December 2008

"Barack Obama's use of the Internet to communicate with the American public and the world will have a larger impact on the political media ecology than the declaration that the world was round had on the shipping industry in 1492."
-- Andrew Rasiej, techPresident.com http://benton.org/node/19367

BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY DECEMBER 1, 2008

Three media policy events of note this week: 1) Public Diplomacy 2.0, 2) A National Broadband Strategy Call to Action, and 3) The Impact of Media on Child and Adolescent Health. See http://www.benton.org/calendar

GOVERNMENT & COMMUNICATIONS
   One Man's Military-Industrial-Media Complex
   World Falls for American Media, Even as It Sours on America

THE TRANSITION
   FCC Chairman's Seat Up for Grabs
   Obama Focusing on DTV Transition
   TV Casting May Feel an Obama Effect
   The opportunity: New political regime should focus on telecom policies
   How will Obama use new media?

TELECOM/INTERNET
   FCC's December Agenda includes Free Web Plan Pushed by Martin
   Prohibition vs. Regulation Debated As U.S. Bettors Use Foreign Sites
   FCC Inspector General's Report on High Cost Fund
   Improving Public Safety Communications Nationwide
   ITU advocates infrastructure sharing to counter investment drought
   Who's been reading my cell phone records?
   Sprint, Clearwire Close Deal Forming WiMax Venture
   Mobile phones distract drivers more than passengers
   With vintage satellites still in orbit, sales are grounded

BROADCASTING
   FCC Adopts New Closed Captioning Rules
   FCC Grants Alabama Station 2nd DTV Signal
   Redstone Sells Control of Midway to Ease Debt

JOURNALISM
   Attack Coverage Tests India's Journalists
   A Generation of Local TV Anchors Is Signing Off
   State of the Blogosphere 2008
   CNN Pitches a Cheaper Wire Service to Newspapers

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GOVERNMENT & COMMUNICATIONS

ONE MAN'S MILITARY-INDUSTRIAL-MEDIA COMPLEX
[SOURCE: New York Times, AUTHOR: David Barstow]
Through seven years of war an exclusive club has quietly flourished at the intersection of network news and wartime commerce. Its members, mostly retired generals, have had a foot in both camps as influential network military analysts and defense industry rainmakers. It is a deeply opaque world, a place of privileged access to senior government officials, where war commentary can fit hand in glove with undisclosed commercial interests and network executives are sometimes oblivious to possible conflicts of interest. Few illustrate the submerged complexities of this world better than Barry McCaffrey. His influence is such that President Bush and Congressional leaders from both parties have invited him for war consultations. His access is such that, despite a contentious relationship with former Defense Secretary Donald H. Rumsfeld, the Pentagon has arranged numerous trips to Iraq, Afghanistan and other hotspots solely for his benefit. At the same time, General McCaffrey has immersed himself in businesses that have grown with the fight against terrorism.
http://benton.org/node/19391
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WORLD FALLS FOR AMERICAN MEDIA, EVEN AS IT SOURS ON AMERICA
[SOURCE: New York Times, AUTHOR: Tim Arango]
Shortly after the attacks on 9/11, a delegation of high-level media executives, including the heads of every major studio, met several times with White House officials, including at least once with President Bush's former top strategist, Karl Rove, to discuss ways that the entertainment industry could play a part in improving the image of the United States overseas. One of the central ideas was using "soft power" by spreading American television and movies to foreign audiences, especially in the Muslim world, to help sway public opinion. There were few tangible results from the meetings — lesser ways of supporting the war on terrorism like public service announcements and packages of free DVDs sent to American soldiers. But since then, the media companies have gotten what they wanted, even if the White House has not. In the last eight years, American pop culture, already popular, has boomed around the globe while opinions of America itself have soured.
http://benton.org/node/19390
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THE TRANSITION

FCC CHAIRMAN'S SEAT UP FOR GRABS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Who will be the next chairman of the Federal Communications Commission? Whoever gets the seat, look for that person to put a premium on Internet access, broadband rollout and no more loosening of media ownership rules. However the chairmanship shakes out long-term, it will take a while for an Obama FCC to take shape. Deborah Taylor Tate must exit before Jan. 3, which would leave the commission at 2-2. When Chairman Martin exits, it will likely leave a 2-1 commission for a short time. The Obama administration has a lot of people to move in, and the FCC is "pretty far down the line," says someone intimately familiar with both ends of the vetting and post-filling process. "It could be four to six months."
http://benton.org/node/19388
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OBAMA FOCUSING ON DTV TRANSITION
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
The Obama transition team is interviewing broadcast and consumer groups to get a handle on what kind of challenge it faces with the digital television switch, which takes place less than a month after he becomes president. Gene Kimmelman, VP and director of the Washington office of Consumers Union, said he's hopeful the change of administration will aid the digital switchover. "I think it should actually help," he said. "I am most concerned that [the Department of Commerce's National Telecommunications and Information Administration] isn't doing enough to make this as simple as possible to get the most low-cost converters out to consumers who need them. Hopefully the new players preparing to come into the Commerce Department will be more open to anticipate consumers' needs." "I think the most important thing is to continue to report on the transition to keep it in front of the new administration," said Mark Lloyd, VP of strategic initiatives for the Leadership Conference on Civil Rights. The group is worried that some people could lose their TV service in the transition.
http://benton.org/node/19387
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TV CASTING MAY FEEL AN OBAMA EFFECT
[SOURCE: New York Times, AUTHOR: Bill Carter]
It may say something about the state of American television that there is one more black president-elect of the United States than there are black actors with individual lead roles in a network television drama. But after years of ensemble dramas sprinkled with nonwhite supporting actors, the excitement surrounding the election of Barack Obama could help to open doors for more minorities in leading dramatic roles, executives from television production studios said. The evidence seems to indicate that race neutrality has not produced a surge of black lead performers, at least in network dramas. While comedies with black characters have been something of a network staple historically, blacks in lead television drama roles have been rare. Tim Reid, who was the star and an executive producer of the Emmy-winning comedy series "Frank's Place" for CBS in the 1987-88 season has been outspoken about the continued limited opportunities for minorities in television. "If the president-elect should have any positive influence over the so-called liberal base of Hollywood, it will be by focusing their attention on the reality of the kind of multicultural world we actually live in," Mr. Reid said. "This doesn't just mean putting another person of color in front of the camera, but giving them an equal opportunity in having a say-so in what is created for the camera." "In my opinion," he continued, "we're far more likely to have a black president in my lifetime ... oh, yeah ... I can stop saying that now."
http://benton.org/node/19386
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THE OPPORTUNITY: NEW POLITICAL REGIME SHOULD FOCUS ON TELECOM POLICIES
[SOURCE: RCR Wireless News, AUTHOR: Jeffrey Silva]
[Commentary] In the same way national security became the common denominator of public policy in the Bush administration following the Sept. 11, 2001, terrorist attacks, economic growth is apt to be the common thread running though the Obama White House, the Democratic-led Congress and a new-look Federal Communications Commission in coming years. During the 1990s, when the Clinton-Gore administration held sway, spectrum auctions became a politically painless way to raise billions of dollars for the U.S. Treasury and generate economic activity through unprecedented wireless buildout. Auctions are not supposed to be just about money, but they mostly are. There will be less spectrum for bidding in the Obama administration, though perhaps it could be persuaded to again tap into the federal government's inventory of radio frequencies for transfer to the private sector. How about spectrum fees, an idea routinely shot down with little fanfare in one presidential budget after another? Policymakers in the new political regime should focus on telecom policies that spur innovation, create new wealth, promote vibrant competition and, perhaps most importantly, embrace an interdisciplinary approach that views information technology (wireless and broadband, in particular) not as an end in itself but as a means to lift all ships — public safety, business, health care, education, energy independence, government transparency and so on. It is an opportunity waiting to be seized.
http://benton.org/node/19366
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HOW WILL OBAMA USE NEW MEDIA?
[SOURCE: Politico.com, AUTHOR: Carol Lee]
Obama transition spokeswoman Jen Psaki promised "one of the most open and transparent press offices in White House history." "Americans now get information in a broad variety of ways, and so we are expanding the ways we reach them," Psaki said. In an early indication of the transition team's electronic savvy and drive to move beyond the traditional means of communication, President-elect Obama delivered electronic messages last week to a Global Climate Summit hosted by California Governor Arnold Schwarzenegger and to a special Olympic committee in Europe that is selecting the site for the 2016 summer games. Both messages resonated long and loud in the Internet's echo chamber. If Obama successfully exploits his use of new media, he could strengthen his political hand and make himself more the master of his own destiny, similar to the techniques Ronald Reagan used to build public support for his agenda in the 1980s. Reagan gained notoriety as the Great Communicator for using television to plead his case directly to the people, often circumventing Congress and the press.
http://benton.org/node/19365
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TELECOM/INTERNET

FCC'S DECEMBER AGENDA INCLUDES FREE WEB PLAN PUSHED BY MARTIN
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz]
Federal Communications Commission Chairman Kevin Martin is pushing for action in December on a plan to offer free, pornography-free wireless Internet service to all Americans, despite objections from the wireless industry and some consumer groups. At its December meeting, the FCC could also consider new rules designed to speed up consideration of disputes between independent cable programmers and cable providers such as Time Warner Cable and Comcast, which either refuse to carry some channels or put them on specialty tiers of service that cost subscribers more. The agency also will ask for more feedback on its proposal to require programmers to sell their channels to cable operators individually instead of in bundles. The free Internet plan is the most controversial issue the agency will tackle in December. Chairman Martin shelved plans to consider a wider variety of sticky issues pending at the agency, including a request by the Hollywood studios to hobble TVs and set-top boxes so studios can offer copy-protected theatrical releases sooner.
http://benton.org/node/19385
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PROHIBITION VS REGULATION DEBATED AS US BETTORS USE FOREIGN SITES
[SOURCE: Washington Post, AUTHOR: Gilbert Gaul]
Even as bettors around the world gamble millions of dollars online, confusion reigns about the legal status of those bets and the companies that handle them. Critics of online gambling see the industry as murky and unregulated. "It's an underworld wrought with scams and schemes," said Kentucky Gov. Steve Beshear (D), spearheading a state effort to block online bets. But to some legal scholars and Internet gambling proponents, the government's efforts highlight a widening disconnect between 21st-century technology and the 20th-century laws used to protect Americans from gambling. "Congress shouldn't be trying to make criminals out of people who have taken the game from the kitchen table to the computer table," said John Pappas, executive director of the Poker Players Alliance, a Washington lobbying group claiming just under 1 million members.
http://benton.org/node/19381
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FCC INSPECTOR GENERAL'S REPORT ON HIGH COST FUND
[SOURCE: Federal Communications Commission]
The Federal Communications Commission's Office of Inspector General concludes that the FCC's High Cost Program is "a risk" because the erroneous payment rate for the program is 23.3%. The IG's initial analysis of the second round of audits of the Universal Service Fund estimates that phone companies have been overpaid more than $970 million in subsidies to provide coverage in rural areas. An "erroneous payment" is defined by the Office of Management and Budget to be "any payment that should not have been made or that was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements." The OIG said the errors were not necessarily the result of fraud or corruption and may not be recoverable. Inadequate documentation and auditing processes, accounted for about half of the improper payments, while other reasons included weak internal controls, disregard of FCC rules, and inadequate monitoring or reporting systems. OIG found very few errors involved carriers being denied what they were owed, with overpayments amounting to 98.2% of all improper payments.
http://benton.org/node/19359
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IMPROVING PUBLIC SAFETY COMMUNICATIONS NATIONWIDE
[SOURCE: National Telecommunications and Information Administration]
The Department of Commerce's National Telecommunications and Information Administration and the Department of Homeland Security's Federal Emergency Management Agency released a joint report that analyzes proposed projects for the nearly $1 billion Public Safety Interoperable Communications (PSIC) Grant Program. In September 2007, grants were awarded to help state and local first responders improve public safety communications and coordination during natural and man-made disasters. Some of the report's key findings include: 1) More than $811 million of PSIC funds will be invested by state and local agencies in the acquisition and deployment of equipment to increase emergency communications interoperability; 2) Forty-seven states and territories will allocate portions of their PSIC funds for equipment reserves that are pre-positioned, deployable and able to re-establish communications. Together with pre-existing assets, PSIC will provide a nationwide capability to address infrastructure gaps as identified in the National Emergency Communications Plan; 3) PSIC was the first grant program to require states and territories to align their investments to a DHS-approved Statewide Communication Interoperability Plan (SCIP). This strategic alignment will ensure that investments are not only coordinated across multiple jurisdictions and disciplines, but also across multiple federal and state funding sources; and 4) The PSIC program requires grantees to provide non-federal, matching funds for acquisition, deployment and administrative costs. Jurisdictions have proposed more than $256 million in matching funds, which contributes to more than $1.2 billion in interoperable communications improvements when combined with federal PSIC grant funds.
http://benton.org/node/19358
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ITU ADVOCATES INFRASTRUCTURE SHARING TO COUNTER INVESTMENT DROUGHT
[SOURCE: International Telecommunication Union, AUTHOR: ]
The International Telecommunication Union has published its annual report detailing a set of regulatory strategies designed to lower the costs of network rollout. Sharing strategies, examined in the new ITU report, are seen as conducive for infrastructure development in the telecommunications/ICT sector, particularly in light of the deepening global financial crisis. Sharing strategies include the sharing of civil engineering costs in deploying networks, promoting open access to network support infrastructure (poles, ducts, conduits), essential facilities (submarine cable landing stations and international gateways) as well as access to radio-frequency spectrum and end-user devices.
http://benton.org/node/19362
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WHO'S BEEN READING MY CELL PHONE RECORDS?
[SOURCE: InfoWorld, AUTHOR: Stephen Lawson]
If Verizon Wireless employees could snoop into then-Senator Barack Obama's cell phone records, as the carrier acknowledged last week, then mobile subscribers may worry how well protected they are. They should, according to some industry analysts and privacy lawyers. Information that is saved by mobile operators -- and that might be available to unauthorized or unscrupulous employees -- includes whom you talked to, when you called them or they called you, and for how long you talked, as well as text messages and voicemail, according to Ari Schwartz, vice president and chief operating officer of the Center for Democracy and Technology. The information can also include your locations when you started and ended the call, as determined by cell towers or other techniques, CDT Senior Counsel John Morris said.
http://benton.org/node/19361
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SPRINT, CLEARWIRE CLOSE DEAL FORMING WIMAX VENTURE
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
Clearwire and Sprint Nextel announced Friday that they have completed the transaction to combine their high-speed wireless Internet businesses, a venture that has received backing from Comcast, Time Warner Cable, Bright House Networks, Intel and Google. Sprint will own a 51% interest in the venture; Clearwire will hold 27%; and the investor group will hold a combined 22% of the equity. Clearwire and Sprint have said they expect the WiMax network the new company will build out to reach 60 million to 80 million people by 2009, 140 million by 2010 and 200 million by 2011.
http://benton.org/node/19360
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MOBILE PHONES DISTRACT DRIVERS MORE THAN PASSENGERS
[SOURCE: Reuters, AUTHOR: Maggie Fox]
Mobile phone calls distract drivers far more than even the chattiest passenger, causing drivers to follow too closely and miss exits. Using a hands-free device does not make things better and the researchers believe they know why -- passengers act as a second set of eyes, shutting up or sometimes even helping when they see the driver needs to make a maneuver. The research, published in the Journal of Experimental Psychology: Applied, adds to a growing body of evidence that mobile phones can make driving dangerous.
http://benton.org/node/19382
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WITH VINTAGE SATELLITES STILL IN ORBIT, SALES ARE GROUNDED
[SOURCE: Los Angeles Times, AUTHOR: Peter Pae]
This month, a satellite resembling a shiny spinning drum and orbiting 21,156 miles above Earth celebrated its 41st birthday, astounding engineers and scientists, some of them the children of those who built it. For years, the satellite has served as an emergency communications link for rescue operations, including the 1985 Mexico City earthquake and the 1980 Mt. St. Helens volcanic eruption. It was supposed to live for only three years when it was launched in 1967. But the spacecraft, known as ATS 3, isn't alone. Many satellites are operating well past their life expectancy, so much so that manufacturers are hurting from lack of demand for new, replacement satellites. And those who are buying are asking for guarantees that the new satellites, which can cost as much as $300 million each, will last two to three times as long as the early birds.
http://benton.org/node/19380
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BROADCASTING

FCC ADOPTS NEW CLOSED CAPTIONING RULES
[SOURCE: tvnewsday, AUTHOR: Robert Thompson]
[Commentary] The Federal Communications Commission has adopted new rules requiring broadcast television stations to provide: 1) the name, phone number and e-mail address of a staff person capable of handling "immediate" captioning problems during normal business hours (such as technical issues); and 2) the name, phone number and e-mail address of the staff person "with primary responsibility" for captioning issues generally and for handling complaints. The contact information must be posted on the station's Web site and filed with the chief of the FCC's Disability Rights Office. With the info, the FCC will create a database of TV station contacts on its Web site. Under the new rules, a closed captioning complaint may be filed initially (by e-mail, fax, or letter) within 60 days with either the TV station (or third-party programming creator) or with the FCC. If a complaint is filed with the FCC, the agency will forward it to the TV station. In either case, the station gets just 30 days to respond. If a complaint is filed with a TV station regarding programming over which it does not exercise "editorial control" (i.e., some third-party distributor), then the TV station must forward the complaint to the "appropriate party" within seven days and that party shall respond within 30 days of the forwarding date.
http://benton.org/node/19364
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FCC GRANTS ALABAMA STATION 2ND STRAIGHT SIGNAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission will allow an Alabama station to broadcast two digital signals in the immediate run-up to the DTV transition, in part to show that it is willing to be flexible and work with broadcasters. The FCC is giving CBS affiliate WAKA-DTV in Selma special temporary authority to begin operating on its post-transition digital channel a month before the transition. It has been operating a digital signal already, per FCC requirement, on channel 55. But as with a number of other stations, it is moving to a different digital channel (42) after the transition. WAKA is pulling the plug on analog early as well, on Dec. 1. The station asked to broadcast on channel 42 a month early because it said it would make it easier to set up cable and satellite carriage for the new channel. It also asked to be able to broadcast on its new digital channel at reduced power to make it easier to transition its equipment from the old and new channel, saying the alternative would be to pull the plug on its DTV signal on the pre-transition channel (55) for as long as a month. Since it is pulling the plug on analog on Dec. 1--it didn't say why it had to do that--it would essentially be going dark for that period.
http://benton.org/node/19363
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REDSTONE SELLS CONTROL OF MIDWAY TO EASE DEBT
[SOURCE: Wall Street Journal, AUTHOR: Merissa Marr]
In an effort to help resolve his debt problems, Sumner Redstone has sold his controlling stake in videogame company Midway Games to a private investor. Redstone's holding company, National Amusements Inc., is expected to announce Monday that it sold its 87% stake in Midway to investor Mark Thomas, a move that represents a significant loss on the media mogul's investment but secures a hefty tax benefit as he negotiates other asset sales. National Amusements is in negotiations with its banks to restructure its $1.6 billion debt pile after breaching one of its debt covenants. As part of the restructuring, the Redstone family has been discussing selling some of its assets, including some movie theaters and a holding in slot-machine company WMS Industries. The sale of the Midway stake, agreed upon Friday, wasn't conducted as part of a deal with the banks but is likely to ease the pressure on the Redstone family and potentially contribute to a final deal.
http://benton.org/node/19383
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JOURNALISM

ATTACK COVERAGE TESTS INDIA'S JOURNALISTS
[SOURCE: Wall Street Journal, AUTHOR: Shefali Anand, Vibhuti Agarwal]
Amid one of the worst terrorist attacks in Indian history, the country's nascent cable and satellite news channels were put to their first big test. They drew many viewers, but mixed reviews. While India has suffered terrorist assaults in the past, the audacious multitarget attack on Mumbai was different. It evolved into a 60-hour saga of gunfire, explosions, hostage-taking and death that played out in the center of India's business and financial hub. At least 174 people were killed and more than 200 injured in the attacks, which ended Saturday. Most of the Indian television news channels have been around for less than five years. For some, the Mumbai siege, which began Wednesday night, was the first major event they had covered live, and they rushed to provide nonstop coverage to the riveted national audience. Viewers' feedback on coverage of the siege has been uneven. While millions of viewers remained glued to their screens for the latest information, some criticized the coverage in their blogs -- irritated with the hyperbole and melodramatic rhetoric of some TV reporters. The country's broadcasters were summoned Friday by the Ministry of Information and Broadcasting to deal with charges that the live saturation coverage had helped the terrorists. At the same time, however, traditional media were criticized as too slow and inaccurate by legions of "citizen journalists" using Internet services such as Twitter and photo site Flickr. The deputy commissioner of police argued that the terrorists, who were holed up in two major hotels and became involved in floor-by-floor firefights with police, were gaining tactical information from TV. Using powers under Section 19 of the country's Cable Television Networks Act, he ordered a blackout of TV news channels.
http://benton.org/node/19389
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A GENERATION OF LOCAL TV ANCHORS IS SIGNING OFF
[SOURCE: New York Times, AUTHOR: Brian Stelter]
Almost all of the country's television stations with network affiliations have a face, or a pair of faces, that represent their news operations better than any logo or commercial can. Many years after signing off, the larger-than-life characters are still fixtures of newscast lore. But across the country, longtime local TV anchors are a dying breed. Facing an economic slump and a severe advertising downturn, many stations have cut costs drastically in the last year, and veteran anchors, with their expensive contracts, seem to be shouldering a disproportionate share of the cutbacks. When station managers are forced to make cuts, hefty anchor salaries are a tempting target. When the anchors depart, they take decades of experience and insight with them. "Basically, you replace someone who knows City Hall with someone who can't find it," said John Beard, who lost his job at KTTV last December after 26 years as a news anchor in Los Angeles. While some anchors in top markets can still command million-dollar salaries the positions are becoming more vulnerable to the market forces that are roiling local TV, analysts say.
http://benton.org/node/19384
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STATE OF THE BLOGOSPHERE 2008
[SOURCE: Technorati, AUTHOR: ]
There have been a number of studies aimed at understanding the size of the Blogosphere, yielding widely disparate estimates of both the number of blogs and blog readership. All studies agree, however, that blogs are a global phenomenon that has hit the mainstream. With blogging so firmly entrenched in the mainstream, the story now is about the Active Blogosphere. The trends, stories and behaviors here influence not only the rest of the Blogosphere but mainstream media as well. The majority of bloggers surveyed currently have advertising on their blogs. Among those with advertising, the mean annual investment in their blog is $1,800, but it's paying off. The mean annual revenue is $6,000 with $75K+ in revenue for those with 100,000 or more unique visitors per month.
http://benton.org/node/19357
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CNN PITCHES A CHEAPER WIRE SERVICE TO NEWSPAPERS
[SOURCE: New York Times, AUTHOR: Tim Arango, Richard Perez-Pena]
CNN, in the afterglow of an election season of record ratings for cable news, is elbowing in on a new line of business: catering to financially strained newspapers looking for an alternative to The Associated Press. For nearly a month, a trial version of CNN's wire service has been on display in some newspapers. But this week editors from about 30 papers will visit Atlanta to hear CNN's plans to broaden a service to provide coverage of big national and international events — and maybe local ones — on a smaller scale and at a lower cost than The AP.
http://benton.org/node/19379
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