May 2008

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AGENDA
FCC Meeting on D Block Spectrum Auction Today
Senate to Schedule Media Ownership Vote Soon

GOVERNMENT & COMMUNICATIONS
Pentagon Media Pundits Appeared 4,500 times since Jan 1, 2002

JOURNALISM
Who Will Tell Us?
Dumber demographic rules TV, DC
Limbaugh Wins As Election=92s Biggest Manipulator
McAuliffe says media =91in the tank=92 for Obama

INTERNET/BROADBAND
Two Telecom Bills Form a United Front Against Discrimination
Broadband: other countries do it better, but how?
Broadband to the Home: Broadband to America
Europe on the way to a high speed Internet economy
Vint Cerf supports municipal broadband networks
EarthLink closing Philadelphia Wi-Fi network
Charter to Share Broadband Customers' Web Histories with Ad Networks

MEDIA OWNERSHIP
Clear Channel Suitors, Banks Reach a Deal
Diller, Malone Settle Differences

TELECOM
Consumers ditching land-line phones
Mobile phones more important than wallets: survey

DTV TRANSITION
Circuit City wants out of digital TV fines

AGENDA

FCC MEETING ON D BLOCK SPECTRUM AUCTION TODAY
[SOURCE: Federal Communications Commission]
The Federal Communications Commission will NOT=20
consider an Order addressing Promotion of=20
Spectrum Efficient Technologies at today's public=20
meeting. The item has already been adopted by the=20
FCC. That means today's meeting will focus solely=20
on rules for re-auctioning "D Block" 700 MHz band spectrum.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-282123A1.doc

REID TO SCHEDULE VOTE ON FCC-BLOCKING RESOLUTION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Look for the Senate within the next two or three=20
weeks to vote on a resolution to invalidate the=20
Federal Communications Commission's=20
newspaper-broadcast cross-ownership rule change.=20
Apparently the resolution will be taken up under=20
expedited rules, which means that all it needs is=20
51 votes, not the 60 that would make it filibuster-proof.
http://www.broadcastingcable.com/article/CA6560388.html?rssid=3D193

GOVERNMENT & COMMUNICATIONS

PENTAGON MEDIA PUNDITS APPEARED 4,500 TIMES SINCE JAN 1, 2002
[SOURCE: Media Matters for America, AUTHOR: ]
A New York Times article detailed the connection=20
between numerous media military analysts and the=20
Pentagon and defense industries, reporting that=20
"the Bush administration has used its control=20
over access and information in an effort to=20
transform" media military analysts "into a kind=20
of media Trojan horse -- an instrument intended=20
to shape terrorism coverage from inside the major=20
TV and radio networks." A Media Matters review=20
found that since January 1, 2002, the analysts=20
named in the Times article -- many identified as=20
having ties to the defense industry --=20
collectively appeared or were quoted as experts=20
more than 4,500 times on ABC, ABC News Now, CBS,=20
CBS Radio Network, NBC, CNN, CNN Headline News,=20
Fox News, MSNBC, CNBC, and NPR.
http://mediamatters.org/items/200805130001

JOURNALISM

WHO WILL TELL US?
[SOURCE: Columbia Journalism Review, AUTHOR: Editorial staff]
[Commentary] The steady drip of buyouts and=20
layoffs has consumed an estimated four thousand=20
newsroom jobs in print alone since the turn of=20
the century, according to the much-chewed-over=20
annual State of the News Media report released in=20
March by the Project for Excellence in=20
Journalism. As to whether the Web is replenishing=20
this reportorial firepower, the authors are=20
blunt: =93In print, broadcast and elsewhere, more=20
effort is moving to packaging and repurposing=20
material=85.But less is being devoted to original=20
newsgathering, especially the bearing witness and=20
monitoring of basic news.=94 The current=20
presidential election is arguably the most=20
important in recent history, given the magnitude=20
of the problems the winner will confront on day=20
one=97yet fewer seasoned reporters are questioning=20
both candidates and voters; fewer journalists are=20
out bearing witness. Meanwhile, the ever-growing=20
armies of pundits deployed by cable outlets on=20
Big Nights=97the debates, Super Tuesday,=20
etc.=97yammer on about What It All Means, though=20
nary a one goes out knocking on the doors of the folks who might tell them.
http://www.cjr.org/editorial/who_will_tell_us.php
* Like NBC colleagues Matthews and Russert, David=20
Gregory suggested media can't adequately cover both Dem primary and McCain
On MSNBC's Race for the White House, host David=20
Gregory, like NBC colleagues Tim Russert and=20
Chris Matthews, suggested that it is not possible=20
for the media to adequately cover both the=20
Democratic primary race and Sen. John McCain.=20
Gregory stated, "John McCain has not gotten a lot=20
of scrutiny right now because we've had an=20
historic Democratic race to contend with, but=20
does that necessarily hold up as we go along?"
http://mediamatters.org/items/200805130008?f=3Dh_latest

DUMBER DEMOGRAPHIC RULES TV, DC
[SOURCE: Variety, AUTHOR: Brian Lowry]
[Commentary] The Presidential race's=20
preoccupation with demographic-based voting has=20
made the similarity between Hollywood and=20
Washington (DC) even more striking. That's=20
because the debate surrounding Barack Obama's=20
campaign needing to dumb down the message and=20
messenger to appease the masses has a=20
longstanding precedent in television. In both=20
spheres, well-educated millionaires agonize over=20
how to engage Joe Six-Pack, as voters=20
increasingly split along clear demographic -- as=20
opposed to geographic -- lines: The young,=20
college educated and African-Americans lining up=20
behind Obama, while older, blue-collar and white=20
voters have preferred Hillary Clinton. Only in=20
showbiz and politics, however, is "smart" a=20
perceived insult. As the Democratic primaries=20
slog onward, Harvard law alum Obama has been=20
pilloried for elitism. While his oratorical=20
eloquence has drawn comparisons to the bygone=20
days of Robert Kennedy, opponents hammer at=20
perceptions that he alienates key voting blocs.=20
On CNN, Democratic strategist Paul Begala=20
disparagingly described Obama's coalition as "eggheads and African-American=
s."
http://www.variety.com/article/VR1117985618.html?categoryid=3D1682&cs=3D...
id=3D2562

LIMBAUGH WINS AS ELECTION'S BIGGEST MANIPULATOR
[SOURCE: Media Is Plural, AUTHOR: Rory O'Connor]
[Commentary] With Democratic enthusiasm waxing,=20
Republican energy waning, and more than four out=20
of five voters convinced the country is now on=20
the wrong track, one would think hard-right wing=20
talk radio hosts like Rush Limbaugh would be=20
near-suicidal. But no! As it stands, Limbaugh =AD=20
now in his twentieth year as the universally=20
acknowledged =93Grand Poobah=94 of talk radio, with=20
an estimated weekly audience of about 13.5=20
million listeners =97 looks to be the biggest=20
winner thus far in the ongoing Presidential=20
primary sweepstakes. From attacking Republican=20
frontrunner John McCain early in the process to=20
=91dreaming=92 of =AD and some say illegally calling=20
for =97 riots at August=92s Democratic National=20
Convention in Denver, all the way to more recent=20
efforts such as =93Operation Chaos,=94 aimed at=20
inserting himself and his followers into the=20
Democratic primaries in an attempt to weaken=20
Barack Obama by supporting Hillary Clinton, the=20
so-called =93Limbaugh effect=94 has garnered=20
excessive attention from the =91drive-by=92=20
mainstream media that Limbaugh purports to hate=20
but actually depends on and manipulates adroitly.=20
Although the real-world effect of =93Operation=20
Chaos=94 is doubtful =AD at least in terms of=20
influencing the Democratic primaries =AD it has=20
clearly been wildly successful in its real=20
mission of promoting Limbaugh and his nationally syndicated radio program.
http://www.roryoconnor.org/blog/2008/05/13/rush-limbaugh-the-biggest-win...

MCAULIFFE SAYS MEDIA 'IN THE TANK' FOR OBAMA
[SOURCE: The Hill, AUTHOR: Klaus Marre]
Terry McAuliffe, campaign chairman for Sen.=20
Hillary Rodham Clinton (D-NY), said Tuesday that=20
the former first lady is hamstrung by a biased=20
media. McAuliffe added that =93every independent=20
study has said that this is the most biased=20
coverage they've ever seen in a presidential=20
campaign.=94 He also praised Fox News, which is=20
often viewed as a conservative media outlet, as=20
=93one of the most responsible in this presidential campaign.=94
http://thehill.com/campaign-2008/mcauliffe-says-media-in-the-tank-for-ob...
-2008-05-13.html

INTERNET/BROADBAND

TWO TELECOM BILLS FORM A UNITED FRONT AGAINST DISCRIMINATION
[SOURCE: Public Knowledge, AUTHOR: Art Brodsky]
[Commentary] House Judiciary Committee Chairman=20
John Conyers, Jr. (D-MI) and Internet stalwart=20
Rep. Zoe Lofgren (D-CA) have introduced the=20
Internet Freedom and Nondiscrimination Act of=20
2008 (HR 5994). This bill provides a nice=20
complement to the Internet Freedom Preservation=20
Act of 2008 (HR 5353), introduced by House=20
Telecom Subcommittee Chairman Ed Markey (D-MA)=20
and Rep. Chip Pickering (R-MS). As so often=20
happens in Congress, legislation tends to track=20
jurisdiction. In real terms, a member of the=20
House Judiciary Committee, looking at a telecom=20
issue, will introduce a bill over which that=20
committee has jurisdiction. The Conyers-Lofgren=20
bill would subject Net Neutrality violations to=20
the possibility of an antitrust suit =AD a subject=20
area over which the Judiciary Committee has=20
jurisdiction. The Markey bill, by contrast, takes=20
its authority from the Communications Act, which=20
happens to be under the jurisdiction of the=20
Energy and Commerce Committee. Markey=92s bill add=20
to the catch-all Title I of the Communications=20
Act the principles of the Federal Communications=20
Commission=92s policy statement on the Internet,=20
and non-discrimination language of the Act=20
designed to apply to the telephone network as it=20
was before the Commission decided that high-speed=20
Internet services didn't have the =93burden=94 of=20
carrying everyone=92s traffic without interference,=20
that is, as =93common carriers.=94 These two bills=20
are not mutually exclusive. The Communications=20
Act has existed since 1934 governing how the=20
telecom markets in this country would function,=20
for better or worse. For years, the FCC regulated=20
the telephone industry, overseeing rates and=20
subsidies, equipment and related issues. It was=20
under the antitrust laws that the old Bell System=20
was broken up into what were in 1984 seven=20
Regional Bell companies and the long-distance=20
AT&T. It was also under the auspices of the=20
antitrust laws, thanks to Clinton Administration=20
appointee Joel Klein, that the Bell System began=20
to put itself back together when the Justice=20
Department allowed Bell Atlantic to merge with Nynex in 1997.
http://www.publicknowledge.org/node/1567

BROADBAND: OTHER COUNTRIES DO IT BETTER, BUT HOW?
[SOURCE: ars technica, AUTHOR: Nate Anderson]
[Commentary] One of the ironies of the current=20
broadband situation in the US is that staunch=20
free marketeers defend the status quo even though=20
the result of their views has been duopoly and=20
high prices. Meanwhile, other countries=20
(including those with a reputation in some=20
quarters for "socialism") have taken aggressive=20
steps to create a robust, competitive,=20
consumer-friendly marketplace with the help of=20
regulation and national investment. Critics, it's=20
time to stop the quibbling: the data collection=20
practices that show the US dropping=20
year-over-year in all sorts of broadband metrics=20
from uptake to price per megabit might not prove=20
solid enough to trust with your life, but we're=20
out of good reasons to doubt their general meaning.
http://arstechnica.com/news.ars/post/20080511-broadband-other-countries-...
it-better-but-how.html

BROADBAND TO THE HOME: BROADBAND TO AMERICA
[SOURCE: Federal Communications Commission,=20
AUTHOR: FCC Commissioner Deborah Tate]
In a speech to the Broadband Properties Summit=20
last month, Commissioner Deborah Taylor Tate=20
said, "I have been a strong proponent of a light=20
regulatory touch for broadband service provided=20
over cable systems, telephone lines, power lines,=20
and wireless platforms. This helps ensure what=20
we refer to as a level playing field - or=20
equality of regulation - among competing=20
providers, no matter the technology or business=20
model. Such a light-touch approach also is=20
consistent with my regulatory philosophy, which=20
is simple, straightforward, and built on a long=20
tradition of limited but effective=20
government. It calls for, first and foremost,=20
regulatory humility. I look to and especially=20
encourage the industry to put forward creative,=20
market-based solutions whenever possible. I=20
recognize that most of the consumer benefits we=20
see in the communications sector of the U.S.=20
economy are directly related to the significant=20
levels of competition in this sector, driven by=20
deregulatory policies that have encouraged=20
investment and thus fostered that competition. Of=20
course, I also understand the need for regulation=20
to promote well-specified social goals that=20
otherwise might not be addressed, such as=20
E911. More specifically, I understand the need=20
for regulation if and when there is a clear=20
market failure. Such market failure is probably=20
less common in communications markets as compared=20
to other sectors, but we should not assume that it does not exist."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-282030A1.doc

EUROPE ON THE WAY TO A HIGH SPEED INTERNET ECONOMY
[SOURCE: eGov monitor, AUTHOR: EU Commissioner=20
for Information Society & Media Viviane Reding]
40% of Europeans do not use the Internet and are=20
not benefiting from the socio-economic=20
opportunities offered by the Internet revolution.=20
This we must correct and do so soon said=20
Commissioner Reading in a recent speech.
http://www.egovmonitor.com/node/18752

VINT CERF SUPPORTS MUNICIPAL BROADBAND NETWORKS
[SOURCE: IDG News Service, AUTHOR: Nancy Gohring]
Municipal broadband networks could help boost the=20
availability of high-speed Internet access and=20
even help to ensure Net neutrality in the U.S.,=20
said Vint Cerf, vice president and chief Internet=20
evangelist at Google. Cerf, known as one of the=20
fathers of the Internet for his role in creating=20
its basic architecture, spoke at a lunch in=20
Seattle, a city that is investigating the=20
possibility of building its own broadband=20
network. Seattle would follow its southern=20
neighbor Tacoma, which has been operating its own=20
fiber network for several years. Cerf disputed=20
arguments that operators sometimes give for why=20
they should be able to limit or block=20
bandwidth-hungry applications on their networks,=20
and suggested that since they don't have=20
technology facts to back up their arguments,=20
people should be able to build their own networks to meet their needs.
http://www.itworld.com/Net/2613/vint-cerf-supports-municipal-broadband-0...
12/

EARTHLINK CLOSING PHILADELPHIA WI-FI NETWORK
[SOURCE: Associated Press, AUTHOR: ]
A few weeks after announcing it will shut down=20
its municipal wireless network in New Orleans,=20
EarthLink said Tuesday that it has notified its=20
Wi-Fi customers in Philadelphia that it is=20
terminating that network, too. The company said=20
it is providing customers in the area with=20
service through a 30-day transition period that=20
ends June 12. It is getting in touch with these=20
customers to give them information about the=20
termination and help move them to other EarthLink=20
Internet services. EarthLink said the decision to=20
shut the Philadelphia network followed months of=20
negotiations with the city and a nonprofit=20
organization, under which EarthLink had offered=20
to transfer the network to the city or=20
organization for free. The company had also=20
offered to pay an unspecified amount of cash and=20
donate new Wi-Fi equipment. EarthLink also said=20
it filed a proceeding in federal court Tuesday=20
seeking a declaration that it can remove its=20
equipment from Philadelphia street lights and=20
that its total liability may not total more than $1 million.
http://www.boston.com/business/technology/articles/2008/05/13/earthlink_...
sing_philadelphia_wi_fi_network/
* EarthLink ditches Philly Wi-Fi network
http://www.news.com/8301-10784_3-9943379-7.html?part=3Drss&subj=3Dnews&tag=
=3D2547-1_3-0-5
* EarthLink to remove Philadelphia Wi-Fi
http://www.infoworld.com/article/08/05/13/EarthLink-to-remove-Philadelph...
Wi-Fi_1.html

CHARTER TO SHARE BROADBAND CUSTOMERS' WEB HISTORIES WITH AD NETWORKS
[SOURCE: Wired, AUTHOR: Ryan Singel]
Charter Communications, one of the nation's=20
largest ISPs, plans to track the web surfing=20
habits of its customers in order to help=20
third-party net advertising networks tailor ads=20
to its subscribers in a pilot program set to=20
begin in a month. In letters being sent to some=20
of its 2.7 million high speed Internet customers,=20
Charter is billing its new web tracking program=20
as an 'enhancement' for customers' web surfing=20
experience. The company is aware of the privacy=20
and transparency concerns, but believes the=20
program will benefit its customers and its own bottom line.
http://blog.wired.com/27bstroke6/2008/05/charter-to-inse.html

MEDIA OWNERSHIP

CLEAR CHANNEL SUITORS, BANKS REACH A DEAL
[SOURCE: Wall Street Journal, AUTHOR: Peter Lattman, Sarah McBride]
Clear Channel's suitors and the banks financing=20
the privatization of the radio and=20
outdoor-advertising company reached an agreement=20
late Tuesday, allowing the troubled deal to go=20
forward 18 months after it was originally struck.=20
The new price will be $36 per share, or roughly=20
$18 billion, instead of the $39.20 per share, or=20
$19.4 billion, approved by shareholders this past=20
September. Bain Capital Partners and Thomas H.=20
Lee Partners agreed to pay a slightly higher=20
interest rate on the bank-debt portion of the=20
financing. And the banks -- Citigroup, Deutsche=20
Bank, Morgan Stanley, Credit Suisse, Royal Bank=20
of Scotland and Wachovia -- still could suffer=20
some losses on the loans they had agreed to=20
underwrite. Shareholders still have the option to=20
roll their shares into an up to 30% stake in a privately held Clear Channel.
http://online.wsj.com/article/SB121073532589291085.html?mod=3Dtodays_us_...
ey_and_investing
(requires subscription)
* Clear Channel reaches buyout deal with equity=20
firms and banks (Associated Press)
http://www.latimes.com/business/printedition/la-fi-clear14-2008may14,0,4...
804.story

DILLER, MALONE SETTLE DIFFERENCES
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
Liberty Media and IAC InteractiveCorp have buried=20
the hatchet, with Liberty agreeing to drop its=20
appeal of a Delaware Chancery Court decision and=20
agreeing to support the split of IAC into five=20
separate companies. Both companies agreed on a=20
number of arrangements regarding the governance=20
of the spun off companies, including Liberty's=20
right to board representation on each company and=20
a standstill agreement that limits Liberty's=20
ability to increase its ownership stakes and to=20
take a variety of other actions with respect to the spun off companies.
http://www.multichannel.com/article/CA6560699.html?nid=3D4262
* Liberty Media Ends Its Opposition to IAC Spinoffs
http://online.wsj.com/article/SB121071287521389429.html?mod=3Dtodays_us_...
ketplace

TELECOM

CONSUMERS DITCHING LAND-LINE PHONES
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
Traditional land-line phones, once the bedrock of=20
communications in the USA, are quickly going the=20
way of eight-track tapes as consumers go wireless=20
or choose Internet-based phone calling. According=20
to a report due to be released today by the=20
National Center for Health Statistics, nearly one=20
out of every six homes in the USA =97 15.8% =97 had=20
only wireless telephones during the second half=20
of 2007, up from 6.1% during the same period in=20
2004. For big carriers such as AT&T and Verizon,=20
America's love fest with wireless is having a=20
dramatic impact on what was once a core business.=20
In New York state, land lines have plummeted 55%=20
since 2000, according to a new report by Sanford=20
C. Bernstein. New Jersey isn't far behind, with a=20
50% drop-off. States with the fewest land-line=20
losses include Connecticut with 10%, Texas, 20%,=20
and California, 21%. Even so, it won't take long=20
for the other 49 states to catch up to or surpass=20
New York, predicts analyst Craig Moffett, author=20
of the report. "This is a business that is not=20
showing any signs of recovery," he says. The=20
trend is strongest among young adults: 34.5% of=20
people 25-29 years old lived in households with=20
only wireless phones. For those 30-44, the rate=20
drops to 15.5%. It's 2.2% for those 65 and over.=20
The rise of cable telephony is another factor.=20
Big cable TV operators such as Time Warner and=20
Comcast have lured away millions of phone=20
customers with cheap, or even free, VoIP services=20
=97 short for Voice over Internet Protocol. The=20
report from the National Center for Health=20
Statistics =97 part of the Centers for Disease=20
Control and Prevention =97 also found that one out=20
of every eight homes, 13.1%, received all or=20
almost all calls on wireless phones even though=20
there was a land line in the home. If the trends=20
continue, the group said, public opinion surveys=20
on health and other matters conducted only on=20
land-line phones could produce distorted results.
http://www.usatoday.com/printedition/news/20080514/1a_bottomstrip14_dom....
.htm

MOBILE PHONES MORE IMPORTANT THAN WALLETS: SURVEY
[SOURCE: Reuters, AUTHOR: Wojtek Dabrowski]
More than one-third of workers would choose their=20
mobile phone over their wallet, keys, laptop or=20
digital music player if they had to leave the=20
house for 24 hours and could take only one item, a new survey has found.
http://www.reuters.com/article/technologyNews/idUSN1336793620080513
* Study: 'Hyperconnected' users growing
http://www.infoworld.com/article/08/05/13/Study-says-hyperconnected-user...
rowing_1.html

DTV TRANSITION

CIRCUIT CITY WANTS OUT OF DIGITAL TV FINES
[SOURCE: Associated Press, AUTHOR: ]
The Federal Communications Commission last month=20
fined Circuit City, Wal-Mart Stores Inc., Best=20
Buy Co., and other retailers a combined $3.9=20
million for failing to properly label that=20
analog-only televisions will need to be=20
retrofitted after the switch to digital TV. But=20
Circuit City said on Tuesday that the FCC should=20
drop those fines because the FCC lacks=20
jurisdiction to enforce the rule to keep=20
consumers from buying TV equipment that won't=20
work without a converter box after the digital=20
switch by Feb. 17, 2009. Circuit City also said=20
public comment was never heard on the FCC=20
regulation that requires retailers to display or=20
affix "consumer alert" labels to analog-only TV=20
equipment -- including TVs, DVDs, videocassette=20
recorders and digital video recorders -- that=20
says it will not receive signals after the=20
nationwide digital transition without a special=20
converter box. The company said that it tried to=20
comply with the rule and its questioned actions=20
were never "willful or repeated."
http://www.latimes.com/business/printedition/la-fiw-fcc14-2008may14,0,70...
29.story
--------------------------------------------------------------
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.
--------------------------------------------------------------