May 2008

Pope goes digital to better connect with youth

Pope Benedict will text message thousands of young Catholics on their mobile phones during World Youth Day in Sydney in July, hoping going digital will help him connect better with a younger audience. The Pope will text daily messages of inspiration and hope during the six-day Sydney event while digital prayer walls will be erected at event sites and the church will set up a Catholic social networking Web site akin to a Catholic Facebook.

Colorado PUC granted expanded power

The Colorado Public Utilities Commission will gain the power to limit local, basic phone rates in the state under a bill that passed the Colorado legislature this week. The legislation reauthorizing all the powers of the PUC removes a state law capping base phone rates and instead puts rate limits in the regulatory body's duties. It represents part of what Denver-based Qwest Communications International Inc. and other local phone carriers in the state wanted, which was relief from the existing rate-capping system set in 1995 that ties rates to a formula based on a federal "telecommunications productivity index." The formula kept Qwest's base charge at $14.88 a month, which is what the company charged in 1991. The company won Senate support last month for dropping the productivity index from the formula and instead peg rate caps to changes in the gross domestic product, which could have meant a 32 percent jump in rates as soon as next year had the legislation made it into law.
http://denver.bizjournals.com/denver/stories/2008/05/05/daily26.html

Benton's Communications-related Headlines For Thursday May 8, 2008

TELEVISION
FCC Sets Wilmington (NC) as Digital-Switch Test Market
Over 1 Million Digital TV Coupons Used
Senate Commerce Committee Wants Consumer Flexibility on DTV Coupons
NAB asks President Bush to appear in a DTV PSA
Cable Nets Attack Dual Must Carry
TVB Study finds TV is America's Top Medium

MEDIA OWNERSHIP
SJ Res 28 Cost Estimate
Murdoch Keeps His Sights on Newsday
Cablevision Unit Buys Sundance Channel
More Static for Sirius-XM Deal
Google Still Unchallenged

INTERNET/BROADBAND
Wyden to ISPs: "Think twice" about 'Net neutrality... or else

SPECTRUM/WIRELESS
Battle of the broadband
Is the new Sprint/Clearwire venture doomed to failure?
Adelstein Responds to Clearwire/Sprint-Nextel Announcement
Reserving Judgment on
Sprint/Clearwire/Google/Intel/ForcesofDarkness Deal
Verizon: We promise to honor the Block C open access rules
May 14 FCC Agenda

QUICKLY -- Internet Archive challenges FBI's secret records demand;
Clinton Camp Chides NBC; When Web Time Is Playtime; Bill targets teen
gamers; China won't guarantee Web freedom over Olympics; Pope goes
digital to better connect with youth; Colorado PUC granted expanded power

TELEVISION

FCC SETS WILMINGTON (NC) AS DIGITAL-SWITCH TEST MARKET
[SOURCE: TVWeek, AUTHOR: Michele Greppi, Ira Teinowitz]
Federal Communications Commission Chairman Kevin Martin is set to
announce Thursday that it will run a test of the switch to digital
broadcasting signals in Wilmington (NC), the smallest TV market in
the Tarheel state. The congressionally mandated national switch to
digital takes place Feb. 17. The FCC didn't return multiple calls
seeking comment. The test in North Carolina, Martin's home state, is
likely to take place before the November sweeps ratings period. If
things do not go smoothly during the trial run, it could affect
stations' revenues during one of the months used to set advertising
rates for the next fiscal quarter. The Wilmington market, served by
affiliates of all the major networks, is the 135th largest measured
by Nielsen Media Research, which says 179,760 of the 182,500 homes in
the area have televisions. WWAY-TV, owned by Morris Multimedia, is
the ABC affiliate in the area. NBC-affiliated WECT-TV and
Fox-affiliated WSFX-TV are owned by Raycom Media. WILM-TV is the CBS
affiliate owned by Capitol Broadcasting Co. WMYW-LP is the
MyNetworkTV affiliate, and The CW has a cable-only affiliate. The
market gets its public broadcast signal from WUNJ-TV.
http://www.tvweek.com/news/2008/05/sources_fcc_sets_wilmington_nc.php
(requires free registration)
* Report: NC town to switch off analog TV early
http://www.news.com/8301-10784_3-9938560-7.html?tag=nefd.top
* Wilmington To Pull Analog Plug Early
http://www.broadcastingcable.com/article/CA6558580.html?rssid=193
* Wilmington DTV Switch: Sept. 8, 2008
http://www.multichannel.com/article/CA6558577.html?nid=4262
* FCC to Test Transition to Digital TV in N.C. (Wash Post)
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/07/AR200805...
* Wilmington, N.C., to test TV change (USA Today)
http://www.usatoday.com/printedition/money/20080508/1b_digitaltv08.art.htm
* North Carolina city to make early switch to digital TV (LA Times)
http://www.latimes.com/business/printedition/la-fi-digital8-2008may08,0,...
* FCC to Test All-Digital-TV Service In Small Market Before National Run
http://online.wsj.com/article/SB121018284126474323.html?mod=todays_us_ma...

OVER 1 MILLION DIGITAL TV COUPONS USED
[SOURCE: , AUTHOR: Phillip Swann]
The Commerce Department says more than one million households have
now used a $40 federal coupon to purchase a Digital TV converter. On
February 17, 2009, all full-powered local stations must switch their
analog signals to digital which means viewers will need a Digital
TV, a pay TV subscription, or a digital converter box to continue
watching TV. The converter box can convert the new digital signals to
analog so they can be viewed on older sets, thereby eliminating the
need for a new TV or a pay subscription. In January, the federal
government started taking applications for the $40 coupons which can
be applied to the purchase of the converter box. Each American is
entitled to two coupons each; the converter boxes cost around $50-60
each. While Commerce Secretary Carlos M. Gutierrez said that more
than one million households have used the coupons, he did not provide
figures on how many of those homes already have pay TV subscriptions
or digital TVs. Because the coupons are available to all Americans,
it's unclear if the group that needs them the most -- the 15-20
million homes that receive their TV signals via off-air antennas --
is actually using them.
http://phillipswann.c.topica.com/maalmhTabG1FIbsRVLVeaeQCSn/http://www.t...

SENATE COMMERCE COMMITTEE WANTS CONSUMER FLEXIBILITY ON DTV COUPONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senate Commerce Committee Chairman Daniel Inouye (D-Hawaii) and
Ranking Member Ted Stevens (R-Alaska) want consumers to be able to
use their DTV-to-analog converter box coupons to preorder the boxes.
They also want viewers whose coupons have expired (they are invalid
after three months) to be able to reapply for them. In a letter to
Meredith Attwell Baker, acting head of the National
Telecommunications & Information Administration, which administers
the coupon program, 11 senators said that they are concerned that
coupons could expire before some boxes are available. Top House
Democrats have also made that request. In addition to allowing
viewers to reapply for the coupons -- money permitting -- they want
NTIA to consider "novel approaches," like allowing the coupons to be
applied to boxes out-of-stock or not yet available in stores. Some of
the lowest-cost boxes may not be available until early summer,
including one by EchoStar, which said it would price its box at
$39.99 (coupons are for $40 apiece), but won't likely have them
widely available until June. In a separate letter to Federal Trade
Commission Chairman William Kovacic, the same senators asked the FTC
to keep an eye out for DTV transition fraud. They did not site any
particular examples, but said that the DTV transition provides
"fertile ground" for criminals to "take advantage of confused or
misinformed customers," such as those for whom English is a second
language and the elderly.
http://www.broadcastingcable.com/article/CA6558670.html?rssid=193

NAB ASKS PRESIDENT BUSH TO APPEAR IN A DTV PSA
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
National Association of Broadcasters President David Rehr sent a
letter to the White House this week saying broadcasters could use
some Administration help in getting the word out about the Feb. 17,
2009 date for the end of full-power analog signals. In addition to
asking President Bush and Vice President Cheney appearing in public
service announcements, the NAB would like DTV transition postage
stamp; requiring a DTV information Internet link on every government
agency Website; DTV transition posters in Post Offices; and bill
stuffers in Social Security checks and payroll statements. The FCC
has already said it would get Post Offices to post DTV posters. The
NAB is asking for an Administration effort on par with the Y2K
campaign, saying broadcasters will need a similar effort if the DTV
transition is to be successful.
http://www.broadcastingcable.com/article/CA6558495.html?rssid=193

CABLE NETS ATTACK DUAL MUST CARRY
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Six cable programming companies filed a brief Wednesday urging a
federal appeals court to overturn Federal Communications Commission
mandates related to cable operator carriage of digital TV station
signals. The cable networks said that they run the risk of being
dropped from crowded cable systems because the FCC gave preferential
treatment to local TV stations in violation of the First Amendment
and a federal administrative law statute. The brief attacked the
FCC's decision to require cable carriage of local TV signals in both
analog and digital unless the cable systems had converted to
all-digital transmission. Because so few cable systems have gone
digital, the FCC's order is tantamount to a dual-carriage requirement.
http://www.multichannel.com/article/CA6558715.html?nid=4262
* Cable Programmers File Must-Carry Appeal (Broadcasting&Cable)
http://www.broadcastingcable.com/article/CA6558671.html?rssid=193

TVB STUDY FINDS TV IS AMERICA'S TOP MEDIUM
[SOURCE: tvnewsday, AUTHOR: ]
Television continues to dominate the media usage habits of Americans,
topping the Internet, magazines, newspapers, and radio on a number of
important measures, according to new results of a Nielsen Media
Research survey commissioned by TVB. Results include: 1)
Significantly more adults named broadcast television as their primary
news source (39.6% name broadcast TV, 19.0% name cable new networks,
13.1 name the Internet, 11.3% name newspapers, 11.1% name radio, and
5.7% name public television). 2) Broadcast television is adults'
first source for local weather, traffic or sports, with 52.7% of
adults citing broadcast TV, over 22.5% for the Internet, 9.9% for
cable news networks, 6.4% for radio, 3.8% for newspapers, and 4.8%
for public TV. 3) When asked to cite which medium was the most
involved in their community, 57.8% say broadcast television,as
opposed to 24.0% for newspapers, 6.6% for radio, 5.4% for cable news
networks, 5.1% for public television, and 1.1% for the Internet. 4)
38.1% of adults 25-54 said they had visited a local broadcast TV
station Web site in the past 30 days. 5) 37.7% of station Web site
visitors said they had viewed video content while on the site.
http://www.tvnewsday.com/articles/2008/05/07/daily.15/

MEDIA OWNERSHIP

SJ RES 28 COST ESTIMATE
[SOURCE: Congressional Budget Office, AUTHOR: Susan Willie, Jacob Kuipers]
On April 24, the Senate Commerce Committee approved SJ Res 28, a
joint resolution disapproving the rule submitted by the Federal
Communications Commission with respect to broadcast media ownership.
The Congressional Budget Office has now reviewed the resolution, also
making its way through the House, and determined that enactment of
the resolution would have no effect on the federal budget. CBO also
finds that the resolution: 1) contains no intergovernmental mandates,
and 2) would impose a private-sector mandate on companies that wish
to own a newspaper and a television or radio station in a single
market area. The cost to
the private sector of the mandate would be the incremental cost of
applying for a license (because the waiver process is more costly),
plus any forgone net profit attributable to the cross-media ban. CBO
has no basis for estimating those costs. CBO, therefore, cannot
determine whether the cost of the mandate would exceed the annual
threshold established in federal law ($136 million in 2008, adjusted
annually for inflation).
http://www.cbo.gov/ftpdoc.cfm?index=9210&type=1

MURDOCH KEEPS HIS SIGHTS ON NEWSDAY
[SOURCE: New York Times, AUTHOR: Tim Arango]
Rupert Murdoch: "no, I don't think Cablevision will prevail; just be
patient for a couple days." Several weeks ago it appeared that News
Corporation had a tentative deal to buy Newsday, based on Long
Island, for about $580 million, but two other bidders have come
forward. Mortimer B. Zuckerman, the owner of The Daily News,
matched Murdoch's offer, while Cablevision, the Long Island cable
operator that also owns Madison Square Garden and the New York Knicks
and Rangers, was a late entrant but upped the ante to $650 million.
Murdoch has set his sights on Newsday because he sees it as a way to
eliminate losses at The New York Post, a News Corporation property
that loses an estimated $50 million a year. By combining Newsday and
The Post, the company believes it could earn about $50 million a year
in profit. Murdoch said Wednesday that the company was taking
separate steps to stem losses at The Post. He said the paper would
raise its cover price within the next two weeks to 50 cents, from a
quarter. Other initiatives could save the paper roughly $20 million a
year, Murdoch said. Raising the price is risky, given that last year
an increase to 50 cents was quickly reversed as sales suffered. The
LA Times also reports that News Corp. executives worked Wednesday to
bolster investor confidence for MySpace, the online social network it
won praise for buying in 2005 but lately has attracted concern from
Wall Street.
http://www.nytimes.com/2008/05/08/business/media/08news.html?ref=todaysp...
(requires registration)
* Don't worry about MySpace, News Corp. says (LA Times)
http://www.latimes.com/business/printedition/la-fi-newscorp8-2008may08,0...

CABLEVISION UNIT BUYS SUNDANCE CHANNEL
[SOURCE: New York Times, AUTHOR: Brian Stelter]
Rainbow Media, the cable programming subsidiary of Cablevision, said
Wednesday that it was purchasing the Sundance Channel, which shows
independent films and other programming, for $496 million in stock
and cash. The 12-year-old channel, available in nearly 30 million
homes, was operated as a joint venture of NBC Universal, the CBS
Corporation and Robert Redford, the actor, director and producer. Mr.
Redford will remain with the network, although he will not retain an
ownership stake. The company said that Sundance would remain a
distinct channel, dismissing speculation that Cablevision would
combine the Sundance Channel with IFC, the competing film channel it
introduced in 1994.
http://www.nytimes.com/2008/05/08/business/media/08sundance.html?ref=tod...
(requires registration)
* Cablevision to Buy Sundance Channel
http://online.wsj.com/article/SB121021452076876043.html?mod=todays_us_ma...
* Sundance Channel is sold to Cablevision for $496 million (LA Times)
http://www.latimes.com/business/printedition/la-fi-sundance8-2008may08,0...

MORE STATIC FOR SIRIUS-XM DEAL
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif]
Sirius Satellite Radio (SIRI) Chief Executive Mel Karmazin is willing
to play ball with the government on possible conditions placed on his
planned merger with XM Satellite Radio. He has said he'll hold prices
steady, for example, to allay concerns the deal would hurt consumers
in the pocketbook. But Karmazin may cry foul over a slew of other
restrictions that the Federal Communications Commission is under
growing pressure to impose before it gives a green light to the
proposed combination. Legislators want the FCC to force XM and Sirius
to allow their satellite radio service on all manner of consumer
electronics -- not just the devices made by manufacturers that have
exclusive licensing agreements. The upshot would be devices that
carry satellite radio alongside HD radio, Internet stations, and
other competing sources of music. FCC officials are also being
lobbied to require XM and Sirius to give up some of their channels
for use by public radio or minority-owned broadcasters. The tougher
the restrictions imposed by the government, the harder it will be for
the companies to eke out the cost savings and revenue increases of as
much as $6 billion that analysts estimate the deal will provide.
Also, on May 6, Senior House Commerce Committee member Bobby Rush
(D-IL) wrote FCC Chairman Kevin Martin, disavowing a letter about
the XM/Sirius merger he had co-signed to Martin only the day before.
In the original letter, on which Rep Rush teamed with Rep. Edolphus
Towns (D-NY), they had "fully supported" the voluntary commitment of
XM and Sirius to carve out eight channels, four apiece, for minority
owners. Rep Rush says that he and Rep Towns had a "miscommunication,"
and that while he certainly advocates setting aside channels for
minority ownership -- both he and Towns are African American -- he
says eight channels aren't nearly enough.
http://www.businessweek.com/technology/content/may2008/tc2008057_605379....
* Rush Reconsiders XM/Sirius Set-Aside Support (Broadcasting&Cable)
http://www.broadcastingcable.com/article/CA6558721.html?rssid=193

GOOGLE STILL UNCHALLENGED
[SOURCE: Washington Post, AUTHOR: Rob Pegoraro]
The Microsoft-Yahoo soap opera seems to have reached its last
episode: After months of squabbling and snippiness, last weekend
Microsoft yanked back its purchase offer, ending its bid to buy
Yahoo. It's tempting to greet the news with a yawn. In the end,
nothing happened. And even if Microsoft had succeeded in its bid to
buy Yahoo, individual Web users would have waited months, or maybe
years, to see noteworthy changes from the deal. The odds of any
exciting new chapters in the story are low as well. The unhappy
couple could patch things up but will probably move on to the
mutual-recriminations stage. Yahoo may seek comfort in the arms of
another Internet company -- maybe IAC, maybe a newly spun-off AOL,
maybe somebody else -- while Microsoft can talk about how Yahoo
wouldn't have been any good for it in the first place. But whatever
these two companies wind up doing, one question will still await an
answer: Who's going to provide Google some tougher competition?
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/07/AR200805...
(requires registration)

INTERNET/BROADBAND

SENATORS TO ISPs: "THINK TWICE" ABOUT 'NET NEUTRALITY... OR ELSE
[SOURCE: ars technica, AUTHOR: Nate Anderson]
[Commentary] Sen. Ron Wyden (D-OR) stepped in front of a group of
tech executives in Washington to deliver a surprisingly sharp defense
of Network Neutrality. Pledging to use "every ounce of my energy to
protect Network Neutrality," Sen Wyden had a message for Internet
Service provider (ISPs) who might be pondering new charges for
various forms of access: "think twice." If ISPs start down that road,
they might soon find that they lose key legal protections including
"safe harbors" and tax freedom. Sen Wyden cast the entire network
neutrality debate in terms of a legislative compromise. Years ago,
Congress began protecting ISPs from the twin threats of regulation
and taxation; in return, ISPs were expected to deliver an unimpeded
connection to the Internet. A move away from a neutral 'Net would
undermine the "very philosophical underpinnings of what we fought for
for the last 15 years," according to Sen Wyden. If that happens, he
sees no reason for Congress to continue sheltering ISPs.
http://arstechnica.com/news.ars/post/20080506-senator-to-isps-think-twic...

SPECTRUM/WIRELESS

BATTLE OF THE BROADBAND
[SOURCE: Los Angeles Times, AUTHOR: Editorial staff]
[Commentary] Typical broadband speeds in the United States are barely
in the top 15 globally, trailing such technological hotbeds as
Luxembourg and Norway. DSL and cable modem services are unavailable
in many rural areas, leading to far lower broadband use in the
country than the city. And even in the city, consumers often have
only two choices of provider -- the dominant local phone company or
the local cable monopoly. On Wednesday, prospects brightened for a
new national broadband service that would increase competition, drive
innovation and improve service. Slumping telco Sprint Nextel, which
holds a trove of valuable airwaves, announced that it was joining
forces with Intel, Google and several other companies to build a
broadband network based on WiMax, a long-range version of the popular
WiFi technology. With Sprint and Clearwire combining their airwaves,
and their partners ponying up $3.2 billion, the venture probably has
what it takes to field a WiMax offering across a large swath of the
country. If it lives up to its potential, it will be a true
alternative to today's broadband duopoly -- and a mobile one at that.
With some luck, it might even speed other wireless phone companies to
upgrade their networks and join the scrum.
http://www.latimes.com/news/printedition/opinion/la-ed-sprint8-2008may08...
(requires registration)

IS THE NEW SPRINT/CLEARWIRE VENTURE DOOMED TO FAILURE?
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
The deal to merge Sprint Nextel's WiMax business unit with Clearwire
to build a nationwide 4G network is finally complete, but the newly
formed company could be doomed before it even gets out of the gate.
On Wednesday the companies said they would combine the two entities
to form a new company, called Clearwire. Cable companies Comcast,
Time Warner, and Bright House Networks, and technology giants Intel
and Google are contributing a combined $3.2 billion, bringing the
total investment in the company to $14.5 billion. In many ways the
new venture is a win-win situation for Sprint and Clearwire, which,
if truth be told, had no other option than to team up. Sprint, which
has steadily been losing customers after its failed 2005 merger with
Nextel, gets to shed an expensive and resource sucking venture. And
Clearwire, which hasn't been profitable since it went public a year
ago, gets more spectrum assets and capital to build the network .Wall
Street had been getting fed up with each company, so a deal to merge
the entities was a no-brainer. But as someone who has watched big
technology mergers form and unwind over the past decade, I'm not
convinced that the new Clearwire will actually make it in the end.
That said, I think at the very least the new company will spur
quicker innovation of broadband wireless technology and force
operators like AT&T and Verizon Wireless to deploy their own networks
more quickly. In this respect, consumers will likely have Sprint and
Clearwire to thank for helping bring true wireless broadband services
to a plethora of consumer electronics devices.
http://www.news.com/8301-10784_3-9938468-7.html?tag=nefd.lede
* Clearwire, Sprint Nextel Set Course for WiMax
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/07/AR200805...

ADELSTEIN RESPONDS TO CLEARWIRE/SPRINT-NEXTEL ANNOUNCEMENT
[SOURCE: Federal Communications Commission, AUTHOR: FCC Commissioner
Jonathan Adelstein]
It's exciting news for consumers that Sprint and Clearwire, together
with its investment partners, have announced plans to combine assets
to form a new next-generation wireless communications company. I
have long pushed for ways to facilitate a "third" broadband channel
to provide consumers everywhere the benefits of a competitive,
high-quality wireless broadband network. I look forward to hearing
more about the potential of this new company to bring new and
enhanced mobile broadband services to consumers.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-282014A1.doc

RESERVING JUDGEMENT ON SPRINT/CLEARWIRE/GOOGLE/INTEL/FORCESOFDARKENESS DEAL
[SOURCE: Tales from the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] While I keep hoping that this is all part of Google
acting to alter the wireless world by making it more open, I cannot
overlook the possibility that this is the world of giant corporate
incumbents altering Google to be less of a threat. So even though
Google is saying all the right things, I'm going to wait to see the
FCC applications before I start jumping up and down for joy and
declaring this a huge victory. Because electronic press releases mean
squat compared to whether the applications for the new "Clearwire"
entity contain provisions that provide the same level of openness as
the C Block Conditions or the Skype Petition.
http://www.wetmachine.com//item/1180

VERIZON: WE PROMISE TO HONOR BLOCK C OPEN ACCESS RULES
[SOURCE: ars technica, AUTHOR: Matthew Lasar]
Google has won another back door victory on the Federal
Communications Commission's 700 MHz auction. It has extracted a
pledge from Verizon that the wireless giant will adhere to the 700
MHz auction C Block's "open platform" provision. "Verizon Wireless --
and all the other participants in the recent 700 MHz spectrum auction
-- understood the FCC's rules for using that spectrum in advance of
the auction," Verizon news media spokesperson Jim Gerace wrote today
on the Verizon PolicyBlog. "Of course we'll abide by those rules."
http://arstechnica.com/news.ars/post/20080507-verizon-we-promise-to-hono...

MAY 14 FCC AGENDA
[SOURCE: Federal Communications Commission]
The Federal Communications Commission will hold an Open Meeting on
Wednesday, May 14, 2008 at 9:30 a.m. in Room TW-C305, at 445 12th
Street, S.W., Washington, D.C. The Commission will consider:
1) promotion of spectrum efficient technologies and 2) new rules for
auction of the "D block" 700 MHz spectrum. Remember, no dancing in the aisles.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-282024A1.doc

QUICKLY

INTERNET ARCHIVE CHALLENGES FBI'S SECRET RECORDS DEMAND
[SOURCE: InfoWorld, AUTHOR: Grant Gross]
The Federal Bureau of Investigation has withdrawn a secret demand
that the Internet Archive, an online library, provide the agency with
a user's personal information after the Web site challenged the
records request in court. The FBI sent a national security letter, or
NSL, to the Internet Archive in November and included a gag order
barring site founder Brewster Kahle from talking to anyone other than
his lawyers about the request. Kahle, the Electronic Frontier
Foundation (EFF), and the American Civil Liberties Union (ACLU) filed
a lawsuit to challenge the subpoena, arguing that the NSL program is
unconstitutional, and the FBI withdrew the NSL on April 22. The
settlement between the FBI and the Internet Archive allowed Kahle to
break the gag order, a standard part of an NSL request. The Internet
Archive's challenge of the NSL is only the third case that the ACLU
is aware of in which an NSL has been challenged in court, said
Melissa Goodman an attorney for the civil liberties group's National
Security Project.
http://www.infoworld.com/article/08/05/07/Internet-Archive-challenges-FB...

CLINTON CAMP CHIDES NBC
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
It's no secret that Hillary Clinton's top aides have long been angry
at MSNBC for coverage they consider blatantly pro-Obama. But the
final straw seems to have come Tuesday night, when Tim Russert, NBC's
Washington bureau chief, declared on MSNBC: "We now know who the
Democratic nominee is going to be, and no one is going to dispute
it." Other MSNBC pundits agreed, and Russert repeated the verdict
yesterday, saying that barring a collapse by Barack Obama or an act
of God, "this race is over." In an e-mail yesterday, Jay Carson,
Clinton's press secretary, told NBC's political director Chuck Todd:
"Can you think of one good reason we should continue to cart you guys
around the country with us, given that your network has declared the
entire race over?"
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/07/AR200805...
(requires registration)

WHEN WEB TIME IS PLAYTIME
[SOURCE: New York Times, AUTHOR: Warren Buckleitner]
New online games targeted at kids are increasingly social in nature,
places where your children can interact with other children, and they
are becoming a central part of the business plans of the people who
make TV programs, toys and cereal. Your child might get a plush toy
bearing a code for a free gift on Neopets, or a gift card for a free
month on Club Penguin. How can parents sort out the best options
among these services? One trick is to think about how they make
money. Because of multimedia Web software and faster Internet access,
there are now lots of sites that mix habit-forming games with ads.
http://www.nytimes.com/2008/05/08/technology/personaltech/08basics.html?...
(requires registration)

BILL TARGETS TEEN GAMERS
[SOURCE: Variety, AUTHOR: William Triplett]
With "Grand Theft Auto IV" in the headlines, Reps. Lee Terry (R-Neb.)
and Jim Matheson (D-Utah) have introduced a bill that would require
videogame retailers to check identification in order to prevent
minors from buying games intended for adults. They introduced the
Video Games Ratings Enforcement Act on Wednesday to ensure that
children "can only access age appropriate content without parental
permission," according to Rep Terry.
http://www.variety.com/article/VR1117985230.html?categoryid=1009&cs=1&ni...

CHINA WON'T GUARANTEE WEB FREEDOM OVER OLYMPICS
[SOURCE: Reuters, AUTHOR: Ben Blanchard]
China will not guarantee it won't censor the Internet over this
summer's Beijing Olympics, nor can it guarantee to stamp out piracy
of Olympic-branded goods, officials said on Thursday. Wang Wei,
executive vice president of the Beijing Olympic organizers, had
promised media would have "complete freedom" to report over the
event, but rights groups have regularly criticized China's commitment
to that pledge.
http://www.reuters.com/article/internetNews/idUSPEK14583520080508

POPE GOES DIGITAL TO BETTER CONNECT WITH YOUTH
[SOURCE: Reuters, AUTHOR: Michael Perry]
Pope Benedict will text message thousands of young Catholics on their
mobile phones during World Youth Day in Sydney in July, hoping going
digital will help him connect better with a younger audience. The
Pope will text daily messages of inspiration and hope during the
six-day Sydney event while digital prayer walls will be erected at
event sites and the church will set up a Catholic social networking
Web site akin to a Catholic Facebook.
http://www.reuters.com/article/technologyNews/idUSSYD19071020080507?feed...

COLORADO PUC GRANTED EXPANDED POWER
[SOURCE: Denver Business Journal, AUTHOR: ]
The Colorado Public Utilities Commission will gain the power to limit
local, basic phone rates in the state under a bill that passed the
Colorado legislature this week. The legislation reauthorizing all the
powers of the PUC removes a state law capping base phone rates and
instead puts rate limits in the regulatory body's duties. It
represents part of what Denver-based Qwest Communications
International Inc. and other local phone carriers in the state
wanted, which was relief from the existing rate-capping system set in
1995 that ties rates to a formula based on a federal
"telecommunications productivity index." The formula kept Qwest's
base charge at $14.88 a month, which is what the company charged in
1991. The company won Senate support last month for dropping the
productivity index from the formula and instead peg rate caps to
changes in the gross domestic product, which could have meant a 32
percent jump in rates as soon as next year had the legislation made
it into law.
http://denver.bizjournals.com/denver/stories/2008/05/05/daily26.html
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Monday through Friday, this service provides updates on important
industry developments, policy issues, and other related news events.
While the summaries are factually accurate, their often informal tone
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Headline Highlights April 2008

May 7, 2008 April showers, of course, bring May flowers. But the first full month of Spring also witnessed the flowering of a number of key telecommunications debates. Just add water and -- presto -- there's some controversy. Here's a quick recap of developments concerning the digital television transition, the public interest obligations of broadcasters, media ownership, and universal, open broadband.

Today's Quote 05.07.08

"The Internet is unquestionably the new TV."
-- Steve Peterman, executive producer of Hannah Montana

Big Tech Firms to Invest in Wireless

The race to bring consumers ultrafast wireless Internet service is on. As early as Wednesday, an unlikely alliance of titans from the cable, Internet and chip industries will disclose they are investing $3.2 billion in a company that will deliver Web access for cellphones and laptops at speeds much faster than what is available today using a technology called WiMax. Analysts say the venture, valued at more than $12 billion, will have a two year head-start on rivals Verizon Wireless and AT&T Inc., which are just beginning to sketch out plans for their next-generation wireless networks. The venture includes wireless provider Sprint Nextel Corp. and Clearwire Corp., a start-up backed by cellphone pioneer Craig McCaw. Other big-name backers include cable-TV giants Comcast Corp. and Time Warner Cable Inc., Internet giant Google Inc. and chip maker Intel Corp. The deal gives the cable operators and Google prominent roles in shaping the future of mobile Internet access and a new outlet as growth begins to slow in their traditional content businesses. Intel gains new support for WiMax, a technology standard the company has championed and that will be used in the venture's high-speed network. The venture must still be approved by federal regulators.
http://online.wsj.com/article/SB121010437224271501.html?mod=todays_us_ma...
(requires subscription)

Interactive Advertising Bureau Introduces Online Video Ad Guidelines

The Interactive Advertising Bureau introduced a set of guidelines on Monday aimed at bringing more standards to online video advertising -- and ultimately to make the still burgeoning medium easier for advertisers to buy. The new guidelines cover three basic forms of online video ad formats: linear ads, interruptive video spots which are typically of the pre-roll variety; non-linear ads, which include the increasingly popular 'overlay' ad units; and companion ads, banner-like ads that appear alongside Web videos. The guidelines are the product of work conducted by the IAB's Digital Video Committee, which is composed of 145 leading media companies, including Google, Yahoo and Microsoft, among others. In announcing the guidelines, IAB officials did not shy away from placing significance on the industry cooperation achieved in creating the guidelines and the impact they will have.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...

Gutierrez gets Dingellgram

House Commerce Committee Chairman John Dingell (D-MI) has written Department of Commerce Secretary Carlos Gutierrez concerning the department's relationship with the Internet Corporation for Assigned names and Numbers (ICANN). The Dingell letter asks Secretary Gutierrez to answer the following questions within two weeks: 1) Does the Dept of Commerce intend to continue its oversight role of ICANN, 2) In what way does the Dept of Commerce intend to continue that role, 3) Does the Dept intend to ensure that the key facilities of the root server system continue to be housed in the United States, and 4) How does the Dept intend to ensure that ICANN fulfill its commitment to remain headquartered in the US.
http://energycommerce.house.gov/Press_110/110-ltr.050608.DOC.ICANN.pdf

USF: Behind the Times

[Commentary] It is very frustrating that we haven't been able to find a way to redirect the USF to focus on the deployment of broadband. Even more frustrating is that it's not like this is one of these issues where the incumbents are fighting any change. Everyone knows the USF is broken and needs fixing. And it's not like we're still in a time where broadband is an unproven quantity with an uncertain future. Heck, a couple months ago the United States Telecommunications Association renamed itself the US Broadband Association, basically announcing that the future is in broadband not plain old phone service. The simple truth is that until everyone in this country can access affordable broadband at home, there's still work to be done. Ultimately plain old phone service is a 20th century technology. We are now living in the 21st century and need to be considering the effectiveness of government programs and infrastructural needs of our country in that light. Ultimately, the best and only solution is broadband everywhere. If we want to be a great country, the time to decide "if" we should do something has passed, now we must move aggressively to figure out the how, what, and when.
http://www.app-rising.com/gdblog/2008/05/usf_behind_the_times.html

Interim USF Cap May Slow Wireless Substitution in Rural Areas
http://telecompetitor.com/node/624

FCC Endorses Junk News, Calls Fox's TMZ and 700 Club 'Bona fide Newscasts'

[Commentary] Hard-hitting journalism is nearing extinction on television, and the Federal Communications Commission just threw another shovelful of dirt on its grave when it recently ruled that Rupert Murdoch's broadcast of TMZ and Pat Robertson's 700 Club meet the test for "a bona fide newscast." Bona fide newscast? Here's why the FCC decision matters. According to a Pew study,sixty percent of Americans get their primary election news from TV. That's a scary thought when you consider the level of "quality" journalism coming from the nation's networks, and the dearth of diverse opinions being offered about our biggest concerns. Remember this after the next election when millions of hard-working Americans are once again duped into voting for political candidates who actively work against their very interests. Media companies get their broadcast licenses for free. In return, the FCC says that if a TV show is not a bona fide newscast, and it airs a story about a political candidate, "it must afford equal opportunities to other such candidates for that office." Congress defines bona fide newscasts as those that hold "genuine news value" and are not intended to boost or aid any particular political candidate. This provision is supposed to keep ideologues like Robertson in check, not allowing them to blatantly toe the line for their own corporate and political interests while labeling it "news." But instead, the FCC let them off the hook by adding TMZ and 700 Club to the list of bona fide newscasts.
http://www.huffingtonpost.com/josh-silver/fcc-endorses-junk-news-ca_b_10...