May 2008

This weekend there's Fordham University's Information and the
Information Economy conference and next week there's a hearing on The
Internet Freedom Preservation Act (HR 5353). For these and other
upcoming media policy events, see http://www.benton.org/calendar/2008/5

GOVERNMENT & COMMUNICATIONS
Media Passes on Times Pentagon Piece
Just Between Us

ELECTIONS AND MEDIA
Democrats and Fox News

UNIVERSAL SERVICE
Federal Communications Commission Caps Cell Phone Company USF Payments

INTERNET/BROADBAND
U.S. needs stronger broadband policy
As Broadband Growth Slows, Expect Speed Boosts

NEWS FROM CONGRESS
Lawmakers Urge Conditions on XM-Sirius Deal
Democrat wants to require disability-friendly Internet phones, video
Ensign Raises Red Flag On Localism Proposal

QUICKLY -- Network Affiliates Receive FCC Waivers; PTC Pushes CBS
Affiliates to Drop Dexter; Online Moguls To Feast on $42 Billion
Newspaper Ad Pie; Email And Search Tops For Internet Users; NBC's
Silverman: Broadcast to Be Event-Driven

GOVERNMENT & COMMUNICATIONS

MEDIA PASSES ON TIMES PENTAGON PIECE
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
On April 20, The New York Times published an 8,000-word, front-page
article that seemed certain to generate attention. The story, written
after the paper sued to gain access to Pentagon records, detailed the
close relationship between the Defense Department and some military
analysts commenting on the Iraq war for television networks.
According to the story, these analysts were granted access to
classified information, had briefings with senior leaders including
Donald Rumsfeld, were taken on tours of war zones, and in some cases,
had defense-related business interests. In return, they consistently
reinforced the administration's talking points and provided a more
favorable view of the war -- despite some acknowledging their doubts
about the information they were giving to the public. Despite these
revelations, there was virtually no mainstream media follow up to The
Times' expose, according to PEJ's News Coverage Index, which monitors
approximately 1,300 stories a week from 48 different outlets.
Although there was some discussion of The Times scoop in the
blogosphere, the Index found only two related stories in the week of
April 21-27, both of them in the April 24 PBS NewsHour broadcast. In
the cable news universe, where many of these analysts worked, silence
greeted the story. By way of comparison, the Texas polygamy case
garnered 50 stories and General Petraeus' promotion to head of
Central Command captured 16. Even Rupert Murdoch's latest newspaper
maneuvering received twice as much attention (4 stories).
http://www.journalism.org/node/10849
* Shameful Days: Why Won't The Media Pursue the Pentagon Propaganda Scandal?
http://www.huffingtonpost.com/arianna-huffington/shameful-days-why-wont-...
* Why Big Media is Mum about Its Propaganda Habit
http://www.huffingtonpost.com/timothy-karr/why-big-media-is-mum-abou_b_9...

JUST BETWEEN US
[SOURCE: Newsweek, AUTHOR: Michael Isikoff, Mark Hosenball]
The Bush administration is refusing to disclose internal e-mails,
letters and notes showing contacts with major telecommunications
companies over how to persuade Congress to back a controversial
surveillance bill, according to recently disclosed court documents.
The existence of these documents surfaced only in recent days as a
result of a Freedom of Information Act lawsuit filed by a privacy
group called the Electronic Frontier Foundation. The foundation is
seeking information about communications among administration
officials, Congress and a battery of politically well-connected
lawyers and lobbyists hired by such big telecom carriers as AT&T and
Verizon. Court papers recently filed by government lawyers in the
case confirm for the first time that since last fall unnamed
representatives of the telecoms phoned and e-mailed administration
officials to talk about ways to block more than 40 civil suits
accusing the companies of privacy violations because of their
participation in a secret post-9/11 surveillance program ordered by
the White House. At the time, the White House was proposing a
surveillance bill -- strongly backed by the telecoms -- that included
a sweeping provision that would grant them retroactive immunity from
any lawsuits accusing the companies of wrongdoing related to the
surveillance program.
http://www.newsweek.com/id/134930

ELECTIONS AND MEDIA

DEMOCRATS AND FOX NEWS
[SOURCE: New York Times, AUTHOR: Brian Stelter]
Does one appearance a warm relationship make? The New York Times and
LA Times think so. All of a sudden, the once-frosty relationship
between Fox News and the Democratic candidates seems to have grown
warmer. Sens Hillary Clinton (D-NY) and Barack Obama (D-IL), who
steadfastly refused to attend Fox-sponsored debates last year, are
now giving plenty of interviews as they court Fox's viewers, who are
largely white, conservative and undecided. "It's probably true that
we appeal to white working-class voters," said Brit Hume, the
network's Washington managing editor and the host of "Special
Report." "The candidates are going where the voters
are." Conversely, Fox seems to have softened its stance toward the
Democrats, mindful of the intense viewer interest in the prolonged
primary season. Although Fox News remains firmly in first place among
news channels, CNN has crept up in the ratings on primary nights. So
Fox wants to appeal to people who might otherwise flip the channel in
search of more time with the Democrats. In short, Fox News and the
Democrats abruptly find each other useful.
http://www.nytimes.com/2008/05/02/business/media/02fox-1.html?ref=todays...
(requires registration)
* Barack Obama, Hillary Clinton embrace Fox News
http://www.latimes.com/news/printedition/front/la-et-foxnews2-2008may02,...

UNIVERSAL SERVICE

FEDERAL COMMUNICATIONS COMMISSION CAPS CELL PHONE COMPANY USF PAYMENTS
[SOURCE: Associated Press, AUTHOR: John Dunbar, Dibya Sarkar]
"Any day now" became Thursday night for the Federal Communications
Commission which agreed to temporarily cap the Universal Service
Fund, a growing subsidy program that paid nearly $1.2 billion last
year to cell phone companies that do business in rural areas. The cap
will remain in place until the commission passes a comprehensive
reform package, which is in the works. The move is bad news for rural
cellular carriers who rely on such payments for a substantial part of
their revenue, but it benefits big telephone companies like Verizon
and AT&T, whose customers are the largest contributors to the fund.
AT&T is also a major recipient of such wireless subsidies, but agreed
to a cap as a condition of its acquisition of Dobson Communications
Corp. last year. The top recipient of such subsidies, Alltel Corp.,
had also agreed to a cap as part of its buyout by a private
investment group. Regulators hope the decision will slow the increase
in fund charges on telephone bills and keep the program sustainable.
FCC Commissioners Michael Copps and Jonathan Adelstein voted against
the cap. They said the agency should have taken the opportunity to
make more dramatic changes, including using the fund to promote
broadband service. "As technology and the marketplace rapidly reshape
the communications landscape, we face difficult questions about how
our universal service policies should keep pace," commissioner
Jonathan Adelstein said in a statement. FCC Chairman Kevin Martin
said, "Today's decision is not an end in itself, but a step on the
path towards comprehensive reform. I continue to believe the
long-term answer for comprehensive reform of high-cost universal
service support is to move to a reverse auction methodology and to
require that high-cost support be based on a carrier's own
costs. I'm supportive of these measures to contain the growth of
universal service in order to preserve and advance the benefits of
the Fund and protect the ability of people in rural areas to continue
to be connected. "
http://www.newsobserver.com/1595/story/1057405.html
* FCC votes to cap fund for rural phone subsidies
http://www.reuters.com/article/marketsNews/idUSN0148058020080501?feedTyp...
* FCC Takes Action to Cap High Cost Support Under the Universal
Service Fund (FCC)
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-281921A1.doc
* FCC Order:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-122A1.doc
* FCC Chairman Martin Statement
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-122A2.doc
* FCC Commissioner Copps Statement: "I dissent from today's
decision... because it falls woefully short of the fundamental,
comprehensive reforms needed to meet the overarching
telecommunications challenge of the Twenty-first century. That
challenge, both by statute and by necessity, is to encourage the
deployment of basic and advanced telecommunications to all of our
citizens and to ensure that the Universal Service system, which
accomplished so much in the 20th Century, can do so again now."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-122A3.doc
* FCC Commissioner Adelstein Statement
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-122A4.doc
* FCC Commissioner Tate Statement
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-122A5.doc
* FCC Commissioner McDowell Statement
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-122A6.doc

INTERNET/BROADBAND

US NEEDS STRONGER BROADBAND POLICY
[SOURCE: InfoWorld, AUTHOR: Grant Gross]
Government policy plays a less important role in broadband adoption
than environmental factors such as population density and price, but
the U.S. government should take some new steps to help the country
catch up to many other industrialized nations, according to a report
released by the Information Technology and Innovation Foundation
(ITIF), a Washington (DC) think tank. According to ITIF, the
government could 1) adopt more favorable tax policies, allowing
broadband network operators to depreciate their investments in
next-generation networks faster, 2) make more wireless spectrum
available, 3) expand and reform Universal Service Fund programs aimed
at delivering telecom services to rural areas, 3) fund state programs
already working to expand broadband deployment, 4) fund a grant
program focused on digital literacy and access to computers, and 5)
focus on demand for broadband. The ITIF report compared the U.S.
broadband environment to eight other countries, most with higher
speeds and lower prices. In several cases, the countries launched
extensive broadband programs in the last decade, with government
working closely with broadband providers to expand coverage and roll
out next-generation broadband. "The overall message is, leadership
matters," said ITIF president Robert Atkinson. "At the end the day,
top-level leadership from the highest ranks of government does seem
to make a difference."
http://www.infoworld.com/article/08/05/01/US-needs-stronger-broadband-po...
* Report Explains Broadband Leadership, Need for Strategy
http://www.govtech.com/dc/articles/306670

AS BROADBAND GROWTH SLOWS, EXPECT SPEED BOOSTS
[SOURCE: GigaOm, AUTHOR: Om Malik]
[Commentary] The demand for broadband in the U.S., after growing at
an explosive rate for almost two years, has started to slow, largely
due to high market penetration rates and a struggling economy. UBS
Research forecasts that the number of U.S. broadband connections will
grow 11 percent in 2008, down from growth of 16 percent in 2007. The
carriers -- the cable operators and phone companies -- are beginning
to feel the impact, and are subsequently looking for ways to squeeze
more dollars out of the broadband business. Verizon, for example, is
pushing people to sign up for its more expensive FiOS service. Others
are looking to use "speed boosts" as a way to lift their ARPU. It
should come as no surprise that the carriers have let go of
incremental speed upgrades and have gone ahead and doubled or tripled
the speeds of their offerings. Why? Because bumping speed to 2 Mbps
from 1 Mbps doesn't really feel like a big boost. A 6X speed bump, on
the other hand, makes the Internet much faster -- and worth paying
for. Suddenly, Hulu and YouTube become much more fun to watch. If a
subscriber believes that he or she can download music, stream videos
and connect to their favorite social networks faster, they will pay a
premium price for that speed. Never mind the fact that how fast
content gets delivered to our computers is mandated by not just
access speeds but several factors, such as congestion on the backbone
networks and servers' ability to dish out data. As our accompanying
chart shows, the downstream speeds might be going up, but the
carriers are stifling innovation by controlling the upstream speeds.
Broadband 2.0 is all about collaboration and sharing, and that
requires just as much upstream bandwidth as it does downstream
speeds. Regardless, this coming year is going to be fun as the cable
companies and phone operators will do unnatural things to entice new
subscribers, starting with offering faster connections at lower prices.
http://gigaom.com/2008/04/29/as-broadband-growth-slows-expect-speed-boosts/

NEWS FROM CONGRESS

LAWMAKERS URGE CONDITIONS ON XM-SIRIUS DEAL
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
The Federal Communications Commission should impose conditions on
Sirius Satellite Radio proposed $3.95 billion acquisition of rival XM
Satellite Radio to protect consumers, said House Commerce Committee
Chairman John Dingell (D-MI) and Telecom Subcommittee Chairman Ed
Markey (D-MA). They urged the FCC to take steps to protect consumers
in connection with any decision to approve the merger. Such steps
should include 1) allowing any manufacturer to sell consumers
receivers that work with the merged company's satellite service and
2) adhering to pricing constraints they have already submitted to the
agency. Paul Gallant, an analyst with Stanford Washington Research
Group, said the lawmakers' letter to FCC Chairman Kevin Martin bodes
well for the deal. "It's a good thing when two of the most powerful
House Democrats are only talking conditions and not rejection, as
some others in Congress are doing," Gallant said. "The conditions
that Dingell and Markey represent appear relatively limited and
wouldn't seem to be deal breakers," Gallant said.
http://www.reuters.com/article/innovationNews/idUSN0145322920080501?feed...
* Text of Dingell/Markey letter
http://energycommerce.house.gov/Press_110/110-ltr.050108.FCC.XMRadio.pdf
* Democrats to FCC: Restrict XM-Sirius deal
http://www.news.com/8301-10784_3-9933655-7.html?tag=nefd.top
* Top Democrats Want Sirius Conditions on XM Meld
http://www.broadcastingcable.com/article/CA6556737.html?rssid=193
* XM-Sirius: We Want You to Do That Thing You Said You Would Do
http://blogs.wsj.com/deals/2008/05/01/xm-sirius-we-want-you-to-do-the-th...

DEMOCRAT WANTS TO REQUIRE DISABILITY-FRIENDLY INTERNET PHONES, VIDEO
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Most TVs and telephones must be outfitted with special features for
people with hearing, vision, and speech impairments under U.S. law.
But House Telecommunications Subcommittee Chairman Ed Markey (D-MA)
wants to expand those requirements to their Internet counterparts. At
a hearing Thursday, discussion began on a bill Chairman Markey is
drafting that would require, at least in some cases, dramatic changes
in the way Internet phone- and video-related products are designed,
while making it more difficult than under existing law for companies
to claim exemptions from those requirements. "The wizardry of the
wires and the sophistication of the software programs do little for
those who cannot affordably access or effectively use them," Chairman
Markey said. "Our job as policymakers is to help ensure such
affordable access and utilization, and this is what the draft
legislation I have circulated is intended to do." Democrats on the
committee generally seemed to support Markey's plans, voicing concern
about excluding people with disabilities from new technologies. Some
Republicans, however, said that although they shared Markey's goals,
they were skeptical about the need for new legislation. House
Commerce Committee Chairman John Dingell (D-MI) said, "In my
experience, if we simply ask the innovators and engineers to ensure
that technologies are designed to include all persons, no matter how
they communicate, they are up to the task."
http://www.news.com/8301-10784_3-9933597-7.html?tag=nefd.top
* Markey: Broadband-Based Tech Must Be Accessible for Persons with Disabilities
http://markey.house.gov/index.php?option=com_content&task=view&id=3335&I...
* Chairman Dingell
http://energycommerce.house.gov/Press_110/110st156.shtml

ENSIGN RAISES RED FLAG ON LOCALISM PROPOSAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Sen John Ensign (R-NV) sent Federal Communications Commission
Chairman Kevin Martin a letter saying "government mandates" are not
the way to achieve the "laudable" goal of increasing local
programming and making sure broadcasters are responsive to their
communities. Sen Ensign said the market pressure of programming to
the needs of their audience will do more to ensure they are meeting
those needs "than re-regulating the industry ever will."
http://www.broadcastingcable.com/article/CA6556840.html

QUICKLY

NETWORK AFFILIATES RECEIVE FCC WAIVERS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission gave a handful of network
affiliates, including WNBC-DT, another six-month waiver of a rule
that could have allowed satellite-TV viewers in their markets to
receive stations with similar network programming imported from
another market. Also granted waivers were digital stations WSMH
Flint, Mich. (Fox); KFTR Ontario, Calif. (TeleFutura); and KOGG
Honolulu (NBC). Satellite operators can import a similar distant
DTV-station signal to viewers who cannot receive a sufficiently
strong signal from their local affiliate, based on satellite-company
testing of those signals. The waiver means that signal testing cannot
begin on the stations until at least Oct. 31. All four stations have
had problems getting their DTV signals up and running at full
strength and coverage.
http://www.broadcastingcable.com/article/CA6556721.html?rssid=193

PTC PUSHES CBS AFFILIATES TO DROP DEXTER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Parents Television Council is urging members to contact CBS
affiliates to ask that they pre-empt this Sunday's episode of Dexter,
the off-Showtime series about a serial killer turned police
investigator. The season finale of Dexter is scheduled to air from 9
p.m.-11 p.m., which puts the first half in the so-called family hour
at 8 p.m.-9 p.m. in the Central and Mountain time zones.
http://www.broadcastingcable.com/article/CA6556811.html?rssid=193

ONLINE MOGULS TO FEAST ON $42 BILLION NEWSPAPER AD PIE
[SOURCE: Huffington Post, AUTHOR: Henry Blodget]
[Commentary] Print-paper circulation will drop to about 50 million
this year -- the lowest level since 1946 (62 years ago). That's
during a period in which the US population has doubled, meaning that
per-capita newspaper consumption has been cut in half. In ten years,
print-paper circulation and ad revenue will likely be a quarter of
what it is today, if that. The $42 billion that was spent on print
newspapers in 2007 isn't going to vaporize -- it's just going to go
somewhere else. ($42 billion -- in the US alone!) Where's it going?
Here's one guess: Surviving newspapers: $10 billion (25%); Magazines:
$0; TV: $0; Outdoor: $2 billion (5%); Digital: $30 billion (70%)
http://www.huffingtonpost.com/henry-blodget/death-of-newspapers-puts_b_9...

EMAIL AND SEARCH TOPS FOR INTERNET USERS
[SOURCE: Online Media Daily, AUTHOR: Les Luchter]
Most consumers still access the Internet mostly for email and search,
according to a Gartner. Surprisingly, online banking placed third,
followed by sharing photos, videos and files, geographic navigation
like Google Earth, and online shopping. Gartner's findings generally
held up across all regions, educational levels and income levels,
with one major exception--13- to-18-year-olds. For this teenage
demographic, email was again No.1, but it was followed by music
downloading, search, sharing of photos, videos and files, and then
instant messaging. Most importantly, Gartner noted, the teens had
greater interest than other demographics in using the Internet to
download music, do instant messaging, share media and files, watch TV
or video, make friends and use social networks, play games, use chat
rooms or message boards, blog and use online dating services.
http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=81...

NBC'S SILVERMAN: BROADCAST TO BE EVENT-DRIVEN
[SOURCE: TVWeek, AUTHOR: Daisy Whitney]
In 15 years, broadcast television will only be useful for
high-profile live events like the Super Bowl, awards shows and
programs like "American Idol," Ben Silverman, co-chairman of NBC
Entertainment, said. Other shows will have to live on multiple
platforms to survive. "[Broadcast] will also be where we launch our
episodic storytelling vehicles, but they will be living and breathing
everywhere," he said. NBC plans to experiment with driving viewers to
the Web from TV with its new fall show "Kath and Kim." NBC will offer
continued scenes online after each episode airs, Mr. Silverman said.
"Around our new offerings there will literally be shows that end on
air and the last scene will continue online," he said. Online
extensions of shows must be distinct from what's on air, he said.
http://www.tvweek.com/news/2008/05/nbcs_silverman_broadcast_to_be.php
(requires free registration)
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"This is a very simple game. You throw the ball, you catch the ball,
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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.
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