May 2009

BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY MAY 5, 2009 (Happy Cinco de Mayo)

Today the WCAI's Wireless Policy Summit gets underway... and the House Subcommittee on Commerce, Trade, and Consumer Protection will hold a legislative hearing on, H.R­­. 2221, the Data Accountability and Trust Act and H.R. 1319, the Informed P2P User Act. See http://www.benton.org/calendar/2009-05-05

BROADBAND/INTERNET
   White House officials play key role in shaping broadband stimulus program
   National Broadband Policy needs concrete goals to succeed
   Shovel-ready broadband stimulus
   Must-Attend Event: "Setting a High Standard for Broadband Stimulus Funding"

JOURNALISM
   New York Times Nears Deal on Boston Globe
   Robert Gibbs: No bailout for newspapers
   Witness List for May 6 Senate Commerce Committee Future of Journalism Hearing
   Flu Fears Dominate a Week of Big Events
   Free Press, WWJ to launch TV show

TELEVISION
   Supreme Court Upholds FCC's Janet Jackson Decision
   Rep Moran Re-Introduces Indecency Bill For "Male Enhancement" Ads
   The Problem With Cable Is Television

POLICYMAKERS
   Tech Scorecard Gives Sen Sessions High Marks
   Clyburn at FCC - Obama's Harriet Miers?
   Dunn Still Interested In FCC Seat

OWNERSHIP
   Google, Apple Scrutinized by the FTC
   Liberty, DirecTV to merge

GOVERNMENT & COMMUNICATIONS
   Obama's CIO, CTO and security leader have defined roles
   CDT Seeks Public Access to Congressional Research
   Funding Rules Force Wasteful Government Technology Spending, State CIOs Say
   Lawmakers attack cybersecurity on multiple fronts

QUICKLY -- FCC Announces 2.5 GHz Broadband Radio Service Auction; How Personality Can Predict Media Usage

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BROADBAND/INTERNET

WHITE HOUSE OFFICIALS PLAY KEY ROLE IN SHAPING BROADBAND STIMULUS PROGRAM
[SOURCE: CongressDaily, AUTHOR: David Hatch]
The White House is playing a critical behind-the-scenes role in shaping a $7.2 billion loan-and-grant program aimed at spurring wider broadband Internet access, despite a congressional mandate that put the Agriculture and Commerce departments in charge of the economic stimulus effort. With high-stakes decisions to be made affecting consumers and corporations, and vacancies at both departments and the FCC, which has an advisory role, the White House has stepped in to oversee the initiative, according to several sources. "We're helping to coordinate between agencies," said a White House official, who acknowledged after repeated questioning that the Obama administration is providing guidance on policy matters, such as which regulatory strings should be attached to the funding. The Agriculture and Commerce departments have been the public face of the broadband initiative, gathering more than 1,600 comments and holding seven public forums in their effort to determine which regions of the country should receive the most assistance and how general conditions set by Congress should be defined. But Susan Crawford, special assistant to the president for science, technology and innovation policy and a member of President Obama's National Economic Council, is coordinating much of the effort. She has been heavily involved with crafting the broadband provisions of the economic stimulus package since February, Commerce Department records show. Crawford interview requests, is seeking to ensure that both departments work constructively and move in lockstep, sources said. In the past, the departments have taken divergent approaches to assisting the telecom sector, with Agriculture favoring industry players and Commerce favoring nonprofit groups. Two officials at the White House Office of Science and Technology Policy -- Deputy Policy Director Tom Kalil and Chief of Staff Jim Kohlenberger -- also have been influential in developing the broadband stimulus program, which hopes to spur deployment of high-speed connectivity to areas with limited or no service.
http://benton.org/node/25061
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NATIONAL BROADBAND POLICY NEEDS CONCRETE GOALS TO SUCCEED
[SOURCE: TelephonyOnline, AUTHOR: Teresa Mastrangelo]
The American Recovery and Reinvestment Act requires the Federal Communications Commission to develop a National Broadband Plan and deliver it to Congress by February 17, 2010. The FCC is collecting public comment on the plan through July 7, then it will have seven months to put it together. Successful National Broadband Policies across the globe have three distinct features: 1) Definitive goals to provide "x" bandwidth to "x" percent of population by "x" date; 2) some form of government financing; and 3) telecom policy that supports the goals of the plan. In addition, many of the plans also have specific goals related to broadband adoption, not just availability, and develop government policy and programs to support those goals. Another key element of most National Policies is the fact that a market analysis detailing the competitive environment, the market position of the incumbents, availability and affordability of broadband has been undertaken ahead of policy making. Although the United States is tackling some of these issues, the components are out of synch. The broadband mapping component is absolutely critical to the development of any plan or policy - yet it will not be available until February 2011. Furthermore, there is no current agreement on exactly what type of data should even be collected.
http://benton.org/node/25060
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SHOVEL-READY BROADBAND STIMULUS
[SOURCE: Financial Times, AUTHOR: Thomas Hazlett]
[Commentary] The $7.2 billion broadband stimulus will not achieve what it advertises for the US economy. Firms that had been building rural broadband networks have reportedly halted operations, circling back to Washington. Ultimately, the $7.2bn will be awarded in "beauty contests," where bureaucrats examine competing proposals and make their picks based on their values, mood, and whim. A group of 71 economists expert in telecommunications policy, including two Nobel Laureates (and this author), have urged a different approach, "reverse auctions." The government would state its performance criteria and then take bids, selecting the lowest price offers. The proposal has only a remote chance of being adopted because it is both transparent and economical. Having to make goals objective and explicit takes the discretionary political fun away. And assigning rights by competitive bidding is like having a fraternity party without any beer at all.
http://benton.org/node/25070
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MUST-ATTEND EVENT: "SETTING A HIGH STANDARD FOR BROADBAND STIMULUS FUNDING"
[SOURCE: App-Rising.com, AUTHOR: Geoff Daily]
[Commentary] Come one, come all... join us on May 7th from 12-3pm at the National Press Club for an event hosted by the Benton Foundation entitled, "Setting a High Standard for Broadband Stimulus Funding: Urban and Rural Examples of the 'Best of Breed.'" This event was inspired by a desire to elevate the dialog around the kinds of applications for stimulus dollars that we should be supporting. Rather than just wait around for the rules to come out, why not start looking at some of the best potential applications out there and discussing their relative merits. In this way we can both help raise awareness about these best-in-class applications while simultaneously educating others on how to enhance their own applications.
http://benton.org/node/25048
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JOURNALISM

NEW YORK TIMES NEARS DEAL ON BOSTON GLOBE
[SOURCE: Wall Street Journal, AUTHOR: Russell Adams]
New York Times Co and Boston Globe union representatives are edging closer to a deal to stave off closure of New England's largest daily newspaper. As the two sides prepare to resume what they hope will be a final round of talks Tuesday or Wednesday, attention is turning to the future of a slimmed-down Globe and Times Co's relationship with it. Times Co said Monday it has reached tentative agreements with six of the seven Globe unions involved in the negotiations and therefore won't file notice of its intention to close the paper. The agreements bring the company halfway to the $20 million in concessions it has said it needs to keep the unprofitable Globe alive. The remaining $10 million has to come from the Boston Newspaper Guild, which said it has offered a proposal that has met management's demands. Management, which maintains the Guild hasn't come far enough, said it is weighing its options outside of bargaining to achieve the necessary cuts. But even a successful outcome would cut only about a quarter of the Globe's projected losses, meaning Times Co. would continue to take a hit. That has led some Globe employees and industry observers to speculate that the cuts are part of an effort to streamline the Globe for sale.
http://benton.org/node/25069
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ROBERT GIBBS: NO BAILOUT FOR NEWSPAPERS
[SOURCE: Politico.com, AUTHOR: Carol Lee]
Asked in his Monday briefing if the White House would consider bailing out the newspaper business, White House press secretary Robert Gibbs told reporters the government may not have the power to reverse the industry's decline. "I don't know what, in all honesty, government can do about it," Gibbs said in response to a question about the Boston Globe's financial struggles. Noting that it's a "bit of a tricky area to get into," given the relationship between the White House and the media, Gibbs said President Barack Obama "believes there has to be a strong free press" and expressed "concern and sadness" over the state of the industry.
http://benton.org/node/25053
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WITNESS LIST FOR MAY 6 FUTURE OF JOURNALISM HEARING
[SOURCE: US Senate Commerce Committee]
The Senate Commerce Committee's Subcommittee on Communications, Technology, and the Internet will hold a hearing Wednesday on the future of journalism. Witnesses include: 1) Sen Ben Cardin who introduced legislation to allow certain newspapers to be treated as described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code (S. 673); 2) Google's Marissa Mayer; 3) Albert Ibarguen, President of the Knight Foundation; 4) former Baltimore Sun reporter David Simon (now creator of HBO's "The Wire"); 5) former Washington Post Managing Editor Steve Coll; 6) Dallas Morning News CEO James Moroney; and 7) Arianna Huffington, Co-founder and Editor-in-Chief of The Huffington Post.
http://benton.org/node/25066
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FLU FEARS DOMINATE A WEEK OF BIG EVENTS
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
Last week, a key Republican senator switched parties, altering the balance of power on Capitol Hill. Barack Obama celebrated his 100th day in office with a prime-time press conference. The chairman of Bank of America was ousted and the Chrysler Corporation declared bankruptcy. Yet all those stories were overwhelmed by the frantic coverage of a new flu virus that in a matter of days had made its way around the globe and was threatening to become the first influenza pandemic in four decades. From April 27-May 3, the swine flu, or H1N1 as it officially became known, accounted for nearly one-third of the newshole (31%) studied, according to the Pew Research Center's Project for Excellence in Journalism. This marked only the second time since January 2007 that a health-related subject led PEJ's weekly News Coverage Index. That other story, now mostly forgotten, was the potential spread of a seemingly dangerous form of tuberculosis by an Atlanta lawyer, and it filled 12% of the newshole from May 27-June 1, 2007. The dominant story of the year so far, the economic crisis, fell to No. 2 last week, at 10% of the space studied in print and online and time on television and radio.
http://benton.org/node/25065
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FREE PRESS, WWJ TO LAUNCH TV SHOW
[SOURCE: Detroit Free Press, AUTHOR: Gina Damron]
Starting today, the Detroit Free Press and CBS-owned WWJ-TV will air a 5-7am program featuring weather, traffic and news gathered by Free Press journalists. The new program will be called "First Forecast Mornings" and will include Free Press Express news segments. "We're more than a newspaper, we're more than a Web site. We're an information provider on many different channels, and television is just a natural evolution for us," said Paul Anger, Free Press editor and publisher. He added that the partnership with WWJ "is considered unusual, if not unique anywhere." Mike Brookbank, who will anchor the Free Press news reports, said the program will break the mold of traditional TV broadcasts by offering smaller bits of news with more frequent weather and traffic reports -- information he said early risers with little time want.
http://benton.org/node/25064
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TELEVISION

SUPREME COURT VACATES JANET JACKSON DECISION
[SOURCE: Associated Press, AUTHOR: ]
The Supreme Court on Monday ordered a federal appeals court to re-examine its ruling in favor of CBS Corp. in a legal fight over entertainer Janet Jackson's wardrobe malfunction. The Court on Monday directed the 3rd U.S. Circuit Court of Appeals in Philadelphia to consider reinstating the $550,000 fine that the Federal Communications Commission imposed on CBS over Jackson's breast-baring performance at the 2004 Super Bowl. The order follows the high court ruling last week that narrowly upheld the FCC's policy threatening fines against even one-time uses of curse words on live television. In a statement, CBS said the Supreme Court's decision was not a surprise given last week's ruling and expressed confidence the court will again find the incident was not and could not have been anticipated by the network. Last year, the appeals court threw out the fine against CBS, saying the FCC strayed from its long-held approach of applying identical standards to words and images when reviewing complaints of indecency.
http://benton.org/node/25059
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REP MORAN RE-INTRODUCES INDECENCY BILL FOR "MALE ENHANCEMENT" ADS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Reps Jim Moran (D-VA) and Robert Brady (R-TX) have introduced the Families for ED Advertising Decency Act, a bill that would effectively ban broadcasters from airing any ad for erectile dysfunction or "male enhancement" between 6 am and 10 pm, essentially mandating that such ads fall under the Federal Communications Commission's enforcement of indecency.
http://benton.org/node/25055
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THE PROBLEM WITH CABLE IS TELEVISION
[SOURCE: New York Times, AUTHOR: Saul Hansell]
Comcast and Time Warner, the country's two largest cable systems, are making more money than ever, with lower capital investment. But if there was one weak spot jumping out of the numbers, it was not their Internet business but their traditional TV service, where the cost of paying for content to put on all those channels is rising faster than subscription fees. Hansell observers: 1) Cable is a good business, 2) The fastest-growing expense is programming, 3) The operating cost of providing broadband service is low and getting lower, 4) The biggest savings is coming from lower set-top box costs, 5) The biggest future investment relates to expanding high-definition video, 6) Prices for video services are going up, but data prices aren't.
http://benton.org/node/25057
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POLICYMAKERS

TECH SCORECARD GIVES SESSIONS HIGH MARKS
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
Sen Arlen Specter's (D-PA) departure from the GOP last week left the Senate Judiciary Committee without a ranking member. Over the weekend, Sens Jeff Sessions (R-AL) and Chuck Grassley (R-Iowa) reached an agreement allowing Sen Sessions to become ranking member even though Sen Grassley has more seniority. Under terms of the deal, Sessions will serve as ranking member until the 112th Congress, when he will take over the ranking member post on the Senate Budget Committee. Current Budget Committee ranking member Judd Gregg (R-NH) is retiring at the end of the 111th Congress. Sen Grassley, the top Republican on the Finance Committee, will then become ranking member on the Judiciary Committee. The Information Technology Industry Council's congressional scorecard, which has been rating members since 1998, says Sessions had an 80 percent voting record in the 110th Congress. Sen Sessions voted in lockstep with ITI in favor of the America Competes Act; the U.S.-Peru Free Trade Agreement; comprehensive energy legislation; and a Senate Finance Committee tax extended package, which included a provision to expand the research and development tax credit for two years. But Sessions voted against the financial bailout package.
http://benton.org/node/25058
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CLYBURN AT FCC -- OBAMA'S HARRIET MIERS?
[SOURCE: Obsidian Wings, AUTHOR: ]
[Commentary] President Barack Obama has nominated Mignon Clyburn, the daughter of House Minority whip Jim Clyburn (D-SC), for the Federal Communications Commission. Sound fishy yet? It should. In fact, it's a baffling, frustrating nomination. Mignon Clyburn seems to be a risky pick: she serves on the South Carolina public service commission which is known for being pro-Bell; past that, she's an unknown. What's especially frustrating though is that nepotism seemed to play a much larger role here than policy concerns. Even if she turns out to be great, we have no way of knowing that now. It also shows apathy on Obama's part. That was the whole problem with Michael Brown at FEMA, and Harriet Miers on the Court. Their nominations signaled that the administration didn't really care about those issues, and was therefore content to hand them over to cronies.
http://benton.org/node/25063
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DUNN STILL INTERESTED IN FCC SEAT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Lee Carosi Dunn, a communications adviser to Senator John McCain (R-AZ), is still interested in a seat at the Federal Communications Commission. Hers has been among a small handful of names said to be in the running for the vacant seat of former commissioner Deborah Taylor Tate.
http://benton.org/node/25062
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OWNERSHIP

GOOGLE, APPLE SCRUTINIZED BY THE FTC
[SOURCE: Wall Street Journal, AUTHOR: Jessica Vascellaro]
The Federal Trade Commission is looking into whether the overlap of directors on the boards of Apple and Google violates antitrust laws. Google Chief Executive Eric Schmidt and Arthur Levinson, the former chief executive of Genentech Inc., sit on the boards of both companies. Antitrust regulations allow the government to intervene if directors sit on the boards of two competing companies and their presence could reduce competition. The issue is rarely pursued, lawyers say, in part because it is difficult to prove the impact of the overlapping directors. It is also relatively easy to address by resignations from boards. Why the FTC is taking up the issue now remains unclear. But one possibility is that Google and Apple, which long dominated separate sectors, are competing in more areas. Google and Apple, for example, have both developed software for mobile phones. They also offer competing Web browsers, and are both major players in Internet video, through Google's YouTube site and Apple's iTunes online store.
http://benton.org/node/25067
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LIBERTY, DIRECTV TO MERGE
[SOURCE: Variety, AUTHOR: Cynthia Littleton]
Satellite operator DirecTV is about to play a more prominent role in John Malone's Liberty Media empire. Liberty Media said Monday it will merge its DirecTV Group subsidiary with a clutch of assets from its Liberty Entertainment unit to form a separate publicly traded entity named DirecTV. The assets merging with DirecTV include Liberty's 65% share in cable channel GSN, three regional sports cable channels and Fun Technologies. The new DirecTV will absorb $2 billion in debt, which will be paid off in part by a $650 million loan from the satellite company. Liberty Entertainment's remaining assets, including the Starz channels, will be spun off into another publicly traded entity dubbed Liberty Starz. There was speculation Monday on CNBC that the maneuvering was a bid by DirecTV to streamline its ownership structure to facilitate a merger or acquisition with a non-Liberty-owned entity down the road.
http://benton.org/node/25056
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GOVERNMENT & COMMUNICATIONS

OBAMA'S CIO, CTO, AND SECURITY LEADER HAVE DEFINED ROLES
[SOURCE: FederalComputerWeek, AUTHOR: Doug Beizer]
President Barack Obama has already named a Chief Information Officer and Chief Technology Officer for the federal government. He's expected to soon name a cybersecurity "czar," possibly within the National Security Council. Proposed legislation in Congress would require such an office. The distinct duties of each role are only just emerging. The CIO's mandate is to improve the ways the federal government uses technology and how that technology is purchased. The CTO, on the other hand, will be in charge of propelling technology adoption outside government. If a cybersecurity position is created, that person will likely be charged with coordinating cybersecurity issues across government agencies, said Jim Flyzik, a technology consultant a former senior adviser to Tom Ridge in the White House Office of Homeland Security. Any conflicts among the three offices should be easy to resolve because all three will be under the umbrella of the White House, said Mark Boster, chief operating officer of Platinum Solutions and former deputy assistant attorney general for information resources management at the Justice Department.
http://benton.org/node/25050
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CDT SEEKS PUBLIC ACCESS TO CONGRESSIONAL RESEARCH
[SOURCE: New York Times, AUTHOR: Stephanie Strom]
American taxpayers spend more than $100 million a year supporting the work of the Congressional Research Service, a little-known but highly regarded division of the Library of Congress. But unlike the library itself, the research service is by law exclusively for the use of members of Congress. Only they and their staffs have access to the reports and memorandums it generates, and only they can decide to make its work public. A nonprofit group, the Center for Democracy and Technology, is leading a fight to change that. "We think the public should have access to the information that is shaping legislation and policy, especially since it pays for that information," said Ari Schwartz, the organization's chief operating officer.
http://benton.org/node/25068
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FUNDING RULES FOR WASTEFUL GOVERNMENT TECHNOLOGY SPENDING, STATE CIOs SAY
[SOURCE: Government Technology, AUTHOR: Steve Towns]
With billions of stimulus dollars heading for state coffers, CIOs are urging the federal government to loosen funding rules they say promote poor IT system design and inefficient use of precious funds. Shortly after last November's election, representatives from the National Association of State Chief Information Officers (NASCIO) met with President Barack Obama's transition team about modifying rules for spending money given to states for operating federal health care, transportation, social services and public safety programs. NASCIO contends that cost-allocation guidelines and technology requirements tied to these funds often clash with state data-sharing and enterprise architecture initiatives.
http://benton.org/node/25052
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LAWMAKERS ATTACK CYBERSECURITY ON MULTIPLE FRONTS
[SOURCE: FederalComputerWeek, AUTHOR: Ben Bain]
When it comes to cybersecurity and its legislative oversight, members of Congress are all over the map. In recent weeks, a flurry of bills have been introduced in the House and the Senate, tackling topics such as the security of the power grid, the management of the government's information technology investments and the White House's approach for dealing with cyber threats. The measures are welcome news for cybersecurity experts who have long pushed Congress to focus more on the cross-cutting nature of information technology security. However, the bills are coming from lawmakers from diverse committees, prompting questions about who on Capitol Hill should have oversight of computer security and how much authority lawmakers should have to oversee the White House's efforts.
http://benton.org/node/25051
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QUICKLY

FCC ANNOUNCES 2.5 GHZ BROADBAND RADIO SERVICE AUCTION
[SOURCE: Tales from the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] The Broadband Radio Service auction is here! The Broadband Radio Service auction is here! Why should we care? Because the 2.5 GHz band is the home of the major WiMax plays, and what happens in the auction has the potential to shape the field going forward and influence whether deployment goes more smoothly or gets all bollixed up. With a reserve price of $15 million, the auction wouldn't make it into many headlines, still several things make this auction worth sitting up and taking notice.
http://benton.org/node/25049
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HOW PERSONALITY CAN PREDICT MEDIA USAGE
[SOURCE: AdAge, AUTHOR: Beth Snyder Bulik]
According to data from psychographic-research company Mindset Media, personality is often a more effective prediction tool for media usage than age, gender and income. People who have a lot of "bravado" -- who prefer to leap before they look -- are 50% more likely than the average person to be heavy consumers of all media. The same is true for people who rank low in "compliance" -- those who chafe at rules and may be sarcastic. They are 60% more likely than the average person to be high consumers of all media. And while the personality findings alone are interesting, the added value for marketers lies in combining those preferences with traditional demographic data, as well as other habits and tendencies. Taking all that information into account can sharpen a media buy, narrow down possible product extensions or just offer a better read on core audiences' attitudes and behavior.
http://benton.org/node/25054
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