BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY AUGUST 12, 2008
GOVERNMENT & COMMUNICATIONS
Georgia States Computers Hit By Cyberattack
FBI's Use of Phone Records Shows Need to Protect the Press
MEDIA & ELECTIONS
Obama vs Clinton Again?
Political Spots Now a Bargain
What Obama Campaign Teaches About Millennial Marketing
Obama Floods Florida Airwaves
INTERNET/BROADBAND
Broadband growth plummets in 2Q, cable stronger
Lawmakers urge FCC to move forward with 'free' plan
Usage-Based Broadband Billing vs "Channels"
Modern-Day Alaskan Broadband Benefits from Satellite Earth Station Competition
DIGITAL CONTENT
Some Web Firms Say They Track Behavior Without Explicit Consent
Crying Foul over Online Junk Food Marketing
Digital Crossroads: Painful as slander may be, don't turn service providers into speech police
OWNERSHIP
Leap asks FCC to ban Verizon-Alltel purchase
DirecTV-Dish Merger Still 'Problematic'
Malone eyes swap for AOL dial-up arm
BROADCASTING/CABLE
Consumers Aware of DTV, but Slow to Act
Cablevision Network DVR Ruling Has Web Radio Impact
White space tests get mixed results
AT&T Appeals Connecticut Court's U-verse Definition
QUICKLY -- Providers' Have Left The Home Worker Market Untapped; Delivering aid in a digital world
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GOVERNMENT & COMMUNICATIONS
GEORGIA STATES COMPUTERS HIT BY CYBERATTACK
[SOURCE: Wall Street Journal, AUTHOR: Siobhan Gorman]
Georgian officials and international security experts say the Georgian government was hit by repeated cyberattacks just as Russia launched military action against the country, a move that illustrates the potential of cyberwarfare to augment a military attack. The leading suspect behind the attacks, which disabled key government Web sites, is a cybercriminal organization known as the Russian Business Network. That organization, however, is believed to act only as a carrier for criminal activities online. It may not be possible to determine who is ultimately responsible. The attacks on Georgia's public-information infrastructure have been particularly stinging in a conflict in which President Mikheil Saakashvili has tried to mount an aggressive media offensive on the airwaves.
http://benton.org/node/16036
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FBI'S USE OF PHONE RECORDS SHOWS NEED TO PROTECT PRESS, SENATORS SAY
[SOURCE: New York Times, AUTHOR: Eric Lichtblau]
Sens Patrick Leahy (D-VT) and Arlen Specter (D-PA), the top-ranking members of the Senate Judiciary Committee, said Monday that they were troubled by the FBI's collection of the phone records of four reporters at The New York Times and The Washington Post and that the episode showed a "pressing need" for legislation pending in the Senate that would provide greater legal protection for journalists. Last week, the Federal Bureau of Investigation disclosed to the two newspapers that it had improperly obtained the phone records of reporters in their Indonesian bureaus in 2004 by using emergency records demands from telephone providers as part of an investigation. Robert S. Mueller III, the director of the bureau, made personal calls to Bill Keller, executive editor of The Times, and Leonard Downie Jr., executive editor of The Post, to apologize. In a letter sent to Mr. Mueller on Monday, the two senators said they wanted formal staff briefings on the episode to address unanswered questions. The phone records were apparently obtained as part of a terrorism investigation, but the agency has not explained what it was investigating or why the reporters' phone records were considered relevant.
http://benton.org/node/16035
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MEDIA & ELECTIONS
OBAMA VS CLINTON AGAIN?
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
For the eighth time in nine weeks, Sen Barack Obama substantially outdistanced Sen John McCain in the competition for exposure, according to PEJ's Campaign Coverage Index. Obama was a significant or dominant factor in 78% of the campaign coverage from August 4-10 compared with 53% for McCain. That is almost identical to the 79% to 54% lead in quantity of coverage Obama has accumulated since the general election campaign began in early June. Last week, the major story lines turned more to issues -- particularly energy policy -- discord among Democrats and the search for vice-presidents. Indeed, even as Obama regained a comfortable lead in the quantity of coverage, certainly some of it was ominous for the Illinois Senator's campaign. Hillary and Bill Clinton resurfaced in campaign news last week -- combining as significant or dominant factors in 23% of the coverage -- and with them, so, too, did the festering subject of party unity. By week's end, the Clintons' role and the issue of a divided Democratic party had accounted for 12% of the campaign coverage studied. There were two major components of the narrative about discord. One was Bill Clinton's interview with ABC, in which he appeared to betray residual bitterness about the primaries and Obama. At the same time, new questions surfaced about whether Hillary Clinton supporters want a convention roll call.
http://benton.org/node/16026
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POLITICAL SPOTS NOW A BARGAIN
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
In the annals of political advertising, the unthinkable is happening: TV spots are getting cheaper as the November election approaches. Faced with a recession as well as advertising cutbacks by automakers and financial services providers, TV stations have sliced the price of political spots, political ad buyers say. In some markets, prices are as much as 15% to 20% lower than two years ago. Reductions aren't hitting every station or every market, and it's difficult to say whether prices will rebound.
http://benton.org/node/16025
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WHAT OBAMA CAN TEACH YOU ABOUT MILLENNIAL MARKETING
[SOURCE: AdAge, AUTHOR: Peter Feld]
The unabashed embrace of select brands by millennials, from technology to beverages to fashion, has made this decade a true golden era of marketing for those who know what they're doing. And when it comes to marketing, the Barack Obama campaign knows what it's doing. Obama's brand management, unprecedented in presidential politics, shows pitch-perfect understanding of the keys to appealing to the youngest voters. Obama's packaging might discomfit older generations, who may think of themselves as immune to mass marketing. But it is "no problem" for millennials. John McCain's early-August success in erasing Obama's lead, with a campaign that directly attacks the Obama brand by mocking his celebrity status, shows that branding can cut both ways.
http://benton.org/node/16024
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OBAMA FLOODS FLORIDA AIRWAVES
[SOURCE: Wall Street Journal, AUTHOR: Aaron Rutkoff]
Sen Barack Obama's campaign has aired 9,785 local broadcast TV commercials in Florida while Sen John McCain's campaign has aired none. The Obama campaign has spent about $6.5 million on TV advertising in Florida, according to the Campaign Media Analysis Group, a unit of media tracker TNS Media Intelligence. In part, the spending can be attributed to the Democrat's late start there. He refrained from campaigning in Florida during the primary season after the Democratic Party penalized the state for holding its primary early. A spokesman for Sen. McCain declined to discuss why the campaign hasn't run TV ads in Florida, but said the Republican is investing heavily in the state and is doing well. In total, Sen. Obama has spent about $36.6 million on television ads across the country since the end of the Democratic nomination fight, with Florida so far taking the biggest share of any single state. The Obama campaign is also alone on the airwaves in North Carolina, Indiana, Georgia and southern Virginia.
http://benton.org/node/16034
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INTERNET/BROADBAND
BROADBAND GROWTH PLUMMETS IN 2Q, CABLE STRONGER
[SOURCE: Associated Press, AUTHOR: ]
The number of new broadband Internet subscribers in the United States fell in the second quarter to the lowest level in at least seven years. The 20 largest cable and telephone companies added a net 887,000 high-speed Internet subscribers in the three months ending June 30. The number of new customers is half that of the second quarter of 2007. Saturation of the marketplace, along with the slowing economy, are likely reasons for the slowdown. Leichtman Research believes the decline in new customers was likely exacerbated by decisions at the two largest phone companies, AT&T and Verizon, to emphasize faster, more expensive services over entry-level DSL. Cable companies did much better than phone companies in the quarter. While the two industries have usually divided new broadband customers evenly between them, 76 percent of the new business went to cable companies in the quarter.
http://benton.org/node/16029
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LAWMAKERS URGE FCC TO MOVE FORWARD WITH 'FREE' PLAN
[SOURCE: InfoWorld, AUTHOR: Nancy Gohring]
Last week, Reps Anna Eshoo (D-CA) and Ed Markey (D-MA) wrote Federal Communications Commission Chairman Kevin Martin saying, "We are concerned that incumbent wireless carriers are seeking unnecessary and unprecedented testing delays to prevent new innovative competitors from entering the market." At issue is a proposal from Chairman Martin to auction a 25MHz piece of spectrum in the 2155MHz band and require the winner to use a specified amount of spectrum for free wireless Internet access. Although the FCC first floated the idea last September, mobile operators have asked the commission to delay the vote to give them more time to consider technical issues. Reps Eshoo and Markey pointed out that tests performed by Ofcom, the UK's equivalent of the FCC, that showed no substantial interference from the type of technical plan the FCC is proposing.
http://benton.org/node/16028
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USAGE-BASED BROADBAND BILLING VS "CHANNELS"
[SOURCE: TelephonyOnline, AUTHOR: Kevin Walsh]
[Commentary] The usage-based broadband billing model seem reasonable enough, but it is destined to fail for a number of reasons: 1) Consumers don't understand it, 2) Bills could get really big, 3) ISPs would be changing price without improving service, and 4) even wireless carriers are moving away from the model. The good news is that hidden within the Federal Communications Commission's recent Comcast slap down is a path forward for broadband operators yielding superior traffic management while also enhancing revenue opportunities. The Order clearly opens the door for service providers to promote certain traffic classes in order to obtain the service quality necessary to satisfy consumer expectations. (More at the URL below)
http://benton.org/node/16027
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MODERN-DAY ALASKAN BROADBAND BENEFITS FROM SATELLITE EARTH STATION COMPETITION
[SOURCE: BroadbandCensus.com, AUTHOR: Jennifer Clark]
Today's technologically advanced Alaska is a far cry from Jack London's frontier in The Call of the Wild. Yet while dog-sledding remains a common form of transportation, the image of the disconnected wilderness man is today more myth than reality. In Alaska, facilities-based competition between telecommunications providers may be having a positive impact in boosting the quantity and quality of high-speed Internet access in the most remote and sparsely populated state in the United States.
http://benton.org/node/16018
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DIGITAL CONTENT
SOME WEB FIRMS SAY THEY TRACK BEHAVIOR WITHOUT EXPLICIT CONSENT
[SOURCE: Washington Post, AUTHOR: Ellen Nakashima]
Several Internet and broadband companies have acknowledged using targeted-advertising technology without explicitly informing customers, according to letters released yesterday by the House Commerce Committee. And Google, the leading online advertiser, stated that it has begun using Internet tracking technology that enables it to more precisely follow Web-surfing behavior across affiliated sites. The revelations came in response to a bipartisan inquiry of how more than 30 Internet companies might have gathered data to target customers. Some privacy advocates and lawmakers said the disclosures help build a case for an overarching online-privacy law.
http://benton.org/node/16033
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CRYING FOUL OVER ONLINE FOOD MARKETING
[SOURCE: BusinessWeek, AUTHOR: Catherine Holahan]
Having successfully lobbied the government to place limits on junk food ads on TV, consumer and children's advocacy groups now target marketing to kids via the Web. The worry is that food companies are bombarding kids with ads for non-nutritious foods, fueling the obesity epidemic that, according to the Centers for Disease Control & Prevention, has increased the proportion of overweight kids under age 12 fivefold in the last generation and left almost 19% of kids between 6 and 11 overweight. A new report, commissioned by the Berkeley Media Studies Group, part of the Public Health Institute in Berkeley, Calif., focuses on methods of advertising food to kids that have become particularly popular during the past two years, such as spreading messages through social networks, and urges lawmakers to restrict junk food advertising to kids online. It will be presented to members of Congress and has been shown to officials at the European Union.
http://benton.org/node/16032
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DIGITAL CROSSROADS: PAINFUL AS SLANDER MAY BE, DON'T TURN SERVICE PROVIDERS INTO SPEECH POLICE
[SOURCE: San Jose Mercury News, AUTHOR: Larry Magid]
[Commentary] Although the Supreme Court struck down most of the Communications Decency Act of 1996, the Court let stand Section 230, which immunizes Internet service providers from being held liable for what their members post by stating that "no provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider." The section is analogous to holding phone companies harmless for obscene phone calls made by their customers or shielding the post office from liability for illicit material sent through the mail. But Section 230 has also been used to protect social-networking companies and other Web sites with user-generated content whose business plans weren't even on the drawing board when the law was written back in the mid-'90s.
http://benton.org/node/16030
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OWNERSHIP
LEAP ASKS FCC TO BAN VERIZON-ALLTEL PURCHASE
[SOURCE: Reuters, AUTHOR: Sinead Carew]
Leap Wireless has asked the Federal Communications Commission to refuse permission for the Verizon Wireless' $28.1 billion plan to buy Alltel and become the No. 1 U.S. mobile service. Leap said risks include less competition and difficulties creating roaming agreements that allow customers of one carrier to use another's services when traveling outside their home network coverage area. Leap has roaming pacts with both Verizon Wireless and Alltel, the leading rural U.S. mobile provider for certain parts of the country. But Laurie Itkin, Leap's government affairs director, said unless the FCC sets rules requiring nationwide roaming agreements, a Verizon and Alltel deal could leave Leap users without service in some places.
http://benton.org/node/16023
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DIRECTV-DISH MERGER STILL 'PROBLEMATIC'
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
Liberty Media Chairman John Malone said Monday that although a DirecTV-Dish Network merger would be "very synergistic," it would still face problems winning regulatory approval. Liberty CEO Greg Maffei said that regulatory approval of Sirius Satellite Radio and XM Satellite Radio Holdings would not make a DirecTV-Dish Network merger any more likely to pass muster in Washington.
http://benton.org/node/16022
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MALONE EYES SWAP FOR AOL DIAL-UP ARM
[SOURCE: Financial Times, AUTHOR: Andrew Edgecliffe-Johnson]
Liberty Media is considering swapping its shareholding in Time Warner for the dial-up business of AOL, John Malone said on Monday, raising the unexpected prospect of a competitive auction for the declining Internet access operation. Malone, whose group encompasses wholly owned businesses such as the QVC home shopping channel and stakes in DirecTV, Expedia and Sprint Nextel, said swapping the Time Warner holding for a cash-generating asset would be "attractive". Liberty Media's 103m-shareholding in Time Warner was valued at $1.64bn last night, slightly above analysts' $1.5bn valuation of AOL's access business.
http://benton.org/node/16031
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BROADCASTING/CABLE
CONSUMERS AWARE OF DTV, BUT SLOW TO ACT
[SOURCE: tvnewsday, AUTHOR: ]
Consumer awareness of the digital television transition is at an all time high, but many over-the-air households are slow to take the steps necessary to continue to view television when analog signals cease, according to the latest digital transition awareness survey from the Association of Public Television Stations (APTS). As of May 2008, 62 percent of over-the-air households said they would opt to buy a converter box or digital television, compared to 28 percent in November 2006. But, the APTS study found that the majority of the 8.8 million over-the-air households who said they would buy a set-top converter box to continue to receive free over-the-air television have not done so.
http://benton.org/node/16021
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CABLEVISION NETWORK DVR RULING HAS WEB RADIO IMPACT
[SOURCE: Multichannel News, AUTHOR: Kent Gibbons]
The Copyright Office has extended the time period for comments in a rulemaking about Internet radio royalty fees after a federal appeals court ruling backed Cablevision's right to deploy a network-based digital video recording system. The agency, part of the Library of Congress, ruled in July that music publishers could collect royalties for the transmission of sound recordings over the Internet. Comments on that ruling were supposed to be submitted by Aug. 15, with reply comments due by Sept. 2. Royalty payments could have a big impact on free Internet music services such as Pandora or Last.fm. But the ruling in the Cablevision case which reversed an earlier ruling by a federal court that was cited by the Copyright Office in its notice of proposed rulemaking on July 16 prompted commenters to request more time. So the Copyright Office has pushed the comment period back to Aug. 28 and the reply date to Sept. 15.
http://benton.org/node/16020
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WHITE SPACES TESTS GETS MIXED RESULTS
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
Field tests to determine whether the Federal Communications Commission should open up unused TV spectrum for wireless broadband services are getting mixed reviews as different methods for avoiding spectrum interference are being tested in the real world. In the most recently concluded tests, Motorola claims its geolocation-based technology got high marks for avoiding interference with existing spectrum holders, while a field test of spectrum sensing technology at a major sporting venue proved that that technology is not up to snuff in avoiding interference with broadcast-based microphones. The FCC has been conducting these real world tests of different prototype devices to see if companies can develop products that use buffer spectrum between licensed broadcast channels. This spectrum known has "white space" sits between broadcast TV channels in the 150 MHz to 700 MHs spectrum bands.
http://benton.org/node/16019
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AT&T APPEALS CONNECTICUT COURT'S U-VERSE DEFINITION
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
AT&T is appealing a Connecticut federal court ruling that creates a precedent in law that defines its U-verse service as a cable product. The company wants the higher court to reverse the rulings of Judge Janet Bond Arterton, who has been adjudicating a dispute between the company and the state's Department of Public Utility Control against the state's cable operators and the Connecticut Office of Consumer Counsel.
http://benton.org/node/16015
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QUICKLY
SERVICE PROVIDERS' PRODUCT STRATEGIES HAVE LEFT THE HOME WORKER MARKET SEGMENT UNTAPPED
[SOURCE: Forrester, AUTHOR: Sally Cohen]
Driven by economic changes like the rising cost of gas, social trends like work-life balance, and the proliferation of collaboration technologies, consumers are changing the way that they work. Rather than commuting to a central office every day, 9% of consumers telecommute from home for an external employer, and 22.8 million run a business out of their home. When it comes to their telecommunications services, these home workers have distinct needs that are a combination of their personal and work activities. Yet telcos, cablecos, and ISPs have not focused on this attractive segment of "prosumer" home workers and thus have not yet capitalized on their unique market value. To do so going forward, providers need a designated prosumer product strategist who can mix product offerings, feature sets, and marketing messaging from the consumer and business worlds.
http://benton.org/node/16016
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DELIVERING AID IN DIGITAL WORLD
[SOURCE: InfoWorld, AUTHOR: Ken Banks]
[Commentary] With mobile banking taking off around much of the developing world, how long will it be before international aid is delivered electronically? Sound crazy? If you think so, you might be surprised to hear that it's already started happening.
http://benton.org/node/16017
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