HAPPY NEW YEAR!
ON THE HORIZON
A January To Remember
The Advertising Outlook for 2005
Telecom Revamp May Cost Cities
BROADCASTING
Alliance Considering License Challenges
FCC Resists Paxson Court Ploy
FCC May Act Soon on CEA's DTV Tuner Petition
European Regulators Urged to Promote Wide-Screen
TV to Spur DTV Takeup
CABLE
Cable Has to Like 'Brand X' Case Chances
Cable Programs Up Across Board
Charter Asks For Basic Deregulation In Northwest
CEA Keeps Up Heat on Set-Tops
QUICKLY
Powell Moves Quickly to Initiate AWS Auction
California Appeals FCC VoIP Order
Judicial Nominees Have Left Telecom, Internet Footprints
The State of Blogging
A "Year in Review" of "The Point"
The Children's Television Rules
Digital Communities 2005
ON THE HORIZON
A JANUARY TO REMEMBER
What's on the agenda this month? Broadcasting&Cable highlights a half-dozen
items: 1/4 -- Sens. Ted Stevens (R) of Alaska and Daniel Inouye (D) of
Hawaii become chairman and ranking Democrat on the Senate Commerce
Committee, setting the stage for them to oversee a sweeping rewrite of the
country's telecommunications laws. 1/5 -- Paxson Communications explains to
the federal appeals court in Washington why the FCC should be forced to
quickly decide whether broadcasters are entitled to cable carriage for each
of the six or so digital channels that digital TV allows them to offer.
1/18 -- The FCC must file a brief with the Supreme Court explaining why
cable operators' Internet services should remain free of telephone-style
"open access rules." 1/20 -- With an eye toward an FCC vote in February or
March, Chairman Michael Powell formally proposes his controversial plan for
ending the digital TV conversion. 1/24 -- Congress gets busy, including
hearings on Chairman Powell's DTV plan. 1/31 -- The FCC faces a choice:
either ask the Supreme Court to uphold its 2003 deregulation of broadcast
ownership limits or accept a lower court order to rewrite the rules.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA490662.html?display=News&refe...
(free access for Benton's Headlines subscribers)
THE ADVERTISING OUTLOOK FOR 2005
In 2004, advertisers spent $46 billion on broadcast TV and $15.6 billion on
cable. They are projected to spend $46.7 billion on broadcast and $16.7
billion on cable in 2005. The slight rise for TV advertising highlights
TV's changing role. Once the undisputed king of media buys, television may
surrender to a new, broader communications mandate, say industry sources.
"If last year was about branded entertainment, this year will be about
total communications planning," predicts Steve Moynihan, executive vice
president/managing director of MPG, Boston, the media-buying agency of
Havas. Communication planning targets all communication channels, such as
PR, the Internet and place-based media, not just TV, radio, magazines and
newspapers. Media buyers, planners and ad insiders predict renewed efforts
to regulate at least two top commercial categories: prescription drugs and
food aimed at kids.
[SOURCE: Broadcasting&Cable, AUTHOR: Joe Mandese]
http://www.broadcastingcable.com/article/CA490658.html?display=Advertisi...
(free access for Benton's Headlines subscribers)
TELECOM REVAMP MAY COST CITIES
Local governments are bracing for a rough Congress next year, with an eye
on telecommunications legislation that could impact their bottom lines.
"Local governments' interests were and are under attack in Washington and
in the state legislatures. Absent a unified and strong response by local
government (and where possible, with state government groups), matters will
only get worse in 2005 and 2006," according to a report prepared by the
Local Government Telecommunications Alliance. The seven-page report
indicates that Congress will come under pressure from industry next year to
limit state and local oversight of Internet protocol-based services,
whether voice, video or data. The report explains that events in 2004 sent
"a not-so-subtle message to local government" that Congress might pass a
new law that shields IP service providers from state and local regulation,
except in the areas of consumer protection and emergency services.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA490768.html?display=Top+Stories&re...
(free access for Benton's Headlines subscribers)
BROADCASTING
ALLIANCE CONSIDERING LICENSE CHALLENGES
The Alliance for Better Campaigns is still sifting through data on TV
stations' coverage of the 2004 elections, and it hasn't yet decided whether
to challenge any licenses coming up for renewal, Executive Director
Meredith McGehee said. The Alliance monitored the amount of time TV outlets
devoted to covering local and national campaigns in their nightly
newscasts, public affairs shows and special programs such as debates.
During the run-up to the election, McGehee said the Alliance was holding
out the option of challenging licenses as they come due across the country
over the next three years.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA490719.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
FCC RESISTS PAXSON COURT PLOY
Paxson Communications, dismayed by years of alleged FCC inaction on
digital-television issues, has asked a federal court to force the FCC to
rapidly bring clarity to the regulatory picture. The policies sought by
Paxson would require cable companies to carry every digital service that a
TV station can cram into its bandwidth. Today, that's about five or six
channels. Paxson's proposal would also require cable operators to carry one
service in down-converted analog format and the others in digital, for
viewing by cable subscribers with DTV sets or digital set-tops. In 2001,
the FCC tentatively rejected the idea of forcing cable to carry analog and
digital signals during the transition to all-digital broadcasting -- and it
unequivocally limited cable carriage to a single DTV programming stream
after the transition, rejecting Paxson's so-called multicast carriage
mandate. The cable industry applauded that outcome. According to the FCC,
Paxson created a procedural problem for itself by failing to take the
agency to court promptly after adoption of the DTV rules in 2001. Instead,
Paxson asked the commission to reconsider its action, a procedural step
that blocks the company from taking the FCC to court while the
reconsideration request is pending.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA490701.html?display=Policy&referra...
(free access for Benton's Headlines subscribers)
FCC MAY ACT SOON ON CEA'S DTV PETITION
In November, the Consumer Electronics Association and the Consumer
Electronics Retailers Coalition, in a joint petition, asked the FCC that
the July 2006 date by which all TV sets with 25"-36" screens must have
digital TV tuners be moved up to March 2006 and that the July 2005 date by
which 1/2 the sets must be ATSC-capable be eliminated. Sources now say that
an order on the petition is being circulated to FCC commissioners.
Broadcasters oppose delaying when tuners should be implemented, which they
see happening if the July 2005 deadline is eliminated. "It's counter
intuitive. You're just flooding the market with more analog sets that won't
work in 4-5 years," one broadcast official said. Eliminating the July 2005
deadline would affect the crucial holiday selling season, he said, because
most consumers purchase those size sets during Christmas time and before
the Super Bowl.
[SOURCE: Communications Daily 1/3, AUTHOR: Tania Panczyk-Collins]
(Not available online)
EUROPEAN REGULATORS URGED TO PROMOTE WIDE-SCREEN TV TO SPUR DTV TAKEUP
European telecom regulators should encourage the rollout of wide-screen TV
in order to spur digital broadcasting, according to a study presented to
the European Commission (EC) last month. With several of the
"chicken-and-egg" problems that led to market failure in the 1990s now
resolved, wide-screen format should be
able to "play its role in the cluster" of DTV technologies, said
Eurostrategies, a joint subsidiary of 3 consultancies -- BIPE Conseil
(France), Interconnect Communications (U.K.) and European Research Assoc.
(Belgium).
[SOURCE: Communications Daily 1/3, AUTHOR: Dugie Standeford]
(Not available online)
CABLE
CABLE HAS TO LIKE 'BRAND X' CASE CHANCES
The Supreme Court has agreed to hear a case, informally known as Brand X,
that could decide whether cable companies have to open their lines to
competing Internet-service providers, just like the Baby Bells. As cable
and phone companies battle for high-speed data customers, cable companies'
ability to exclude ISP rivals while the Baby Bells could not gives cable a
regulatory leg up that helps protect their current 60% market share. The
case comes to the Supreme Court by way of the 9th U.S. Circuit Court of
Appeals which, for the nine-year period ending in 2001has been reversed by
the Supreme Court in 90% of its cases. Andrew Jay Schwartzman, an attorney
with Media Access Project who is representing the Center for Digital
Democracy in the case, said he was disappointed that the court agreed to
hear the case. "The outcome of this case will -- quite literally --
determine the future of the Internet as we know it. If the Supreme Court
rules against Internet open access, cable companies will be able to block
content at will for political and financial reasons and deny the public the
ability to choose among competing Internet providers," Schwartzman said.
Cable attorneys said the court has scheduled oral arguments for March 23
(though that could change), and a decision is expected to be released
before the court's summer recess in late June or early July. The case is
titled Federal Communications Commission and U.S. v. Brand X Internet Services.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA490762.html?display=Top+Stories&re...
(free access for Benton's Headlines subscribers)
CABLE PROGRAMS UP ACROSS BOARD
Six of the top-10 rated cable networks increased their primetime delivery
to persons aged 2 and older in 2004. In contrast, only two of the seven
broadcast networks saw gains. Cable's victories against broadcast in
overall viewership have almost become old hat. But now cable is dominating
additional genres, or what TNT and TBS CEO Steve Koonin called "programming
pockets." Koonin noted that viewership for sports and kids' programming has
already shifted to cable. But last year, audiences were also turning to
cable for their news, late-night viewing and even original scripted shows.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA490769.html?display=Top+Stories&re...
(free access for Benton's Headlines subscribers)
CHARTER ASKS FOR BASIC DEREGULATION IN NORTHWEST
The basic cable tier includes local TV stations, public access channels,
and any cable networks placed there by the cable company. The rates for the
basic tier remain under local control until a cable company demonstrates
that effective competition has emerged. With adoption of direct-broadcast
satellite services around the country, cable operators are asking for
deregulation of basic tier rates in areas where DBS penetration is 15% or
more. Charter Communications has filed a petition with the FCC seeking
total rate deregulation for 21 cable franchises serving 15 areas in
Washington state and six in Oregon.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA490695.html?display=Policy&referra...
(free access for Benton's Headlines subscribers)
CEA KEEPS UP HEAT ON SET-TOPS
Cable operators are facing a July 2006 deadline to deploy new digital boxes
that function with CableCARDS. But the industry is resisting, claiming the
cost to lease boxes would rise without any offsetting benefits. But
consumer electronics manufacturers say cable operators are exaggerating the
costs and complications associated with opening the digital set-top box
market in a way that would allow consumers to buy units from Best Buy and
Circuit City. The cable industry has asked for an extension on the July
deadline and the FCC had promised a ruling by January 1. Broadcasting &
Cable now reports that the FCC is promising a decision before February.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA490763.html?display=Top+Stories&re...
(free access for Benton's Headlines subscribers)
QUICKLY
POWELL MOVES QUICKLY TO INITIATE AWS AUCTION
FCC Chairman Michael Powell asked the National Telecommunications and
Information Administration to begin the process that will lead to an
auction of 90 MHz of spectrum for advanced wireless services (AWS) in June
2006. In a letter to Assistant Secretary for Communications and Information
Michael Gallagher, FCC Chairman Michael Powell stated that the Commission
intends to commence an auction for Advanced Wireless Services licenses in
the 1710-1755 MHz and 2110-2155 MHz bands as early as June 2006. The
1710-1755 MHz band is currently occupied by federal government users that
would be relocated pursuant to the recently enacted Commercial Spectrum
Enhancement Act. That Act requires the Commission to notify NTIA at least
18 months in advance of beginning an auction of spectrum transferred from
federal government to commercial use. It also requires NTIA to provide the
Commission the estimated costs and timelines for the relocation of Federal
entities from the bands at least 6 months prior to the auction.
[SOURCE: Communications Daily 12/30, AUTHOR: Howard Buskirk]
(Not available online)
Letter to NTIA:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255803A1.pdf
FCC Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255802A1.doc
CALIFORNIA APPEALS FCC VOIP ORDER
The California Public Utilities Commission filed an appeal in the Ninth
U.S. Circuit Court of Appeals Dec. 22 challenging a FCC ruling in November
that barred states from regulating voice-over-Internet-protocol providers,
including cable companies, as traditional phone-service providers. The CA
PUC claims that the FCC exceeded its authority in shielding VoIP providers
from traditional state regulation. Also Dec. 22, the U.S. Court of Appeals
for the Eighth Circuit upheld a permanent injunction against Minnesota that
Vonage had obtained from a lower court. The court said the FCC's order
pre-empting state regulation of VoIP supported the injunction, and
opposition to the FCC's ruling had to be brought in a separate case.
California regulators began that process with the Ninth Circuit appeal.
[SOURCE: Multichannel News]
http://www.multichannel.com/article/CA490713.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
JUDICIAL NOMINEES HAVE LEFT TELECOM, INTERNET FOOTPRINTS
Last month, President Bush renominated several people to federal judgeships
including some with ties to the telecom and Internet industries, or cases
involving them. Each of the nominations had been held up by the Senate but
was resubmitted by the Administration in anticipation of a stronger
majority in the 109th Congress. Paul Crotty, renominated to a judgeship in
US Distict Court, New York City, is a longtime Verizon executive. U.S.
District Judge Terrence Boyle (Raleigh, NC), renominated to a seat on the
4th U.S. Appeals Court, Richmond, sat on the 4th Circuit Appeals Court
panel that unanimously said AOL isn't responsible for anonymous postings
that resulted in dozens of harassing phone calls to a Seattle businessman.
The opinion said the Telecom Act expressed clear intent that online service
companies not be liable for "material posted by third parties on their
system." Thomas Griffith, renominated to a seat on the U.S. District Judge,
D.C. is an ex-partner at communications law firm Wiley, Rein & Fielding.
[SOURCE: Communications Daily 12/28, AUTHOR: Michael Feazel]
(Not available online)
THE STATE OF BLOGGING
By the end of 2004 blogs had established themselves as a key part of online
culture. Two surveys by the Pew Internet & American Life Project in
November established new contours for the blogosphere and its popularity:
1) 7% of the 120 million U.S. adults who use the Internet say they have
created a blog or web-based diary. That represents more than 8 million
people. 2) 27% of Internet users (32 million Americans) say they read
blogs, a 58% jump from February 2004. 3) 5% of Internet users say they use
RSS aggregators or XML readers to get the news and other information
delivered from blogs and content-rich Web sites as it is posted online. 4)
The interactive features of many blogs are also catching on: 12% of
Internet users have posted comments or other material on blogs. 5) At the
same time, for all the excitement about blogs and the media coverage of
them, blogs have not yet become recognized by a majority of Internet users.
Only 38% of all Internet users know what a blog is. The rest are not sure
what the term "blog" means.
[SOURCE: Pew Internet & American Life Project]
http://www.pewinternet.org/
A "YEAR IN REVIEW" OF "THE POINT" REVEALS A YEAR OF BIAS AND DISTORTION
Media Matters for America keeps the spotlight on Sinclair Broadcast Group's
"The Point," a commentary segment included in "local" newscasts on
Sinclair-owned stations around the country. Last month, "The Point" has
offered a "Year in Review" series featuring "some of the most popular
commentaries" from 2004 presented by Sinclair vice president Mark Hyman.
[SOURCE: Media Matters for America]
http://mediamatters.org/items/200412230010http://mediamatters.org/items/...
THE CHILDREN'S TELEVISION RULES
The legal department of the National Association of Broadcasters offers
stations a summary of the FCC's newly-adopted children's television rules.
[SOURCE: National Association of Broadcasters]
http://www.nab.org/membersonly/nabsays/legal/kid-vid2004.htm
DIGITAL COMMUNITIES 2005: CALL FOR PAPERS AND ORGANIZERS
Digital Communities is an international network of scholars, policy makers,
and urban analysts who share an interest in the relationship between
information technologies and urban life. The next Digital Communities
conference in 2005 will be held in Italy and will explore a wide range of
themes associated with information technology, the knowledge economy,
technology policy, and the significance of place in cyberspace. Of special
interest is the experience of locations within the Mediterranean region. To
present a paper or organize a session see the URL below.
http://www.ssc.msu.edu/~espace/DC2005Location.html
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Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
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