May 2008

Reps Urge Charter Not to Share Subscriber Info

Leaders from both side of the aisle of the House Telecommunications and Internet Subcommittee have written Charter Communications expressing their "serious concern" about reports that the company plans to track Web-site visits by its Internet customers and share that information with an ad firm, asking it to hold off on those plans for now. In a letter to Charter President Neil Smit, Reps Ed Markey (D-MA) and Joe Barton (R-TX) wrote that such a deal could have privacy implications. They told Smit not to pursue a venture with online targeted marketer NebuAd until the legislators have had a chance to talk with him. Jeff Chester of the Center for Digital Democracy applauded the move. "Charter's plans violate the spirit and, likely, the letter of the privacy provisions Chairman Markey inserted in the 1984 Cable Act.”
http://www.broadcastingcable.com/article/CA6561701.html?rssid=193

Carrier Challenges Abound as

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

Can the Feds enforce Network Neutrality? Maybe not

Federal regulators may be probing Comcast's throttling of BitTorrent filesharing traffic, but can they actually take action, if they choose, against the company or any other broadband provider on Net neutrality grounds? The answer may not be simple. And if the Federal Communications Commission and other regulators are really powerless -- in other words, if they need Congress to enact new laws -- it means that any threats to take action against Comcast, based on alleged violations of the law today, are merely empty ones. That's the issue that former staffers and officials from the FCC and Federal Trade Commission took up at an event on Thursday.
http://www.news.com/8301-10784_3-9945418-7.html?part=rss&subj=news&tag=2...

Universal Service Deadline Changed

The Federal Communications Commission just improved a lot of people's weekend. The FCC decided to change the deadline for Reply Comments three Notices of Proposed Rulemaking, seeking comment regarding the high-cost universal service support program. Comments were due Monday May 19, 2008 -- they are now due Monday June 2, 2008.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-08-1168A1.doc

Microsoft Joins Effort for Laptops for Children

After a years-long dispute, Microsoft and the computing and education project One Laptop Per Child said Thursday that they had reached an agreement to offer Windows on the organization’s computers. Microsoft long resisted joining the ambitious project because its laptops used the Linux operating system, a freely distributed alternative to Windows. The group’s small, sturdy laptops, designed for use by children in developing nations, have been hailed for their innovative design. But they are sold mainly to governments and education ministries, and initial sales were slow, partly because countries were reluctant to buy machines that did not run Windows, the dominant operating system. Education ministries want low-cost computers to help further education, but many see familiarity with Windows-based computing as a marketable skill that can improve job prospects.
http://www.nytimes.com/2008/05/16/technology/16laptop.html?ref=todayspaper
(requires registration)

It's No Gossip, Ratings Slip Threatens CW Network

Time may be running out for the CW network. Two years after CBS Corp. and Time Warner Inc. combined their second-tier networks UPN and WB into the youth-oriented CW to pool young viewers prized by advertisers, the network's hopes of surviving are looking increasingly bleak. Despite the buzz about "Gossip Girl," a prime-time soap opera about a group of rich kids on the Upper East Side of Manhattan, the network has lost about 28% of its target audience of 18 to 34 year olds so far this season. Its ratings during this month's "sweeps" period -- the all-important measure upon which future advertising rates are set -- are down about 22%. Advertisers eager to reach a young demographic initially clamored to sign on to the CW, but have since cooled to the network. Steven Kalb, director of broadcast media for media-buying firm MediaHub, owned by Interpublic Group, says there were high hopes for the network when last year's lineup was unveiled. Now, he says, "It has collapsed." Part of the problem is that the CW's young audience is most prone to spend leisure time on the Internet. Last winter's Hollywood writers' strike, which forced scripted shows off the air for three months, hastened the defection of viewers to the Web.
http://online.wsj.com/article/SB121089546043097065.html?mod=todays_us_ma...
(requires subscription)

Icahn's bid may force Yahoo back into Microsoft's arms

Carl Icahn's audacious bid to overthrow Yahoo's board could bring Microsoft back to the bargaining table and revive the tech megamerger. On Thursday, the billionaire investor instigated a plan to expel Yahoo's board of directors for "irresponsible" and "unconscionable" acts that prompted Microsoft to drop a $47.5 billion bid to buy Yahoo. In a letter to Yahoo Chairman Roy Bostock, Icahn says outraged Yahoo shareholders urged him to lead a campaign to replace Yahoo's 10 directors at the company's July 3 shareholders meeting. He has plenty of supporters. Paulson & Co., the $30 billion hedge fund that has built up a stake of about 50 million shares in Yahoo in recent months, says it intends to support Icahn's slate but hopes Yahoo hammers out a deal with Microsoft first. Longtime Yahoo shareholder Ryan Jacob, manager of Jacob Internet fund, also backs the Icahn bid. The best-case scenario, he says, is if Icahn succeeds in ousting Yahoo's current board with a new board more "amenable" to doing a deal with Microsoft. Icahn's move, in essence, pressures Yahoo to either strike an advertising partnership with Google or merge with Microsoft, tech analysts say.
http://www.usatoday.com/printedition/money/20080516/1b_yahoo16.art.htm

FCC OKs Sale of Bankrupt Philly Station

The Federal Communications Commission has approved the sale of bankrupt WTVE Philadelphia to WRNN-TV Associates for $13.5 million. WRNN-TV currently operates WRNN New York, an independent TV station serving the Hudson Valley north of Manhattan. It enjoys cable carriage throughout the tri-state market. Billed as the Regional News Network, WRNN offers a mix of news and paid programming. Richard French, a principal in the station and an on-air political commentator, declined to comment on the deal or his plans for the WTVE prior to the closing.
http://www.tvnewsday.com/articles/2008/05/15/daily.15/

Benton's Communications-related Headlines For Friday May 16, 2008

MEDIA OWNERSHIP
Senate Votes to Block FCC's Media Ownership Rule Change
Senators must oppose media consolidation
OMB: President Should Veto FCC Override
CBS to Buy CNET for $1.8 Billion
Public Knowledge, Media Access Project clarify letter from Georgetown Part=
ners
Icahn's bid may force Yahoo back into Microsoft's arms

INTERNET/BROADBAND
Can the Feds enforce Network Neutrality? Maybe not
Cox Blocking P2P, Too
One in Five U.S. Households Has Never Used E-mail
NCTA Hails Farm Bill's RUS Loan Reforms
Canadian Internet Regulation

BROADCASTING/CABLE
NAB Wants Eyes On Wilmington DTV Switch
Study: Moderate Growth for Cable Through 2012
It's No Gossip, Ratings Slip Threatens CW Network
FCC OKs Sale of Bankrupt Philly Station

QUICKLY -- Universal Service Deadline Changed;=20
Straight talk; Governments must intervene to end=20
IP address shortage, says OECD; Microsoft Joins=20
Effort for Laptops for Children ; DNS trouble=20
knocks NSA off Internet; Florida seeks to fine Verizon for bad service

MEDIA OWNERSHIP

SENATE VOTES TO BLOCK FCC'S MEDIA OWNERSHIP RULE CHANGE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
On Thursday night, the US Senate voted, without=20
debate, to invalidate the Federal Communications=20
Commission's Dec. 18 decision to loosen the=20
newspaper-broadcast cross-ownership rule. The=20
measure passed on a voice vote. "The Senate spoke=20
for a huge majority of Americans tonight by=20
voting to overturn the flawed FCC decision=20
gutting our long-standing ban on=20
newspaper-broadcast cross-ownership," said=20
Federal Communications Commission Commissioner=20
Michael Copps, an opponent of the relaxation.=20
"With courageous leaders like Sen. Byron Dorgan,=20
the Senate has struck a blow for localism and=20
diversity in a media environment crying out for=20
more of both." FCC Chairman Kevin Martin told=20
reporters recently that he was sensitive to the=20
input of Congress on the issue, but he thought it=20
was "important to update our rules to reflect a=20
changing media marketplace, and particularly the=20
fact that the newspaper rule had not been changed=20
since it was put in place in 1978 and the=20
newspaper industry was in significant financial=20
distress. But, obviously, the Commission will=20
follow the law as it is ultimately enacted," he=20
added. The resolution now must be voted on by the=20
House. The Bush administration reiterated=20
Thursday that it supported the FCC's move,=20
opposed the resolution, and would likely veto it.=20
Late Thursday, it had been looking like bills and=20
debate on other matters would push the=20
media-ownership debate into Friday or Monday, but=20
Senate Majority Leader Harry Reid (D-NV) stepped=20
in to clear the way for the resolution's passage=20
Thursday night. Josh Silver, executive director=20
of Free Press, which coordinates the=20
StopBigMedia.com Coalition, said: "Today's=20
historic Senate vote is a resounding victory for=20
the vast majority of Americans who oppose media=20
consolidation. We applaud the bipartisan=20
leadership of Senators Dorgan and Snowe for=20
acting in the public interest. But to stop Big=20
Media from polluting our local airwaves with more=20
junk journalism and propaganda, we need the House=20
to move this legislation forward quickly. At this=20
watershed moment, public outrage against Big=20
Media has reached a breaking point. The Bush=20
administration's threats to undercut this=20
bipartisan effort in Congress show how out of=20
touch this president is with the will of the=20
American people. But we=92re not going to stand=20
idly by and let the White House green light Big=20
Media's expansion. The great pendulum of=20
political change is swinging away from corrosive=20
consolidation and toward better media."
http://benton.org/node/11046
* SJ 28
http://www.benton.org/node/10069
* Digg this article
http://digg.com/politics/Senate_Votes_to_Block_FCC_s_Media_Ownership_Rul...
hange

SENATORS MUST OPPOSE MEDIA CONSOLIDATION
[SOURCE: Capitol Times, AUTHOR: Editorial staff]
[Commentary] Congress is considering a resolution=20
expressing formal disapproval of the Federal=20
Communications Commission's new media ownership=20
rule. Rolling back the FCC's heavy-handed rule=20
change is good for journalism, which is=20
threatened by the moves of big-media companies to=20
consolidate newsrooms. It's good for urban and=20
rural communities, which are best covered and=20
best served by diverse and competitive media.=20
Most importantly, it's good for democracy, which=20
thrives only when there is a vibrant debate=20
fostered by newspapers, radio stations and=20
television stations that are independent enough=20
to consider events and issues from different=20
perspectives. Sens Herb Kohl (D-WI) and Russ=20
Feingold (D-WI) should cast enthusiastic votes in favor of this necessary m=
ove.
http://www.madison.com/tct/opinion/editorial/286530
* Senate Likely to Debate FCC-Blocking Bill Thursday
http://www.broadcastingcable.com/article/CA6561412.html

OMB: PRESIDENT SHOULD VETO FCC OVERRIDE
[SOURCE: White House, AUTHOR: Office of Management and Budget]
The Administration strongly opposes Senate=20
passage of S. J. Res. 28, a resolution=20
disapproving the rule submitted by the Federal=20
Communications Commission (FCC) with respect to=20
broadcast media ownership. The FCC rule, which is=20
the product of years of study and extensive=20
public comment and consultation, modestly and=20
judiciously modernizes decades-old media=20
ownership regulations that highly restrict=20
cross-ownership of newspapers and broadcast=20
stations. As a result of technological advances=20
that have led to a dramatic and permanent=20
transformation of the media marketplace in which=20
citizens now have access to a multitude of=20
additional sources of information, these outdated=20
restrictions are not necessary. The new rule more=20
accurately reflects this changing media landscape=20
by taking into account the abundance of news and=20
information outlets that exist today, and=20
furthers the public interest by providing greater=20
financial flexibility to newspaper and broadcast=20
outlets struggling to survive in today's=20
intensely competitive media environment. In=20
addition to reducing the prior rule's excessive=20
regulation of well-functioning markets, the new=20
FCC rule includes substantial constraints to=20
guard against excessive concentration. The=20
Administration supported this FCC action and=20
strongly opposes any attempt to overturn this=20
rule by legislative means. To disapprove this=20
rule and require the Federal government to=20
reassert regulatory constraints on business=20
decisions in a competitive media marketplace=20
would exacerbate financial challenges facing=20
newspapers and broadcast stations and thus not be=20
in the public interest. Accordingly, if S.J. Res.=20
28 were presented to the President, his senior=20
advisors would recommend that he veto the bill.
http://www.whitehouse.gov/omb/legislative/sap/110-2/sapsjr28-s.pdf
* White House Vows Veto Of Measure Overturning FCC Media Rule (Dow Jones)
http://www.lloyds.com/CmsPhoenix/DowJonesArticle.aspx?id=3D391564
* Learn more about S.J.RES.28
http://www.benton.org/node/10069
* Digg this post
http://digg.com/politics/OMB_President_Should_Veto_FCC_Override_Benton_F...
dation

CBS TO BUY CNET FOR $1.8 BILLION
[SOURCE: Wall Street Journal, AUTHOR: Mike Barris]
Mass media company CBS will acquire new media,=20
technology-focused, online news company CNet=20
Networks for $1.8 billion. CNET owns such=20
Internet entertainment, news and information=20
sites as CNET, ZDNet and GameSpot.com. CNET's=20
sites will be combined with CBS's news and sports=20
sites as well as CBS Radio and CBS Television=20
Stations digital media platforms, and the=20
distribution network of the CBS Audience Network,=20
which is made up of more than 300 partner Web=20
sites and reaches 82% of all U.S. online users.=20
CNET shareholders will get $11.50 a share, a 45%=20
premium to Wednesday's closing price and above=20
any price at which the stock has traded in about=20
two years. Shares of CNET soared 44% to $11.44 in=20
recent trading, while CBS's stock fell 3.7% to=20
$23.91. CNET is facing increased competition for=20
users and online advertising dollars. The=20
company's revenue rose 10% in 2007, to $405.9=20
million, but its reported profit was helped by a=20
big tax benefit. CNET reported a loss of $6.1=20
million in the first quarter, as revenue rose=20
slightly. Saul Hansell thinks CNet -- well=20
respected, with some good technology and brands,=20
but growing slowly -- makes CBS -- a company=20
with well-known brands and sluggish growth -- "look sexier."
http://online.wsj.com/article/SB121085061416295095.html?mod=3Dhps_us_wha...
news
(requires subscription)
http://benton.org/node/11031

PUBLIC KNOWLEDGE, MEDIA ACCESS PROJECT CLARIFY LETTER FROM GEORGETOWN PARTN=
ERS
[SOURCE: OrbitCast, AUTHOR: ]
Public interest groups Public Knowledge and Media=20
Access Project want to make sure the FCC=20
understands their position on the Sirius-XM=20
merger in light of a recent letter from Chester=20
Davenport the Managing Director of Georgetown=20
Partners. While they confirmed that they did=20
indeed meet with Georgetown Partners, the groups=20
reiterated that they "take no position with=20
respect to [Georgetown Partners'] specific=20
proposal that 20% of the merged XM/Sirius=20
company's spectrum capacity be leased on an=20
arms-length basis to an independent=20
entity." "This approach could be a useful=20
supplement to, but not a substitute for, the 5%=20
non-commercial, educational set aside," they=20
state in their letter to the FCC. Should the=20
Federal Communications Commission determine that=20
Georgetown's proposal is in the public interest,=20
both Public Knowledge and Media Access Project=20
support the minority-owned group's proposal to=20
assist non-commercial, educational programmers.
http://www.orbitcast.com/archives/public-knowledge-media-access-project-...
rify-letter-from-georgetown-partners.html
* See filing
http://gullfoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=3Dpdf&id_d...
ment=3D6520009789
* Georgetown Partners, MAP Tag Team On Sirius Set-Asides
http://www.broadcastingcable.com/article/CA6561472.html

ICAHN'S BID MAY FORCE YAHOO BACK INTO MICROSOFT'S ARMS
[SOURCE: USAToday, AUTHOR: Jon Swartz, Adam Shell]
Carl Icahn's audacious bid to overthrow Yahoo's=20
board could bring Microsoft back to the=20
bargaining table and revive the tech megamerger.=20
On Thursday, the billionaire investor instigated=20
a plan to expel Yahoo's board of directors for=20
"irresponsible" and "unconscionable" acts that=20
prompted Microsoft to drop a $47.5 billion bid to=20
buy Yahoo. In a letter to Yahoo Chairman Roy=20
Bostock, Icahn says outraged Yahoo shareholders=20
urged him to lead a campaign to replace Yahoo's=20
10 directors at the company's July 3 shareholders=20
meeting. He has plenty of supporters. Paulson &=20
Co., the $30 billion hedge fund that has built up=20
a stake of about 50 million shares in Yahoo in=20
recent months, says it intends to support Icahn's=20
slate but hopes Yahoo hammers out a deal with=20
Microsoft first. Longtime Yahoo shareholder Ryan=20
Jacob, manager of Jacob Internet fund, also backs=20
the Icahn bid. The best-case scenario, he says,=20
is if Icahn succeeds in ousting Yahoo's current=20
board with a new board more "amenable" to doing a=20
deal with Microsoft. Icahn's move, in essence,=20
pressures Yahoo to either strike an advertising=20
partnership with Google or merge with Microsoft, tech analysts say.
http://www.usatoday.com/printedition/money/20080516/1b_yahoo16.art.htm

INTERNET/BROADBAND

CAN THE FEDS ENFORCE NET NEUTRALITY? MAYBE NOT
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Federal regulators may be probing Comcast's=20
throttling of BitTorrent filesharing traffic, but=20
can they actually take action, if they choose,=20
against the company or any other broadband=20
provider on Net neutrality grounds? The answer=20
may not be simple. And if the Federal=20
Communications Commission and other regulators=20
are really powerless -- in other words, if they=20
need Congress to enact new laws -- it means that=20
any threats to take action against Comcast, based=20
on alleged violations of the law today, are=20
merely empty ones. That's the issue that former=20
staffers and officials from the FCC and Federal=20
Trade Commission took up at an event on Thursday.
http://www.news.com/8301-10784_3-9945418-7.html?part=3Drss&subj=3Dnews&tag=
=3D2547-1_3-0-5

COX BLOCKING P2P, TOO
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
Cox Communications appears to be impeding=20
peer-to-peer file-sharing traffic in the same way=20
Comcast has, according to a study released=20
Thursday by a German research group. Germany=92s=20
Max Planck Institute, a science and technology=20
research organization, analyzed a test of 8,175=20
Internet volunteers around the world and found=20
that both Comcast and Cox are blocking=20
peer-to-peer traffic over their networks during=20
all hours of the day. In a statement sent to the=20
Associated Press, Cox said: "To ensure the best=20
possible online experience for our customers, Cox=20
actively manages network traffic through a=20
variety of methods including traffic=20
prioritization and protocol filtering." Cox also=20
noted that its subscriber agreement has indicated=20
since at least 2006 that it uses protocol=20
filtering to manage network resources, and denied=20
that the techniques it uses to manage bandwidth=20
amounts to =93blocking=94 any Internet service. The=20
Max Planck study found that 82 of the 151 Cox=20
broadband subscribers (54%) that voluntarily=20
tested their connections through the research=20
group=92s site had their P2P connections blocked.=20
Of the 788 Comcast subscribers participating, 491=20
(62%) were blocked. Gigi Sohn of Public Knowledge=20
said, "These results lead us to three=20
conclusions. First, the largest cable companies=20
were doing more blocking than they have admitted=20
to Congress or to the FCC. Second, other cable=20
companies, and all telephone companies, can=20
manage their networks without the need for=20
blocking the traffic of customers. Finally, the=20
fact that the blocking goes on all the time=20
should tell the Commission that it needs to act soon to prevent the practic=
e."
http://www.multichannel.com/article/CA6561294.html?nid=3D4262
* Public Knowledge Says New Study Shows FCC Needs To Act on Comcast Blocking
http://www.publicknowledge.org/node/1570
* Results from tests for BitTorrent traffic blocking
http://broadband.mpi-sws.mpg.de/transparency/results/
* Some file-sharing uploads hindered: study
http://www.reuters.com/article/internetNews/idUSN1531769920080515

ONE IN FIVE US HOUSEHOLDS HAS NEVER USED E-MAIL
[SOURCE: Parks Associates, AUTHOR: Press release]
Roughly one-fifth of all U.S. heads-of-household=20
have never used e-mail, according to National=20
Technology Scan, a forthcoming study from Parks=20
Associates. This annual phone survey of U.S.=20
households found 20 million households are=20
without Internet access, approximately 18% of all=20
U.S. households. =93Nearly one out of three=20
household heads has never used a computer to=20
create a document,=94 said John Barrett, director,=20
research, Parks Associates. =93These data=20
underscore the significant digital divide between=20
the connected majority and the homes in the=20
unconnected minority that rarely, if ever, use a=20
computer.=94 Age and education are factors in this=20
divide. One-half of those who have never used=20
e-mail are over 65, and 56 percent had no=20
schooling beyond high school. National Technology=20
Scan found just seven percent of the 20 million=20
=93disconnected=94 homes plan to subscribe to an=20
Internet service within the next 12 months.=20
Still, the study reports a steady decline in the=20
number of disconnected households when comparing=20
findings with previous years. National Technology=20
Scan reported at year-end 2006 that 29 percent of=20
all U.S. households (31 million homes) did not=20
have Internet access, citing low perceived value of the Internet.
http://newsroom.parksassociates.com/article_display.cfm?article_id=3D5067

NCTA HAILS FARM BILL'S RUS LOAN REFORMS
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
The cable industry's main trade association=20
hailed congressional passage Thursday of a=20
massive farm bill that would reduce the flow of=20
broadband subsidies into rural markets where the=20
technology already exists. In recent years, the=20
cable industry has complained that the U.S.=20
Department of Agriculture's Rural Utilities=20
Service has been subsidizing broadband network=20
construction in markets already served by cable=20
incumbents, ignoring the intent of Congress to=20
assist broadband deployment in unserved areas.=20
"This legislation sharpens the focus of the RUS's=20
Broadband Loan Program by limiting loans in areas=20
where competition already exists, and targeting=20
loans to areas without widespread access to=20
broadband service," said Kyle McSlarrow,=20
president of the National Cable &=20
Telecommunications Association. In general, the=20
bill would tighten the definition of a rural area=20
and tie loan eligibility to the percentage of=20
homes with access to just a single broadband provider.
http://www.multichannel.com/article/CA6561428.html?nid=3D4262

CANADIAN INTERNET REGULATION
[SOURCE: The Toronto Star, AUTHOR: Chris Sorensen]
The Canadian Radio-television Telecommunications=20
Commission, Canada's broadcast watchdog, will=20
hold public hearings next year into the thorny=20
question of extending its purview to the=20
Internet, a medium that it deemed a=20
regulatory-free zone nearly a decade ago. The=20
CRTC released a final, 75-page report that=20
summarizes research and stakeholder opinion on a=20
wide range of issues, including Canadian content=20
that's broadcast online or mobile devices, and=20
the recent debate over Internet Service Providers=20
who deliberately slow certain types of Internet=20
traffic. The report, a draft version of which was=20
first revealed in March, was created amid=20
pressure from some Canadian content creators who=20
are concerned their work is increasingly being=20
broadcast on the Internet, where it is free from=20
regulatory oversight. Among the more=20
controversial proposals are raising a levy on=20
Internet Service Providers to pay for the=20
creation of new media content. The public is also=20
invited to comment on the issues at=20
http://crtc.newmedia.econsultation.ca until June=20
15. Also, a group of Internet service providers=20
that resell bandwidth on Bell Canada's network=20
has lost a temporary bid to shelter their=20
subscribers from the phone company's practice of=20
slowing down certain types of Internet traffic.=20
The CRTC turned down the Canadian Association of=20
Internet Providers' request for an injunction,=20
saying the group failed to demonstrate its=20
members are being harmed by Bell's efforts to=20
"shape" the Internet traffic of its wholesale=20
clients. CRTC mailed out a set of questions to=20
Bell Canada asking the company to explain exactly=20
how and why it decided to slow down certain=20
file-sharing traffic on wholesale networks it=20
leases to smaller independent Internet service=20
providers. Traffic shaping generally refers to=20
the use of special software to sniff out and slow=20
down data packets associated with=20
bandwidth-intensive services such as file sharing.
http://www.benton.org/node/11042

BROADCASTING/CABLE

NAB WANTS EYES ON WILMINGTON DTV SWITCH
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Association of Broadcasters wants to=20
make sure that the government is paying=20
sufficient attention to the potential problems=20
with its Wilmington (NC) test of the switch to=20
digital TV. Concerned that the National=20
Telecommunications & Information Administration=20
is bogged down with DTV-to-analog converter box=20
coupon requests, the National Association of=20
Broadcasters President David Rehr has asked NTIA=20
acting head Meredith Baker to make requests from Wilmington a priority.
Rehr urged NTIA and the FCC to get together to=20
make sure that converter boxes that pass through=20
an analog signal be made available as soon as=20
possible. He pointed out that the CBS station in=20
the market is a low-power station that is not=20
currently broadcasting in digital -- low powers=20
don't have any deadline for their conversion, in=20
contrast to full-power stations who must already=20
be broadcasting a digital signal and pull the=20
plug on analog Feb. 17, 2009. NAB also asked for=20
a weekly update from NTIA on coupon applications=20
and redemptions in the Wilmington DMA. Last week,=20
Baker said 5% of the Wilmington market have requested more than 23,000 coup=
ons.
http://www.broadcastingcable.com/article/CA6561427.html?rssid=3D193

STUDY: MODERATE GROWTH FOR CABLE THROUGH 2012
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
A new SNL Kagan survey predicts annual=20
multichannel-subscription growth of 2.1%, or=20
108.5 million by 2012, with the total=20
multichannel market accounting for about 89% of=20
TV households. Kagan did not predict that the=20
digital-TV switch will drive very many=20
over-the-air viewers to multichannel providers,=20
saying that about 10% of over-the-air households=20
will opt to move to multichannel, with most of=20
those going to cable. Even so, Kagan=92s study=20
predicted that cable's market share will drop=20
from 64% to 59% by 2012, with telcos' market=20
share jumping to 9%. It sees satellite's share=20
dropping due to the lack of a bundled=20
video/voice/data option. The study said migrating=20
customers to digital will be key to stemming that cable-market-share erosio=
n.
http://www.broadcastingcable.com/article/CA6561349.html?rssid=3D193

IT'S NO GOSSIP, RATINGS SLIP THREATENS CW NETWORK
[SOURCE: Wall Street Journal, AUTHOR: Rebecca Dana]
Time may be running out for the CW network. Two=20
years after CBS Corp. and Time Warner Inc.=20
combined their second-tier networks UPN and WB=20
into the youth-oriented CW to pool young viewers=20
prized by advertisers, the network's hopes of=20
surviving are looking increasingly bleak. Despite=20
the buzz about "Gossip Girl," a prime-time soap=20
opera about a group of rich kids on the Upper=20
East Side of Manhattan, the network has lost=20
about 28% of its target audience of 18 to 34 year=20
olds so far this season. Its ratings during this=20
month's "sweeps" period -- the all-important=20
measure upon which future advertising rates are=20
set -- are down about 22%. Advertisers eager to=20
reach a young demographic initially clamored to=20
sign on to the CW, but have since cooled to the=20
network. Steven Kalb, director of broadcast media=20
for media-buying firm MediaHub, owned by=20
Interpublic Group, says there were high hopes for=20
the network when last year's lineup was unveiled.=20
Now, he says, "It has collapsed." Part of the=20
problem is that the CW's young audience is most=20
prone to spend leisure time on the Internet. Last=20
winter's Hollywood writers' strike, which forced=20
scripted shows off the air for three months,=20
hastened the defection of viewers to the Web.
http://online.wsj.com/article/SB121089546043097065.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

FCC OKs SALE OF BANKRUPT PHILLY STATION
[SOURCE: tvnewsday, AUTHOR: ]
The Federal Communications Commission has=20
approved the sale of bankrupt WTVE Philadelphia=20
to WRNN-TV Associates for $13.5 million. WRNN-TV=20
currently operates WRNN New York, an independent=20
TV station serving the Hudson Valley north of=20
Manhattan. It enjoys cable carriage throughout=20
the tri-state market. Billed as the Regional News=20
Network, WRNN offers a mix of news and paid=20
programming. Richard French, a principal in the=20
station and an on-air political commentator,=20
declined to comment on the deal or his plans for the WTVE prior to the clos=
ing.
http://www.tvnewsday.com/articles/2008/05/15/daily.15/

QUICKLY

UNIVERSAL SERVICE DEADLINE CHANGED
[SOURCE: Federal Communications Commission]
The Federal Communications Commission just=20
improved a lot of people's weekend. The FCC=20
decided to change the deadline for Reply Comments=20
three Notices of Proposed Rulemaking, seeking=20
comment regarding the high-cost universal service=20
support program. Comments were due Monday May 19,=20
2008 -- they are now due Monday June 2, 2008.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-08-1168A1.doc

STRAIGHT TALK
[SOURCE: The Phoenix, AUTHOR: Adam Reilly]
With the two main contestants for the=20
presidential general election all but decided,=20
it=92s time to start covering Sen John McCain=20
(R-AZ) again =97 not by trotting out the usual=20
war-hero-turned-blunt-maverick narrative, but by=20
taking a hard look at the strengths and=20
weaknesses he'd bring to the presidency. Of=20
course, Sen McCain has a well-documented knack=20
for charming the press into submission. So here,=20
for the men and women who'll be spending long=20
hours on the Straight Talk Express, is a handy=20
list of 10 McCain stories worth pursuing over the next few months
http://thephoenix.com/article_ektid61555.aspx
* McCain campaign threatened to cut off Newsweek=92s access (Think Progress)
http://thinkprogress.org/2008/05/15/mccain-campaign-threatened-to-cut-of...
ewsweeks-access/

GOVERNMENTS MUST INTERVENE TO END IP ADDRESS SHORTAGE, SAYS OECD
[SOURCE: InfoWorld, AUTHOR: Peter Sayer]
Businesses alone are not doing enough to avert an=20
impending shortage of Internet Protocol=20
addresses, and governments must work with them to=20
secure the future of the Internet economy,=20
according to a report published Thursday by the=20
Organization for Economic Cooperation and=20
Development (OECD). The number of IP addresses,=20
needed for Web sites, servers, and PCs to=20
communicate with one another over the Internet,=20
is limited, and almost 85 percent of addresses=20
are now in use. At the current rate of growth,=20
the pool of available addresses will be exhausted=20
by 2011. Fortunately, a solution to this problem=20
has already been developed: a new version of the=20
Internet Protocol, IPv6, which provides a far=20
greater number of addresses. Adopting IPv6 means=20
making extensive changes to networking hardware and software.
http://www.infoworld.com/article/08/05/15/Govts-must-intervene-to-end-IP...
dress-shortage_1.html

MICROSOFT JOINS EFFORT FOR LAPTOPS FOR CHILDREN
[SOURCE: New York Times, AUTHOR: Steve Lohr]
After a years-long dispute, Microsoft and the=20
computing and education project One Laptop Per=20
Child said Thursday that they had reached an=20
agreement to offer Windows on the organization=92s=20
computers. Microsoft long resisted joining the=20
ambitious project because its laptops used the=20
Linux operating system, a freely distributed=20
alternative to Windows. The group=92s small, sturdy=20
laptops, designed for use by children in=20
developing nations, have been hailed for their=20
innovative design. But they are sold mainly to=20
governments and education ministries, and initial=20
sales were slow, partly because countries were=20
reluctant to buy machines that did not run=20
Windows, the dominant operating system. Education=20
ministries want low-cost computers to help=20
further education, but many see familiarity with=20
Windows-based computing as a marketable skill that can improve job prospect=
s.
http://www.nytimes.com/2008/05/16/technology/16laptop.html?ref=3Dtodaysp...
(requires registration)
* Laptop Program for Kids In Poor Countries Teams Up With Microsoft's Windo=
ws
http://online.wsj.com/article/SB121090009765197433.html?mod=3Dtodays_us_...
ketplace
* Windows to run on One Laptop Per Child computer
http://www.reuters.com/article/technologyNews/idUSN1536776320080516

DNS TROUBLE KNOCKS NSA OFF INTERNET
[SOURCE: InfoWorld, AUTHOR: Robert McMillan]
A server problem at the U.S. National Security=20
Agency has knocked the secretive intelligence agency off the Internet.
http://www.infoworld.com/article/08/05/15/DNS-trouble-knocks-NSA-off-Int...
et_1.html

FLORIDA SEEKS TO FINE VERIZON FOR BAD SERVICE
[SOURCE: Reuters, AUTHOR: Ritsuko Ando]
Florida Attorney General Bill McCollum, along=20
with the state's public counsel and an attorney=20
for the AARP retiree group, asked the Florida=20
Public Service Commission to levy a $6.5 million=20
penalty against Verizon for willful violation of=20
rules on service repairs. The No. 2 U.S.=20
telephone company said its service is fine.
http://www.reuters.com/article/technologyNews/idUSN1530943620080515
--------------------------------------------------------------
...and we're outta here. Have a great weekend, first place Cubs fans!
--------------------------------------------------------------
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.
--------------------------------------------------------------