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September 2008

Connolly Named FCC Chief Economist

Federal Communications Commission Chairman Kevin Martin has named Michelle P. Connolly the Chief Economist of the FCC. This is her second term as Chief Economist, having previously served from 2006 to 2007. Dr. Connolly has been a member of the Economics faculty at Duke University since 1997. Prior to joining Duke's Department of Economics in 1997, Dr. Connolly spent a year as an economist at the Federal Reserve Bank in New York. Dr. Connolly is an expert in the fields of International Trade, Growth and Development, and Telecommunications. Her research interests include the impacts of technological progress and diffusion, international trade, and human capital on growth and development. Dr. Connolly's research also focuses on innovation, Intellectual Property Rights, and Media and Telecommunications policy. Dr. Connolly has written extensively on these subjects and has been published in the Journal of Economic Growth, the Journal of Development and Economics, the Journal of Economic History, the American Economic Review, and the Review of Industrial Organization. Dr. Connolly currently serves as the Director of EcoTeach and Associate Professor of the Practice at Duke University. She has taught advanced graduate macroeconomics and international trade, intermediate undergraduate macroeconomics, and an honors research workshop. Dr. Connolly received her B.A. in Economics, with Distinction in the Major, at Yale University. She graduated Summa Cum Laude, was made a member of Phi Beta Kappa and was awarded the William Massee Prize for Excellence in Economics. Dr. Connolly received her M.A. and her Ph.D in Economics also from Yale.

Devices Capable of Supporting Multiple Audio Entertainment Services

On August 25, 2008, the Federal Communications Commission released a Notice of Inquiry on issues pertaining to i) requiring devices capable of receiving Satellite Digital Audio Radio Service ("SDARS") to include digital audio broadcast ("DAB"), or HD Radio, or any other technologies capable of providing audio entertainment services; and ii) requiring devices capable of receiving HD Radio to include SDARS or any other technologies capable of providing audio entertainment services. Comments must be filed on or before November 10, 2008 and reply comments must be filed on or before December 9, 2008. For additional information, contact Rosalee Chiara, Rosalee.Chiara@fcc.gov, or Brendan Murray, Brendan.Murray@fcc.gov, of the Media Bureau, Policy Division, (202) 418-2120. Press inquiries should be directed to Clyde Ensslin, (202) 418-0506. TTY: (202) 418-0432 or (888) 835-5322

McDowell Favors Industry Deal On Quiet Period

Appearing on C-SPAN's The Communicators, Federal Communications Commission member Robert McDowell is urging TV station owners, cable operators and satellite TV providers to reach a private agreement that guarantees carriage of local TV signals during next February's digital TV transition. In other comments, Commissioner McDowell said he expects Comcast to win its broadband network management court case against the FCC. He also voiced his opposition to forcing the cable industry to the break up its programming packages and sell channels on an a la carte basis. "...Because I think it is a market-driven a la carte world, I don't see the need for a government mandate," he said.

Hearing: Corporation for Public Broadcasting Nominees

The Senate Committee on Commerce, Science, and Transportation announces a Full Committee Hearing on Corporation for Public Broadcasting Nominations, scheduled for Wednesday, September 17, 2008, at 10:30 a.m. The Committee will hear testimony from five nominees to the Corporation's Board of Directors. The nominees are: 1) Cheryl Feldman Halpern, 2) David H. Pryor, 3) Bruce M. Ramer, 4) Elizabeth Sembler, 5) Loretta Cheryl Sutliff.

Verizon Submits Plan to Reform Intercarrier Compensation System

On September 12, Verizon filed a proposal with the Federal Communications Commission to reform the intercarrier compensation system. Verizon's filing outlines a "straightforward and workable" plan to "sustain rural network infrastructure and other communications networks that consumers depend on, while encouraging investment in new, innovative services (including broadband) nationwide." Verizon designed the plan with a special focus on ensuring the viability of rural telecommunications infrastructures by providing carriers with a predictable and reliable source of support to replace the current unstable access charge regime.

Cable Building A More Diverse Workforce

The cable industry has long strived for diversity, inclusion and multiculturalism in the workplace. But executives agree that over the last year and a half -- as the nation followed a historic presidential primary race between an African-American and a woman -- operators and networks have ramped up their recruitment and career-building efforts.

Benton Editorial

Why Broadband Matters

Charles Benton

The Senate Commerce Committee meets September 16 to hear testimony on the consumer benefits of broadband service. The question of the day is ? I could offer a long list of reasons why broadband matters, but the list of reasons is too long to enumerate here because it is over 305 million names long.

Luckily, the Senate's hearing focuses on people rather than pipes.

Broadband matters for every American. Broadband matters...

Sept 12, 2008 (IP Act passes Senate Committee)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, SEPTEMBER 12, 2008

Lots happening next week. See upcoming media policy events at http://benton.org/calendar

CONTENT
   Senate Judiciary Committee Passes IP Act
   SEC Opens Early Inquiry Into UAL Glitch
   More Bosses Using Social Media Profiles To Evaluate Potential Hires
   YouTube Bans Videos That Incite Violence

ELECTIONS & MEDIA
   Beating the press
   New election low: distorting the fact-checking
   Coleman's two-second mistake could cost millions
   GOP Petition Drive Urges Oprah to Reconsider Palin Interview
   CBS Tells YouTube to Pull McCain Ad

INTERNET/BROADBAND
   Maryland Continues on Long Haul Towards Universal Broadband
   Broadband access comes under fire

WIRELESS
   Rural carriers vow to continue USF fight
   Panel: Mobile payments misunderstood in US
   Judge Limits Searches Using Cellphone Data

GOVERNMENT & COMMUNICATIONS
   UN agency eyes curbs on Internet anonymity
   India Set to Lose Voice of America
   Would-Be Protesters Find the Olympics Failed to Expand Free Speech in Beijing

QUICKLY -- FCC road show to help keep TVs from going dark; News Junkies Tune In All Media

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CONTENT

SENATE JUDICIARY COMMITTEE PASSES IP ACT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Senate Judiciary Committee passed its version of a bill to boost protections for intellectual property. The Enforcement of Intellectual Property Rights Act, introduced in July, has the backing of Patrick Leahy (D-VT.) and Arlen Specter (R-Pa.), the committee's chairman and ranking member, respectively. It would create a post in the White House to coordinate enforcement of IP laws by various government agencies; would require coordinating with Congress to develop a strategic play to combat IP theft; and would boost resources for IP enforcement, all similar to provisions in the House PRO-IP bill, which passed by a wide margin in May. It would also give the Justice Department the power to bring civil cases against suspected copyright infringers. Currently, it can only pursue criminal prosecutions and must rely on aggrieved copyright owners to file civil suits.
http://benton.org/node/16795
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SEC OPENS EARLY INQUIRY INTO UAL GLITCH
[SOURCE: Wall Street Journal, AUTHOR: Kara Scannell]
The Securities and Exchange Commission opened a preliminary inquiry into the circumstances around UAL Corp.'s stock drop, according to people familiar with the matter. The inquiry is in early stages and may not result in a full investigation, one person familiar with the matter said. The SEC is looking at whether there was any improper behavior behind the release Monday of a 2002 Tribune Co. news story about UAL's bankruptcy filing, which was picked up by Google Inc.'s automated news service. After the old story resurfaced, UAL's stock fell from $12.50 to $3 in 15 minutes before trading was halted. The preliminary inquiry comes as the agency has stepped up its efforts to combat the spreading of false rumors across the market.
http://benton.org/node/16794
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MORE BOSSES USING SOCIAL MEDIA PROFILES TO EVALUATE POTENTIAL HIRES
[SOURCE: OnlineMediaDaily, AUTHOR: Tameka Kee]
The thin line between personal and professional social networking just got thinner, as the use of sites like LinkedIn and Facebook to get the inside scoop on job candidates is on the rise. A new CareerBuilder.com survey found that 22% of all hiring managers have combed through social media profiles to help evaluate potential hires, up from just 11% two years ago. HR execs from media and creative agencies like MediaVest and AKQA weighed in on the practice, identifying LinkedIn as their site of choice for new hire research.
http://benton.org/node/16786
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YOUTUBE BANS VIDEOS THAT INCITE VIOLENCE
[SOURCE: Washington Post, AUTHOR: Peter Whoriskey]
The video-sharing service YouTube is banning submissions that involve "inciting others to violence," following criticism from Sen Joseph Lieberman (I-CT) that the site was too open to terrorist groups disseminating militant propaganda. The company earlier this year removed some of the videos that Lieberman targeted, many of which were marked with the logos of al-Qaeda and affiliated groups. But the company refused to take down most of the videos on the senator's list, saying they did not violate the Web site's guidelines against graphic violence or hate speech. Now that videos inciting others to violence are banned, more videos by the terrorist groups in question may be removed.
http://benton.org/node/16799
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ELECTIONS & MEDIA

BEATING THE PRESS
[SOURCE: Boston Phoenix, AUTHOR: Adam Reilly]
[Commentary] The Republican National Convention featured Sen John McCain's formal, foolhardy declaration of war on the press — the same press, by the way, that made him a political superstar. Now the press seems inclined to fire back. And if this dynamic continues over the next two months — and the election is as close as everyone expects it to be — it could be the factor that makes Sen Barack Obama president. Why did McCain decide to pick a fight with the press? The obvious answer is Sarah Palin, McCain's out-of-nowhere pick for V-P. When the press dug into Palin, they would play the victim card, and play it hard. In the process, they'd boost attempts to woo disgruntled Hillary Clinton supporters who think their candidate got a raw deal — from Obama, from Democrats, and especially from the press. They'd also have an excuse to keep Palin away from tough questioning, possibly for the duration of the campaign.
http://benton.org/node/16793
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NEW ELECTION LOW: DISTORTING THE FACT-CHECKING
[SOURCE: Los Angeles Times, AUTHOR: James Rainey]
[Commentary] FactCheck.org -- one of the nonpartisan journalism websites heroically trying to strain truth amid all the sound and fury -- has chastised John McCain's campaign for -- now get this -- distorting FactCheck's debunking of distortions. News organizations and these admirable truth-squadding outfits, including PolitiFact.com, do not collaborate. But in independent news reports and commentaries this week, they seemed to reach a consensus to say "enough" to the McCain camp's efforts to demonize Barack Obama. McCain and his foot soldiers have really fouled the election airwaves in recent days, provoking the first flickerings of a backlash from the media.
http://benton.org/node/16804
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COLEMAN'S TWO-SECOND MISTAKE COULD COST MILLIONS
[SOURCE: Politico.com, AUTHOR: Glenn Thrush]
Sen Norm Coleman (R-MN) recently produced an ad featuring former Minnesota Lt. Gov. Sandy Keith attacking Al Franken (D-MN). To receive the "lowest unit charge" ­ which can sometimes be half of typical rates -- Sen Coleman must include a disclaimer saying he approved the message. He also needs to broadcast his own likeness for a minimum of four seconds. He got the first part right -- and got the second part half-right. "Though the written disclaimer does appear for four seconds, Coleman's image only appears for the last two seconds of the advertisement," wrote Franken's counsel Marc Elias of Perkins Coie, in a letter to 11 Minnesota station managers. It's a loser-pays-all kind of law, according to Elias: If a campaign violates the rule once, it loses the discount for the "duration of the current election cycle." If the rule were to be vigorously enforced in this case, it could cost Sen Coleman millions. But the law has never been seriously enforced ­ and the decision on the rate charge has often been left up to the discretion of individual stations.
http://benton.org/node/16792
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GOP PETITION DRIVE URGES OPRAH TO RECONSIDER PALIN INTERVIEW
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
Some Republicans are launching a petition drive for the election campaign. The target? It asks Oprah Winfrey to interview GOP vice president candidate Gov Sarah Palin (Alaska) on her syndicated talk show before the election. The petition's Web site, www.palinpetition.com, says it's backed by a group called the Political Fish, and registered to Joshua Bolin of Augusta (GA). The petition followed reports that Ms. Winfrey, after deciding to personally support Sen. Barack Obama decided not to involve her TV show in the presidential campaign. In a statement last week, Ms. Winfrey said she would love to interview Ms. Palin, the governor of Alaska, and predicted it would be a "fantastic interview," but said it could only take place after the election.
http://benton.org/node/16791
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CBS TELLS YOUTUBE TO PULL MCCAIN AD
[SOURCE: AdAge, AUTHOR: Ira Teinowitz]
A John McCain campaign web ad that used a clip of CBS News anchor Katie Couric to chastise Democratic candidate Barack Obama has been pulled by YouTube, because of CBS's copyright complaints.
http://benton.org/node/16790
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INTERNET/BROADBAND

MARYLAND CONTINUES ON LONG HAUL TOWARDS UNIVERSAL BROADBAND
[SOURCE: BroadbandCensus.com, AUTHOR: Drew Bennett]
Being a first-mover is a blessing and a curse. When it comes to state-led broadband initiatives, Maryland has been an early innovator at confronting the long road towards state-wide universal broadband access. Among the most recent accomplishments for the state was, two months ago, Gov. Martin O'Malley's approval of a license allowing the Maryland Broadband Cooperative to begin installing broadband fiber up the eastern shore of Maryland and across the Chesapeake Bay Bridge. It's another milestone in a road that is now over a decade long.
http://benton.org/node/16789
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BROADBAND ACCESS COMES UNDER FIRE
[SOURCE: Financial Times, AUTHOR: Rob Minto]
The quality of broadband Internet access in some European countries, including the UK, Italy and Spain, is inadequate for running current web applications, a study has shown. In a worldwide survey by Oxford University and Cisco, the high-speed Internet access of some developed economies of western Europe, as well as Canada and Australia, was outperformed by Russia and several emerging economies of eastern Europe. The survey looked at the speed of access as well as network delays and loss of data for broadband users in May across 42 countries, ignoring the penetration of broadband. Of the so-called Brics [Brazil, Russia, India and China] countries only Russia performed well, with China and India ranked at the bottom of the survey.
http://benton.org/node/16801
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WIRELESS

RURAL CARRIERS VOW TO CONTINUE USF FIGHT
[SOURCE: RCR Wireless News, AUTHOR: Jeffrey Silva]
Rural wireless carriers put the Federal Communications Commission on notice they intend later this month to ask as a federal appeals court to stay a decision capping government subsidies primarily benefiting rural wireless deployment if the agency does not grant a pending motion to put the ruling on hold. The latest FCC filing by small cellular entities follows on the heels of a legal challenge they recently filed at the U.S. Court of Appeals for the District of Columbia Circuit. The litigation is being pursued by the Rural Cellular Association, Cellular South Licenses Inc., N.E. Colorado Cellular Inc., the Cellcom Companies, Smith Bagley Inc., Carolina West Wireless Inc., Bluegrass Cellular Inc., MTPCS L.L.C. and Leaco Rural Telephone Cooperative. The group told the FCC it would ask the court to stay the universal service wireless cap decision if the agency does not do so itself by Sept. 22. Hundreds of millions of dollars are at stake for the cellphone industry, which has leveraged high-cost universal-service funds to help bankroll the cost of wireless construction in rural areas.
http://benton.org/node/16803
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PANEL: MOBILE PAYMENTS MISUNDERSTOOD IN US
[SOURCE: C-Net|News.com, AUTHOR: Robert Vamosi]
The media are responsible, in part, for the lack of greater adoption of mobile payment systems in the United States, a panel of payment leaders said here Thursday at the fall 2008 CTIA. "I think the media, because they don't understand the technology, and consumers, because they don't understand the technology, have created a hysteria around this," said Barry McCarthy, president of Mobile Solutions for First Data.
http://benton.org/node/16788
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JUDGE LIMITS SEARCHES USING CELLPHONE DATA
[SOURCE: Washington Post, AUTHOR: Ellen Nakashima]
The government must obtain a warrant based on probable cause of criminal activity before directing a wireless provider to turn over records that show where customers used their cellphones, a federal judge ruled Wednesday, in the first opinion by a federal district court on the issue. Judge Terrence F. McVerry of the Western District of Pennsylvania rejected the government's argument that historical cellphone tower location data did not require probable cause. The ruling could begin to establish the standard for such requests, which industry lawyers say are routine as more people carry cellphones that reveal their locations. Around the country, magistrate judges, who handle matters such as search warrants, have expressed concern about the lack of guidance.
http://benton.org/node/16802
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GOVERNMENT & COMMUNICATIONS

UN AGENCY EYES CURBS ON INTERNET ANONYMITY
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
A United Nations agency is quietly drafting technical standards, proposed by the Chinese government, to define methods of tracing the original source of Internet communications and potentially curbing the ability of users to remain anonymous. The U.S. National Security Agency is also participating in the "IP Traceback" drafting group, named Q6/17, which is meeting next week in Geneva to work on the traceback proposal. Members of Q6/17 have declined to release key documents, and meetings are closed to the public. The potential for eroding Internet users' right to remain anonymous, which is protected by law in the United States and recognized in international law by groups such as the Council of Europe, has alarmed some technologists and privacy advocates. Also affected may be services such as the Tor anonymizing network.
http://benton.org/node/16797
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INDIA SET TO LOSE VOICE OF AMERICA
[SOURCE: Washington Post, AUTHOR: Rama Lakshmi]
At the height of the Cold War, as India leaned resolutely toward the Soviet Union, one direct line of communication remained open from Washington to India's teeming millions: Voice of America, the US government's radio network. But in a move that reflects shifts in US foreign policy after the Cold War and the terrorist attacks of Sept 11, 2001, the U.S. Broadcasting Board of Governors has decided that VOA's seven-hour Hindi-language radio service will end this month, after 53 years. VOA will also eliminate radio broadcasts in three Eastern European languages. Radio broadcasts in Russian went off the air in July.
http://benton.org/node/16800
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WOULD-BE PROTESTERS FIND THE OLYMPICS FAILED TO EXPAND FREE SPEECH IN BEIJING
[SOURCE: New York Times, AUTHOR: Edward Wong]
When it comes to freedom of protest, the Olympics changed little in the Chinese capital. The Chinese government still requires citizens to register to protest, and it has yet to grant any permits for people to hold lawful protests in three designated parks in Beijing.
http://benton.org/node/16796
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QUICKLY

FCC ROAD SHOW TO HELP KEEP TVs FROM GOING DARK
[SOURCE: San Francisco Chronicle, AUTHOR: Ryan Kim]
With just about five months left before analog televisions must make the transition to digital, the Federal Communications Commission is dispatching members throughout the country to personally get the word out before TV viewers are left in the dark. FCC Commissioner Jonathan Adelstein swung through the Bay Area Wednesday and Thursday to speak at a handful of community meetings aimed at reaching at-risk communities. Commissioner Adelstein said the road show, in which the five commissioners will visit more than 80 cities, is a recognition that the commission is behind in alerting TV viewers about the transition.
http://benton.org/node/16798
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NEWS JUNKIES TUNE IN ALL MEDIA
[SOURCE: Center for Media Research, AUTHOR: Jack Loechner]
According to the 2008 biennial news consumption survey by the Pew Research Center for the People & the Press, audiences for most traditional news sources have steadily declined, as the number of people getting news online has surged. However, today it is not a choice between traditional sources and the Internet for the core elements of today's news audiences, notes the report, since a sizable minority of Americans find themselves at the intersection of these two long-standing trends in news consumption. The study finds four distinct segments in today's news audience: Integrators, who comprise 23% of the public; Net-Newsers (13%); Traditionalists, the oldest (median age: 52) and largest news segment (46% of the public); Disengaged (14%) who stand out for their low levels of interest in the news and news consumption.
http://benton.org/node/16787
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... and we're outta here. Our best to Texans; take a hike, Ike.

New election low: distorting the fact-checking

[Commentary] FactCheck.org -- one of the nonpartisan journalism websites heroically trying to strain truth amid all the sound and fury -- has chastised John McCain's campaign for -- now get this -- distorting FactCheck's debunking of distortions. News organizations and these admirable truth-squadding outfits, including PolitiFact.com, do not collaborate. But in independent news reports and commentaries this week, they seemed to reach a consensus to say "enough" to the McCain camp's efforts to demonize Barack Obama. McCain and his foot soldiers have really fouled the election airwaves in recent days, provoking the first flickerings of a backlash from the media.

Rural carriers vow to continue USF fight

Rural wireless carriers put the Federal Communications Commission on notice they intend later this month to ask as a federal appeals court to stay a decision capping government subsidies primarily benefiting rural wireless deployment if the agency does not grant a pending motion to put the ruling on hold. The latest FCC filing by small cellular entities follows on the heels of a legal challenge they recently filed at the U.S. Court of Appeals for the District of Columbia Circuit. The litigation is being pursued by the Rural Cellular Association, Cellular South Licenses Inc., N.E. Colorado Cellular Inc., the Cellcom Companies, Smith Bagley Inc., Carolina West Wireless Inc., Bluegrass Cellular Inc., MTPCS L.L.C. and Leaco Rural Telephone Cooperative. The group told the FCC it would ask the court to stay the universal service wireless cap decision if the agency does not do so itself by Sept. 22. Hundreds of millions of dollars are at stake for the cellphone industry, which has leveraged high-cost universal-service funds to help bankroll the cost of wireless construction in rural areas.

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