February 2009

Feb 5, 2009 (Obama: The Action Americans Need)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY FEBRUARY 5, 2009

The Federal Communications Commission released its agenda for today's open meeting on the digital television transition. See http://www.benton.org/node/21273

Are you a fan of FCC Chairman Michael Copps? See http://www.facebook.com/home.php#/pages/Michael-J-Copps/66912881792?ref=ts


THE ECONOMY
   Obama Op-Ed: The Action Americans Need
   Tech Programs Survive Vitter Hatchet
   Broadband Build-Out: Who Will Run the Show?
   NCTA, Free Press Support NTIA Administering Broadband Grants
   Backing House Internet provisions, Sen. Wyden galls telecom industry
   Cable Providers Scoff at Obama's Plan to Get Every Child Online
   The Best Billion We Can Spend On Rural Broadband
   Smart Tech: Where's Our Stimulus?
   Google, IBM Promote Online Health Records

DIGITAL TELEVISION
   House Votes to Delay Switch to Digital TV
   Rockefeller Urges TV Stations To 'Put Consumers First'
   CEA Warns of Possible Converter Box Shortage
   Almost Everyone Had Heard About DTV Transition Date
   Finding a Converter Box Before the Big Switch
   Consumers Sticking with Free TV
   Google, Tech Giants Form White Spaces Tech Group

THE TRANSITION
   A Cabinet Loss and Gain
   Gregg pushes for stimulus one day after nomination
   Anna Gomez Named Deputy NTIA Administrator
   A Federal Chief Technology Officer in the Obama Administration
   Boucher Taps Levin as Counsel for House Telecom Committee
   Adelstein to State Department?
   Who will fill the FCC's Republican seat?
   Media Coverage of Obama Gets Mixed and Partisan Reviews

GOVERNMENT & COMMUNICATIONS
   Can social networking fix U.S. image?
   Chinese Learn Limits of Online Freedom as the Filter Tightens
   Beijing launching a 'Chinese CNN' to burnish image abroad

MEDIA OWNERSHIP
   EchoStar Amasses Sirius XM Debt
   Digital Pirates Winning Battle With Studios
   Alms for the Press?

INTERNET/BROADBAND
   Time Warner Cable, Charter Set Internet-Usage Cap Plans

QUICKLY -- Conyers Fights NIH Internet Mandate; Online Video Viewership Hit High of 14.3 Billion in December; Prime-Time TV Commercial Prices Plummet, CBS Faces Biggest Drop

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THE ECONOMY


THE ACTION AMERICANS NEED
[SOURCE: Washington Post, AUTHOR: President Barack Obama]
[Commentary] What Americans expect from Washington is action that matches the urgency they feel in their daily lives -- action that's swift, bold and wise enough for us to climb out of this crisis. That's why I feel such a sense of urgency about the recovery plan before Congress. With it, we will create or save more than 3 million jobs over the next two years, provide immediate tax relief to 95 percent of American workers, ignite spending by businesses and consumers alike, and take steps to strengthen our country for years to come. This plan is more than a prescription for short-term spending -- it's a strategy for America's long-term growth and opportunity in areas such as renewable energy, health care and education. And it's a strategy that will be implemented with unprecedented transparency and accountability, so Americans know where their tax dollars are going and how they are being spent. Now is the time to computerize the health-care records of every American within five years, saving billions of dollars and countless lives in the process. Now is the time to give our children every advantage they need to compete by upgrading 10,000 schools with state-of-the-art classrooms, libraries and labs; by training our teachers in math and science; and by bringing the dream of a college education within reach for millions of Americans. And now is the time to create the jobs that remake America for the 21st century by rebuilding aging roads, bridges and levees; designing a smart electrical grid; and connecting every corner of the country to the information superhighway.
http://benton.org/node/21672
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TECH PROGRAMS SURVIVE VITTER HATCHET
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
Sen. David Vitter (R-LA) unsuccessfully offered an amendment Wednesday evening to strip from the economic stimulus package a multi-billion section that would fund programs intended to spur the nationwide adoption of electronic medical records. His proposal, which failed 32-65, would have also nixed funding for other high-tech provisions including: National Institute of Standards and Technology construction ($357 million); Defense Department hybrid vehicle purchases ($100 million); NASA climate change research ($500 million); and Broadband investments and deployment ($9 billion)
http://benton.org/node/21671
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BROADBAND BUILDOUT: WHO WILL RUN THE SHOW?
[SOURCE: BusinessWeek, AUTHOR: Arik Hesseldahl]
Add broadband to the list of controversial provisions of the $900 billion economic stimulus package being debated in Congress. Included in the legislation are plans to spend $8.2 billion on fast Internet connections around the country, but a political row is shaping up over how that money will be spent and by which agency. The current version of the bill dictates that the sum be administered by the National Telecommunications & Information Administration, the agency principally responsible for advising President Obama on technology policy. But an amendment to the bill being proposed by Senator Tom Harkin (D-Iowa) and Senator Sherrod Brown (D-Ohio) would split that funding in half, sending $4.1 billion each to the NTIA and the Rural Utilities Service at the Agriculture Dept. "The change is needed to ensure that rural residents are not left behind as critical broadband services are expanded," says a statement from Harkin's office. But critics of the Harkin-Brown plan say the RUS has a checkered history in redressing the lack of broadband access. "That program has not been able to spend its money each year, and the procedures for getting loans and grants are cumbersome and tilted toward incumbent carriers," says Ben Scott, policy director at Free Press.
http://benton.org/node/21670
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NCTA, FREE PRESS SUPPORT NTIA ADMINISTERING BROADBAND GRANTS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a joint letter to Senate Majority Leader Harry Reid (D-NV), National Cable & Telecommunications Association President Kyle McSlarrow and Free Press Policy Director Ben Scott say they support the Senate's version of the economic stimulus package which places administration of broadband grants under the National Telecommunications & Information Administration. That is in contrast to the just-passed House version of the stimulus package, which divides that authority between NTIA and the Department of Agriculture (many unserved areas are rural). "By selecting NTIA to coordinate and administer the distribution of grant funds," the two wrote, "the bill correctly recognizes the value of this agency's expertise in communications matters and avoids the potential confusion and inconsistencies that might result were the program split among multiple agencies." They also argue that the broadband stimulus grants should be targeted to "construction of robust facilities in unserved areas." The House would grant much of the money to "underserved" areas. They also argue that private broadband providers should be able to apply for government grants individually as well as in partnership with local and state governments.
http://benton.org/node/21669
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BACKING HOUSE INTERNET PROVISIONS, SEN WYDEN GALLS TELECOM INDUSTRY
[SOURCE: The Hill, AUTHOR: Kevin Bogardus]
Sen Ron Wyden (D-OR), a prominent champion for the tech industry, will find himself at odds with telecom lobbyists over provisions in the economic stimulus package designed to give consumers unrestricted access to the Web. Sen Wyden has lined up behind the House provisions on open access, which are more detailed than those in the Senate legislation related to how the recovery package's billions of dollars for developing Internet infrastructure should be spent. In the House bill that passed last week, lawmakers call upon the Federal Communications Commission (FCC) to define what "open access" is within 45 days of the stimulus's passage. In addition, companies applying for broadband grants will have to adhere to a 2005 policy statement by the FCC that says consumers should access the Web with no restrictions placed by providers on their Internet traffic or content. The Senate version has general language saying companies applying for broadband grants should stick to "non-discrimination" contractual obligations that will be published by the Commerce Department in coordination with the FCC.
http://benton.org/node/21632
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CABLE PROVIDERS SCOFF AT OBAMA'S PLAN TO GET EVERY CHILD ONLINE
[SOURCE: Bloomberg News, AUTHOR: Kelly Riddell]
President Barack Obama may face pushback from Comcast Corp. and other cable providers on his plan to wire rural areas for high-speed Internet access. The biggest companies, including Comcast and AT&T, probably won't take part in the plan unless lawmakers provide more money for installation of costly broadband lines and drop speed and access requirements, said Robert Atkinson of the Information Technology & Innovation Foundation. "As the bill is currently structured, the companies that provide 90 to 95 percent of broadband won't be applying for these grants," said Atkinson, who leads the Washington-based think tank. "It's just not a good trade-off for them." The House of Representatives approved $6 billion in funding for the Internet buildout, while the current version of the Senate bill allocates $9 billion. Even smaller providers, such as SureWest Communications, say that won't cover the cost of building to remote areas or ensure that enough customers sign up to justify the expansion.
http://benton.org/node/21631
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THE BEST BILLION WE CAN SPEND ON RURAL BROADBAND
[SOURCE: App-Rising.com, AUTHOR: Geoff Daily]
[Commentary] Are we stimulating rural broadband deployment to the best of our ability by focusing solely on a big-government, top-down approach to federal and state officials picking winners and losers by writing big checks? Could there be some way to enhance what's already there with a small-government, market-driven strategy that rewards progressive projects, gets money flowing quickly, and maximizes the impact of government dollars? Daily offers a plan. [more at the URL below]
http://benton.org/node/21630
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SMART TECH: WHERE'S OUR STIMULUS?
[SOURCE: BusinessWeek, AUTHOR: Steve Hamm]
With Congress in the middle of a debate over the massive economic stimulus package, it seems likely that as much as one-quarter of the proposed $800 billion-plus will go to upgrading the nation's badly neglected infrastructure. And based on wish lists that are being drawn up by the states, it looks as if most of that money will be spent on traditional road and bridge projects. Yet tech industry leaders warn that such an outcome could represent a huge lost opportunity. They say Congress should use the stimulus legislation to encourage infrastructure investments that include new "smart" technologies. These are sensors, software, and other tech products that make it possible to build things faster and better, and to operate them more efficiently and safely.
http://benton.org/node/21629
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GOOGLE, IBM PROMOTE ONLINE HEALTH RECORDS
[SOURCE: Wall Street Journal, AUTHOR: Jessica Vascellaro, William Bulkeley]
Google, moving to improve its online health-record service, is teaming with International Business Machines to allow patients to add data generated from home-health monitoring products, such as blood-pressure cuffs and glucose meters. The companies said software developed by IBM, with consumers' permission, can shift the data into a personal health record in Google Health, the search giant's service for helping consumers manage and store their health information online. Other software lets the patient transfer the information from there to an electronic medical record kept by providers like health-care companies and primary-care physicians. At a time when the Obama administration has made electronic health records a priority and included funds in the stimulus plan to encourage providers to adopt records, the collaboration between the two companies has the potential to "kick-start" use of online monitoring of chronic diseases. [more at the URL below]
http://benton.org/node/21668
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DIGITAL TELEVISION


HOUSE VOTES TO DELAY SWITCH TO DIGITAL TV
[SOURCE: New York Times, AUTHOR: Brian Stelter]
The House of Representatives voted Wednesday to extend the transition to digital television by four months, ending a debate about whether to allow consumers more time to make the switch. Broadcasters were scheduled to cease analog broadcasts on Feb. 17, as part of a long-awaited move to digital broadcasting that will make the analog spectrum available for other applications, including for use by wireless companies and public safety agencies. The new deadline is June 12. Most television owners, including those with cable or satellite connections, will not be affected by the signal change. But viewers with old antennas will lose service unless converter boxes are installed to translate the digital signals. Last month The Nielsen Company estimated that 6.5 million households are completely unprepared for the switch, meaning that no televisions in those homes are equipped to receive digital signals. President Obama supports the delay, sharing concerns that 20 million mostly poor, elderly and rural households were not ready for the congressionally mandated switch. Federal Communications Commission Chairman Michael Copps said, "I welcome Congressional passage of the DTV Delay Act. It has long been clear to me--and it's even clearer since I became Acting FCC Chairman two weeks ago--that the country is not prepared to undertake a nationwide transition in twelve days without unacceptably high consumer dislocation."
http://benton.org/node/21637
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ROCKEFELLER URGES TV STATIONS TO 'PUT CONSUMERS FIRST'
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Sen Jay Rockefeller (D-WV) is encouraging broadcasters not to rush en masse to pull the plug on analog before June 12: "While broadcasters are still permitted to move forward on February 17, and some will do so, I hope that many will think of the needs of their customers and carefully weigh their options. This bill gives them an opportunity to stay the course through to June 12 until more help can be put in place." One of the Republican's arguments against moving the date was that, according to acting Federal Communications Commission Chairman Michael Copps, a majority of stations 61%, would probably move early. However, what Chairman Copps said was that 61%, or a little over a thousand stations, could move without causing interference, not that all those stations would move. Still, several hundred stations have already moved or indicated they would before or by Feb. 17, though the FCC points out some of those may decide not to now that the date has changed.
http://benton.org/node/21657
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CEA WARNS OF POSSIBLE CONVERTER BOX SHORTAGE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Consumer Electronics Association said Wednesday it will update consumer education to reflect Congress's decision to move the DTV transition date from Feb. 17 to June 12, but also warned of uncertainty and possible equipment shortfalls. [more at the URL below]
http://benton.org/node/21656
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ALMOST EVERYONE HAD HEARD ABOUT DTV TRANSITION DELAY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
On the same day Congress voted to move the analog cut-off date from to June 12, the Pew Research Center's weekly survey of news consumers found that almost everybody had heard at least something about the former Feb. 17 date. According to that survey, 97% of respondents had heard at least a little about the analog cut-off, and 81% said they had heard a lot. Only 3% knew nothing about the switch to digital. According to the Pew survey, 77% of households say the switch will not affect TVs they use in their households, with higher income households less likely to think the conversion will affect them than lower income households.
http://benton.org/node/21636
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FINDING A CONVERTER BOX BEFORE THE BIG SWITCH
[SOURCE: Gotham Gazette, AUTHOR: Joshua Breitbart]
Local retailers are playing a key role in the great television switchover. They are on the front lines of the education effort, using in-store displays and public presentations. The government has certified 2,300 retailers with 34,000 locations to sell the analog-to-digital converter boxes that you will need to keep watching TV after the transition - if you have an older television set and use rabbit ears or a rooftop antenna. Only certified retailers can accept the government-issued $40 coupon towards the purchase of a converter box. At the neighborhood level, though, some retailers may be more of a hindrance than a help. The coupons expire after 90 days, putting pressure on recipients to get to the stores and make their purchase. But many stores are out of stock or offer limited choice, few - if any - carry the most economical or best models, and a number give out incorrect information. Some are even demanding unnecessary information from consumers, throwing further obstacles onto an already-rocky transition process.
http://benton.org/node/21635
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CONSUMERS STICKING WITH FREE TV
[SOURCE: tvnewsday, AUTHOR: Kim McAvoy]
Despite efforts by pay-TV providers, consumers have proven surprisingly resistant to the call of pay TV and the number who have chosen to convert from antenna to cable or satellite is falling short of many expectations. At one time, SNL Kagan analysts thought that as many as 20 percent of the nearly 16 million over-the-air-only households would migrate to cable or satellite during 2009. But now the company thinks the conversion rate will be closer to 10 percent or a gain of 1.6 million new pay customers (one million for cable and the rest of satellite), says Justin Nielson a senior analyst at SNL Kagan. What's changed? Nielson cites the recession. "More people are going to opt for the converter boxes than signing up for cable just because of the cost. It is a one-time cost for the converter box." he says. Nielson also thinks a lot of individuals are happy with their converter boxes and are "actually impressed" with the new signals and the HD programming that they are able to get over the air.
http://benton.org/node/21634
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GOOGLE, TECH GIANTS FORM WHITE SPACES TECH GROUP
[SOURCE: PCMag.com, AUTHOR: Chloe Albanesius]
Despite a possible delay in the DTV transition, and therefore a delay in the availability of white spaces, several top tech companies announced Wednesday that they are joining forces to provide the Federal Communications Commission (FCC) with technical recommendations for a white spaces database. Google, Comsearch, Dell, Hewlett-Packard, Microsoft, Motorola, and Neustar will team up for the White Spaces Database Group, which will offer the FCC "perspectives, and some specific recommendations, about the technical requirements we would like to see adopted for the database," according to Google. "We don't plan to become a database administrator ourselves, but do want to work with the FCC to make sure that a white spaces database gets up and running," Richard Whitt, Google's Washington telecom and media counsel, wrote in a blog post. "We hope that this will unfold in a matter of months, not years." When TV broadcasters switch from analog to digital TV signals, unused spectrum - or white spaces - will emerge, and companies like Microsoft and Google want to use it for mobile broadband. Broadcasters, led by the National Association of Broadcasters (NAB), argue that such activity could disrupt TV signals and wireless microphone transmissions.
http://benton.org/node/21633
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THE TRANSITION


A CABINET LOSS AND GAIN
[SOURCE: Washington Post, AUTHOR: David Broder]
[Commentary] The addition of Sen Judd Gregg (R-NH) to the cabinet will offer president Obama a substantial payoff down the road. He is one of the smart guys on Capitol Hill, especially when it comes to fiscal policy. [more at the URL below]
http://benton.org/node/21667
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GREGG PUSHES FOR STIMULUS ON DAY AFTER NOMINATION
[SOURCE: The Hill, AUTHOR: Michael O'Brien]
Sen Judd Gregg (R-NH) on Wednesday offered public support for the Obama administration's stimulus package, one day after the fiscal hawk was nominated as Commerce secretary. "I've been supportive of a very robust stimulus package since day one," Sen Gregg said during an appearance Wednesday morning on CNBC. "The only group that has liquidity around here is the federal government." Sen Gregg, who said he would recuse himself from a vote on the package, pledged to stick to his fiscally conservative principles in Obama's administration. Sen Gregg said President Obama had asked him specifically to serve as Commerce secretary to help address entitlement reform.
http://benton.org/node/21627
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ANNA GOMEZ NAMED DEPUTY NTIA ADMINISTRATOR
[SOURCE: National Telecommunications and Information Administration, AUTHOR: Press release]
The Telecommunications and Information Administration announced the appointment of Anna Gomez as the Deputy Assistant Secretary for Communications and Information, and Deputy National Telecommunications and Information Administration (NTIA) Administrator. One of Gomez's top duties will be to help facilitate the nation's historic transition to digital television. [more at the URL below]
http://benton.org/node/21626
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A FEDERAL CHIEF TECHNOLOGY OFFICER IN THE OBAMA ADMINISTRATION
[SOURCE: Congressional Research Service, AUTHOR: John Sargent Jr]
Among the early hurdles for a yet-to-be-named federal chief technology officer will be negotiating domains of responsibilities, formal and informal, within the White House and with executive branch agencies that have overlapping missions. Congress may decide to provide a statutory foundation for a CTO, define the individual's roles and authorities, authorize and appropriate funds, provide for oversight, and address other aspects of the position. If Congress takes this route, questions may arise: What mission, duties, and authorities should the CTO have? Should a CTO serve as the chief CIO for the government as well as the lead champion for U.S. innovation? Should the CTO's appointment be subject to Senate confirmation? What is the relationship between the CTO and the existing CTOs and CIOs of individual agencies?
http://benton.org/node/21625
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BOUCHER TAPS LEVIN AS COUNSEL FOR HOUSE TELECOM COMMITTEE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
House Telecommunications & Internet Subcommittee Chairman Rick Boucher (D-VA) has hired Amy Levin as counsel. Levin had been senior counsel on telecom and Internet matters for former House Commerce Committee Chairman John Dingell (D-MI) and, before that, legislative counsel to Senate Commerce Committee member Claire McCaskill (D-MO). Levin was once legislative counsel to Rep Boucher in his capacity as member of the Commerce and Judiciary Committees and on the Congressional Internet Caucus.
http://benton.org/node/21624
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KEY STATE DEPARTMENT TECH POSITION REMAINS OPEN
[SOURCE: CongressDaily, AUTHOR: Winter Casey]
After serving eight years as U.S. Coordinator for International Communications and Information Policy, David Gross left the State Department on Jan. 20. Richard Beaird is currently serving in his place in an acting capacity. Gross was responsible for the formulation and advocacy of international communications policy for the United States. State's International Communication and Information Policy group advocates international policies for expanded access to information and communication technologies and improved efficiency in the international telecommunications market "through increased reliance on free-market forces, and fair opportunities for U.S. companies to participate in this important sector around the globe." A rumor has recently circulated that FCC Commissioner Jonathan Adelstein could be a candidate for Gross's former position.
http://benton.org/node/21666
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WHO WILL FILL THE FCC'S REPUBLICAN SEAT?
[SOURCE: ars technica, AUTHOR: Julian Sanchez]
Sure, you play your fancy DC insider games to guess who the next Federal Communications Commission chairman will be. But riddle me this, Batman, who will slip into the Republican chair at the Commission? Apparently, 12 Republican senators, including 5 who sit on the Senate Commerce Committee, have sent a letter to Minority Leader Mitch McConnell (R-KY) recommending Ajit Pai, Senator Brownback's assistant for judiciary matters, for the vacant GOP FCC seat.
http://benton.org/node/21623
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MEDIA COVERAGE OF OBAMA GETS MIXED AND PARTISAN REVIEWS
[SOURCE: Gallup, AUTHOR: Lymari Morales]
As President Barack Obama led a media blitz Tuesday to push for his economic stimulus plan and mitigate the damage caused by the fresh exit of two high-level nominees, a sizable minority of Americans may have been watching with skeptical eyes. More than one-third (38%) do not think the media have been tough enough in their coverage of Obama, while nearly half (48%) say media coverage has been about right.
http://benton.org/node/21662
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GOVERNMENT & COMMUNICATIONS


CAN SOCIAL NETWORKING FIX US IMAGE?
[SOURCE: Politico.com, AUTHOR: Victoria Esser]
Is social media diplomatic window dressing or can the US Twitter its way into the hearts and minds of other countries? While the answer is somewhere in between, the U.S. cannot afford to wait while these channels are perfected in order to direct them in service of President Barack Obama's priority of renewing America's global leadership. Indeed, Mr. Obama can use the themes and technologies that helped him generate huge grass-roots support in his presidential campaign to build support for America on the world stage. There is a lot of ground to cover.
http://benton.org/node/21661
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CHINESE LEARN LIMITS OF ONLINE FREEDOM AS THE FILTER TIGHTENS
[SOURCE: New York Times, AUTHOR: Andrew Jacobs]
Since early January, the Chinese government has been waging a decency campaign that has closed more than 1,500 Web sites found to contain sex, violence or "vulgarity." Numerous other sites, including Google, have responded by removing any pages that might offend puritanical sensibilities. But indecency is often in the eye of the beholder. [more at the URL below]
http://benton.org/node/21663
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BEIJING LAUNCHING A 'CHINESE CNN' TO BURNISH IMAGE ABROAD
[SOURCE: The Christian Science Monitor, AUTHOR: Peter Ford]
Something was missing from Chinese state television's live coverage of President Obama's inaugural speech two weeks ago. As he recalled how "earlier generations faced down fascism and communism," viewers here were suddenly returned to the studio, where flustered presenters stumbled to fill the unexpected airtime. As officials plan to launch China's own international TV news channel in the next year or two, burnishing the country's image abroad while challenging CNN, BBC, and other broadcasters, the incident illustrates how hard it will be for Beijing to realize that dream. "China's image is very important, but the first question is the image of the medium itself," cautions Gong Wenxiang, journalism professor at Peking University. "If the medium lacks credibility, it is unthinkable that it will improve the country's image." Such reservations do not appear to be restraining official ambitions.
http://benton.org/node/21658
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MEDIA OWNERSHIP


ECHOSTAR AMASSES SIRIUS XM DEBT
[SOURCE: Wall Street Journal, AUTHOR: Matthew Karnitschnig, Andy Pasztor, Sarah McBride]
Charles Ergen's EchoStar has quietly accumulated a substantial portion of Sirius XM Satellite Radio's maturing debt in what could be the first salvo in an attempt to take control of the embattled company. Ergen has long sought such a footprint on the ground able to strengthen signals received by mobile users. Over the years, Mr. Ergen has tried but failed to expand his core business. He has dabbled in providing Internet service to rural homes, talked about becoming a major provider of wholesale satellite capacity and looked at ways to meld satellite and ground systems to provide entertainment to mobile devices. But for the most part, those efforts haven't taken off, and Mr. Ergen has told associates that EchoStar was looking for a new strategy. [more at the URL below]
http://benton.org/node/21665
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DIGITAL PIRATES WINNING BATTLE WITH STUDIOS
[SOURCE: New York Times, AUTHOR: Brian Stelter, Brad Stone]
Hollywood may at last be having its Napster moment — struggling against the video version of the digital looting that capsized the music business. Media companies say that piracy — some prefer to call it "digital theft" to emphasize the criminal nature of the act — is an increasingly mainstream pursuit. At the same time, DVD sales, a huge source of revenue for film studios, are sagging. [more at the URL below]
http://benton.org/node/21664
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ALMS FOR THE PRESS?
[SOURCE: Slate, AUTHOR: Jack Shafer]
[Commentary] We've finally reached the point at which some of the finest minds doing the biggest thinking about the battered news business believe the best eraser for red ink is ... charity. Shafer would rather see Rupert Murdoch publish the New York Times than see it turned over to a foundation, and that's saying a lot. [more at the URL below]
http://benton.org/node/21659
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INTERNET/BROADBAND


TIME WARNER CABLE, CHARTER SET INTERNET-USAGE CAP PLANS
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
Time Warner Cable will expand a test of usage-based Internet billing to four additional markets, while Charter Communications has confirmed that starting next week it will impose usage limits on most of its broadband users. Time Warner Cable chief operating officer Landel Hobbs, on the operator's earnings call Wednesday, said the operator will expand its "consumption-based billing" beyond the small Beaumont, Texas, system where it initiated a test last year. "With Congress poised to spend billions getting Americans connected to a better, faster Internet," said S. Derek Turner, research director of Free Press, "we're concerned that caps discourage Internet adoption and stifle economic growth. In general, we're wary of any roadblock to the development of applications and services that drive experimentation and innovation online. We need to be expanding our digital economy, not shrinking it."
http://benton.org/node/21628
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QUICKLY


CONYERS FIGHTS NIH INTERNET MANDATE
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
House Judiciary Committee Chairman John Conyers late Tuesday introduced legislation that would overturn a recent mandate that the National Institutes of Health require federally supported scientists to submit their research manuscripts for free public access on the Internet. The requirement passed as part of the fiscal year 2008 Labor-Health and Human Services appropriations bill without allowing input by committees with expertise and oversight on copyright. Open access and consumer advocates championed the NIH's new requirement while publishers panned it, arguing that it could put subscription-based scientific journals out of business.
http://benton.org/node/21622
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ONLINE VIDEO VIEWERSHIP HIT HIGH OF 14.3 BILLION IN DECEMBER
[SOURCE: TVWeek, AUTHOR: Daisy Whitney]
Web video viewership jumped 13% in December from the month before, comScore reported. The online audience measurement firm found that Internet users in the United States watched a record 14.3 billion online videos in December, a 13% rise from the previous month.
http://benton.org/node/21621
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PRIME-TIME TV COMMERCIAL PRICES PLUMMET, CBS FACES BIGGEST DROP
[SOURCE: MediaPost, AUTHOR: Joe Mandese]
The cost of an average prime-time price plummeted 15% during the fourth quarter of 2008, and CBS led the decline with a whopping 22% decline, according to TargetCast tcm. Media executives admit they weren't prepared for dealing with the pain of a recession and transition to the Internet simultaneously.
http://benton.org/node/21620
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Obama Op-Ed: The Action Americans Need

[Commentary] What Americans expect from Washington is action that matches the urgency they feel in their daily lives -- action that's swift, bold and wise enough for us to climb out of this crisis. That's why I feel such a sense of urgency about the recovery plan before Congress. With it, we will create or save more than 3 million jobs over the next two years, provide immediate tax relief to 95 percent of American workers, ignite spending by businesses and consumers alike, and take steps to strengthen our country for years to come. This plan is more than a prescription for short-term spending -- it's a strategy for America's long-term growth and opportunity in areas such as renewable energy, health care and education. And it's a strategy that will be implemented with unprecedented transparency and accountability, so Americans know where their tax dollars are going and how they are being spent. Now is the time to computerize the health-care records of every American within five years, saving billions of dollars and countless lives in the process. Now is the time to give our children every advantage they need to compete by upgrading 10,000 schools with state-of-the-art classrooms, libraries and labs; by training our teachers in math and science; and by bringing the dream of a college education within reach for millions of Americans. And now is the time to create the jobs that remake America for the 21st century by rebuilding aging roads, bridges and levees; designing a smart electrical grid; and connecting every corner of the country to the information superhighway.

Tech Programs Survive Vitter Hatchet

Sen. David Vitter (R-LA) unsuccessfully offered an amendment Wednesday evening to strip from the economic stimulus package a multi-billion section that would fund programs intended to spur the nationwide adoption of electronic medical records. His proposal, which failed 32-65, would have also nixed funding for other high-tech provisions including: National Institute of Standards and Technology construction ($357 million); Defense Department hybrid vehicle purchases ($100 million); NASA climate change research ($500 million); and Broadband investments and deployment ($9 billion)

Broadband Build-Out: Who Will Run the Show?

Add broadband to the list of controversial provisions of the $900 billion economic stimulus package being debated in Congress. Included in the legislation are plans to spend $8.2 billion on fast Internet connections around the country, but a political row is shaping up over how that money will be spent and by which agency. The current version of the bill dictates that the sum be administered by the National Telecommunications & Information Administration, the agency principally responsible for advising President Obama on technology policy. But an amendment to the bill being proposed by Senator Tom Harkin (D-Iowa) and Senator Sherrod Brown (D-Ohio) would split that funding in half, sending $4.1 billion each to the NTIA and the Rural Utilities Service at the Agriculture Dept. "The change is needed to ensure that rural residents are not left behind as critical broadband services are expanded," says a statement from Harkin's office. But critics of the Harkin-Brown plan say the RUS has a checkered history in redressing the lack of broadband access. "That program has not been able to spend its money each year, and the procedures for getting loans and grants are cumbersome and tilted toward incumbent carriers," says Ben Scott, policy director at Free Press.

NCTA, Free Press Support NTIA Administering Broadband Grants

In a joint letter to Senate Majority Leader Harry Reid (D-NV), National Cable & Telecommunications Association President Kyle McSlarrow and Free Press Policy Director Ben Scott say they support the Senate's version of the economic stimulus package which places administration of broadband grants under the National Telecommunications & Information Administration. That is in contrast to the just-passed House version of the stimulus package, which divides that authority between NTIA and the Department of Agriculture (many unserved areas are rural). "By selecting NTIA to coordinate and administer the distribution of grant funds," the two wrote, "the bill correctly recognizes the value of this agency's expertise in communications matters and avoids the potential confusion and inconsistencies that might result were the program split among multiple agencies." They also argue that the broadband stimulus grants should be targeted to "construction of robust facilities in unserved areas." The House would grant much of the money to "underserved" areas. They also argue that private broadband providers should be able to apply for government grants individually as well as in partnership with local and state governments.

Google, IBM Promote Online Health Records

Google, moving to improve its online health-record service, is teaming with International Business Machines to allow patients to add data generated from home-health monitoring products, such as blood-pressure cuffs and glucose meters. The companies said software developed by IBM, with consumers' permission, can shift the data into a personal health record in Google Health, the search giant's service for helping consumers manage and store their health information online. Other software lets the patient transfer the information from there to an electronic medical record kept by providers like health-care companies and primary-care physicians. At a time when the Obama administration has made electronic health records a priority and included funds in the stimulus plan to encourage providers to adopt records, the collaboration between the two companies has the potential to "kick-start" use of online monitoring of chronic diseases, said Dan Pelino, general manager of health care and life sciences for IBM. Both IBM Chief Executive Samuel Palmisano and Google CEO Eric Schmidt have been prominent in business leaders' meetings with President Obama on high-tech stimulus measures. Still, the electronic health-records industry -- and Google's attempt to help spur and organize it -- are in a very early phase.

A Cabinet Loss and Gain

[Commentary] The addition of Sen Judd Gregg (R-NH) to the cabinet will offer president Obama a substantial payoff down the road. He is one of the smart guys on Capitol Hill, especially when it comes to fiscal policy. And he provides President Obama with a third strong Republican Cabinet member, joining Defense Secretary Bob Gates and Ray LaHood at Transportation. Sen Gregg and North Dakota Sen. Kent Conrad, the top Republican and Democrat on the Senate Budget Committee, respectively, have been pushing for the creation of a bipartisan commission that would tackle the looming bankruptcy of the three big entitlement programs -- Social Security, Medicare and Medicaid. Sen Conrad said that he deeply regrets the departure of his partner and does not know where to find a substitute. But help may be on the way. Lamar Alexander of Tennessee, the No. 3 man in the Senate Republican leadership, quietly joined the Budget Committee last month. He said it was to "help move the Gregg-Conrad commission proposal forward." Moreover, Mitch McConnell of Kentucky, the Republican leader of the Senate, told the National Press Club that a bipartisan deal on entitlements is something he thinks can and should happen in this Congress.

Adelstein to State Department?

After serving eight years as U.S. Coordinator for International Communications and Information Policy, David Gross left the State Department on Jan. 20. Richard Beaird is currently serving in his place in an acting capacity. Gross was responsible for the formulation and advocacy of international communications policy for the United States. State's International Communication and Information Policy group advocates international policies for expanded access to information and communication technologies and improved efficiency in the international telecommunications market "through increased reliance on free-market forces, and fair opportunities for U.S. companies to participate in this important sector around the globe." A rumor has recently circulated that FCC Commissioner Jonathan Adelstein could be a candidate for Gross's former position.

EchoStar Amasses Sirius XM Debt

Charles Ergen's EchoStar has quietly accumulated a substantial portion of Sirius XM Satellite Radio's maturing debt in what could be the first salvo in an attempt to take control of the embattled company. Ergen, who controls a satellite-television empire around Dish Network Corp. and EchoStar, has recently acquired part of a $300 million tranche of Sirius debt that matures on Feb. 17. Ergen's salvo comes as Sirius shares have sunk to just 14 cents each, and large portions of its $3.4 billion debt load trade at a deep discount. The company, which has a market value of $501 million, isn't profitable, and has lost nearly all its value since the Sirius-XM combination was finalized this summer. When Sirius and XM completed their merger last July, it was supposed to represent a strong new beginning, with the two fledgling companies becoming an entertainment force. Instead, a 17-month approval process diverted valuable executive attention from the underlying business, and consumers grew more enamored with their iPods, mobile phones and other alternatives to satellite radio. Echostar could be pursuing a plan to use the debt as a way take control of the company either inside or outside of bankruptcy. Either way, current shareholders would be left with nothing. With about $925 million in debt coming due this year, Sirius is up against a wall. It also owes $43 million for programming fees to the National Football League on Feb. 17, plus $60 million to Major League Baseball in March. The MLB cash is in escrow, and a person familiar with the matter says that the company is negotiating hard with the league to let Sirius tap those funds. Ergen has long sought such a footprint on the ground able to strengthen signals received by mobile users. Over the years, Mr. Ergen has tried but failed to expand his core business. He has dabbled in providing Internet service to rural homes, talked about becoming a major provider of wholesale satellite capacity and looked at ways to meld satellite and ground systems to provide entertainment to mobile devices. But for the most part, those efforts haven't taken off, and Mr. Ergen has told associates that EchoStar was looking for a new strategy.

Digital Pirates Winning Battle With Studios

Hollywood may at last be having its Napster moment — struggling against the video version of the digital looting that capsized the music business. Media companies say that piracy — some prefer to call it "digital theft" to emphasize the criminal nature of the act — is an increasingly mainstream pursuit. At the same time, DVD sales, a huge source of revenue for film studios, are sagging. In 2008, DVD shipments dropped to their lowest levels in five years. Executives worry that the economic downturn will persuade more users to watch stolen shows and movies. "Young people, in particular, conclude that if it's so easy, it can't be wrong," said Richard Cotton, the general counsel for NBC Universal. People have swapped illegal copies of songs, television shows and movies on the Internet for years. The slow download process, often using a peer-to-peer technology called BitTorrent, required patience and a modicum of sophistication by users. Now, users do not even have to download. Using a search engine, anyone can find free copies of movies, still in theaters, in a matter of minutes. Classic TV, like every "Seinfeld" episode ever produced, is also free for the streaming. Some of these digital copies are derived from bootlegs, while others are replicas of the advance review videos that studios send out before a release.