For upcoming media policy events, see http://www.benton.org/calendar.htm.=20
Later today, the agenda for the FCC's open meeting next week will be=
released.
TODAY'S QUESTION: Sirius is betting the farm -- are you ready to pay for=20
radio when you can get it for free?
TELECOM
Powell Defends Handling of E-Rate =91Snafu=92
FCC Takes Steps to Resolve E-Rate Delays
U.S. Chamber of Commerce Calls For Telecom Reforms
SBC Ties Broadband Build to FCC Sharing Rules
SBC, BellSouth Wary Of AT&T, MCI Deals
MEDIA
Some Networks Aren't Sporting Time Delays
Stern Could Get Serious Piece of Sirius
House Passes Satellite Bill
Advisory Committee on Diversity Makes Recommendations
QUICKLY
Powell Lays Out Plan for FCC
CWA: Comcast Forced Workers Out
CDT Says Copyright "Inducement" Bill Still Overbroad
Spyware Bills See Flurry of Action
TELECOM
POWELL DEFENDS HANDLING OF E-RATE 'SNAFU'
After Senators at a Commerce Committee hearing were critical of accounting=
=20
changes the FCC has forced on the administrator of the E-rate program=20
(USAC), FCC Chairman did some damage control Wednesday. The Chairman said=20
the FCC had acted properly to make USAC strictly adhered to federal=20
accounting and GAAP [generally accepted accounting principles] guidelines.=
=20
He said the Commission will issue an instruction letter to USAC to give the=
=20
corporation some certainty -- the letter would not face a vote of the five=
=20
FCC commissioners. Commissioners Adelstein and Copps were critical of how=20
the Chairman has handled the E-rate program. Commissioner Adelstein said,=20
"The Antideficiency Act has been on the books for a long, long time. This=20
program has been on the books for a long time and they've coexisted=20
peacefully and all of a sudden I find that there=92s sudden change of=20
policy... Why? I still don't understand why. I still feel that I need more=
=20
information to understand why." =93With schools and libraries around the=20
country struggling under the weight of often draconian budget cuts, the=20
need to deliver timely E-Rate support has never been more important than it=
=20
is right now,=94 Commissioner Copps said. =93This is about the worst time=
one=20
could imagine for the kind of snafu that has come to light.=94
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
There's more coverage:
* Wall Street Journal:
http://online.wsj.com/article/0,,SB109711695730538964,00.html?mod=3Dtoda...
s_
FCC TAKES STEPS TO RESOLVE E-RATE DELAYS
On Wednesday the FCC announced several steps it is taking to alleviate a=20
temporary cash flow problem in the E-Rate program that provides vital=20
subsidies for telecommunications services and the Internet in the nation=92s=
=20
schools and libraries. While the program has adequate funds to pay all its=
=20
bills, stringent government accounting standards ordered by the FCC to=20
protect the integrity of the $2.25 billion program have temporarily delayed=
=20
approval of new subsidies. The FCC is
working with the administration, Congress and the schools to get funds=20
flowing as soon as possible while still protecting the fund. Over $2=20
billion in support that has already been approved is being paid without=20
delay and will continue to be. On Monday, the FCC directed the corporation=
=20
administering the program, the
Universal Service Administrative Company (USAC) to liquidate $210 million=20
in investments that were made using cash balances. This is designed to=20
expedite approval of
some of the delayed commitments to the schools.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-252938A1.pdf
US CHAMBER OF COMMERCE CALLS FOR TELECOM REFORMS
The United States Chamber of Commerce Wednesday released a study that finds=
=20
more than 212,000 new jobs would be created and $127 billion a year would=20
be added to GDP over the next five years if telecom regulations were=20
overhauled. Conducted by economist Tom Hazlett of the Manhattan Institute,=
=20
Coleman Bazelon of Analysis Group, John Rutledge of Rutledge Capital=20
Research, and Deborah Allen Hewitt, from the College of William and Mary,=20
the study found: 1) The telecommunications industry lost 380,500 jobs=20
between March 2001 and May 2004 =AD a 29% drop =AD even as employment=
increased=20
in other areas. 2) Because outmoded regulations have created uncertainty=20
for investors, market capitalization in telecommunications between March=20
2001 and July 2004 plummeted 67%. 3) In dollar terms, market capitalization=
=20
fell from $1.135 trillion to $375 billion. 4) Telecom reform could generate=
=20
a total of $58 billion additional capital spending on networks by industry=
=20
sectors over the next five years, with capital spending raising output by=20
$167 billion. 5) Telecom reform has the potential to raise average annual=20
GDP by $127 billion a year over the next five years, a total of $634=20
billion, and increasing average employment levels by more than 212,000 jobs=
=20
over that same period.
The study recommended regulators: A) =93Phase out mandatory network-sharing=
=20
rules.=94 B) =93Make 438 MHz of prime radio spectrum available for=
commercial=20
wireless operators.=94 C) =93Exempt high-speed cable modem and digital=20
subscriber lines from common carrier regulations.=94 D) =93Make Internet=20
services not subject to state
phone service regulations.=94 E) =93Raise funds for universal service=
directly=20
from general tax revenue, rather than from hidden costs that penalize=20
telecommunications competition and the growth of network services.=94 F)=20
=93Distribute universal service funds directly to targeted consumers.=94
Find the study online at
http://www.uschamber.com/broadband/041006telecommstudy.htm
[SOURCE: United States Chamber of Commerce Press Release]
http://www.uschamber.com/press/releases/2004/october/04-131.htm
Also coverage in:
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)
SBC TIES BROADBAND BUILD TO FCC SHARING RULES
We will build it, if we can own it. That's the message from SBC, the=20
second-largest U.S. telephone company, which has said it plans to spend $4=
=20
billion to $6 billion to run fiber-optic lines to neighborhoods and new=20
homes over the next five years, offering video and high-speed data to half=
=20
of the customers in its 13-state territory. SBC's upgrade would allow it to=
=20
provide customers with a connection speed of 25 megabits per second, enough=
=20
for four video channels, voice service and fast Internet access. But the=20
company says it needs to know if the FCC will force the company to share=20
those lines with competitors. FCC Chairman Michael Powell is backing a=20
proposal that would allow SBC and other dominant local carriers to share at=
=20
most only a small voice line if they run fiber-optic connections within 500=
=20
feet to homes. A vote on the proposal will likely occur Oct. 14. [We will=20
know tomorrow if it has made the FCC's open meeting agenda.]
[SOURCE: Reuters, AUTHOR: Justin Hyde]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D6...
04
SBC, BELLSOUTH WARY OF AT&T, MCI DEALS
AT&T and MCI may be looking for suitors, but BellSouth and SBC apparently=20
are not interested. SBC will wait and see if the long distance companies'=20
stock prices fall further. Sprint is interested in acquisitions, but only=20
of wireless assets.
[SOURCE: Wall Street Journal]
http://online.wsj.com/article/0,,SB109710499517938648,00.html?mod=3Dtoda...
s_
(requires subscription)
MEDIA
SOME NETWORKS AREN'T SPORTING DELAYS
The doodoo is still hittin' the fan over Sunday's NASCAR broadcast. NBC and=
=20
CBS aren't using time delays to bleep expletives that could prompt FCC=20
indecency fines -- and blaming the FCC for uncertainty about what can and=20
cannot be said. NASCAR fined and penalized the offending driver. It=92s too=
=20
soon to tell what action, if any, the FCC=92s Enforcement Bureau might take,=
=20
a Commission spokeswoman said.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins, Howard=
Buskirk]
(Not available online)
See also --
Broadcasting&Cable
http://www.broadcastingcable.com/article/CA469815?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
STERN COULD GET SERIOUS PIECE OF SIRIUS
Howard Stern, the country's top-rated disc jockey, will leave broadcast=20
radio for Sirius Satellite Radio in about a year. Sirius will put up $100=20
million over the next five years for "compensation of show cast and staff,=
=20
overhead, construction costs for a dedicated studio, a budget for the=20
development of additional programming and marketing concepts, and payments=
=20
to Stern and his agent." Sirius hopes the move will add at least one=20
million new subscribers to the service.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA469365.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
Being that he's the "King of All Media," the Stern move is getting a lot of=
=20
coverage --
* Washington Post:
http://www.washingtonpost.com/wp-dyn/articles/A10953-2004Oct6.html
* Wall Street Journal:
http://online.wsj.com/article/0,,SB109706646880937838,00.html?mod=3Dtoda...
s_page_one
http://online.wsj.com/article/0,,SB109710483522738639,00.html?mod=3Dtoda...
s_personal_journal
* Los Angeles Times:
http://www.latimes.com/news/printedition/front/la-fi-stern7oct07,1,42223...
tory?coll=3Dla-headlines-frontpage
http://www.latimes.com/business/printedition/la-fi-sirius7oct07,1,312890...
ory?coll=3Dla-headlines-pe-business
http://www.latimes.com/business/printedition/la-fi-radio7oct07,1,7066761...
ry?coll=3Dla-headlines-pe-business
* USAToday
http://www.usatoday.com/printedition/money/20041007/1b_siriusstern07.art...
* New York Times:
http://www.nytimes.com/2004/10/07/business/media/07radio.html
http://www.nytimes.com/2004/10/07/business/media/07adcol.html?oref=3Dlogin
HOUSE PASSES SATELLITE BILL
The House passed the Satellite Home Viewer Extension and Reauthorization=20
Act Wednesday, renewing satellite companies' right to carry local=20
TV-station signals. The legislation aims to help satellite companies to=20
better compete with cable's mix of national networks and local-market TV=20
signals. The House bill gives satellite companies expanded abilities in the=
=20
importation of distant network signals to unserved markets and requiring=20
them to comply with the same kind of customer privacy constraints applied=20
to cable. The National Association of Broadcasters praised passage of the=20
bill (see link to Press Release below), but the bill was criticized by the=
=20
Digital Transition Coalition which pushed for provisions that would have=20
given DBS companies the ability to import distant digital network signals=20
to so-called "white areas" -- those unserved by a local network affiliate=20
-- similar to their right to deliver distant analog signals to unserved=20
customers.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA469808.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
NAB Press Statement
http://www.nab.org/Newsroom/PressRel/statements/100604SHVIAbill.htm
ADVISORY COMMITTEE ON DIVERSITY FOR COMMUNICATIONS IN THE DIGITAL AGE MAKES=
=20
RECOMMENDATIONS
The Advisory Committee on Diversity for Communications in the Digital Age=20
held its fourth meeting on Monday, October 4, 2004. During the meeting, the=
=20
Committee adopted two resolutions. The first resolution "strongly urges the=
=20
Commission to maintain effective Designated Entity rules to increase=20
opportunities for small and minority and women owned businesses." The=20
second resolution urges the Commission to explore "possible ways to foster=
=20
ownership diversity in the commercial FM radio band." The text of the two=20
resolutions and additional explanatory material is available on the=20
Committee's webpage, at http://www.fcc.gov/DiversityFAC/.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-252927A1.doc
QUICKLY
POWELL LAYS OUT PLAN FOR FCC
NPR's Robert Siegel talks to FCC Chairman Michael Powell about the FCC's=20
involvement in the transition to digital TV. They also discuss efforts to=20
combat "indecency" on television and radio broadcasts, and about the=20
evolving role of the FCC in regulating what's seen and heard by the=20
American public.
[SOURCE: All Things Considered audio]
http://www.npr.org/templates/story/story.php?storyId=3D4073672
CWA: COMCAST FORCED WORKERS OUT
The Communications Workers of America claims that 54 Comcast employees in=20
the Pittsburgh area were forced to accept layoffs or face future job losses=
=20
with no severance support in charges filed with the National Labor=20
Relations Board. Comcast has "attempted to intimidate workers by telling=20
them the existing severance package would expire Oct. 5, and that layoffs=20
after that date would include no severance benefits,=94 CWA claims. =93This=
=20
means that families would have no financial support to help weather this=20
period of joblessness.=94 The union reports that the job cuts are mainly=20
affecting longer term, experienced workers who repair system outages. The=20
union represents about 500 Comcast Pittsburgh-area employees.
[SOURCE: Multichannel News]
http://www.multichannel.com/article/CA469584.html?display=3DBreaking+News
(requires subscription)
CDT SAYS COPYRIGHT "INDUCEMENT" BILL STILL OVERBROAD
CDT Wednesday urged the Senate Judiciary Committee not to pass S.2560, the=
=20
"Inducing Infringements of Copyright Act." Though intended to combat=20
widespread copyright infringement on peer-to-peer networks, as drafted the=
=20
bill would threaten a range valuable consumer technologies.
[SOURCE: Center for Democracy and Technology]
CDT letter to Senate Judiciary Committee
http://www.cdt.org/copyright/20041006cdt.pdf
SPYWARE BILLS SEE FLURRY OF ACTION
The House passed an anti-spyware bill on October 5 that would give the=20
Federal Trade Commission explicit authority over a variety of deceptive=20
practices and require information collection software to provide notice=20
before installation. A second bill, creating criminal penalties for the=20
worst forms of spyware, is scheduled for consideration by the House today=20
and is expected to pass easily. Additionally, California Governor Arnold=20
Schwarzenegger signed a spyware bill on September 28, prohibiting several=20
deceptive spyware related practices in California.
* CDT Letter to Senate Commerce Committee on HR 2929, The SPY ACT
http://www.cdt.org/privacy/spyware/20040924cdtcommerce.pdf
* CDT Letter to Senate Judiciary Committee on HR 4661, The I-SPY Act
http://www.cdt.org/privacy/spyware/20040924cdtjudiciary.pdf
* Text of HR 2929, Securely Protect Yourself Against Cyber Trespass Act:=20
http://thomas.loc.gov/cgi-bin/query/z?c108:H.R.2929:
* Text of HR 4661, Internet Spyware Prevention Act:=20
http://thomas.loc.gov/cgi-bin/query/z?c108:H.R.4661:
* Text of California SB 1436:=20
http://www.leginfo.ca.gov/cgi-bin/postquery?bill_number=3Dsb_1436&sess=3...
&house=3DB&author=3Dmurray
[SOURCE: Center for Democracy and Technology]
(http://www.cdt.org)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------