.news.com/8301-10784_3-9929158-7.html?tag=3Dnefd.top

FBI'S NET SURVEILLANCE PROPOSAL RAISES PRIVACY, LEGAL CONCERNS
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
During a House of Representatives Judiciary=20
Committee hearing, the FBI's Robert Mueller and=20
Rep. Darrell Issa (D-CA) sketched out a=20
far-reaching plan for warrantless surveillance of=20
the Internet. Step 1 involves asking Internet=20
service providers to open their networks to the=20
FBI voluntarily; step 2 would be a federal law=20
forcing companies to do just that. On Step 1, Rep=20
Issa suggested that Internet providers could get=20
"consent from every single person who signed up=20
to operate under their auspices" for federal=20
police to monitor network traffic for attempts to=20
steal personal information and national secrets.=20
Mueller said "legislation has to be developed"=20
for "some omnibus search capability, utilizing=20
filters that would identify the illegal activity=20
as it comes through and give us the ability to=20
pre-empt" it. These are remarkable statements.=20
The clearest reading of them points to deep=20
packet inspection of network traffic--akin to the=20
measures Comcast took against BitTorrent and to=20
what Phorm in the United Kingdom has done, in=20
terms of advertising--plus additional processing=20
to detect and thwart any "illegal activity." (See=20
the=20
http://www.news.com/8301-13578_3-9927552-38.htmlcomplete=20
transcript here.) "That's very troubling," said=20
Greg Nojeim, director of the project on freedom,=20
security, and technology at the Center for=20
Democracy and Technology. "It could be an effort=20
to achieve, through unknowing consent, permission=20
to monitor communications in a way that would otherwise be prohibited by la=
w."
http://www.news.com/8301-13578_3-9929085-38.html?tag=3Dnefd.top

INTERNET ECONOMY LOOKS STRONG, SOME EXPERTS SAY
[SOURCE: InfoWorld, AUTHOR: Grant Gross]
The ever-growing Internet economy should be less=20
susceptible to a U.S. economic downturn than many=20
other industries, with more and more people=20
shopping and doing business online, a group of=20
commentators and businesspeople said Friday.=20
Although many segments of the U.S. economy are=20
slowing, there's little indication of a downturn=20
in online sales, with e-commerce growing four to=20
five times faster than traditional retail, said=20
Rob Atkinson, president of the Information=20
Technology and Innovation Foundation. IT,=20
including the Internet, is currently the major=20
driver of economic growth in the U.S., he said at=20
a Google-sponsored event examining the Internet=20
economy. While some commentators have worried=20
about a second Internet bubble bursting, Atkinson=20
suggested the first bubble in 2000 and 2001 may=20
have been overstated. Many of the companies=20
publicized as failures during that time frame are=20
either still operating or their business models=20
have become successful through other companies.=20
"The Internet is not a bubble," Atkinson said. "A=20
lot of dumb, bad companies went out of business=20
[earlier in the decade], but the industry continued to grow."
http://www.infoworld.com/article/08/04/25/Internet-economy-looks-strong-...
e-experts-say_1.html

EARTHLINK TO SHUT DOWN NEW ORLEANS' MUNICIPAL WI-FI
[SOURCE: InformationWeek, AUTHOR: W. David Gardner]
New Orleans is about to lose its municipal Wi-Fi=20
network as EarthLink plans to halt its=20
participation in the citywide project on May 18,=20
an EarthLink spokesman said Friday. The Internet=20
service provider had tried a three-pronged=20
approach before it decided to terminate the=20
network, said Chris Marshall, EarthLink's VP of=20
corporate communications. First, EarthLink tried=20
to sell the network outright. Second, it sought=20
to transfer ownership of the network to the city=20
of New Orleans. Finally, it tried to transfer the=20
network to a third party. All three approaches failed.
http://www.informationweek.com/news/mobility/muni/showArticle.jhtml;jses...
nid=3DWGBGAVMAEK1EUQSNDLPSKH0CJUNN2JVN?articleID=3D207402189&_requestid=3D5=
34893

ELECTIONS & MEDIA

MEDIA JUMP SHIP FROM OBAMA TO CLINTON
[SOURCE: Huffington Post, AUTHOR: Thomas Edsall]
[Commentary] In a blink of an eye, the media has=20
jumped ship from the Obama campaign and become a=20
crucial Clinton ally, pressing just the message=20
-- that Sen Barack Obama (D-IL) is a likely loser=20
in the general election -- that Sen Hillary=20
Clinton (D-NY) and her allies have been promoting=20
for the past six weeks. The new tenor of media=20
coverage is visible almost everywhere, from=20
Politico, Time and The New Republic to The=20
Washington Post and The New York Times. For Sen=20
Clinton, the shift is a potential lifesaver as=20
she struggles to keep her head above water;=20
without it, she would, metaphorically, drown.=20
Until now, she, her husband, and her campaign=20
aides have been trying, with little success, to=20
make the case that Sen Obama has potentially=20
fatal flaws. For the first time, reporters=20
working for magazines, newspapers and web sites=20
have abruptly decided that she might well be=20
right, and the results for Obama have been=20
brutal. Dylan Loewe writes, "Despite having all=20
but secured the Democratic nomination, the last=20
few weeks have not been particularly good for=20
Barack Obama. As Hillary Clinton's desperation=20
peaks, and as her message morphs into something=20
akin to a Karl Rove Talent Show, Obama has found=20
himself taking heavy fire. And while polls have=20
suggested that Obama's numbers have not been=20
impacted by Reverend Wright, or "bitter-gate," or=20
the tale of the missing flag pin, the Republican=20
Party, with the happy assistance of the Clinton=20
campaign, is beginning to define Obama in a way=20
that could be dangerous come the fall."
http://www.huffingtonpost.com/2008/04/24/media-jump-ship-from-obam_n_985...
html
* Defining Obama
http://www.huffingtonpost.com/dylan-loewe/defining-obama_b_98567.html

MCCAIN SAYS NC REPUBLICANS OUT OF TOUCH OVER AD
[SOURCE: Reuters, AUTHOR: David Morgan]
Republican U.S. presidential candidate John=20
McCain (R-AZ) accused North Carolina's Republican=20
Party of being "out of touch with reality" over=20
its refusal to pull an advertisement criticizing=20
Sen Barack Obama (D-IL). In an NBC interview=20
aired on Friday, Sen McCain said he has done all=20
he can to persuade the state party to cancel the=20
television ad that criticizes Sen Obama as "too=20
extreme" because of controversial remarks made by=20
his former pastor, the Rev. Jeremiah Wright.=20
"They're not listening to me because they're out=20
of touch with reality and the Republican Party.=20
We are the party of Abraham Lincoln, Theodore=20
Roosevelt and Ronald Reagan and this kind of=20
campaigning is unacceptable," Sen McCain told=20
NBC's "Today" Show. "I've done everything that I=20
can to repudiate and to see that this kind of=20
campaigning does not continue," he added.
http://www.reuters.com/article/politicsNews/idUSN2429689820080425

CLINTON EARNS POINTS FOR PENNSYLVANIA TACTICS
[SOURCE: AdAge, AUTHOR: Ira Teinowitz]
Sen. Hillary Clinton (D-NY) may have been=20
outspent, but she wasn't outgunned, according to=20
some Pennsylvania advertising executives. While=20
many said that separating advertising impact from=20
other factors (such as debate performance and the=20
"bitter" controversy) is impossible, they gave=20
credit to Sen Clinton for doing a better job at=20
targeting and using the resources she did have=20
and ultimately rendering Sen. Barack Obama's=20
(D-IL) ads largely ineffective. "As a creative=20
director, I loved the look of Obama's ads and=20
posters, but what Hillary got right is she got=20
her message down to the most basic thought," said=20
Steve Red, president and chief creative officer=20
of Red Tettemer in Philadelphia. Mr. Red is an=20
Obama supporter. He said the message she got=20
across is "I am going to help the common=20
man." He said Sen Obama's campaign was=20
"definitely hurt" by the Illinois senator's=20
performance in an ABC News debate last week, but=20
added that Sen Obama's biggest problem was not=20
adequately countering Sen Clinton's "one of the boys" message.
http://adage.com/article?article_id=3D126642

BIG LOSER IN PENNSYLVANIA PRIMARY: CABLE NEWS NETWORKS
[SOURCE: AdAge, AUTHOR: Nat Ives]
If you thought the never-ending Democratic=20
primary match was bruising Sens. Hillary "Rocky"=20
Clinton and Barack Obama, consider the damage to=20
any polish that may have remained on the news=20
media's reputation. Anyone watching the cable=20
news channels last week while Pennsylvania=20
results came in saw pundits maniacally extol the=20
importance of the night. An Obama win could knock=20
Clinton from the race! A Clinton victory margin=20
above 10% could really change the dynamics of the=20
race! Instead her entirely expected win, by=20
roughly 10%, was just enough to render all the=20
chatter ... pointless. All the "cliffhangers" are=20
starting to look the same: tame.
http://adage.com/mediaworks/article?article_id=3D126656

BILL CLINTON 'WOEFULLY UNPREPARED FOR 21ST CENTURY MEDIA'
[SOURCE: Broadcasting&Cable, AUTHOR: Marisa Guthrie]
If there=92s one thing that Sens. John McCain=20
(R-AZ), Barack Obama (D-IL) and Hillary Clinton=20
(D-NY) all have in common, it=92s that each of the=20
presidential candidates has already endured his=20
or her very own YouTube moment. But as NBC News=20
political director Chuck Todd sees it, none has=20
gotten burned by this new-media phenomenon quite=20
like former President Bill Clinton. =93It=92s=20
fascinating: Nobody=92s been a bigger victim of the=20
so-called YouTube moments than Bill Clinton,=94=20
Todd said. =93I think Bill Clinton was woefully=20
unprepared for 21st Century media.=94 Although=20
Clinton caught a glimpse of the digital future=20
when he was president and a little-known Internet=20
gadfly named Matt Drudge broke the Monica=20
Lewinsky story, he was never subjected to the=20
kind of unblinking scrutiny of today=92s media=20
environment. When Clinton was running for=20
president, Todd said, he and his fellow=20
candidates could misspeak -- and even willfully=20
obfuscate -- with relative impunity. But in 2008,=20
Clinton=92s gaffes -- calling Obama=92s opposition to=20
the Iraq war a =93fairy tale,=94 inviting charges of=20
race-baiting by comparing Obama=92s campaign to=20
Jesse Jackson=92s, reviving his wife=92s Bosnia trip=20
for another spin in the news cycle -- sparked=20
immediate blowback that seems to have caught him by surprise.
http://www.broadcastingcable.com/article/CA6555285.html?rssid=3D193

CABLE/BROADCASTING

MARTIN'S 75-CENT SOLUTION
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
As the Bush Administration nears its end, so too=20
is the FCC chairmanship of Kevin Martin. He seems=20
determined to influence how cable operators and=20
their program suppliers go about providing some=20
64.7 million homes with video channels dedicated=20
to an assortment of news, sports and=20
entertainment. Earlier this month, he floated a=20
new idea he hopes will reverse the trend of=20
rising cable prices: Allow cable operators to=20
eject from expanded basic service =97 the most=20
widely purchased cable programming tier =97 any=20
channel that charges wholesale license-fee rates=20
of 75 cents or more per subscriber, per month.=20
Martin=92s 75-cent plan is rooted in a rulemaking=20
proposal the FCC adopted last September, which=20
asked whether the agency has the authority to=20
require programmers to allow pay TV distributors=20
to purchase every channel at wholesale on an a la=20
carte basis. The agency=92s vote was the fruit of a=20
five-year effort by small cable operators to get=20
the FCC to focus on wholesale program tying and=20
bundling practices. Small cable operators in=20
particular want to break up expanded basic to=20
provide consumers with more choice.
http://www.multichannel.com/article/CA6555289.html?nid=3D4262

STILL APART ON A LA CARTE
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Federal Communications Commission Chairman Kevin=20
Martin is unlikely to win the support of=20
Commissioner Robert McDowell on policies designed=20
to force the sale of TV programming on a=20
per-channel basis. A few weeks ago, Chairman=20
Martin floated a new idea which would allow cable=20
operators to exclude from their most widely=20
purchased cable programming tier =97 expanded basic=20
=97 to any network that charged a wholesale rate of=20
75 cents or more per month, per subscriber.=20
Commissioner McDowell said he had doubts about=20
the structure of Martin=92s 75-cent plan. =93My=20
question for that [Martin proposal] was that it=20
sure does seem like the sort of economic=20
regulation that we heard he wasn't interested=20
in,=94 Commissioner McDowell said. =93If that=92s=20
offered up as a proposal, I=92ll have a lot of=20
questions regarding that.=94 Commissioner McDowell=20
discussed trends in the video programming market=20
in remarks at the Quello Communications Law and=20
Policy Symposium. Consistent with prior=20
statements, McDowell noted government-mandated a=20
la carte was unnecessary because the market is=20
already serving up tons of video in bit-sized=20
portions. In February, he said, U.S. Internet=20
users viewed 10 billion online videos. =93I doubt=20
that streaming video of prime-time=92s most popular=20
shows, companies with business models like=20
Netflix and Vudu, and Web sites like Hulu and=20
Joost would exist today if the government had=20
tried to engineer them through regulation,=94=20
Commissioner McDowell said. =93If the government=20
starts imposing mandates regarding a la carte,=20
will the result be that consumers will pay more and get less?=94
http://www.multichannel.com/article/CA6555302.html?nid=3D4262

CONVERTER BOXES TO BRING BETTER QUALITY, BUT=20
DIFFERENT SCREEN SETUPS TO OLDER TVs
[SOURCE: Associated Press, AUTHOR: Peter Svensson]
Did my TV screen just shrink? That's the question=20
a lot of people will be asking after installing=20
one of the converter boxes that will keep their=20
older TV sets tuned into over-the-air broadcasts=20
after Feb. 17, when most stations will switch=20
from analog to digital transmission. The=20
Associated Press tested two boxes and found them=20
to produce a picture quality far better than any=20
analog channel, giving a whole new lease on life=20
for a tube TV that lacks cable or satellite=20
service (which will still work with older TVs=20
after Feb. 17). The boxes also gave us access to=20
more channels than analog reception. But the=20
boxes have a peculiar problem: Unless users=20
manually change settings from show to show, the=20
picture from many stations either won't fill the=20
screen or it will be so big that parts of the=20
picture are cut off by the edges of the screen.
http://www.chicagotribune.com/technology/chi-mon-tech-test-tv-converters...
r28,0,2658666.story?track=3Drss

THE PUBLIC AND BROADCASTING
[SOURCE: Federal Communications Commission]
In its recent Report on Broadcast Localism and=20
Notice of Proposed Rulemaking, the Commission=20
concluded that the record in the localism=20
proceeding (MB Docket No. 04-233) revealed a=20
substantial need for greater public understanding=20
of broadcaster obligations, and of the procedures=20
by which the Commission enforces those=20
obligations. The Commission expressed its desire=20
to better educate members of the public about the=20
tools available to them, should they believe that=20
their local broadcast stations are not fulfilling=20
their service obligations. To that end, the=20
Commission directed the Media Bureau to update=20
"The Public and Broadcasting," a publication that=20
all broadcasters must maintain in their public=20
inspection files. The Commission also stated=20
that it would establish a contact point within=20
the agency for public inquiries about broadcast=20
matters. In response to these Commission=20
directives, today, the Media Bureau has released=20
an updated version of "The Public and=20
Broadcasting." Including links to places on=20
the FCC's website that offer additional relevant=20
information as to the matters discussed, this=20
publication provides an overview of the FCC's=20
regulation of broadcast radio and television=20
licensees, describes how broadcast stations are=20
authorized, and explains the various rules and=20
policies relating to broadcast programming and=20
operations with which stations must comply,=20
including the obligation to serve their local=20
communities. It also explains how members of the=20
public can become involved in assessing whether=20
local broadcast stations are complying with these=20
requirements. The publication is also intended=20
to make the public aware of FCC procedures and=20
the tools at their disposal, in the event that=20
they conclude that any of their local stations do=20
not meet these responsibilities.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-08-940A1.doc
* The Public and Broadcasting
http://www.fcc.gov/mb/audio/decdoc/public_and_broadcasting.html

QUICKLY

QWEST WANTS TO SHED US REGULATIONS
[SOURCE: East Valley Tribune (AZ), AUTHOR: Ed Taylor]
Qwest Communications is seeking to extricate=20
itself from federal regulations designed to=20
increase competition in the telephone industry,=20
saying the rules are no longer needed. But=20
competing telephone companies oppose the move,=20
saying the industry is not yet competitive enough=20
to justify such deregulation. The move, if=20
approved by the Federal Communications=20
Commission, would cause some telephone providers=20
to reduce service or end service because they=20
would no longer be able to compete with Qwest,=20
they say. The issue centers on provisions of the=20
Telecommunications Act of 1996, designed to bring=20
competition to an industry then dominated by=20
regulated monopolies such as Qwest. The law=20
required Qwest and other incumbent carriers to=20
lease equipment in their systems -- lines and=20
switches -- to competitors at wholesale rates so=20
the competitors could provide service at=20
comparable retail prices. In a petition filed=20
with the FCC, Qwest said it should no longer be=20
required to do that because there is plenty of=20
competition residential and business phone customers.
http://www.eastvalleytribune.com/story/114605
* Qwest 'blowing smoke,' rivals say
http://www.rockymountainnews.com/news/2008/apr/22/qwest-blowing-smoke-ri...
s-say/

RELUCTANTLY, A DAILY STOPS ITS PRESSES, LIVING ONLINE
[SOURCE: New York Times, AUTHOR: Noam Cohen]
With print revenue down and online revenue=20
growing, newspaper executives are anticipating=20
the day when big city dailies and national papers=20
will abandon their print versions. That day has=20
arrived in Madison (WI). On Saturday, The Capital=20
Times, the city=92s fabled 90-year-old daily=20
newspaper founded in response to the jingoist=20
fervor of World War I, stopped printing to devote=20
itself to publishing its daily report on the Web.
http://www.nytimes.com/2008/04/28/business/media/28link.html?ref=3Dtoday...
per
(requires registration)
--------------------------------------------------------------
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.
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