May 2008

INTERNET/BROADBAND
OECD Updates International Broadband Comparison
Special Report: Broadband in America
Hill Staff: Net Neutrality Law Unlikely In 2008
Demand for wireless Internet paying off for schools
Google weighs new move on Yahoo

GOVERNMENT & COMMUNICATIONS
White House to NBC: Air Full Bush Interview

MEDIA & ELECTIONS
Obama -- Let's Challenge the Murdochization of Our Media
People Still Seek News From TV
John McCain's Rapid-Fire Responders
Clinton Wins Battle, Obama Wins War

BROADCASTING/CABLE
MMTC Urges FCC to Rethink Localism Proposal
Spending Bill Would Boost Aid for Digital TV Transition
Digital TV Transition Not as Easy as Advertised
FCC Summit on EAS
Best Buy: FCC has no power to fine us over analog TVs
D.C. Cir. to Comcast: =93Making You Obey The Law Is Not A 'Vendetta.'=94
ACA Seeks FCC Help in Lifetime Dispute
Cable, satellite customer satisfaction up, but still weak

DIGITAL CONTENT
Supreme Court Upholds Child Pornography Law
Cisco File Raises Censorship Concerns
Little Orphan Artworks
Google Offers Personal Health Records on the Web
NBC says it inadvertently flagged 'American Gladiators'

LABOR
Guild President Foley Concedes Defeat to Challenger Lunzer
Thomson Reuters Job Cuts to Include 140 Journos

TELECOM
Qwest seeks more money from feds for rural service
Exclusive Phone Deals Assailed

QUICKLY -- Stop the FCC's media bundling;=20
Newspapers on Upswing in Developing Markets

INTERNET/BROADBAND

OECD UPDATES INTERNATIONAL BROADBAND COMPARISON
[SOURCE: Organization for Economic Co-Operation=20
and Development (OECD), AUTHOR: Press release]
The number of broadband subscriber in the OECD=20
reached 235 million by December 2007, an=20
increase of 18% from 200 million subscribers in=20
December 2006. This growth increased broadband=20
penetration rates to 20.0 subscriptions per 100=20
inhabitants up from 16.9 in December 2006.=20
Denmark, the Netherlands, Iceland, Norway,=20
Switzerland, Finland, Korea and Sweden lead the=20
OECD with broadband penetration well above the=20
OECD average, each surpassing the 30 subscribers=20
per 100 inhabitants threshold. The US ranks 15th=20
in per capita broadband subscribership. The=20
strongest per-capita subscriber growth over the=20
year was in Luxembourg, Germany and Ireland. Each=20
country added more than 5 subscribers per 100=20
inhabitants during the past year. On average, the=20
OECD area increased 3 subscribers per 100=20
inhabitants over the year. The OECD is also=20
releasing a new broadband report which examines=20
the evolution of broadband since 2004 and the=20
national broadband plans of all OECD member=20
countries. The report examines areas of weakness=20
and examples of innovative policies from=20
countries. It finds that: 1) Governments need to=20
promote competition and give consumers more=20
choices. They should encourage new networks,=20
particularly upgrades to fibre-optic lines. 2)=20
Governments providing money to fund broadband=20
rollouts should avoid creating new monopolies.=20
Any new infrastructure built using government=20
funds should be open access =AD meaning that access=20
to that network is provided on non-discriminatory=20
terms to other market participants. 3)=20
Governments should discourage harmful business=20
conduct and practices such as misleading=20
advertising and unjustifiably long consumer=20
lock-in periods. 4) OECD firms and governments=20
need to do more to realize the full potential of=20
broadband and move beyond pilot projects for=20
pressing social issues in areas such as health,=20
transport and the environment. 5) The=20
strengthening of broadband research networks=20
(grids), their use for collaborative research and=20
related international cooperation should be a=20
policy priority. 6) Governments need to actively=20
monitor and quantify their own progress with=20
their broadband plans and adjust policies and attention accordingly.
http://www.oecd.org/document/54/0,3343,en_2649_34223_39575670_1_1_1_1,00...
ml?rssChId=3D34223
* Charts and data
http://www.oecd.org/sti/ict/broadband
* Broadband Growth and Policies in OECD Countries
http://www.oecd.org/dataoecd/32/57/40629067.pdf

SPECIAL REPORT: BROADBAND IN AMERICA
[SOURCE: PCMagazine, AUTHOR: Dan Evans]
According to Leichtman Research, more than 60=20
percent of US homes now have broadband=20
connections. The combined total number of=20
broadband subscribers is over 56 million at the=20
end of first quarter 2007. In the past year=20
alone, the top broadband providers added 10=20
million subscribers. But a decade of rapid growth=20
may be coming to an end. The end of 2007 marked=20
the third quarter in a row of declining adoption=20
numbers, and many researchers say that the=20
industry may have finally run out of room to=20
grow. UBS research analyst John Hodulik is one of=20
them. He calculates that about 76 percent of=20
eligible homes (that is, homes that have both a=20
PC and access to broadband service) have already=20
signed up, so there's not much potential for further expansion.
http://www.pcmag.com/article2/0,2704,2302118,00.asp

HILL STAFF: NET NEUTRALITY LAW UNLIKELY IN 2008
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Speaking at the annual cable industry convention=20
in New Orleans, there seemed to some consensus=20
among top Congressional aides that there will be=20
no network Neutrality legislation enacted in=20
2008. Rep. Edward Markey (D-MA) has introduced=20
legislation (HR 5353) that would establish=20
non-discriminatory Internet access as national=20
policy, but his GOP colleagues fear it would set=20
the stage for the Federal Communications=20
Commission to over-regulate broadband access=20
providers. Aides said only some troubling=20
development in the broadband market could motivate Congress to act this yea=
r.
http://www.multichannel.com/article/CA6562363.html?nid=3D4262

DEMAND FOR WIRELESS INTERNET PAYING OFF FOR SCHOOLS
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera]
An ambitious plan to blanket the country with=20
wireless Internet access has an unlikely=20
beneficiary: public and private schools. For=20
nearly 20 years, five California State University=20
campuses in the Los Angeles area have banded=20
together to broadcast live courses over public=20
airwaves that were long ago set aside by the=20
federal government for distance learning. It=20
hasn't been simple. The spectrum isn't as good as=20
commercial TV, and until the late 1990s it=20
required bulky rooftop receivers that needed a=20
clear line of sight to broadcast towers on Mt.=20
Wilson or Modjeska Peak. But technological=20
advances have made the airwaves easier to use --=20
and much more lucrative to hold. For Cal State=20
Los Angeles, Long Beach, Dominguez Hills,=20
Fullerton and Pomona, as well as schools and=20
religious institutions around the country,=20
holding a license to the spectrum as the wireless=20
industry expands has been like finding a winning=20
lottery ticket in a dresser drawer. A=20
$14.5-billion consortium of big-name companies,=20
including Sprint Nextel Corp., Clearwire Corp.,=20
Google Inc. and Time Warner Cable Inc., wants to=20
use the spectrum to deliver high-speed Internet=20
access nationwide. During the last few years,=20
Sprint and Clearwire have been cutting deals with=20
educational institutions. They have about 1,400=20
long-term agreements with public and private=20
school districts and with community colleges and=20
universities to lease some of the airwaves for their proposed WiMax network.
http://www.latimes.com/business/printedition/la-fi-schools20-2008may20,0...
63253.story
(requires registration)

GOOGLE WEIGHS NEW MOVE ON YAHOO
[SOURCE: Financial Times, AUTHOR: Andrew Edgecliffe-Johnson, Richard Water=
s]
The senior management of Google was meeting to=20
discuss the search group=92s response to=20
Microsoft=92s latest approach to Yahoo as it=20
emerged the software company had made a firm=20
proposal to Yahoo that goes beyond a simple=20
partnership on search advertising. Eric Schmidt,=20
chairman and chief executive, made clear that=20
Google remained opposed to a Microsoft-Yahoo=20
deal, as the company=92s co-founders said the=20
=93horse race=94 between the three was unhealthy for=20
the development of the Internet.
http://www.ft.com/cms/s/0/e791df7e-25d3-11dd-b510-000077b07658.html
(requires subscription)

GOVERNMENT & COMMUNICATIONS

WHITE HOUSE TO NBC: AIR FULL BUSH INTERVIEW
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a strongly-worded e-mail to NBC News president=20
Steve Capus Monday, White House counselor Ed=20
Gillespie said NBC edited an interview with=20
President George Bush to make it look as though=20
the president was agreeing with interviewer=20
Richard Engel when he was not. "This deceitful=20
editing to further a media-manufactured story=20
line is utterly misleading and irresponsible,"=20
Gillespie wrote, "and I hereby request in the=20
interest of fairness and accuracy that the=20
network air the president's responses to both=20
initial questions in full on the two programs=20
that used the excerpts." Gillespie also took the=20
opportunity to criticize NBC for once describing=20
the Iraq war as a "civil war" and for reporting=20
that government figures came just short of an=20
official declaration of recession, then threw in=20
a shot at MSNBC: "Mr. Capus, I'm sure you don't=20
want people to conclude that there is really no=20
distinction between the 'news' as reported on NBC=20
and the 'opinion' as reported on MSNBC, despite=20
the increasing blurring of those lines," he said.=20
"I welcome your response to this letter and hope=20
it is one that reassures your broadcast network's=20
viewers that blatantly partisan talk show hosts=20
like Christopher Matthews and Keith Olbermann at=20
MSNBC don't hold editorial sway over the NBC=20
network-news division. NBC defended the interview in a statement Monday.
http://www.broadcastingcable.com/article/CA6562373.html?rssid=3D193
* Interview of the President by Richard Engel, NBC News
http://www.whitehouse.gov/news/releases/2008/05/20080518-8.html
* White House Blasts NBC Broadcasts (TVWeek)
http://www.tvweek.com/news/2008/05/white_house_blasts_nbc_broadca.php
* White House takes swipe at NBC News (The Hill)
http://thehill.com/index.php?option=3Dcom_content&task=3Dview&id=3D73403...
emid=3D70
* White House Criticizes NBC Interview
http://online.wsj.com/article/SB121124763345805881.html?mod=3Dtodays_us_...
ketplace
* White House criticizes NBC News' editing of Bush interview (Associated Pr=
ess)
http://www.latimes.com/news/printedition/asection/la-na-bush20-2008may20...
1098162.story
* White House Says NBC Distorted Bush Response WashPost)
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/19/AR200805...
2639.html
* White House letter
http://www.whitehouse.gov/news/releases/2008/05/20080519-4.html
* Statement by Counselor to the President Ed=20
Gillespie on President Bush's Interview with Richard Engel
http://www.whitehouse.gov/news/releases/2008/05/20080519-8.html

MEDIA & ELECTIONS

OBAMA -- LET'S CHALLENGE THE MURDOCHIZATION OF OUR MEDIA
[SOURCE: The Nation, AUTHOR: Katrina Vanden Heuvel]
[Commentary] In a speech Sunday, Sen Barack Obama=20
(D-IL) said he would pursue a vigorous antitrust=20
policy if he becomes U.S. president and singled=20
out the media industry as one area where=20
government regulators would need to be watchful=20
as consolidation increases. His statement signals=20
a key opening for media and democracy reformers=20
and the movement they have spawned in this last=20
decade. Working with this movement, an Obama=20
Administration could effectively challenge the=20
destructive and concentrated attack by corporate=20
media consolidation on the integrity of our=20
democracy. Sen Obama will have smart allies among=20
this movement, such as the media advocacy group=20
Free Press. He will also find allies in the=20
current Congress and in the two Democratic=20
Commissioners on the FCC, Michael Copps and=20
Jonathan Adelstein, who are committed to=20
defending a free, independent and diverse media.
http://www.thenation.com/blogs/campaignmatters/322037/obama_let_s_challe...
_the_murdochization_of_our_media
* Obama eyes media with promise of antitrust push (Reuters)
http://news.yahoo.com/s/nm/20080519/pl_nm/usa_politics_obama_antitrust_dc_3
* Obama Ratchets Up His Attack on the Media (Open Left)
http://www.openleft.com/showDiary.do?diaryId=3D5883

PEOPLE STILL SEEK NEWS FROM TV
[SOURCE: tvnewsday, AUTHOR: ]
A new national online study from Crawford Johnson=20
& Northcott finds that 87% percent of respondents=20
said they were either actively seeking=20
information about the presidential election or=20
paying attention to it. And they continue to seek=20
that information on TV. The top three sources=20
among respondents who are at least paying=20
attention to the election are national network=20
television news (ABC, NBC, CBS), local television=20
news, and cable television news (CNN, MSNBC, Fox=20
News). Local news seems to play a greater role in=20
how African-Americans and Hispanics are following=20
the campaign than white respondents, the study=20
found. Also, Democrats say they rely on local=20
news to a greater extent than Republicans or Independents.
http://www.tvnewsday.com/articles/2008/05/19/daily.5/
* Study: TV Still Top Campaign News Source
http://www.broadcastingcable.com/article/CA6562220.html?rssid=3D193

JOHN MCCAIN'S RAPID-FIRE RESPONDERS
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
While Sen John McCain (R-AZ) enjoys an image as a=20
media darling, based largely on his bantering=20
relationship with reporters on his bus, he and=20
his presidential campaign aides have been hitting=20
back hard against high-profile news reports they=20
regard as inaccurate or unfair. The result is a=20
more contentious relationship between the=20
presumed Republican nominee and major news=20
organizations than is publicly apparent. "If=20
stories are wrong, we have an absolute obligation=20
to say so, and to say so as loudly as we can,"=20
said Mark Salter, McCain's longtime confidant,=20
who writes the rebuttal letters. "It's not=20
working the refs. It's just correcting things=20
when the refs blow a call." The McCain camp also=20
circulates these letters to conservative radio=20
hosts and bloggers, hoping to provide an=20
alternative narrative for the press. "There is no=20
point in calling the reporter," said McCain=20
strategist Steve Schmidt. "There is no point in=20
calling the [story] editor." When confronted with=20
untrue accusations, he said, "we will use that to=20
communicate with our supporters and donors to=20
take advantage of the unfairness." This approach=20
contrasts sharply with the popular image of Sen=20
McCain as enjoying a cozy relationship with media=20
organizations that he has jokingly called "my=20
base." That image is rooted in reality: McCain=20
allows reporters to question him for hours at a=20
time, is a frequent talk show guest and mingles=20
easily among the media elite. On the trail,=20
journalists enjoy his sarcastic sense of humor=20
and have provided him with generally favorable treatment.
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/19/AR200805...
2728.html
(requires registration)

CLINTON WINS BATTLE, OBAMA WINS WAR
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
When he showed up to endorse Sen Barack Obama=20
(D-IL) at a Michigan rally on May 14, former Sen=20
John Edwards (D-NC) not only made news, he helped=20
change the story line. The splash was=20
substantial. After backing his former rival for=20
the Democratic nomination, by week=92s end Edwards=20
was a dominant or significant figure in 10% of=20
the campaign coverage, according to PEJ=92s=20
Campaign Coverage Index for May 12-18. That is=20
more coverage than the former Senator managed to=20
attract in three of the four weeks in January=20
when he was still a candidate=97and more than he=20
got the week he dropped out. And in embracing=20
Obama less than 24 hours after Clinton=92s big win=20
in West Virginia, Edwards diverted media=20
attention away from a discussion of renewed=20
Clinton momentum and helped refocused the=20
narrative on Obama=92s apparent inevitability. In=20
doing so, Edwards also helped Obama win the race=20
for exposure last week. Overall, Obama was a=20
significant or dominant newsmaker in 68% of the=20
campaign coverage, well ahead of Clinton, who=20
finished at 53%. And their coverage was very=20
different. Despite her 41-point win in West=20
Virginia, her narrative included considerable=20
speculation about how long she would stay in the=20
race and whether she might end up as Obama=92s vice president.
http://www.journalism.org/node/11129

BROADCASTING/CABLE

MMTC URGES FCC TO RETHINK LOCALISM PROPOSAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Minority Media & Telecommunications Council=20
asked the Federal Communications Commission not=20
to reinstate a rule that would require=20
broadcasters to locate their main studio in their=20
city of license. The FCC proposed the move as a=20
way to increase localism, but the MMTC, joined by=20
the Independent Spanish Broadcasters Association,=20
argued in a filing with the commission that even=20
if the move did advance localism, it would=20
decrease diversity. They call it a case of a rule=20
"aimed at advancing one laudable objective that=20
would, in practice, undermine the agency's=20
pursuit of another, equally laudable objective.=94=20
Why? The groups said it would have a=20
disproportionate impact on minorities, which=20
entered the markets later and were not able to=20
cluster stations sharing the same community of=20
license. And more broadly, they argued, the move=20
would impose "enormous costs" on broadcasters in=20
general, which it called a "receding tide that sinks all boats."
http://www.broadcastingcable.com/article/CA6562181.html?rssid=3D193
* MMTC filing
http://www.mmtconline.org/filemanager/fileview/146/

SPENDING BILL WOULD BOOST AID FOR DIGITAL TV TRANSITION
[SOURCE: Congressional Quarterly, AUTHOR: ]
Federal plans for the 2009 transition to digital=20
television would be slightly tweaked under=20
language affixed to the Senate version of the war=20
supplemental spending bill. An amendment that=20
would assist broadcasters and TV viewers in rural=20
areas in the run-up to the transition was adopted=20
by the Senate Appropriations Committee last week.=20
The House passed its version of the supplemental=20
spending bill on May 15. The Senate plans to=20
begin debate on its bill Tuesday. The digital TV=20
amendment was offered by senior Senate=20
appropriators Daniel K. Inouye (D-Hawaii) and Ted=20
Stevens (R-Alaska), who are also chairman and=20
ranking member, respectively, of the Commerce,=20
Science and Transportation Committee.
http://public.cq.com/docs/cqm/cqmidday110-000002878575.html

DIGITAL TV TRANSITION NOT AS EASY AS ADVERTISED
[SOURCE: Washington Post, AUTHOR: Kim Hart]
The government-ordered switch to digital=20
television broadcasting next year promises=20
razor-sharp picture and orchestra-like sound --=20
that is, if the signal actually comes in. Viewers=20
are discovering that despite their efforts, it=20
might not. Even with digital converter boxes, the=20
receiver of choice for those who rely on an=20
antenna and do not have a digital television,=20
viewers are finding that the new digital signals=20
are more capricious than old-fashioned analog.
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/19/AR200805...
2730.html
(requires registration)

FCC SUMMIT ON EAS
[SOURCE: Radio Magazine, AUTHOR: ]
The Federal Communications Commission's Public=20
Safety and Homeland Security Bureau hosted a=20
Summit on Emergency Alert System (EAS). The=20
summit was designed to discuss the current state=20
of the nation's EAS and what is needed to=20
transition to a more robust, next-generation=20
alert and warning system. Derek Poarch, the chief=20
of the FCC's Public Safety and Homeland Security=20
Bureau (PSHSB) led the summit. The first panel,=20
moderated by Tom Beers, chief of the Policy=20
Division PSHSB, discussed the current state of=20
the nation's EAS initiative. Discussions focused=20
on failure points within the system and ways to=20
improve testing protocols. The second panel was=20
moderated by William Lane, chief engineer of the=20
PSHSB, and discussed new technologies, possible=20
policies and protocols that should be implemented=20
to ensure compatibility between Federal=20
implementation of the Common Alert Protocol (CAP)=20
architecture and state government operations.=20
Both panels provided a great deal of information=20
and shed some insight on methods currently used=20
in various cities, states and regions. The=20
discussions were lively, as both moderators=20
noted, and certainly will encourage additional=20
discussion and idea exchange among the=20
participants. An action item list for a follow-up=20
was not presented, which could allow the process=20
to become nothing more than an exercise to talk=20
about the problem but not really provide any solutions or answers.
http://radiomagonline.com/currents/news/fcc-summit-on-eas-0519/

BEST BUY: FCC HAS NO POWER TO FINE US OVER ANALOG TVs
[SOURCE: ars technica, AUTHOR: Matthew Lasar]
The nation's biggest electronics retailer has=20
told the Federal Communications Commission that=20
the agency lacks the authority to punish Best Buy=20
for screwing up its digital transition TV selling=20
rules. "The Commission never before has claimed,=20
asserted, or exercised direct or ancillary=20
jurisdiction over retailers, or retail practices,=20
of the nature that is asserted" by the FCC, Best=20
Buy attorneys say. And the appliance giant=20
charges that the Commission's recent Notice of=20
Apparent Liability (NAL) holds the company to "a=20
standard of flawless compliance." That's=20
especially unfair, Best Buy complains, given that=20
the FCC's NAL also contains mistakes. "The=20
Commission has not claimed any express=20
authorization from Congress to enact the Labeling=20
Rule, and none exists," Best Buy argues. Best Buy=20
concedes that the agency takes its authority from=20
court decisions that say that if a matter is=20
"reasonably ancillary to the effective=20
performance of the Commission=92s various=20
responsibilities," the FCC can make rules that=20
have teeth. But the company insists that the=20
Communications Act limits the agency's authority=20
to matters regarding "communication by wire or=20
radio." It does not give the agency the power to=20
regulate retailers who sell related equipment.
http://arstechnica.com/news.ars/post/20080519-best-buy-fcc-has-no-power-...
fine-us-over-analog-tvs.html
* Best Buy challenges FCC over analog TV sales penalty (C-Net|News.com)
http://www.news.com/8301-10784_3-9947410-7.html?tag=3Dnefd.riv

DC CIRCUIT TO COMCAST: "MAKING YOU OBEY THE LAW IS NOT A 'VENDETTA'"
[SOURCE: Tales from the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] When an industry challenging agency=20
action loses the sympathy of the D.C. Cir., it is=20
a good sign that someone overreached just a tad.=20
In apparent preparation for the The Big Cable=20
Show in New Orleans this week, the D.C. Circuit=20
issued this opinion denying Comcast's insistence=20
that it deserves a waiver of the FCC's cable=20
set-top box interoperability rules. The case=20
actually has an interesting precedential aspect I=20
shall discuss below, but the primary reason I am=20
noting it is because this is the first in a=20
series of cases in which Comcast and the rest of=20
the cable industry have actually pleaded that=20
they should be excused from the law because=20
enforcement is all part of an evil vendetta by=20
Kevin Martin against the cable industry. Really.=20
Because while people may accuse Hillary Clinton=20
of having a =93sense of entitlement=94 about the=20
Democratic Nomination, she has the humility of a=20
saint with zero self-esteem compared with the=20
ravening sense of entitlement of the cable industry.
http://www.wetmachine.com/item/1193

ACA SEEKS FCC HELP IN LIFETIME DISPUTE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The American Cable Association complained to the=20
Federal Communications Commission about the=20
breakdown of carriage negotiations between=20
Lifetime Networks and a CableCom system in the=20
small town of Willsboro (NY). In a letter to FCC=20
chairman Kevin Martin, the ACA, which represents=20
smaller cable operators, said Lifetime owners=20
Hearst and Disney pulled the channel from the=20
system May 12 after the operator would not move=20
its Lifetime Movie Network from a digital to an analog basic tier.
http://www.broadcastingcable.com/article/CA6562364.html?rssid=3D193

CABLE, SATELLITE CUSTOMER SATISFACTION UP, BUT STILL WEAK
[SOURCE: Associated Press, AUTHOR:]
Consumer satisfaction with cable and satellite TV=20
providers is at its highest since ratings began,=20
but the industry ranked second to last among 18,=20
and the nation's largest cable operator pulled=20
its lowest rating ever in a widely watched annual=20
customer service survey being released Tuesday.
Only airlines flew lower than cable and satellite=20
TV, which tied with newspapers in the University=20
of Michigan's American Customer Satisfaction=20
Index, which began tracking the industry in 2001.=20
Cable and satellite TV companies' average rating=20
rose 3.2 percent from a year ago to a score of 64=20
for 2008. Comcast, whose service so infuriated a=20
Virginia grandmother she took a hammer to a local=20
Comcast office, tied with struggling Charter=20
Communications for last place among cable and=20
satellite firms. Topping the industry were=20
smaller operators - in a category called "all=20
others" that included Cablevision Systems Corp.=20
and RCN Corp. - with a grade of 69 out of a=20
perfect 100. Satellite TV providers DirecTV Group=20
Inc. and Dish Network Corp. came in second and=20
third with scores of 68 and 65, respectively.
http://www.siliconvalley.com/latestheadlines/ci_9319123
* Satellite Leads in American Customer Satisfaction Index (Broadcasting&Cab=
le)
http://www.broadcastingcable.com/article/CA6562368.html?rssid=3D193

DIGITAL CONTENT

SUPREME COURT UPHOLDS CHILD PORNOGRAPHY LAW
[SOURCE: New York Times, AUTHOR: Linda Greenhouse]
The Supreme Court on Monday upheld the latest=20
Congressional effort to curb the spread of child=20
pornography on the Internet, a 2003 law that=20
makes it a crime to offer or solicit sexually=20
explicit images of children. The law, known as=20
the Protect Act, applies regardless of whether=20
the material turns out to consist solely of=20
computer-generated images, or digitally altered=20
photographs of adults, or even if the offer is=20
fraudulent and the material does not exist at=20
all. =93Offers to provide or requests to obtain=20
child pornography are categorically excluded from=20
the First Amendment,=94 Justice Antonin Scalia=20
wrote for the 7-to-2 majority. The law at issue=20
was a response to a Supreme Court ruling in 2002,=20
a decision that found unconstitutional an earlier=20
law that prohibited simple possession of=20
purported child pornography even if the material=20
turned out not to depict real children. The First=20
Amendment was violated by a law that =93prohibits=20
the visual depiction of an idea,=94 Justice Anthony=20
M. Kennedy said in the 2002 decision. Justice=20
Scalia said on Monday that by limiting the crime=20
to the =93pandering=94 of child pornography, the new=20
law represented =93a carefully crafted attempt to=20
eliminate the First Amendment problems we identified=94 in the earlier deci=
sion.
http://www.nytimes.com/2008/05/20/washington/20scotus.html?ref=3Dtodaysp...
(requires registration)
* Justices Uphold Child Porn Law (WashPost)
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/19/AR200805...
0948.html
* Supreme Court upholds child-pornography law (LATimes)
http://www.latimes.com/news/printedition/asection/la-na-scotus20-2008may...
0,4120911.story

CISCO FILE RAISES CENSORSHIP CONCERNS
[SOURCE: Washington Post, AUTHOR: Glenn Kessler]
Cisco Systems, seeking to penetrate the Chinese=20
market, prepared an internal marketing=20
presentation in which it appeared to be willing=20
to assist the Chinese Ministry of Public Security=20
in its goal of "combating Falun Gong evil cult=20
and other hostile elements," according to a=20
translation of a document obtained by=20
congressional investigators. The Cisco=20
presentation will take center stage today at a=20
hearing of the Senate Judiciary Committee on the=20
Global Internet Freedom Act, which aims to defeat=20
Internet censorship. The Washington Post obtained=20
a copy of the presentation, the authenticity of=20
which was confirmed by Cisco. In its PowerPoint=20
presentation, Cisco referred to the Chinese=20
government's project to control the Internet,=20
including its use by groups such as Falun Gong.=20
After a slide referencing the crackdown on Falun=20
Gong, the next slide proclaims: "Cisco=20
Opportunity: High start-point planning, High=20
standard construction, Technical training,=20
Security and operation maintenance."
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/19/AR200805...
2661.html
(requires registration)

LITTLE ORPHAN ARTWORKS
[SOURCE: New York Times, AUTHOR: Lawrence Lessig]
[Commentary] Congress is considering a major=20
reform of copyright law intended to solve the=20
problem of =93orphan works=94 -- those works whose=20
owner cannot be found. This =93reform=94 would be an=20
amazingly onerous and inefficient change, which=20
would unfairly and unnecessarily burden copyright=20
holders with little return to the public. In a=20
digital age, knowing the law should be simple and=20
cheap. Congress should be pushing for rules that=20
encourage clarity, not more work for copyright experts.
http://www.nytimes.com/2008/05/20/opinion/20lessig.html?ref=3Dtodayspaper
(requires registration)

GOOGLE OFFERS PERSONAL HEALTH RECORDS ON THE WEB
[SOURCE: New York Times, AUTHOR: Steve Lohr]
After a year and half of development, Google=20
began offering online personal health records to=20
the public on Monday. The Internet search giant=92s=20
service, Google Health, at google.com/health, is=20
the latest entrant in the growing field of=20
companies offering personal health records on the=20
Web. Their ranks range from longtime online=20
health services like WebMD to the software=20
powerhouse Microsoft to start-ups like Revolution=20
Health. The companies all hope to capitalize=20
eventually on the trend of increasingly seeking=20
health information online, and the potential of=20
Internet tools to help consumers manage their own=20
health care and medical spending.
http://www.nytimes.com/2008/05/20/technology/20google.html?ref=3Dtodaysp...
(requires registration)
* Google opens website for storing medical records (Bloomberg)
http://www.latimes.com/business/printedition/la-fi-google20-2008may20,0,...
9006.story
* Google releases Google Health for medical records (Reuters)
http://www.reuters.com/article/internetNews/idUSN1954983520080519

NBC SAYS IT INADVERTENTLY FLAGGED 'AMERICAN GLADIATORS'
[SOURCE: C-Net|News.com, AUTHOR: Greg Sandoval]
A week after some users of Vista Media Centers=20
were prevented from recording two NBC Universal=20
shows, the network acknowledged Monday that it=20
inadvertently blocked some people from recording=20
the shows. The owners of Windows Vista Media=20
Centers were prevented from recording American=20
Gladiators and Medium last Monday. At the message=20
board The Green Button, Vista users gathered to=20
complain about receiving a prompt that informed=20
them that the broadcaster had "prohibited=20
recording of this program." "We made an=20
inadvertent mistake," an NBC spokeswoman said in=20
an interview with CNET News.com. "We're not aware=20
of any other complaints, and we believe we have addressed the problem."
http://www.news.com/8301-10784_3-9947631-7.html?part=3Drss&subj=3Dnews&tag=
=3D2547-1_3-0-5

LABOR

GUILD PRESIDENT FOLEY CONCEDED DEFEAT TO CHALLENGER LUNZER
[SOURCE: Editor&Publisher, AUTHOR: Joe Strupp]
Newspaper Guild President Linda Foley conceded=20
defeat to challenger Bernie Lunzer, who=20
reportedly won the guild presidency with 55.8% of=20
the vote, according to final returns. urged the=20
new leadership to "heal whatever rifts there are"=20
with the Guild's parent group, Communication=20
Workers of America, who were targeted by Lunzer's=20
campaign: "The campaign run by the other side was=20
an attack on the CWA, that needs to be repaired."=20
The Guild's new officers pledged to pay=20
particular attention to improving media=20
companies' profitability in ways that don't harm workers.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003804662=20

THOMPSON REUTERS JOB CUTS TO INCLUDE 140 JOURNOS
[SOURCE: Editor&Publisher, AUTHOR: ]
Feel that synergy! Newly merged news and=20
financial information company Thomson Reuters=20
confirmed Monday that as many as 140 journalists,=20
most of them working in Europe, will be let go by=20
the end of the year. Last week, Thomson Reuters=20
said that about 700 jobs in technical support and=20
sales will be eliminated as a result of the merger.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003805241

TELECOM

QWEST SEEKS MORE MONEY FROM FEDS FOR RURAL SERVICE
[SOURCE: Denver Business Journal, AUTHOR: Cathy Proctor]
Qwest Communications International is asking a=20
federal agency to obey a 2005 court order for=20
reforms that Qwest hopes will give it more access=20
to a pot of money subsidizing rural phone and=20
broadband service. The Denver-based=20
telecommunications company petitioned the Federal=20
Communications Commission on May 5 to follow a=20
3-year-old 10th Circuit Court of Appeals ruling=20
ordering reforms in a program reimbursing=20
telephone companies billions of dollars for=20
serving rural areas. The agency hasn't formally=20
responded. The petition by Qwest is another=20
gambit to get more of the $4.2 billion of=20
"universal service fund" money, and tie some of=20
it to providing rural broadband service. The way=20
the rules are written now, Qwest is largely shut=20
out from the fund despite having some of the=20
nation's least populous states in its 14-state service territory.
http://masshightech.bizjournals.com/masshightech/othercities/denver/stor...
/2008/05/19/story10.html?b=3D1211169600^1636774

EXCLUSIVE PHONE DEALS ASSAILED
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz]
A group of small, rural wireless-phone companies=20
plans to escalate an attack on big rivals, trying=20
to persuade federal regulators to outlaw the kind=20
of exclusive deals that have limited availability=20
of Apple's iPhone and other popular mobile=20
devices. The Rural Cellular Association plans as=20
early as Tuesday to file a petition with the=20
Federal Communications Commission asking the=20
agency to investigate the use of exclusive deals=20
that big wireless carriers such as AT&T Inc.=20
strike to sell hot mobile phones. These deals can=20
mean that smaller carriers can't offer the newest=20
phones for months or years. Most Vermont=20
residents, as well as residents in rural areas of=20
15 other states, can't use the iPhone because=20
AT&T offers only roaming coverage there, and=20
other carriers who do offer cellphone service=20
can't sell the iPhone, according to the=20
complaint. The trade group represents about 80=20
small and rural wireless companies, most serving=20
fewer than 500,000 customers. The rural carriers'=20
complaint could reopen a thorny issue for the=20
large wireless carriers, which have been under=20
increasing pressure from the FCC and Congress to=20
give consumers more freedom to use whatever=20
phones or gadgets they want on wireless networks.
http://online.wsj.com/article/SB121124652636205577.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* New Cellphone Purchases Decline in U.S. (Wall Street Journal)
http://online.wsj.com/article/SB121124265191305357.html?mod=3Dtodays_us_...
ketplace

QUICKLY

STOP THE FCC'S MEDIA BUNDLING
[SOURCE: The Seattle Times, AUTHOR: Editorial staff]
[Commentary] The preservation of an independent=20
press cleared one hurdle this week and now faces=20
another. The U.S. Senate passed a "resolution of=20
disapproval" Thursday night that would roll back=20
a disastrous new media cross-ownership rule. The=20
U.S. House of Representatives will now consider a=20
companion resolution introduced by Reps. Dave=20
Reichert, R-Auburn, and Jay Inslee, D-Bainbridge=20
Island.A strong House showing is important to=20
thwart a promised veto by President George W.=20
Bush. The House, which rejected the 2003=20
resolution, needs to be in lockstep with its=20
Senate partners and ensure the FCC does its job correctly.
http://seattletimes.nwsource.com/html/editorialsopinion/2004425398_rezo2...
tml

NEWSPAPERS ON UPSWING IN DEVELOPING MARKETS
[SOURCE: New York Times, AUTHOR: Heather Timmons]
While gloom haunts the newspaper industry in the=20
United States and Europe, the business is=20
flourishing in much of the developing world. New=20
newspapers -- some backed by governments, others=20
by business moguls and international=20
conglomerates -- are springing up from Rwanda to=20
Tajikistan, attracting readers and advertising=20
money. In many of these markets, rising literacy=20
rates dovetail with growing disposable income to=20
create millions of potential readers. Circulation=20
is rising by double-digit percentages at existing=20
papers, while some Western media companies are=20
forging partnerships and trying their hand at start-up companies as well.
http://www.nytimes.com/2008/05/20/business/worldbusiness/20newspapers.ht...
ref=3Dtodayspaper
(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.
--------------------------------------------------------------