May 2008

Benton's Communications-related Headlines For Wednesday May 7, 2008

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INTERNET/BROADBAND
House Panel Discusses Preserving Internet Freedom
Big Tech Firms to Invest in Wireless
Interactive Advertising Bureau Introduces Online Video Ad Guidelines
Gutierrez gets Dingellgram
USF: Behind the Times

NEWS FROM FCC
FCC Endorses Junk News, Calls Fox's TMZ and 700 Club 'Bona fide Newscasts'
The FCC's Regulation-Wary Regulator

GOVERNMENT & COMMUNICATIONS
Hill Wants FCC to Investigate DOD 'Experts' Program
'03 White House E-Mails Not Found

LABOR
Screen Actors Guild talks end without a contract

BROADCASTING/CABLE
NAB Defends Ownership Change...As Far As It Goes
Cable Operators Ask for 'Quiet' on Retrans Disputes after DTV Transition

QUICKLY -- Headline Highlights April 2008; US newspaper gloom
overshadows industry survey; All the news that's fit to predict;
Spain Told to Curtail TV Ads

INTERNET/BROADBAND

HOUSE PANEL DISCUSSES PRESERVING INTERNET FREEDOM
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
The House Subcommittee on Telecommunications and Internet held a
hearing on the Internet Freedom Preservation Act of 2008 (HR 5353).
Opening the hearing, Chairman Ed Markey (D-MA) asked, "Can we
preserve this wildly successful medium and the freedom it embodies,
or do we permit network operators to fundamentally alter how the
Internet has historically functioned? Do we retain a level playing
field for entrepreneurial entry, or do we allow the imposition of new
fees and the artificial creation of slow lanes and fast lanes for
content providers on the Internet?" He continued, "The question is
whether in the name of network management, policymakers permit
carriers to act in unreasonable, anti-competitive fashion.... I
strongly believe we should enshrine basic principles of openness and
fairness and ensure that the FCC is a 'cop on the beat' able to
ensure these principles are upheld in the marketplace. In this way
we can preserve the best of what the Internet is even as it evolves."
House Commerce Committee Chairman John Dingell said, "I would like
this panel to address the extent of the Commission's ability to
protect consumers in this new regulatory environment. Specifically,
does the FCC have the authority to enforce its broadband policy
statement? If not, what authority, if any, does the Commission
possess to ensure that network operators do not act to the detriment
of consumers? ... The FCC must have the authority to effectively
police such activity and punish bad actors. At the same time,
Congress must proceed thoughtfully and deliberately on this subject.
We must ensure that any action to ensure a robust and open Internet
architecture also furthers other important policy goals such as
continued deployment of advanced networks and universal access to
that network for all Americans." Many Republicans on the subcommittee
questioned the need of Markey's bill, co-sponsored by Rep Chip
Pickering (R-MS). Ben Scott of Free Press said, "Two competing
visions for the Internet stand before policymakers. The first is an
open Internet with baseline rules to protect consumers' right to
access the content and services of their choice. The second is a
closed network that would permit experiments with content control and
discriminatory service provisions that have been the hallmark of the
old media world. It is a virtual clash of civilizations. Congress
should choose the path of open markets for speech and commerce -- a
path championed by virtually every consumer and innovator using the Internet."
http://benton.org/node/10823

BIG TECH FIRMS TO INVEST IN WIRELESS
[SOURCE: Wall Street Journal, AUTHOR: Amol Sharma, Vishesh Kumar]
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)
* A Technology Consortium Plans a Wireless Network
http://www.nytimes.com/2008/05/07/technology/07sprint.html?ref=todayspaper
* Sprint To Revive WiMax Venture
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/06/AR200805...
* Deal shakes up wireless world
http://www.usatoday.com/printedition/money/20080507/1b_wimax07.art.htm
* Sprint beefs up wireless broadband venture
http://www.latimes.com/business/printedition/la-fi-sprint7-2008may07,0,2...
* Sprint, Clearwire to announce $12 bln JV
http://www.reuters.com/article/internetNews/idUSWEN552620080506
* Cable Ops To Form Wireless Broadband JV
http://www.multichannel.com/article/CA6558179.html?nid=4262

INTERACTIVE ADVERTISING BUREAU INTRODUCES ONLINE VIDEO AD GUIDELINES
[SOURCE: Editor&Publisher, AUTHOR: Mike Shields]
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
[SOURCE: House of Representatives Commerce Committee]
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
[SOURCE: Apprising, AUTHOR: Geoff Daily]
[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

NEWS FROM FCC

FCC ENDORSES JUNK NEWS, CALLS FOX'S TMZ AND 700 CLUB 'BOA FIDE NEWSCASTS'
[SOURCE: Huffington Post, AUTHOR: Josh Silver (Free Press)]
[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...

THE FCC'S REGULATION-WARY REGULATOR
[SOURCE: tvnewsday, AUTHOR: Harry A. Jessell]
Another Q&A with Federal Communications Commission Commissioner
Robert McDowell. He's resisting FCC Chairman Kevin Martin's push to
adopt new rules to promote localism in broadcasting. He dissented on
the FCC's enhanced disclosure rules requiring stations to file
quarterly reports on their local programming efforts. What's more, he
has sharply questioned proposals to require stations to set up
community advisory boards and meet minimum local programming quotas.
Two weeks ago, in a speech at the Quello Communications Law and
Policy Symposium in Washington, Commissioner McDowell reiterated in
his strongest language yet his opposition to Martin's localism
initiatives and his skepticism about regulation in general. "Simply
put, government cannot outsmart an unfettered and competitive
market," he said. In this interview, McDowell elaborates on his
problems with the localism push, expresses sympathy for those who
would like to see less broadcast ownership regulation at a national
and local level and touches on other issues of importance to broadcasters.
http://www.tvnewsday.com/articles/2008/05/06/daily.6/

GOVERNMENT & COMMUNICATIONS

HILL WANTS FCC TO INVESTIGATE DOD 'EXPERTS' PROGRAM
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
House Commerce Committee Chairman John Dingell (D-MI) and Rep Rosa
DeLauro (D-CT), a senior member of the House Committee on
Appropriations, want to know whether news networks bear any
culpability related to a Department of Defense program to recruit
ex-military officers to talk up Iraq and other policies on TV, online
and elsewhere. Following a story in the New York Times about the
program, they have asked FCC Chairman Kevin Martin to investigate
whether the program may have violated requirements of sponsorship
identification. "While we deem the DoD's policy unethical and perhaps
illegal, we also question whether the analysts and the networks are
potentially equally culpable pursuant to the sponsorship
identification requirements in the Communications Act of 1934 and the
rules of the Federal Communications Commission," the pair wrote
Martin. "When seemingly objective television commentators are in fact
highly motivated to promote the agenda of a government agency, a
gross violation of the public trust occurs," they said. "The American
people should never be subject to a covert propaganda campaign but
rather should be clearly notified of who is sponsoring what they are
watching." The analysts also have ties to lobbying groups that are
not disclosed to viewers, the Times story said. Reps Dingell and
DeLauro called for an immediate investigation. At least one FCC
commissioner, Democrat Michael Copps, supports the move.
http://www.broadcastingcable.com/article/CA6558164.html?rssid=193
* DeLauro press release
http://www.house.gov/delauro/press/2008/May/DeLauro_Dingell_5_6_08.html
* FCC asked to probe TV 'surrogates'
http://www.variety.com/article/VR1117985191.html?categoryid=14&cs=1&nid=...

'03 WHITE HOUSE E-MAILS NOT FOUND
[SOURCE: Washington Post, AUTHOR: Dan Eggen]
The Bush administration has not found disaster recovery files for
White House e-mails from a three-month time period in 2003, according
to court documents filed this week, raising the possibility that
messages sent before and after the invasion of Iraq may never be
recovered. The White House chief information officer, Theresa Payton,
said in a sworn declaration that the White House has identified more
than 400 computer backup tapes from March through September of 2003
but that the earliest recorded file was dated May 23 of that year.
That period was one of the most crucial of the Bush presidency. The
United States launched the invasion of Iraq on March 20, 2003, and
President Bush declared the end of major combat operations on May 1.
Payton and other officials said that older e-mails could still be
contained on the tapes because of the way the files are dated. The
administration also said it is still searching computer archives for
e-mails that have been filed in the wrong "digital drawer." In
addition, Payton and other officials have said that any e-mails
missing from the White House archiving system might still be
available on disaster recovery tapes. But that did not satisfy an
advocacy group suing the administration for e-mail records.
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/06/AR200805...
(requires registration)

LABOR

SCREEN ACTORS GUILD TALKS END WITHOUT A CONTRACT
[SOURCE: Los Angeles Times, AUTHOR: Richard Verrier, Claudia Eller]
Hopes for a last-minute breakthrough in negotiations between
Hollywood studios and the Screen Actors Guild were dashed Tuesday
when contract talks ended on a bitter note, fueling anxiety over the
prospect of another strike. After three weeks of talks, studios
walked away from the table, saying that negotiations were "thrust
into reverse" by what they called "unreasonable demands." SAG accused
the studios of turning their backs on the guild to focus on contract
talks with the smaller actors union, the American Federation of
Television and Radio Artists. "It's deeply troubling because we said
we wanted to stay in the room and make a deal and our pleas were
ignored," SAG President Alan Rosenberg said.
http://www.latimes.com/business/printedition/la-fi-sag7-2008may07,0,3186...
(requires registration)
* SAG, Hollywood Producers End Contract Talks (Associated Press)
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/06/AR200805...
* Hollywood studios, actors break off labor talks
http://www.reuters.com/article/entertainmentNews/idUSN0651004520080507
* SAG, Studios End Talks Without Deal
http://www.broadcastingcable.com/article/CA6558178.html?rssid=193

BROADCASTING/CABLE

NAB DEFENDS OWNERSHIP CHANGE... AS FAR AS IT GOES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Association of Broadcasters weighed in Tuesday in
support of the FCC's decision to loosen the newspaper/broadcast
crossownership rules. Actually, broadcasters, including NAB, don't
love the change. In fact they have taken the FCC to court over it
because they believe it is not deregulatory enough. But in a filing
at the FCC, the NAB came down in support of the rules change in an
effort to counter the arguments of media-consolidation critics who
say the rule change was too deregulatory. NAB called the FCC order a
modest reform that made no changes to the local TV or radio ownership
rules (NAB had wanted the FCC to loosen those, and excise the
newspaper-broadcast crossownership ban entirely).
http://www.broadcastingcable.com/article/CA6558157.html?rssid=193

CABLE OPERATORS ASK FOR 'QUIET' ON RETRANS DISPUTES AFTER DTV TRANSITION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
A group of cable operators has asked the FCC to step in and mandate
that no TV stations be pulled from cable systems during the months
around the February 2009 DTV transition date, even if cable operators
and stations can't come to terms on carriage agreements. Mediacom
Communications, along with Charter Communications, Insight, GCI,
Suddenlink and Cequel Communications, has filed a petition asking the
FCC "to promptly adopt a retransmission consent 'quiet period' to
ensure that private commercial disputes in the months surrounding the
February 17, 2009 digital transition do not unnecessarily trigger
consumer confusion or service disruptions at a time when the American
public is most dependent on the cable industry's delivery of
broadcast signals." That's according to a copy of testimony slated to
be delivered Wednesday by Edward Pardini, senior VP of Mediacom
Communications, at a House Small Business Committee hearing on the
DTV transition.
http://www.broadcastingcable.com/article/CA6558148.html?rssid=193

QUICKLY

HEADLINES HIGHLIGHTS APRIL 2008
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
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.
http://www.benton.org/node/10822

US NEWSPAPER GLOOM OVERSHADOWS INDUSTRY SURVEY
[SOURCE: Financial Times, AUTHOR: Andrew Edgecliffe-Johnson]
The gloom hanging over the US newspaper industry is distorting an
otherwise optimistic mood among the world's newspaper editors,
according to a global survey of newsroom opinion. Only 30 per cent of
North American newspaper editors polled by Zogby International
believed that the quality of journalism would improve over the next
decade, compared to 45.5 per cent in Western Europe and over 60 per
cent in Latin America, Africa and the Middle East. The majority of
blogs and other online commentary about the industry came from the
US, said Bertrand Pecquerie, Director of the World Editors Forum, who
described one recent meeting of editors in Delaware as being "like a
funeral". Editors outside the US "don't understand it at all," he
said. The Newsroom Barometer report, sponsored by Thomson Reuters and
the World Editors Forum, found that the pessimism in the US was
balanced by booming new markets such as India and resilient print
markets such as Japan.
http://www.ft.com/cms/s/0/c19e3d84-1b98-11dd-9e58-0000779fd2ac.html
(requires subscription)

ALL THE NEWS THAT'S FIT TO PREDICT
[SOURCE: Variety, AUTHOR: Brian Lowry]
As downsizing news outlets endeavor to "do more with less," one might
think old-fashioned reporting and analysis would be enough to keep
them occupied. But no, the prevailing trend extends beyond that into
Carnac the Magnificent territory, prodding pundits to forecast what's to come.
Welcome to the age of all the news that's fit to predict.
http://www.variety.com/article/VR1117985194.html?categoryid=14&cs=1&nid=...

SPAIN TOLD TO CURTAIL TV ADS
[SOURCE: Wall Street Journal, AUTHOR: Peppi Kiviniemi]
The European Commission on Tuesday warned Spain it had to change its
television advertising practices or face court action. The
commission, the European Union's executive arm, complained to the
Spanish authorities that the country wasn't complying with EU rules
on television advertising, which limit commercials and teleshopping
broadcasts to 12 minutes an hour. The limit is in place to improve
the viewing experience for audiences and to promote quality
television across Europe.
http://online.wsj.com/article/SB121012208804572577.html?mod=todays_us_ma...
(requires subscription)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary
service provided by the Benton Foundation (www.benton.org). Posted
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
does not always represent the tone of the original articles.
Headlines are compiled by Kevin Taglang headlines( at )benton.org -- we
welcome your comments.
--------------------------------------------------------------

House Panel Discusses Preserving Internet Freedom

HOUSE PANEL DISCUSSES PRESERVING INTERNET FREEDOM
The House Subcommittee on Telecommunications and Internet held a hearing on the Internet Freedom Preservation Act of 2008 (HR 5353). Opening the hearing, Chairman Ed Markey (D-MA) asked, "Can we preserve this wildly successful medium and the freedom it embodies, or do we permit network operators to fundamentally alter how the Internet has historically functioned? Do we retain a level playing field for entrepreneurial entry, or do we allow the imposition of new fees and the artificial creation of slow lanes and fast lanes for content providers on the Internet?" He continued, "The question is whether in the name of network management, policymakers permit carriers to act in unreasonable, anti-competitive fashion.... I strongly believe we should enshrine basic principles of openness and fairness and ensure that the FCC is a ‘cop on the beat' able to ensure these principles are upheld in the marketplace. In this way we can preserve the best of what the Internet is even as it evolves." House Commerce Committee Chairman John Dingell said, "I would like this panel to address the extent of the Commission’s ability to protect consumers in this new regulatory environment. Specifically, does the FCC have the authority to enforce its broadband policy statement? If not, what authority, if any, does the Commission possess to ensure that network operators do not act to the detriment of consumers? ... The FCC must have the authority to effectively police such activity and punish bad actors. At the same time, Congress must proceed thoughtfully and deliberately on this subject. We must ensure that any action to ensure a robust and open Internet architecture also furthers other important policy goals such as continued deployment of advanced networks and universal access to that network for all Americans." Many Republicans on the subcommittee questioned the need of Markey's bill, co-sponsored by Rep Chip Pickering (R-MS). Ben Scott of Free Press said, "Two competing visions for the Internet stand before policymakers. The first is an open Internet with baseline rules to protect consumers’ right to access the content and services of their choice. The second is a closed network that would permit experiments with content control and discriminatory service provisions that have been the hallmark of the old media world. It is a virtual clash of civilizations. Congress should choose the path of open markets for speech and commerce -- a path championed by virtually every consumer and innovator using the Internet."
(links to sources below)

Headline Highlights -- Media and Telecom Policy Developments April 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.

I. DTV Transition

Many Americans now seem aware that in less than a year analog television broadcasts will cease and they will have to do something -- perhaps they are not sure what -- in order to keep viewing free, over-the-air local TV stations. Viewers need to either 1) purchase a digital-to-analog converter box to keep old, antenna-dependent TV sets working, 2) buy a digital television, or 3) subscribe to a pay-TV service. But even consumers paying close attention to the details of the DTV transition may be receiving mixed signals.

First, some stations -- notably, low-power TV stations and, after a Senate committee vote, perhaps stations along the Mexican border as well -- may still be broadcasting analog signals after February 18, 2009. Second, some converter boxes may not be working well and consumers are having problems using the government-issued coupons meant to make the boxes more affordable. Consumers may shriek, "Honey, the converter box shrunk the screen" after hooking up converters boxes, too.

Although receiving crystal clear TV images for free may seem like the best deal for consumers, broadcasters aren't doing a great job of marketing the option. And even if consumers try this option, new research suggests they may have trouble receiving signals relying on antennas.

Finally, cable operators have been running public service announcements saying to relax if you are a subscriber -- cable will take care of you through the transition. But some consumers are feeling taken advantage of -- finding they will have to pay additional one-time and ongoing fees to receive local TV signals. There's also some question about whether or not rural cable operators will provide digital and/or analog signals after the transition.

The Federal Communications Commission is considering modifying DTV education rules and Congress continues to keep an eye on the FCC and National Telecommunications and Information Administration.

II. Television Content

Actor Tim Robbins surprised many people with a controversial keynote address to open the annual meeting of the National Association of Broadcasters in Las Vegas. Robbins told broadcasters they can either use their power to "lift us up" into a "more enlightened age" or they can "hide behind that old adage: I'm just a businessman. I provide what the audience wants." He said the "pornographic obsession with celebrity culture," and divisive coverage of racial and social issues should be left behind, as should focus groups and fears about job security "Enough is enough," he said. "Now is the time to move away from our lesser selves. Now is the time to stop making money on the misfortunes of others and the prurient and salacious desires" of the public.

Robbins made his speech as lawyers throughout DC were drafting comments on the FCC's proposed new rules to encourage localism in broadcasting. Some broadcasters walked out on Robbins' Las Vegas speech, offended that anyone would suggest they aren't serving the public well. In DC, broadcasters told the FCC that new localism proposals are unnecessary and burdensome. The NAB said, "[I]nstead of achieving the Commission's stated goal of promoting closer contact between broadcasters and their communities, the proposed rule changes will, in many cases, produce the opposite effect, resulting in a broadcasting industry less able to serve the public interest. Especially in light of broadcasters' and other outlets' increasing service to local markets made possible by technological developments, NAB urges the FCC not to return to a regulatory regime from the analog era that would harm rather than help promote our common goal of providing service to our local communities." Public interest groups support the FCC proposals.

III. Media Ownership

There's no better poster boy for the anti-media ownership consolidation movement than News Corp's Rupert Murdoch. And, right on cue, Murdoch came on stage to help draw attention to two of the biggest media ownership stories in April -- just as Congress began considering the FCC's new media ownership rules.

After the Tribune Company announced that shrinking revenues may force it to sell off some newspaper properties, Murdoch stepped in what many thought would be a winning bid for the Long Island daily. But could News Corp own two TV stations, two daily newspapers and the Wall Street Journal? Is there no limit to the expansion of Rupert Murdoch's media empire? Headlines readied us for a colossal fight between Murdoch and the FCC: Murdoch Taking on FCC Media Rule, Would News Corp. Need FCC Help To Keep Stations, Newsday?, News Corp. Bid for Newsday May Face Political Snags... the Hollywood Reporter went as far to report Murdoch too powerful for government regulators. News Corp was also mentioned in the potential deal for Microsoft to purchase Yahoo.

In the Senate, a legislative veto of the FCC's new ownership rules passed an early hurdle winning unanimous approval from the Senate Commerce Committee. The resolution, introduced by Sen Byron Dorgan (D-ND) needs approval of the full Senate, the House and President Bush's signature to overturn the FCC's decision to allow increased media ownership concentration. Although Congressional approval is possible -- perhaps likely -- President Bush may veto it.

In April, Benton published an interview with David Honig of the Minority Media and Telecommunications Council. At a time when the Government Accountability Office concluded that minority ownership of media properties remains limited as well as deficiencies in FCC ownership data collection, Honing points out that the FCC was, for decades, an active participant in preventing people of color from working in or attaining ownership of licensed facilities that used the public's airwaves. He asked, "What could be a more inefficient deployment of resources than having the entrepreneurial, managerial and creative wealth of a third of the country unable to find expression in the nation's most powerful industries?"

IV. Universal, Open Broadband

Microsoft's bid for Yahoo was not the lens for looking at the future of the Internet. As China vaulted past USA in number of Internet users, the Information Technology and Innovation Foundation announced, "We need a debate in America that focuses on the most important issues like how to get fast broadband networks to all Americans; how to use IT to transform our health care system, transportation system, education system, and government; and how to encourage all organizations to become digital, thereby driving productivity and income growth and a better quality of life."

At the FCC, interested parties were commenting on a proposal that the Commission use subsidies traditionally marked to lower rural phone bills to expand the availability of broadband services throughout the country. The divide is between those who feel the support for broadband would be too costly and those who say the FCC must act accelerate the transition from 19th century basic phone technology to broadband -- the critical information infrastructure of the 21st century. Early in April, ten organizations urged Congress to focus on economic development in rural areas of the country. The organizations, representing rural communities across the country, stressed that broadband deployment, coupled with transportation, education and library services, is essential in stimulating economic development in rural America. Sen John Kerry (D-MA) agreed saying that federal action is needed to bring broadband service to regions without access to the Internet, in order to even the odds of competing in a global market.

Both the Senate Commerce Committee and the FCC held hearings in April on Network Neutrality. In part, regulators are reacting to reports that Comcast, the nation's largest Internet service provider, has blocked consumer access to content. Comcast swiftly moved to adjust the way it manges Internet traffic, but the plan was soon criticized by Network Neutrality advocates. As Free Press policy direct Ben Scott, profiled as "Network Neutrality's Quiet Crusader," said, "There have been policy moments in the past when the market has been shaped by decisions made in Washington -- radio in the 1930s, television in the 1950s and cable in the 1980s. That moment is now for the Internet."

April's Most-read Headlines

  1. Senate Network Neutrality Hearing Recap
  2. Behind Military Analysts, the Pentagon's Hidden Hand
  3. 700 MHz Auction Oversight Hearing Recap
  4. Digital TV Converters May Be Faulty
  5. Tim Robbins Decries Media 'Abyss' in NAB Keynote
  6. Media Power in Wrong Hands Brings Neither "Peace of Mind nor Serenity of Spirit"
  7. Election Portends Legislative Action for Broadband Policy, VoIP
  8. Sen Clinton's Media Stance
  9. XM-Sirius Deal Opposed by States; Review Slips to May
  10. Groups Call on Congress to Address Rural Broadband Deployment
  11. ACA Chairman Says HDTV Exemption Gets To Root Of Capacity Issue
  12. Benton to FCC: Use USF to Accelerate Transition to Broadband

The War for the Web

[Commentary] With the Microsoft/Yahoo deal breakdown, everyone assumes Google walks away with the prize. Not so fast. This contest is just starting. For Microsoft or Google or anyone else to win, they need four key elements of an end-to-end strategy: The Cloud. The desktop computer isn't going away. But as bandwidth speeds increase, more and more computing can be done in the network of computers sitting in data centers ­ aka the "cloud." The Edge. The cloud is nothing without devices, browsers and users to feed it. Book buyers are basically paying for Amazon's data centers. Yahoo is a favorite for finance and sports enthusiasts, who pay for its data centers. Google worked its way into the toolbars of Firefox, and even Microsoft's browser. And Microsoft? It was stripped of its ability to control Windows desktop real estate during the late '90s Netscape feud. Speed. Once you build the cloud, it's all about network operations. Whoever can deliver search results faster, wins. Users only realize this subconsciously, but it's true: Google's dominant share is as much about speed as it is for relevant results. Compare it to Microsoft or Yahoo and you'll see. Google built data centers next to waterfalls so electricity could be cheap enough to help it win the speed war. Platform. Yahoo's mistake was relying on expensive workers to update Web pages and sell ads, and especially to run Yahoo Finance, Sports, HotJobs and Travel. Google hates using people for these tasks. The company may love programmers and probably customers as well, but it tries to put absolutely no one in between them. Google's genius was to automate all its Web page creation and to have a market set prices for ads.
http://online.wsj.com/article/SB121003554710769393.html?mod=todays_us_op...
(requires subscription)

Sprint Mulls Shedding Nextel Unit

Wireless provider Sprint Nextel Corp. is considering spinning off or selling its ailing Nextel unit. The move would be a dramatic acknowledgment that Sprint's $35 billion acquisition of Nextel Communications in 2005 has been a failure. Sprint is said to be contemplating a couple of options for Nextel. The company has held preliminary talks with Nextel founder Morgan O'Brien, who now runs a company called Cyren Call Communications in McLean, Va., that is trying to create a nationwide wireless network for public-safety communications. People familiar with the discussions say Mr. O'Brien is trying to assemble a consortium of investors to acquire Nextel. Cyren Call itself wouldn't be the buyer. Sprint is contemplating other possible buyers, such as private-equity firms. The company could also choose to spin off Nextel into a separate company. Activist investor Ralph Whitworth of Relational Investors, who obtained a seat on Sprint's board earlier this year, has advocated a sale or spinoff. Nextel's walkie-talkie-style phones have traditionally been popular with construction workers, airline maintenance personnel and other business users. But the market for those services is shrinking. People close to the company project Nextel will have a core, highly loyal user base of five million to seven million subscribers in two years, about half of current levels. A decision last week by the Washington, D.C., Circuit Court of Appeals may exacerbate that situation: The court ruled that by June 26, Nextel must stop using certain radio frequencies that are close to those used by first responders.
http://online.wsj.com/article/SB121001458454368317.html?mod=todays_us_pa...
(requires subscription)

Many wireless resellers going under

A few years ago, organizations from Disney to 7-Eleven to the local pinochle club were jumping into the cellphone business, leveraging their brands to appeal to niches untapped by the big carriers. Now, many are digesting a hard reality: Running a wireless company isn't as easy as it seemed. Many resellers of cellphone service — which lease the networks of national carriers — are closing, going bankrupt or struggling. Resellers, also known as mobile virtual network operators (MVNOs), are being tripped up by: Fresh competition from the major carriers. With U.S. cellphone penetration reaching 84%, the big carriers are targeting the faster-growing youth and lower-income prepaid markets that had been the province of MVNOs such as Virgin, say Entner and Yankee Group analyst Chris Collins. Failure to offer a distinctive service. ESPN, Amp'd Mobile and Helio coveted the same high-spending, data-savvy subscribers sought by large carriers "that can do it better," Collins says. Rick Heineman, a spokesman for Helio, which is partly owned by EarthLink, disagrees, saying the start-up stands out for its global-positioning, music and video services. The company, with nearly 200,000 subscribers, had 2007 losses of about $320 million. Heineman says the losses were expected. Low volumes. Some firms targeted tiny niches. Many clubs that joined Sonopia had just a few dozen subscribers. "You need to have volume and scale to survive," says Ovum analyst Raymond Yu. Operational blunders. Movida, a prepaid service, offered a jumble of confusing rates and gave subscribers free texting even though it paid Sprint Nextel for the service, Greene says. "Things were upside down," he says, adding that he's fixing the problems.
http://www.usatoday.com/printedition/money/20080506/1b_wireless_reseller...

Jeremiah Wright Was Biggest Newsmaker

Last week -- as Chicago minister Jeremiah Wright re-emerged into full public view to speak to PBS’ Bill Moyers, the NAACP and the National Press Club -- the controversy he generated made more news than both Sens Hillary Clinton (D-NY) and John McCain (R-AZ). Sen Clinton was a significant or dominant factor in 41% of the campaign stories and Sen McCain registered in 14% of them. Meanwhile the relationship between Wright and his former parishioner Sen Barack Obama (D-IL) accounted for 42% of the week’s campaign coverage. Sen Obama, who moved to decisively denounce Wright last week, was the significant or dominant newsmaker in 69% of the stories, according to PEJ’s News Coverage Index for April 28-May 4. These coverage numbers are strikingly similar to those from March 17-23 when Wright’s inflammatory statements about race and the U.S. triggered the first Obama damage control effort, including a major March 18 speech on race relations. That week, the Wright-Obama story line accounted for 37% of the campaign stories and Obama dominated coverage at 72%. Clinton (at 30%) and McCain (17%) were virtual afterthoughts.
http://www.journalism.org/node/10928

Newspapers likely to be free in the future: survey

Newspapers seeking to compete with the Internet are likely to become free and place greater emphasis on comment and opinion in the future, a survey of the world's editors showed on Tuesday. The report, conducted by Zogby International for the World Editors Forum and Reuters, revealed that newspaper editors were still optimistic about the future of their publications but believed they would have to adapt further for the digital age. Some 86 percent of respondents believed newsrooms should become more integrated with digital services as two in three believe the most common form of news consumption will be via electronic media such as online or mobiles within a decade.
http://www.reuters.com/article/technologyNews/idUSL0214163420080506

Benton's Communications-related Headlines For Tuesday May 6, 2008

Do you recommend Headlines to colleagues? Now you=20
can do it for everyone with our new rating=20
service. Just visit your favorite stories at http://www.benton.org/headlines

MEDIA OWNERSHIP
Antitrust Issues Raised by the Emerging Global Internet Economy
Sizing up Microsoft and Yahoo: Did anybody win?
The War for the Web
Three companies Microsoft could buy instead of Yahoo
Cablevision-Newsday Union Would Raise Regulatory Concerns: Moffett
The Wealthiest Colleges Should Acquire 'The New York Times'
Saints Owner Grabs WVUE

NETWORK NEUTRALITY
McSlarrow: Net Neutrality Law Not Needed

SPECTRUM/WIRELESS
Google concerned about Verizon's open access
Sprint Mulls Shedding Nextel Unit
Many wireless resellers going under

BROADCASTING/CABLE
FCC Releases DTV Consumer Education Plan -- sort of
Nielsen: Product Placement On The Rise On Broadcast TV

QUICKLY -- American Council of the Blind Named=20
to FCC Consumer Advisory Committee; Jeremiah=20
Wright Was Biggest Newsmaker; Newspapers likely=20
to be free in the future: survey

MEDIA OWNERSHIP

ANTITRUST ISSUES RAISED BY THE EMERGING GLOBAL INTERNET ECONOMY
[SOURCE: Northwestern University Law Review, AUTHOR: David Evans]
The Internet economy is likely to raise antitrust=20
concerns -- and possible demands for regulation=20
-- for years to come. Global gargantuan firms=20
have emerged, which will likely attract scrutiny=20
by competition authorities and by policymakers=20
concerned with competition issues. The web=20
economy poses two major challenges to competition=20
authorities. The law and economics for analyzing=20
the multi-sided platforms that dominate the=20
Internet sector is not well developed. At the=20
same time the web-economy is evolving very=20
rapidly and in ways that are sure to result in=20
antitrust complaints and=20
investigations. Competition authorities and=20
courts will need to exercise great care in=20
balancing the protection of consumers from=20
anticompetitive behavior against causing harm=20
from interfering in complex businesses that are=20
both rapidly moving and not fully understood.
http://colloquy.law.northwestern.edu/main/2008/05/antitrust-issue.html

SIZING UP MICROSOFT AND YAHOO: DID ANYONE WIN?
[SOURCE: InfoWorld, AUTHOR: Linda Rosencrance]
Microsoft gave up its effort to acquire Yahoo=20
because the software company decided it wasn't=20
worth the cost and potential negative publicity=20
involved with a proxy fight -- either that or=20
Microsoft figured it couldn't win in a proxy=20
fight. It is likely that Microsoft will increase=20
the pressure on the U.S. Department of Justice to=20
investigate the proposed advertising joint=20
venture between Yahoo and Google. Microsoft's=20
initial strategy was to overbid its offer so the=20
company could close the deal with Yahoo quickly.=20
But Microsoft didn't leave Yahoo's board with an=20
option that allowed it to exit the process=20
looking like it had negotiated strongly.
http://www.infoworld.com/article/08/05/05/Sizing-up-Microsoft-and-Yahoo-...
-anybody-win_1.html
* Google, From Stirrer to Spoiler, Ends Microsoft=92s Yahoo Search
http://www.nytimes.com/2008/05/06/technology/06google.html?ref=3Dtodaysp...
* Failed Yahoo Talks Leave Google on Top
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/05/AR200805...
0114.html
* Google triumphs as its rivals' courtship fizzles
http://www.latimes.com/news/printedition/front/la-fi-google6-2008may06,0...
80142.story

THE WAR FOR THE WEB
[SOURCE: Wall Street Journal, AUTHOR: Andy Kessler]
[Commentary] With the Microsoft/Yahoo deal=20
breakdown, everyone assumes Google walks away=20
with the prize. Not so fast. This contest is just=20
starting. For Microsoft or Google or anyone else=20
to win, they need four key elements of an=20
end-to-end strategy: The Cloud. The desktop=20
computer isn't going away. But as bandwidth=20
speeds increase, more and more computing can be=20
done in the network of computers sitting in data=20
centers =96 aka the "cloud." The Edge. The cloud is=20
nothing without devices, browsers and users to=20
feed it. Book buyers are basically paying for=20
Amazon's data centers. Yahoo is a favorite for=20
finance and sports enthusiasts, who pay for its=20
data centers. Google worked its way into the=20
toolbars of Firefox, and even Microsoft's=20
browser. And Microsoft? It was stripped of its=20
ability to control Windows desktop real estate=20
during the late '90s Netscape feud. Speed. Once=20
you build the cloud, it's all about network=20
operations. Whoever can deliver search results=20
faster, wins. Users only realize this=20
subconsciously, but it's true: Google's dominant=20
share is as much about speed as it is for=20
relevant results. Compare it to Microsoft or=20
Yahoo and you'll see. Google built data centers=20
next to waterfalls so electricity could be cheap=20
enough to help it win the speed war. Platform.=20
Yahoo's mistake was relying on expensive workers=20
to update Web pages and sell ads, and especially=20
to run Yahoo Finance, Sports, HotJobs and Travel.=20
Google hates using people for these tasks. The=20
company may love programmers and probably=20
customers as well, but it tries to put absolutely=20
no one in between them. Google's genius was to=20
automate all its Web page creation and to have a market set prices for ads.
http://online.wsj.com/article/SB121003554710769393.html?mod=3Dtodays_us_...
nion
(requires subscription)

THREE COMPANIES MICROSOFT COULD BUY INSTEAD OF YAHOO
[SOURCE: InfoWorld, AUTHOR: Eric Lai]
Assuming that Saturday's public walkaway by=20
Microsoft doesn't prove just to be a high-risk=20
negotiation tactic against Yahoo -- after all,=20
the companies are rumored to have been talking=20
about some sort of merger or acquisition for=20
almost three years -- then what we have is a=20
software vendor suddenly awash in tens of=20
billions of unspent dollars that it can now=20
lavish on other Internet firms. What companies=20
could Microsoft target? AOL; LinkedIn; ValueClick.
http://www.infoworld.com/article/08/05/05/Three-companies-Microsoft-coul...
uy-instead-of-Yahoo_1.html

CABLEVISION-NEWSDAY UNION WOULD RAISE REGULATORY CONCERNS: MOFFETT
[SOURCE: Multichannel News, AUTHOR: Mike Reynolds]
Should Cablevision Systems succeed in its quest=20
to acquire Long Island newspaper Newsday the deal=20
could come under regulatory scrutiny, according=20
to Sanford C. Bernstein & Co. vice president and=20
senior analyst Craig Moffett. Moffett, in a note=20
released Monday morning, wrote that if=20
Cablevision=92s $620 million bid -- currently above=20
the $580 million offered by both Rupert Murdoch=92s=20
News Corp., which owns the New York Post and real=20
estate mogul Mort Zuckerman, owner of the Daily=20
News -- wins, it would not be =93a regulatory slam=20
dunk.=94 Moffett points out that while much has=20
been written about anti-trust concerns raised by=20
a Murdoch acquisition of Newsday (News Corp.=20
already runs the Post under an exemption that=20
would ban Murdoch=92s because he controls the Fox=20
affiliate in the New York market), Cablevision=92s=20
gambit does not cut across similar=20
newspaper/broadcast prohibitions. Nevertheless,=20
Moffett believes a Cablevision/Newsday union=20
would attract scrutiny from the Federal Communications Commission and Congr=
ess.
http://www.multichannel.com/article/CA6557291.html?nid=3D4262
* What Does Cablevision Want With Newsday? (Harold Feld)
http://www.wetmachine.com//item/1177

THE WEALTHIEST COLLEGES SHOULD ACQUIRE 'THE NEW YORK TIMES'
[SOURCE: The Chronicle of Higher Education, AUTHOR: Lee Smith, Fortune]
[Commentary] The time has come for the nation's=20
wealthiest colleges and universities to rescue=20
its leading newspapers -- resources almost as=20
vital to higher education's purpose as libraries,=20
laboratories, classrooms, and concert halls. The=20
plan I have in mind would call upon the richest=20
institutions to set aside 3 percent of their=20
endowments to buy The New York Times. That's for=20
a start. Additional purchases of other newspapers=20
by other endowments should follow. Never has the=20
need to protect journalism as the source of=20
current knowledge been more evident than now.=20
Surveys of Americans unearth disturbing shards of=20
information: Many cannot name a single U.S.=20
Supreme Court justice; some do not read a single=20
nonfiction book a year. Higher-education=20
institutions and newspapers have an essential=20
bond -- a dedication to the accumulation and=20
dissemination of knowledge -- that makes them=20
mutually dependent. Over the years newspapers=20
have generally defended colleges and universities=20
as sanctuaries for the exchange of ideas -- no=20
matter how repugnant some of those ideas may be=20
-- and championed expenditures on education. Now=20
it's time for higher education, specifically the=20
nation's wealthiest institutions, to come to the aid of newspapers.
http://chronicle.com/free/v54/i35/35a03201.htm

SAINTS OWNER GRABS WVUE
[SOURCE: Broadcasting&Cable, AUTHOR: Michael Malone]
Emmis Communications has agreed to sell WVUE New=20
Orleans to Louisiana Media Company, whose=20
principal owner is New Orleans Saints owner Tom=20
Benson. The purchase price for the Fox affiliate=20
is $41 million. The New Orleans DMA, which slid=20
10 spots to #53 post-Hurricane Katrina, lost=20
about 20% of its population after the storm.=20
According to BIA Financial, WVUE was the #3=20
grossing New Orleans station in 2006, grabbing $16.3 million.
http://www.broadcastingcable.com/article/CA6557393.html?rssid=3D193

NETWORK NEUTRALITY

MCSLARROW: NET NEUTRALITY LAW NOT NEEDED
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Congress should refrain from adopting a Network=20
Neutrality law because cable operators are=20
managing their broadband networks in an open=20
manner and do not engage in anticompetitive=20
conduct, National Cable & Telecommunications=20
Association president Kyle McSlarrow plans to say=20
in testimony today on Capitol Hill. McSlarrow is=20
scheduled to testify before the House=20
Subcommittee on Telecommunications and the=20
Internet on Network Neutrality legislation=20
introduced by subcommittee chairman Rep. Edward=20
Markey (D-MA). McSlarrow suggests that=20
legislation would be inappropriate because=20
supporters of a net neutrality law have failed to=20
make the case that broadband network operators=20
have engaged in conduct harmful to consumers,=20
justifying the need for government intervention.
http://www.multichannel.com/article/CA6557729.html?nid=3D4262

SPECTRUM/WIRELESS

GOOGLE CONCERNED ABOUT VERIZON'S OPEN ACCESS
[SOURCE: InfoWorld, AUTHOR: Grant Gross]
Google has asked the Federal Communications=20
Commission to obtain a pledge from Verizon=20
Wireless that it will honor the open-access=20
conditions on a band of 700MHz spectrum before=20
selling the spectrum to the carrier. Google, in a=20
filing with the FCC Friday, raised concerns that=20
Verizon Wireless wasn't committed to the=20
open-access rules the FCC put on the nationwide C=20
block of the 700MHz spectrum the agency sold in=20
an auction ending in mid-March. The FCC's=20
open-access rules required the winner of the C=20
block to allow customers to connect wireless=20
devices of their choosing and run any=20
applications on the network using the C block.=20
Google's filing doesn't explicitly spell out what=20
the company wants the FCC to do if Verizon=20
doesn't pledge to follow the open-access rules,=20
but it implies that the FCC shouldn't sell Verizon the spectrum in that cas=
e.
http://www.infoworld.com/article/08/05/05/Google-concerned-about-Verizon...
en-access_1.html

SPRINT MULLS SHEDDING NEXTEL UNIT
[SOURCE: Wall Street Journal, AUTHOR: Amol Sharma, Joann S. Lublin]
Wireless provider Sprint Nextel Corp. is=20
considering spinning off or selling its ailing=20
Nextel unit. The move would be a dramatic=20
acknowledgment that Sprint's $35 billion=20
acquisition of Nextel Communications in 2005 has=20
been a failure. Sprint is said to be=20
contemplating a couple of options for Nextel. The=20
company has held preliminary talks with Nextel=20
founder Morgan O'Brien, who now runs a company=20
called Cyren Call Communications in McLean, Va.,=20
that is trying to create a nationwide wireless=20
network for public-safety communications. People=20
familiar with the discussions say Mr. O'Brien is=20
trying to assemble a consortium of investors to=20
acquire Nextel. Cyren Call itself wouldn't be the=20
buyer. Sprint is contemplating other possible=20
buyers, such as private-equity firms. The company=20
could also choose to spin off Nextel into a=20
separate company. Activist investor Ralph=20
Whitworth of Relational Investors, who obtained a=20
seat on Sprint's board earlier this year, has=20
advocated a sale or spinoff. Nextel's=20
walkie-talkie-style phones have traditionally=20
been popular with construction workers, airline=20
maintenance personnel and other business users.=20
But the market for those services is shrinking.=20
People close to the company project Nextel will=20
have a core, highly loyal user base of five=20
million to seven million subscribers in two=20
years, about half of current levels. A decision=20
last week by the Washington, D.C., Circuit Court=20
of Appeals may exacerbate that situation: The=20
court ruled that by June 26, Nextel must stop=20
using certain radio frequencies that are close to=20
those used by first responders.
http://online.wsj.com/article/SB121001458454368317.html?mod=3Dtodays_us_...
e_one
(requires subscription)

MANY WIRELESS RESELLERS GOING UNDER
[SOURCE: USAToday, AUTHOR: Paul Davidson]
A few years ago, organizations from Disney to=20
7-Eleven to the local pinochle club were jumping=20
into the cellphone business, leveraging their=20
brands to appeal to niches untapped by the big=20
carriers. Now, many are digesting a hard reality:=20
Running a wireless company isn't as easy as it=20
seemed. Many resellers of cellphone service =97=20
which lease the networks of national carriers =97=20
are closing, going bankrupt or struggling.=20
Resellers, also known as mobile virtual network=20
operators (MVNOs), are being tripped up by: Fresh=20
competition from the major carriers. With U.S.=20
cellphone penetration reaching 84%, the big=20
carriers are targeting the faster-growing youth=20
and lower-income prepaid markets that had been=20
the province of MVNOs such as Virgin, say Entner=20
and Yankee Group analyst Chris Collins. Failure=20
to offer a distinctive service. ESPN, Amp'd=20
Mobile and Helio coveted the same high-spending,=20
data-savvy subscribers sought by large carriers=20
"that can do it better," Collins says. Rick=20
Heineman, a spokesman for Helio, which is partly=20
owned by EarthLink, disagrees, saying the=20
start-up stands out for its global-positioning,=20
music and video services. The company, with=20
nearly 200,000 subscribers, had 2007 losses of=20
about $320 million. Heineman says the losses were=20
expected. Low volumes. Some firms targeted tiny=20
niches. Many clubs that joined Sonopia had just a=20
few dozen subscribers. "You need to have volume=20
and scale to survive," says Ovum analyst Raymond=20
Yu. Operational blunders. Movida, a prepaid=20
service, offered a jumble of confusing rates and=20
gave subscribers free texting even though it paid=20
Sprint Nextel for the service, Greene says.=20
"Things were upside down," he says, adding that he's fixing the problems.
http://www.usatoday.com/printedition/money/20080506/1b_wireless_reseller...
.art.htm

BROADCASTING/CABLE

FCC RELEASES DTV CONSUMER EDUCATION PLAN
[SOURCE: Federal Communications Commission, AUTHOR: Ketchum]
The Federal Communications Commission is=20
responsible for making rules to facilitate the=20
upcoming transition to digital-only television=20
broadcasting, enforcing those rules to protect=20
consumers, and promoting awareness of the=20
transition through direct to consumer education=20
and other outreach tools including media=20
relations. The FCC must develop a consumer=20
education plan that will augment its current=20
outreach activities and educate the American=20
public to create a steady drum beat of evolving messaging
around the transition leading up to February 17,=20
2009. Creative thinking and a disciplined=20
approach will be essential to keep the transition=20
=AD a confusing technical issue =AD relevant for the=20
American public in a somewhat cluttered media=20
landscape. The primary goal of the Consumer=20
Education Plan is to identify channels and outreach activities
not yet employed by the FCC to ensure that=20
Americans are made aware of the digital=20
television transition so that they may reap the=20
benefits of it and, if necessary, take action so=20
they are prepared when transition occurs. At the=20
same time, the plan must take into account those=20
high over-the-air audiences that may be harder to=20
reach through conventional information channels.=20
Ketchum recommends that the FCC: 1) Concentrate=20
communications to =93over-the-air=94 (OTA) consumers and hard-to-reach
populations. 2) Leverage earned media tactics to=20
deliver appropriate messaging. 3) Identify=20
direct-to-consumer channels that will=20
cost-effectively target OTA households.=20
4) Create and distribute publications and TV and=20
Radio PSAs that are clear, concise and=20
consistent. 5) Communicate directly with target=20
populations through public and private partnerships, Web site and call cent=
er.
http://www.dtv.gov/DTVEducationPlan.pdf

NIELSEN: PRODUCT PLACEMENT ON THE RISE ON BROADCAST TV
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Product placement is way up on broadcast TV, but=20
essentially flat on cable. That's according to a=20
new study of prime time plugs by Nielsen for the=20
first quarter of 2008. But cable still far=20
outpaces broadcast in the number of such plugs.=20
Product placement on broadcast TV was up 39% to=20
15,404 for the top ten shows in the first=20
quarter, with NBC's Biggest Loser the big winner=20
in placements with 3,977, edging out American=20
Idol with 3,291. The only scripted show to make=20
the top 10 broadcast shows in product placement=20
was One Tree Hill, which came in at number 10=20
with 557. NBC had three of the top four, with=20
Apprentice (3) and Deal Or No Deal (4) joining=20
Biggest Loser in the winners circle.
http://www.broadcastingcable.com/article/CA6557386.html?rssid=3D193

QUICKLY

AMERICAN COUNCIL OF THE BLIND NAMED TO CONSUMER ADVISORY COMMITTEE
[SOURCE: Federal Communications Commission]
Federal Communications Commission Chairman Kevin=20
Martin has added Eric Bridges of the American=20
Council of the Blind to the FCC's Consumer=20
Advisory Committee. This appointment is effective=20
immediately, and shall terminate November 17,=20
2008, or when the Committee is terminated, whichever is earlier.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-08-1058A1.doc

JEREMIAH WRIGHT WAS BIGGEST NEWSMAKER
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
Last week -- as Chicago minister Jeremiah Wright=20
re-emerged into full public view to speak to PBS=92=20
Bill Moyers, the NAACP and the National Press=20
Club -- the controversy he generated made more=20
news than both Sens Hillary Clinton (D-NY) and=20
John McCain (R-AZ). Sen Clinton was a significant=20
or dominant factor in 41% of the campaign stories=20
and Sen McCain registered in 14% of them.=20
Meanwhile the relationship between Wright and his=20
former parishioner Sen Barack Obama (D-IL)=20
accounted for 42% of the week=92s campaign=20
coverage. Sen Obama, who moved to decisively=20
denounce Wright last week, was the significant or=20
dominant newsmaker in 69% of the stories,=20
according to PEJ=92s News Coverage Index for April=20
28-May 4. These coverage numbers are strikingly=20
similar to those from March 17-23 when Wright=92s=20
inflammatory statements about race and the U.S.=20
triggered the first Obama damage control effort,=20
including a major March 18 speech on race=20
relations. That week, the Wright-Obama story line=20
accounted for 37% of the campaign stories and=20
Obama dominated coverage at 72%. Clinton (at 30%)=20
and McCain (17%) were virtual afterthoughts.
http://www.journalism.org/node/10928

NEWSPAPERS LIKELY TO BE FREE IN THE FUTURE: SURVEY
[SOURCE: Reuters, AUTHOR: Kate Holton]
Newspapers seeking to compete with the Internet=20
are likely to become free and place greater=20
emphasis on comment and opinion in the future, a=20
survey of the world's editors showed on Tuesday.=20
The report, conducted by Zogby International for=20
the World Editors Forum and Reuters, revealed=20
that newspaper editors were still optimistic=20
about the future of their publications but=20
believed they would have to adapt further for the=20
digital age. Some 86 percent of respondents=20
believed newsrooms should become more integrated=20
with digital services as two in three believe the=20
most common form of news consumption will be via=20
electronic media such as online or mobiles within a decade.
http://www.reuters.com/article/technologyNews/idUSL0214163420080506
--------------------------------------------------------------
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.
--------------------------------------------------------------

Thursday, June 12, 2008
eBay HQ
Town Hall
2161 North First Street
San Jose, California 95131

10:00-10:05 Welcoming Remarks – Tod Cohen, VP and Deputy General Counsel for Government Relations, eBay

10:05-10:15 Welcoming Remarks

Who is MAP?
What is “Innovation – ‘08”
Why is it important to Silicon Valley and America?

Panel 1: 10:15 - 11:45 AM

What Does Net Neutrality Mean Now?
Comcast’s interruption of P2P transmissions has generated debate about the need and wisdom of deploying advanced net management technologies. Can and will the private sector address this problem without government mandates? Historically, the debate about Net Neutrality has focused on who can access information distribution channels, and under what circumstances. Comcast’s recent interruption brings up new questions, explored here by some of the leading experts in the field.

  • George Ou, former network engineer
  • Ronald B. Yokubaitis, Chairman and CEO, Data Foundry
  • Others to be confirmed
  • Moderator: Parul Desai

10:15 - 10:35 Panel Introduction and Speaker Remarks
10:35 - 11:30 Moderator questions and panel discussion
11:30 - 11:45 Audience questions and answers.

LUNCH 11:45 - 12:45 PM

Panel 2: 12:45 - 2:30 PM

Spectrum Policy After the 700 MHz Auction

The FCC’s recently concluded 700 MHz auction has been praised, criticized, and puzzled over. Auction veterans will discuss what happened, why it happened, and what will happen next.

  • Coleman Bazelon, Principal, The Brattle Group
  • Gregory L. Rosston, Professor, Stanford
  • Gregory Rose, Economist, Gregory Rose & Associates
  • Carolyn Brandon, CTIA
  • Moderator: Harold Feld

12:45 - 1:05 Panel Introduction and Speaker Remarks
1:05 - 2:00 Moderator questions and panel discussion
2:00 - 2:30 Audience questions and answers.

For further information, or to RSVP, please contact Brooke Rae-Hunter at 202-454-5686 or brooke@mediaaccess.org.