May 2008

Senate Votes to Block FCC's Media Ownership Rule Change

On Thursday night, the US Senate voted, without debate, to invalidate the Federal Communications Commission's Dec. 18 decision to loosen the newspaper-broadcast cross-ownership rule. The measure passed on a voice vote. "The Senate spoke for a huge majority of Americans tonight by voting to overturn the flawed FCC decision gutting our long-standing ban on newspaper-broadcast cross-ownership," said Federal Communications Commission Commissioner Michael Copps, an opponent of the relaxation. "With courageous leaders like Sen. Byron Dorgan, the Senate has struck a blow for localism and diversity in a media environment crying out for more of both." FCC Chairman Kevin Martin told reporters recently that he was sensitive to the input of Congress on the issue, but he thought it was "important to update our rules to reflect a changing media marketplace, and particularly the fact that the newspaper rule had not been changed since it was put in place in 1978 and the newspaper industry was in significant financial distress. But, obviously, the Commission will follow the law as it is ultimately enacted," he added. The resolution now must be voted on by the House. The Bush administration reiterated Thursday that it supported the FCC's move, opposed the resolution, and would likely veto it. Late Thursday, it had been looking like bills and debate on other matters would push the media-ownership debate into Friday or Monday, but Senate Majority Leader Harry Reid (D-NV) stepped in to clear the way for the resolution's passage Thursday night. Josh Silver, executive director of Free Press, which coordinates the StopBigMedia.com Coalition, said: "Today's historic Senate vote is a resounding victory for the vast majority of Americans who oppose media consolidation. We applaud the bipartisan leadership of Senators Dorgan and Snowe for acting in the public interest. But to stop Big Media from polluting our local airwaves with more junk journalism and propaganda, we need the House to move this legislation forward quickly. At this watershed moment, public outrage against Big Media has reached a breaking point. The Bush administration's threats to undercut this bipartisan effort in Congress show how out of touch this president is with the will of the American people. But we’re not going to stand idly by and let the White House green light Big Media's expansion. The great pendulum of political change is swinging away from corrosive consolidation and toward better media."
http://www.broadcastingcable.com/article/CA6561506.html?rssid=193

Sen Dorgan's press release
http://dorgan.senate.gov/newsroom/record.cfm?id=297937

Senators must oppose media consolidation

[Commentary] Congress is considering a resolution expressing formal disapproval of the Federal Communications Commission's new media ownership rule. Rolling back the FCC's heavy-handed rule change is good for journalism, which is threatened by the moves of big-media companies to consolidate newsrooms. It's good for urban and rural communities, which are best covered and best served by diverse and competitive media. Most importantly, it's good for democracy, which thrives only when there is a vibrant debate fostered by newspapers, radio stations and television stations that are independent enough to consider events and issues from different perspectives. Sens Herb Kohl (D-WI) and Russ Feingold (D-WI) should cast enthusiastic votes in favor of this necessary move.
http://www.madison.com/tct/opinion/editorial/286530

Cox Blocking P2P, Too

Cox Communications appears to be impeding peer-to-peer file-sharing traffic in the same way Comcast has, according to a study released Thursday by a German research group. Germany’s Max Planck Institute, a science and technology research organization, analyzed a test of 8,175 Internet volunteers around the world and found that both Comcast and Cox are blocking peer-to-peer traffic over their networks during all hours of the day. In a statement sent to the Associated Press, Cox said: "To ensure the best possible online experience for our customers, Cox actively manages network traffic through a variety of methods including traffic prioritization and protocol filtering." Cox also noted that its subscriber agreement has indicated since at least 2006 that it uses protocol filtering to manage network resources, and denied that the techniques it uses to manage bandwidth amounts to “blocking” any Internet service. The Max Planck study found that 82 of the 151 Cox broadband subscribers (54%) that voluntarily tested their connections through the research group’s site had their P2P connections blocked. Of the 788 Comcast subscribers participating, 491 (62%) were blocked. Gigi Sohn of Public Knowledge said, "These results lead us to three conclusions. First, the largest cable companies were doing more blocking than they have admitted to Congress or to the FCC. Second, other cable companies, and all telephone companies, can manage their networks without the need for blocking the traffic of customers. Finally, the fact that the blocking goes on all the time should tell the Commission that it needs to act soon to prevent the practice."
http://www.multichannel.com/article/CA6561294.html?nid=4262

One in Five U.S. Households Has Never Used E-mail

Roughly one-fifth of all U.S. heads-of-household have never used e-mail, according to National Technology Scan, a forthcoming study from Parks Associates. This annual phone survey of U.S. households found 20 million households are without Internet access, approximately 18% of all U.S. households. “Nearly one out of three household heads has never used a computer to create a document,” said John Barrett, director, research, Parks Associates. “These data underscore the significant digital divide between the connected majority and the homes in the unconnected minority that rarely, if ever, use a computer.” Age and education are factors in this divide. One-half of those who have never used e-mail are over 65, and 56 percent had no schooling beyond high school. National Technology Scan found just seven percent of the 20 million “disconnected” homes plan to subscribe to an Internet service within the next 12 months. Still, the study reports a steady decline in the number of disconnected households when comparing findings with previous years. National Technology Scan reported at year-end 2006 that 29 percent of all U.S. households (31 million homes) did not have Internet access, citing low perceived value of the Internet.
http://newsroom.parksassociates.com/article_display.cfm?article_id=5067

Canadian Internet Regulation

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

NAB Wants Eyes On Wilmington DTV Switch

The National Association of Broadcasters wants to make sure that the government is paying sufficient attention to the potential problems with its Wilmington (NC) test of the switch to digital TV. Concerned that the National Telecommunications & Information Administration is bogged down with DTV-to-analog converter box coupon requests, the National Association of Broadcasters President David Rehr has asked NTIA acting head Meredith Baker to make requests from Wilmington a priority. Rehr urged NTIA and the FCC to get together to make sure that converter boxes that pass through an analog signal be made available as soon as possible. He pointed out that the CBS station in the market is a low-power station that is not currently broadcasting in digital -- low powers don't have any deadline for their conversion, in contrast to full-power stations who must already be broadcasting a digital signal and pull the plug on analog Feb. 17, 2009. NAB also asked for a weekly update from NTIA on coupon applications and redemptions in the Wilmington DMA. Last week, Baker said 5% of the Wilmington market have requested more than 23,000 coupons.
http://www.broadcastingcable.com/article/CA6561427.html?rssid=193

Study: Moderate Growth for Cable Through 2012

A new SNL Kagan survey predicts annual multichannel-subscription growth of 2.1%, or 108.5 million by 2012, with the total multichannel market accounting for about 89% of TV households. Kagan did not predict that the digital-TV switch will drive very many over-the-air viewers to multichannel providers, saying that about 10% of over-the-air households will opt to move to multichannel, with most of those going to cable. Even so, Kagan’s study predicted that cable's market share will drop from 64% to 59% by 2012, with telcos' market share jumping to 9%. It sees satellite's share dropping due to the lack of a bundled video/voice/data option. The study said migrating customers to digital will be key to stemming that cable-market-share erosion.
http://www.broadcastingcable.com/article/CA6561349.html?rssid=193

NCTA Hails Farm Bill's RUS Loan Reforms

The cable industry's main trade association hailed congressional passage Thursday of a massive farm bill that would reduce the flow of broadband subsidies into rural markets where the technology already exists. In recent years, the cable industry has complained that the U.S. Department of Agriculture's Rural Utilities Service has been subsidizing broadband network construction in markets already served by cable incumbents, ignoring the intent of Congress to assist broadband deployment in unserved areas. "This legislation sharpens the focus of the RUS's Broadband Loan Program by limiting loans in areas where competition already exists, and targeting loans to areas without widespread access to broadband service," said Kyle McSlarrow, president of the National Cable & Telecommunications Association. In general, the bill would tighten the definition of a rural area and tie loan eligibility to the percentage of homes with access to just a single broadband provider.
http://www.multichannel.com/article/CA6561428.html?nid=4262

Public Knowledge, Media Access Project clarify letter from Georgetown Partners

Public interest groups Public Knowledge and Media Access Project want to make sure the FCC understands their position on the Sirius-XM merger in light of a recent letter from Chester Davenport the Managing Director of Georgetown Partners. While they confirmed that they did indeed meet with Georgetown Partners, the groups reiterated that they "take no position with respect to [Georgetown Partners'] specific proposal that 20% of the merged XM/Sirius company's spectrum capacity be leased on an arms-length basis to an independent entity." "This approach could be a useful supplement to, but not a substitute for, the 5% non-commercial, educational set aside," they state in their letter to the FCC. Should the Federal Communications Commission determine that Georgetown's proposal is in the public interest, both Public Knowledge and Media Access Project support the minority-owned group's proposal to assist non-commercial, educational programmers.
http://www.orbitcast.com/archives/public-knowledge-media-access-project-...
* See filing
http://gullfoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_doc...

Straight talk

With the two main contestants for the presidential general election all but decided, it's time to start covering Sen John McCain (R-AZ) again — not by trotting out the usual war-hero-turned-blunt-maverick narrative, but by taking a hard look at the strengths and weaknesses he'd bring to the presidency. Of course, Sen McCain has a well-documented knack for charming the press into submission. So here, for the men and women who'll be spending long hours on the Straight Talk Express, is a handy 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's access (Think Progress)
http://thinkprogress.org/2008/05/15/mccain-campaign-threatened-to-cut-of...