May 2008

The FCC hosts a summit on the Making of a Robust,=20
Next Generation Emergency Information Highway.=20
For upcoming media policy events, see http://www.benton.org/calendar/2008/5

MEDIA OWNERSHIP
Reaction to Senate Media Ownership Vote
Cross-Ownership Reversal: The House
Pursuit of Yahoo Shows Microsoft Needs a Franchise

CABLE/BROADCASTING
Martin Not Done Yet
Cable sees opportunities in digital television
Court Rejects Comcast=92s Appeal Of Waiver Denial
Lehrer Says =91News Hour=92 Money Woes Are Worst Ever
Broadcast TV Product Placements Up Almost 40%
Rules change when sales managers become TV station bosses
Creditors File Bankruptcy Petitions vs. Harry Pappas
Here's Hoping Less is Better for Fox

SPECTRUM/WIRELESS
The Public Airwaves Myth
FCC Cranks Up White-Spaces Testing

INTERNET/BROADBAND
Democracy and the Web
Net Gain
Sandvine Gets Agnostic About Bandwidth
Reps. Urge Charter Not to Share Subscriber Info
Online Search Ads Faring Better Than Expensive Displays
Microsoft v. DOJ, 10 years later: Did it make a difference?
The Internet and Consumer Choice

TELECOM
Carrier Challenges Abound as "Structural Separation" Looms
It's Time to Bust the Telmex Monopoly
Staying connected, staying safe at odds on the road

JOURNALISM
Feud Fuels Bill O'Reilly's Blasts at GE

GOVERNMENT & COMMUNICATIONS
Keeping Secrets: In Presidential Memo, A=20
New Designation for Classifying Information

ELECTIONS & MEDIA
Candidates' Telecom Policy Vision

MEDIA OWNERSHIP

OBAMA, BUSH AT ODDS OVER MEDIA OWNERSHIP VOTE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The fight over the Federal Communications=20
Commission's Dec. 18 media-ownership vote set up=20
a potential battle between the current president=20
and a senator who wants to be the next one. Sen.=20
Barack Obama (D-Il) Thursday urged the House to=20
follow the Senate's lead and pass a resolution of=20
disapproval, an unusual legislative maneuver that=20
would invalidate the FCC's decision to allow TV=20
and radio stations and newspapers to be co-owned=20
in the top 20 markets, subject to some=20
conditions. After the Senate approved the=20
measure, Sen Obama, a co-sponsor of the bill,=20
released a statement saying, "I urge my=20
colleagues in the House of Representatives to=20
expeditiously pass the legislation." He framed=20
the vote, as he has before, as standing up to=20
"Washington special interests," a campaign theme.=20
"Our nation=92s media market must reflect the=20
diverse voices of our population, and it is=20
essential that the FCC promotes the public=20
interest and diversity in ownership," he said.
http://www.broadcastingcable.com/article/CA6561535.html?rssid=3D193
* More Reaction to Media-Ownership Smackdown (Broadcasting&Cable)
http://www.broadcastingcable.com/article/CA6561602.html?rssid=3D193
* Computer Companies Praise FCC Smackdown (Broadcasting&Cable)
http://www.broadcastingcable.com/article/CA6561780.html?rssid=3D193
* NAA's Sturm: Senate Media Cross-ownership Vote=20
"Incomprehensible" (Editor&Publisher)
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003804539
* Cantwell on media consolidation
http://blog.seattletimes.nwsource.com/dailydemocracy/index.html#028213

CROSS-OWNERSHIP REVERSAL: THE HOUSE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Now that the Senate voted to repeal the Federal=20
Communications Commission's loosening of the ban=20
on newspaper-broadcast cross-ownership, Rep. Jay=20
Inslee (D-WA) is ready to push his companion bill=20
in the House, or alternately simply adopt the=20
Senate resolution if it will speed it to a floor=20
vote and passage. according to Rep Inslee's=20
legislative director, Nick Shipley, Rep Inslee=20
will likely talk with Speaker Nancy Pelosi (D-CA)=20
and other House leadership next week about the=20
fastest way to get the bill passed, which would=20
likely be to bring the Senate version immediately=20
to the House floor for a vote. Going straight to=20
the floor with the Senate bill would mean=20
bypassing a vote in the House Telecommunications=20
Subcommittee and full Commerce Committee, but=20
Shipley said they have been keeping the chairmen=20
of both committees apprised of their plans. It=20
would be an unusual move, but not as unusual with=20
a vote on an identical Senate bill, he added.
http://www.broadcastingcable.com/article/CA6561706.html?rssid=3D193

PURSUIT OF YAHOO SHOWS MICROSOFT NEEDS A FRANCHISE
[SOURCE: New York Times, AUTHOR: Andrew Ross Sorkin, Steve Lohr]
Two weeks after walking away from takeover talks=20
with Yahoo, Microsoft made clear on Sunday that=20
it still needed to create an Internet powerhouse=20
that could rival Google -- and that its interest=20
in Yahoo had not waned. Microsoft said on Sunday=20
that it had approached Yahoo, this time with an=20
ostensibly narrower aim: a collaboration on=20
Internet advertising. But it hinted that it could=20
still seek a takeover down the road. The renewed=20
talks reflect both Microsoft=92s fears and Yahoo=92s=20
potential ills. Microsoft wants to head off any=20
collaboration on advertising between Yahoo and=20
the market leader, Google. At the same time,=20
Microsoft is seeking to capitalize on the=20
perceived weakness of Yahoo, which is facing a=20
proxy battle with the activist investor Carl C.=20
Icahn over the failed takeover talks.
http://www.nytimes.com/2008/05/19/technology/19soft.html?ref=3Dtodayspaper
(requires registration)
* Microsoft Revives Yahoo Fight, Considers More=20
Limited Deal (Wall Street Journal)
http://online.wsj.com/article/SB121114039708401745.html?mod=3Dtodays_us_...
e_one
* Microsoft, Yahoo Discuss New Deal (WashPost)
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/18/AR200805...
1510.html
* Microsoft, Yahoo in talks on possible deal (USAToday)
http://www.usatoday.com/printedition/money/20080519/1b_msoft-yahoo.art.htm
* Microsoft talking with Yahoo again: possible=20
deal related to search ad business? (SJMercNews)
http://www.mercurynews.com/ci_9304386
* Microsoft, Yahoo talk again, but not about a takeover (LATimes)
http://www.latimes.com/business/printedition/la-na-microsoft19-2008may19...
6604402.story
* Microsoft proposes alternative deal to Yahoo (Reuters)
http://www.reuters.com/article/technologyNews/idUSN1539081620080519
* Microsoft renews approach to Yahoo (Financial Times)
http://www.ft.com/cms/s/0/86b533a8-251b-11dd-a14a-000077b07658.html
* Analysts: Microsoft likely eyeing Yahoo search assets
http://www.infoworld.com/article/08/05/19/Microsoft-likely-eyeing-Yahoo-...
rch-assets_1.html

CABLE/BROADCASTING

MARTIN NOT DONE YET
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Though it=92s late in the Bush administration, it=92s=20
still a bit too soon to discount Kevin Martin,=20
chairman of the Federal Communications Commission=20
and cable-industry nemesis for the past three=20
years. Chairman Martin, who probably exits office=20
in early 2009, can't be called a lame duck just=20
yet. That=92s because his agency still has some big=20
issues to decide, including some worth hundreds=20
of millions of dollars to cable. Presidential=20
election years have a tendency to slow activity=20
at the FCC, which is run by five White House=20
political appointees confirmed by the Senate. But=20
this year could be different. Chairman Martin's=20
agenda includes the merger between XM Satellite=20
Radio and Sirius Satellite Radio, re-auction of=20
public-safety spectrum and the smooth execution=20
of the digital TV transition test in Wilmington=20
(NC) on Sept. 8. And no one in cable can ignore=20
the possibility that Martin might try to force=20
cable operators to make more of their video=20
channels available to competitors, or require=20
cable operators to carry multiple=20
digital-programming services beamed by local TV=20
stations. Predicting Martin=92s departure date has=20
become something of a parlor game among the=20
telecommunications elite inside the Beltway. If=20
Sen. Barack Obama (D-IL) or Sen. Hillary Clinton=20
(D-NY) is elected president in November, the new=20
Democratic president could replace Martin=20
immediately after taking office in January. A=20
victory by prospective GOP nominee Sen. John=20
McCain (R-AZ) could give Martin a few extra=20
months in the job to allow the McCain=20
administration to line up its appointees and get=20
them confirmed by the Senate. A McCain campaign=20
insider =97 who declined to be named =97 said to=20
expect a new FCC chairman in a McCain administration.
http://www.multichannel.com/article/CA6561970.html?nid=3D4262

CABLE SEES OPPORTUNITIES IN DIGITAL TELEVISION
[SOURCE: Reuters, AUTHOR: Yinka Adegoke]
The cable industry is in new Orleans for its=20
annual convention and spirits are bright because=20
cable operators believe the transition to digital=20
television will benefit them. Though most cable=20
operators already offer digital video to their=20
customers, the government-mandated transition=20
offers a chance to win new first-time or lapsed=20
pay-TV subscribers. An SNL Kagan study=20
conservatively estimates that 10 percent of those=20
over-the-air U.S. households will opt for pay=20
television after the transition, with cable=20
receiving the majority of converts and satellite=20
and phone companies splitting the remainder.=20
Analysts anticipate a surge in consumers=20
switching to digital television late in the=20
December holiday season, with high-definition,=20
flat-panel TV sets acting as a catalyst.=20
According to Frank Magid Associates, 25 percent=20
of U.S. households now have HDTV sets and growth=20
is accelerating. Nearly four in 10 HDTV set=20
owners plan to purchase another HDTV set in the=20
next 12 months. Competition between cable and=20
satellite will heat up over the coming year as=20
they vie to offer more high-definition content to=20
win consumers. Comcast offers hundreds of HD=20
movies and TV shows for free and on-demand viewing.
http://www.reuters.com/article/technologyNews/idUSN1521925920080516
* McSlarrow Sees Successful DTV Transition
http://www.multichannel.com/article/CA6562008.html?nid=3D4262
* McSlarrow's War (Broadcasting&Cable)
http://www.broadcastingcable.com/article/CA6561792.html
* A Powerful Pipe (Broadcasting&Cable editorial)
http://www.broadcastingcable.com/article/CA6561795.html

COURT REJECTS COMCAST'S APPEAL OF WAIVER DENIAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The U.S. Court of Appeals for the D.C. Circuit=20
rejected Comcast's challenge of the Federal=20
Communications Commission's decision not to grant=20
it a waiver of its rule requiring the unbundling=20
of security and surfing functions of its set-top=20
boxes. Comcast had argued that it qualified for a=20
waiver; that it needed a waiver to help deliver=20
new digital services and migrate customers to=20
digital; and that the FCC's decision to deny the=20
waiver was arbitrary and capricious given that=20
the commission granted similar waivers to others.=20
The FCC said Comcast didn't need the waiver,=20
adding that it was already offering digital=20
services in all of its markets and was likely to=20
do so absent a waiver. The court found the FCC's=20
explanation "quite reasonable." It said, "With or=20
without a waiver, Comcast has a strong incentive=20
to make as many services available as possible,=20
and to continue introducing new high-value (and high-cost) features."
http://www.broadcastingcable.com/article/CA6561742.html?rssid=3D193

LEHRER SAYS "NEWS HOUR" MONEY WOES ARE WORST EVER
[SOURCE: New York Times, AUTHOR: Elizabeth Jensen]
In its 25 years on the air, =93NewsHour=94 has had=20
fallow budget periods, but none that equal the=20
current one, Jim Lehrer acknowledged. The=20
financial squeeze was precipitated last summer=20
when Archer Daniels Midland ended its 14-year=20
sponsorship of the program. That sponsorship=20
provided nearly $4 million (and some years as=20
much as $7 million) of the program=92s yearly=20
budget, which varies from $26 million to $28=20
million. On May 1, salaries were frozen at the=20
newscast, and company contributions to 401(k)=20
retirement funds were suspended, cutbacks=20
suggested by the staff. =93NewsHour=94 still has two=20
corporate sponsors -- Chevron and the Pacific=20
Life Insurance Company -- and it receives support=20
from PBS and the Corporation for Public=20
Broadcasting. But only part of the Archer money=20
has been replaced, leaving the budget several=20
million dollars short. =93NewsHour,=94 along with=20
other PBS mainstays, may have a longer-term=20
problem. Not only are corporations cutting back=20
on all forms of advertising during the current=20
economic slowdown, but public television=92s model=20
-- soliciting long-term commitments -- is also=20
increasingly out of step with the changing needs=20
of corporations, which no longer sponsor public=20
television programs for purely philanthropic reasons.
http://www.nytimes.com/2008/05/19/business/media/19newshour.html?ref=3Dt...
yspaper
(requires registration)

BROADCAST TV PRODUCT PLACEMENTS UP ALMOST 40%
[SOURCE: Center for Media Research, AUTHOR: Jack Loechner]
The Nielsen Company reported that product=20
placements for the first quarter of 2008 rose 6%=20
on primetime programming for the 11 measured=20
networks on broadcast. Broadcast television=20
placements rose 39%, while cable television was=20
essentially flat at -1%. There were 117,976 brand=20
occurrences on cable and broadcast networks in=20
the first three months of the year, according to=20
Nielsen Product Placement Service. The most=20
prevalent placement type on broadcast television=20
was "foreground," which represented 35% of all=20
product placements. On cable television,=20
"wardrobe" placements were most common,=20
accounting for 32% of all placements. Prime-time=20
product placement occurrences on broadcast=20
networks increased overall by 39% during the=20
first quarter of 2008. The top 10 programs=20
featured 15,404 occurrences in the first three=20
months of this year-compared to 8,893 occurrences=20
in the same time period in 2007.
http://blogs.mediapost.com/research_brief/?p=3D1707http://blogs.mediapost=
.com/research_brief/?p=3D1707=20

RULES CHANGE WHEN SALES MANAGERS BECOME TV STATION BOSSES
[SOURCE: St. Petersburg Times, AUTHOR: Eric Deggans]
[Commentary] With a preponderance of sales=20
managers becoming TV station general managers,=20
the pressure to squeeze more money out of=20
understaffed stations and the flood of veterans=20
leaving the industry -- leaving younger=20
executives with less grounding in ethics. Here's=20
a list of rules -- old school TV news vs new=20
school -- to illustrate how much things have=20
changed. Old rule: news is news. New rule: news=20
is marketing. Old rule: news is never old New=20
rule: news has an expiration date.
Old rule: live shots compliment the story New=20
rule: live IS the story. Old rule: weather gets=20
the attention it deserves New rule: rain is a=20
lead story. Old rule: Cover the issues New=20
rule: cover the emotions. Old rule: Staff=20
experience is valuable New rule: 1 year is=20
experience. Old rule: Cover breaking news New=20
rule: make up breaking news. Old rule: Build=20
credibility and you'll gain a bigger=20
audience New rule: Reach more people through=20
the Internet. Old rule: Be good=20
storytellers New rule: more stories, less=20
telling. Old rule: Report the facts New=20
rule: report what people say. Old rule: Follow=20
the news director's lead New rule: Who's the=20
news director? Old rule: Consultants=20
suggest New rule: Consultants control. Old=20
rule: Ratings rule New rule: Demos dominate.=20
Old rule: Know your community New rule: know=20
your research. Old rule: Bad staff behavior is=20
not tolerated New rule: address your questions to our attorneys.
http://blogs.tampabay.com/media/2008/05/old-school-tv-n.html

CREDITORS FILE BANKRUPTCY PETITIONS VS HARRY PAPPAS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Pappas Telecasting chairman Harry Pappas said=20
Thursday that three of the lenders in the=20
Fortress loan group that financed some of the=20
company's station purchases filed involuntary=20
bankruptcy petitions (Chapter 7) against him and=20
his wife, Stella. On May 10, 13 of Pappas' 30=20
stations filed for Chapter 11, a voluntary=20
bankruptcy proceeding in which the company=20
reorganizes and creates a schedule for paying off its creditors over time.
http://www.broadcastingcable.com/article/CA6561530.html?rssid=3D193

HERE'S HOPING LESS IS BETTER FOR FOX
[SOURCE: tvnewsday, AUTHOR: Harry A Jessell]
[Commentary] In a world of almost unlimited=20
viewing options, the broadcast networks need to=20
reestablish themselves as the premier showcase of=20
programming with the best viewer experience.=20
Fox's "Remote-free TV" experiment is a good first step.
http://www.tvnewsday.com/articles/2008/05/16/daily.6/

SPECTRUM/WIRELESS

THE PUBLIC AIRWAVES MYTH
[SOURCE: Broadcasting&Cable, AUTHOR: Erwin G. Krasnow]
[Commentary] Krasnow, a former National=20
Association of Broadcasters lawyer, argues that=20
the public does not own the airwaves. The=20
spectrum is there, whether it is used or not.=20
Only when it is enhanced by broadcasters filling=20
the airwaves with information and entertainment=20
does it have any value at all to the public. With=20
their talent, technical knowledge and financial=20
resources, broadcasters have increased the value=20
of the spectrum for everyone. Without a signal,=20
supplied by your local broadcast station, the=20
airwaves are just so much empty space.
http://www.broadcastingcable.com/article/CA6561796.html

FCC CRANKS UP WHITE-SPACING TESTING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission is=20
conducting testing to determine whether and how=20
to allow spectrum-sensing unlicensed devices to=20
operate in the digital-TV-spectrum band being=20
used by broadcasters. If a device cannot tell=20
when a broadcaster is already using the channel,=20
it could mistakenly start transmitting on the=20
channel and create interference to those=20
beautiful new DTV signals broadcasters' future=20
depends on. The latest unlicensed wireless device=20
(from Motorola) to be tested by the Federal=20
Communications Commission again failed to detect=20
a TV signal when there was another signal nearby,=20
according to the Association for Maximum Service=20
Television (MSTV), while Motorola said that was not the case.
http://www.broadcastingcable.com/article/CA6561859.html?rssid=3D193
* MSTV, Motorola Clash on Latest White-Spaces Test
http://www.broadcastingcable.com/article/CA6561873.html?rssid=3D193

INTERNET/BROADBAND

DEMOCRACY AND THE WEB
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] Users of the Internet take for=20
granted their ability to access all Web sites on=20
an equal basis. That could change, however, if=20
Internet service providers started discriminating=20
among content, to make more money or to suppress=20
ideas they do not like. A new Network Neutrality=20
bill has been introduced in the House, which=20
would prohibit this sort of content=20
discrimination. Congress has delayed on this=20
important issue too long and should pass net=20
neutrality legislation now. Cable and=20
telecommunications companies are fighting net=20
neutrality with lobbyists and campaign=20
contributions, but these special interests should=20
not be allowed to set Internet policy. It is the=20
job of Congress to protect the Internet=92s democratic form.
http://www.nytimes.com/2008/05/19/opinion/19mon2.html?ref=3Dtodayspaper
(requires registration)

NET GAIN
[SOURCE: Wall Street Journal, AUTHOR: Christopher Rhoads]
The US, once the undisputed leader in the=20
technological revolution, now lags a growing=20
number of countries in the speed, cost and=20
availability of high-speed Internet. While cable=20
and telecom companies are spending billions to=20
upgrade their service, they're focusing their=20
efforts mostly on larger U.S. cities for now.=20
Smaller ones say they need to fill the vacuum=20
themselves or risk falling further behind and=20
losing highly-paid jobs. It's a risky bet. Some=20
municipal Internet efforts, including wireless=20
projects known as Wi-Fi, have failed in recent=20
months. EarthLink Inc. confirmed last week it was=20
pulling the plug on its wireless partnership with=20
Philadelphia. A number of towns have abandoned a=20
municipal fiber initiative in Utah, called Utopia, amid financial difficult=
ies.
http://online.wsj.com/article/SB121115846391602439.html?mod=3Dtodays_us_...
e_one
(requires subscription)

SANDVINE GETS AGNOSTIC ABOUT BROADBAND
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
Sandvine, the Canadian company whose technology=20
has been at the center of the storm surrounding=20
Comcast=92s peer-to-peer bandwidth-throttling=20
practices, has created an extension to its=20
platform that will scale back Internet=20
connections in what it calls an=20
=93application-agnostic=94 fashion. The FairShare=20
system, which works with Sandvine=92s network=20
switches, allows service providers to curtail=20
bandwidth based on subscriber-usage metrics from=20
various sources to balance available bandwidth=20
and resources among all subscribers.
http://www.multichannel.com/article/CA6561982.html?nid=3D4262

REPS URGE CHARTER NOT TO SHARE SUBSCRIBER INFO
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Leaders from both side of the aisle of the House=20
Telecommunications and Internet Subcommittee have=20
written Charter Communications expressing their=20
"serious concern" about reports that the company=20
plans to track Web-site visits by its Internet=20
customers and share that information with an ad=20
firm, asking it to hold off on those plans for=20
now. In a letter to Charter President Neil Smit,=20
Reps Ed Markey (D-MA) and Joe Barton (R-TX) wrote=20
that such a deal could have privacy implications.=20
They told Smit not to pursue a venture with=20
online targeted marketer NebuAd until the=20
legislators have had a chance to talk with him.=20
Jeff Chester of the Center for Digital Democracy=20
applauded the move. "Charter's plans violate the=20
spirit and, likely, the letter of the privacy=20
provisions Chairman Markey inserted in the 1984 Cable Act.=94
http://www.broadcastingcable.com/article/CA6561701.html?rssid=3D193
* Markey/Barton press release
http://markey.house.gov/index.php?option=3Dcontent&task=3Dview&id=3D3354...
emid=3D125
* Bravo to Reps. Markey & Barton for Raising=20
Alarm on Charter Communication=92s ISP eavesdropping plans
http://www.democraticmedia.org/jcblog/?p=3D589

ONLINE SEARCH ADS FARING BETTER THAN EXPENSIVE DISPLAYS
[SOURCE: New York Times, AUTHOR: Stephanie Clifford, Miguel Helft]
In the past few years, Web publishers have made a=20
big bet on booming online advertising revenues.=20
But the economic slowdown may be throwing a=20
wrench into those plans. While search advertising=20
remains strong, there are signs that the growth=20
in online advertising -- particularly in more=20
elaborate display ads -- is slowing down. In the=20
past few weeks, major online-advertising players,=20
like Yahoo and Time Warner, have posted mixed=20
results. And online publishers may be getting=20
less money for the ad space they do sell. The=20
prices paid for online ads bought through ad=20
networks dropped 23 percent from March to April,=20
according to PubMatic, an advertising-technology=20
company in Palo Alto, Calif., that runs an=20
online-pricing index. Large Web publishers fared=20
the worst in PubMatic=92s study, with the prices=20
they received through networks dropping 52 percent.
http://www.nytimes.com/2008/05/19/technology/19online.html?ref=3Dtodaysp...
(requires registration)
* Guessing the Online Customer=92s Next Want
http://www.nytimes.com/2008/05/19/technology/19recommend.html?ref=3Dtoda...
aper

MICROSOFT V DOJ, 10 YEARS LATER: DID IT MAKE A DIFFERENCE?
[SOURCE: C-Net|News.com, AUTHOR: Charles Cooper]
[Commentary] Ten years ago today, the United=20
States Department of Justice filed a landmark=20
antirust lawsuit against Microsoft. Six months=20
later, Google incorporated in Menlo Park=20
(CA). The proximity of those two dates raises a=20
delicious "what if." Knowing how the subsequent=20
decade turned out, do you think the Justice=20
Department would still have gone after Microsoft in 1998?
http://www.news.com/8301-10787_3-9946945-60.html?part=3Drss&subj=3Dnews&...
=3D2547-1_3-0-5

THE INTERNET AND CONSUMER CHOICE
[SOURCE: Pew Internet & American Life Project, AUTHOR: John Horrigan]
The Internet plays an important role in how=20
people conduct research for purchases, but it is=20
just one among a variety of sources people use=20
and usually not the key factor in final purchasing decisions.
http://www.pewinternet.org/pdfs/PIP_Consumer.Decisions.pdf

TELECOM

CARRIER CHALLENGES ABOUND AS "STRUCTURAL SEPARATION" LOOMS
[SOURCE: Government Technology, AUTHOR: ]
In the next five years the telecom market will=20
change so dramatically and rapidly that=20
government intervention and market engineering=20
will be inevitable in some countries, according=20
to Gartner. At the center of this is the global=20
trend toward telecom "structural separation,"=20
which Gartner defines as the deconstruction or=20
breaking apart of a telecom carrier's vertically=20
integrated business model into a more=20
horizontally structured model. "In the past 20=20
years, carriers have increasingly focused on=20
operational efficiency -- via a tighter coupling=20
of business assets (vertical integration) -- to=20
compete more effectively against new market=20
entrants with lower cost structures," said Alex=20
Winogradoff, research vice president at Gartner.=20
"Despite government moves (such as unbundling and=20
accounting separation) to encourage competition=20
and stimulate investment, progress has been=20
meager in most countries. Regulators believe that=20
continued vertical integration is the primary=20
reason for this lack of progress and are=20
increasingly seeking separation as a policy=20
tool." Gartner said that telecom regulators have=20
been pursuing accounting separation and are now=20
considering functional and ownership separation=20
as a last measure to achieve their policy goals.
http://www.govtech.com/gt/articles/323672

IT'S TIME TO BUST THE TELMEX MONOPOLY
[SOURCE: Wall Street Journal, AUTHOR: Mary Anastasia O'Grady]
[Commentary] It is a decade overdue, but Mexico=20
finally has a clear path to ending the=20
near-monopoly status of Telmex =96 Carlos Slim's=20
Telefonos de Mexico. Whether President Felipe=20
Calder=F3n seizes the day will signal just how=20
serious he is about modernizing his country's=20
economy. The Slim dynasty cannot prosper if it=20
cannot expand into television. If Mexican=20
regulators get smart and begin to aggressively=20
privatize the wireless spectrum, its odds are=20
even slimmer. That's why this is the moment to=20
drive a stake through the heart of the Telmex=20
monopoly. If Mr. Calder=F3n passes up the chance,=20
he will seal his own fate as a reformer and=20
practically guarantee that Mexico will fail to=20
live up to its potential in the next decade.
http://online.wsj.com/article/SB121115378541502187.html?mod=3Dtodays_us_...
nion
(requires subscription)

STAYING CONNECTED, STAYING SAFE AT ODDS ON THE ROAD
[SOURCE: USAToday, AUTHOR: Angela Haupt]
When American drivers slam on the brakes, three=20
out of four times it's because they were=20
daydreaming, fiddling with the radio or chatting=20
on the phone, a survey suggests today. Nearly=20
half of Americans consider talking on the phone=20
and texting the most dangerous distractions while=20
driving, but 81% acknowledge making calls from=20
behind the wheel, according to the survey by=20
Nationwide Mutual Insurance. Most cases of=20
driving while distracted are caused by a need to=20
be constantly connected, says Bill Windsor,=20
Nationwide's associate vice president of safety.=20
"It's our lifestyle and mentality. We're so used=20
to multitasking that we don't recognize it as=20
dangerous anymore." The survey found that,=20
surprisingly, older drivers were more likely than=20
teens to multitask when driving. That could be=20
because older drivers are more focused on=20
juggling responsibilities, says Kathryn=20
Lusby-Treber, formerly the executive director of=20
the Network of Employers for Traffic Safety. "If=20
we're going to be stuck in traffic for an hour=20
and a half, let's see what else we can=20
accomplish," she says. "And because they're more=20
experienced, older drivers feel like they don't=20
have to pay as much attention as teens."
http://www.usatoday.com/printedition/life/20080519/d_distracted_drivers1...
rt.htm

JOURNALISM

FEUD FUELS BILL O'REILLY'S BLASTS AT GE
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
Fox News' Bill O'Reilly is mounting an=20
extraordinary televised assault on the chief=20
executive of General Electric, calling him a=20
"pinhead" and a "despicable human being" who=20
bears responsibility for the deaths of American=20
soldiers in Iraq. On the surface, O'Reilly's=20
charges revolve around GE's history of doing=20
business with Iran. But the attacks grow out of=20
an increasingly bitter feud between O'Reilly and=20
the company's high-profile subsidiary, NBC, one=20
that has triggered back-channel discussions=20
involving News Corp. owner Rupert Murdoch, Fox=20
News Chairman Roger Ailes, NBC chief executive=20
Jeff Zucker and General Electric's CEO, Jeffrey=20
Immelt. Ailes called Zucker on his cellphone last=20
summer, clearly agitated over a slam against him=20
by MSNBC host Keith Olbermann. According to=20
sources familiar with the conversation, Ailes=20
warned that if Olbermann didn't stop such attacks=20
against Fox, he would unleash O'Reilly against=20
NBC and would use the New York Post as well.
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/18/AR200805...
2313.html
(requires registration)

GOVERNMENT & COMMUNICATIONS

KEEPING SECRETS: IN PRESIDENTIAL MEMO, A NEW=20
DESIGNATION FOR CLASSIFYING INFORMATION
[SOURCE: Washington Post, AUTHOR: Walter Pincus]
Sometime in the next few years, if a memorandum=20
signed by President Bush this month ever goes=20
into effect, one government official talking to=20
another about information on terrorists will have=20
to begin by saying: "What I am about to tell you=20
is controlled unclassified information enhanced=20
with specified dissemination." That would mean,=20
according to the memo, that the information=20
requires safeguarding because "the inadvertent or=20
unauthorized disclosure would create risk of=20
substantial harm." Bush's memorandum, signed on=20
the eve of his daughter Jenna's wedding,=20
introduced "Controlled Unclassified Information"=20
as a new government category that will replace=20
"Sensitive but Unclassified." Such information --=20
though it does not merit the well-known national=20
security classifications "confidential," "secret"=20
or "top secret" -- is nonetheless "pertinent" to=20
U.S. "national interests" or to "important=20
interests of entities outside the federal government," the memo says.
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/18/AR200805...
1806.html
(requires registration)

ELECTIONS & MEDIA

CANDIDATES' TELECOM Policy VISION
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
At the cable industry convention in New Orleans,=20
former Federal Communications Commission Chairman=20
William Kennard spelled out various elements of=20
Sen Barack Obama=92s telecom policy vision on a=20
panel with other proxies for the major=20
presidential candidates. Former FCC chairman=20
Michael Powell stood in for Republican Party=20
presidential nominee Sen. John McCain (R-AZ), and=20
former FCC Democrat Susan Ness addressed the=20
policy views of Sen. Hillary Clinton (D-NY).=20
According to Kennard, Sen Obama (D-IL) would=20
likely exempt tier-pricing models from Network=20
Neutrality regulation if broadband network owners=20
used them to maintain congestion-free access to=20
the Internet. Kennard, an outside communications=20
policy adviser to Sen Obama, said Obama has=20
consistently supported net neutrality regulation=20
while recognizing that network owners need to=20
manage their systems and attract investment=20
capital. =93Where that has typically led us is to=20
supporting tier pricing systems as long as=20
they're not discriminatory,=94 said Kennard. Powell=20
outlined a bold free-market blueprint for the=20
Internet from a potential McCain administration.=20
=93While he supports Internet freedom, he's very,=20
very skeptical of efforts to create new=20
legislation,=94 Powell said. After Kennard=20
mentioned that net neutrality was a complex and=20
evolving issue, Powell said the lack of stability=20
suggested that Internet regulation was=20
inappropriate. =93That's exactly when Congress=20
ought to leave their pen in their pocket,=94 Powell=20
said. "I think there's nothing worse than the=20
legislature passing a poor understanding of=20
technical concepts, a poor understanding of the=20
consequences of the statute that finally once on=20
the books, you'll have a heck of a time ever removing."
http://www.multichannel.com/article/CA6562007.html?nid=3D4262
--------------------------------------------------------------
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.
--------------------------------------------------------------