The FCC will release the agenda for next week's open meeting today. For=20
upcoming media policy events, see http://www.benton.org/calendar.htm
LOOKING AHEAD
Sneak Peak 2005: Media & Telecom
The Rise of a New News Network
Nomination of Carlos Gutierrez to be Secretary of Commerce
BROADCASTING
Paxson Calls FCC Response 'Misleading'
Broadcast Stations Serving "Language Minorities"
Radio Stations Vow to Speed Digital Moves
Stern: Still Talking, Still Feisty
PAY TV
Breaking Free of Cable's Stranglehold
DBS Is Slight Rein on Cable Prices
DirecTV: FCC Merger Condition Met
TELECOM
PUC Member Seeks Delay of 'Bill of Rights'
FCC Poised to Act on AT&T=92s Prepaid Calling Cards
INTERNET
Researchers See Gigabit Data Over Power Lines
Curbing Internet Gambling
Court Enters Preliminary Injunction Against Spyware Purveyor
OWNERSHIP
Boston Herald Publisher Vows to Stop Deal
Tech Firms Aim to Change Copyright Act
Lawsuit claims Apple violates law with iTunes
INTERNATIONAL CONSUMER ELECTRONICS SHOW COVERAGE
All the free press you can shake a joystick at...
LOOKING AHEAD
SNEAK PEAK 2005: MEDIA & TELECOM
Forbes editors and writers take a look ahead in the media business. 1)=20
Peter Newcomb On Media: The end of "reality TV" is in sight; illegal=20
downloading is an overblown problem; Disney will buy Pixar. 2) Brett Pulley=
=20
On Radio: The industry is both healthier than people think, but=20
underestimating the potential impact of satellite radio. 3) Peter Kafka On=
=20
The Music Industry: The music business may have an answer to its digital=20
woes: subscription services. Consumers pay a monthly fee to rent all the=20
digital music they desire, but can still buy tracks if they wish. 4) David=
=20
Ewalt On Telecommunications: Expect to see continued consolidation and more=
=20
heated competition in the telecommunications industry. The regional phone=20
companies will scramble to snatch up long-distance businesses. Strong=20
subscriber gains and the popularity of new digital services will give cable=
=20
operators a shot in the arm, exploding earnings. 5) Ed Lin On=20
Telecommunications: Consumers will continue their march to cable and=20
multiple-services operators for their telecommunications needs. Telecoms=20
will see their fixed-line businesses go the way of long-distance carriers=20
and the candlestick telephone. Increasing the depth of mobile services will=
=20
provide the only refuge for telecom companies as voice-over-Internet=20
Protocol wins more acceptance. 6) Susan E. Stegemann On Telecommunications:=
=20
FCC Chairman Michael Powell is expected to step down early in the year. He=
=20
has been hands-off when it comes to regulating the Internet. Will his=20
replacement be the same? 7) Scott Woolley On Telecommunications: No major=20
mergers of telecom carriers will be announced in 2005.
[SOURCE: Forbes]
http://www.forbes.com/business/2004/12/14/sp05_14_x_media.html
http://www.forbes.com/business/2004/12/14/sp05_17_x_telecom.html
THE RISE OF A NEW NEWS NETWORK
The 1990s proved to be the decade when cable news networks replaced network=
=20
television as the primary source of breaking news for many Americans, just=
=20
as the 1960s saw newspapers supplanted. In the new millennium, a=20
broadband-enabled, always-on Internet threatens to usurp those cable news=20
networks. The recent tsunami disaster, perhaps, marked the first time=20
Americans turned to blogs for breaking news. Already 32 million Americans=20
are reading weblogs. That's a large enough number to make even the biggest=
=20
skeptic believe that this is a real revolution. How much of an impact will=
=20
this have on the media giants? It's too early to tell. But one thing's for=
=20
sure: This trend is too big to ignore.
[SOURCE: Business 2.0, AUTHOR: Om Malik]
http://www.business2.com/b2/web/articles/0,17863,1013980,00.html
More on blogging and traditional media --
* Newspaper 2.0: The Blog Revolution
[SOURCE: Editor & Publisher, AUTHOR: Jesse Oxfeld ]
http://www.editorandpublisher.com/eandp/columns/newspaper_2point0_displa...
p?vnu_content_id=3D1000745992
* One Story Line About News Blogs: They Lag Far Behind Mainstream
[SOURCE: Investors Business Daily, AUTHOR: Brian Deagon]
http://story.news.yahoo.com/news?tmpl=3Dstory&cid=3D1471&ncid=3D1471&e=3...
=3D/ibd/20050104/bs_ibd_ibd/200513tech
NOMINATION OF CARLOS GUTIERREZ TO BE SECRETARY OF COMMERCE
At a Senate Commerce Committee Hearing, Carlos M. Gutierrez outlined his=20
goals if he is confirmed as Secretary of Commerce: 1) Fostering the=20
environment in which our free enterprise system will flourish, by serving=20
as an advocate for reducing trade and regulatory barriers that unreasonably=
=20
burden our businesses and their workers; 2) Collaborating with the U.S.=20
Trade Representative both in the negotiation of sound trade agreements that=
=20
will open markets to U.S. exports, and in vigorous challenges to policies=20
and practices abroad that violate those agreements; 3) Enhancing management=
=20
of our marine resources, especially our marine fisheries and threatened=20
marine ecosystems; and 4) Finally, developing greater analytical and=20
predictive capabilities concerning the global climate system, including an=
=20
enhanced forecasting capability with regard to potentially hazardous=20
weather and maritime conditions. That said, his first question from a=20
Senator was about broadband deployment in rural areas. Mr Gutierrez said=20
he =93hoped to have more knowledge=94 of the issue and would elaborate in=
the=20
future. However, he said President Bush=92s goal of affordable access to=20
broadband for all America by 2007 was a =93very powerful goal=94 that he=20
=93totally endorses and supports.=94 Sen. Gordon Smith (R-Ore.) told Mr=20
Gutierrez that enforcement of trade laws is particularly critical in=20
industries such as movies, music and software that are losing sales because=
=20
of copyright violations.
[SOURCE: Communications Daily]
(Not available online)
Commerce Nominee Gutierrez Vows to Fight Unfair Trade
[SOURCE: Washington Post, AUTHOR: Martin Crutsinger, Associated Press]
http://www.washingtonpost.com/wp-dyn/articles/A51942-2005Jan5.html
(requires registration)
See links to prepared statements at:
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1349
BROADCASTING
PAXSON CALLS FCC RESPONSE 'MISLEADING'
Paxson Communications Wednesday told the D.C. Circuit Court of Appeals that=
=20
the FCC's response to the broadcasters' call for an immediate decision on=20
digital must carry was "self-serving and misleading," and asked the court=20
to "require agency action on full digital must-carry." Paxson claims the=20
FCC has had six years to decide on the matter, and that its failure to act=
=20
threatens the transition to digital. Paxson wants the FCC to require cable=
=20
companies to carry all of the programming that TV stations can offer via=20
their new digital spectrum. That would increase the value of=20
Paxson's mostly-UHF stations, which are widely believed to for sale.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA492391.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
BROADCAST STATIONS SERVING "LANGUAGE MINORITIES"
House Democratic Caucus Chairman Robert Menendez (D-NJ) introduced=20
legislation (HR-148) on Tuesday that would require the FCC to report to=20
Congress on the ownership and control of broadcast stations serving=20
=93language minorities.=94 Last July, Rep Menendez testified before the=
Senate=20
Commerce Committee on media ownership, saying Spanish-language markets=20
should be treated and evaluated separately from the English-language market.
[SOURCE: Communications Daily]
(Not available online)
RADIO STATIONS VOW TO SPEED DIGITAL MOVES
Major radio companies announced Wednesday that they are accelerating their=
=20
move to digitize their broadcasts, using new technology that could make=20
broadcast radio more like the Internet.
[SOURCE: C-Net|News.com, AUTHOR: John Borland]
http://news.com.com/Radio+stations+vow+to+speed+digital+moves/2100-1027_...
13693.html?tag=3Dnefd.top
See also:
* LA Times
http://www.latimes.com/business/printedition/la-fi-rup6.6jan06,1,6893059...
ry?coll=3Dla-headlines-pe-business
* Radio Ink
http://www.radioink.com/HeadlineEntry.asp?hid=3D126573&pt=3Dtodaysnews
STERN: STILL TALKING, STILL FEISTY
Viacom's Howard Stern said on his Tuesday radio show that the company's=20
employees are now required to take an indecency law test as part of a deal=
=20
the media giant recently struck with the FCC. As part of that agreement,=20
which took effect Dec. 23, Stern will be pulled off the air -- and possibly=
=20
fired -- if the FCC lodges another formal complaint against Infinity (owned=
=20
by Viacom) over a future broadcast. When Stern learned last month of the=20
possible discipline he faces, he threatened to play only music during his=20
four-hour, five-day-a-week morning show. But in two live broadcasts since=20
returning Jan. 3 from a two-week vacation, Stern has been just as feisty as=
=20
before. In addition to the employee quiz, he detailed a company description=
=20
of the words and sounds that might run afoul of FCC rules. Stern said=20
possible profanity includes 'go to hell,' 'goddamn you,' and any=20
"personally reviling epithets." As for sounds, Stern said banned=20
intonations include flatulence and heavy breathing. His staff then played a=
=20
few examples.
[SOURCE: CNN Money]
http://money.cnn.com/2005/01/04/news/newsmakers/stern/
PAY TV
BREAKING FREE OF CABLE'S STRANGLEHOLD
"Damn those cable guys!" Well, no one actually says that in this article=20
that addresses what the CableCard/set-top box debate means for consumers.=20
Subscribers to the most current versions of digital cable service - the=20
kind with the most channels and advanced features - must now use a set-top=
=20
box provided by the cable system, usually for a monthly rental fee. Those=20
cable company boxes make it hard for devices like flashy flat-screen=20
televisions or advanced video recorders, to truly control the signals they=
=20
are receiving. Moreover, the cable companies are increasingly muscling in=20
on the electronics makers' business by enhancing their set-top boxes with=20
digital video recording abilities and other new features. The FCC, seeking=
=20
to curtail cable's hegemony, has required cable companies to give=20
subscribers the option of forgoing a cable set-top box by renting a device=
=20
the size of a credit card that can be inserted into a television or video=20
recorder and allowing it to tune into the cable system's digital channels.=
=20
But this system, called CableCard, does not yet allow users to tap into the=
=20
most advanced services, like video-on-demand programming, that are among=20
the main selling points of digital cable. The cable industry, for its part,=
=20
bristles at the accusations of the electronics makers. It is fighting to=20
have one part of the current FCC rules on CableCard relaxed: the=20
requirement that, starting in mid-2006, set-top boxes provided by the cable=
=20
operators must eventually use CableCards. The cable companies say that rule=
=20
adds an unnecessary expense to the boxes, but the electronics makers say it=
=20
is the only way to force the cable companies to properly support CableCard=
=20
technology.
[SOURCE: New York Times, AUTHOR: Saul Hansell]
http://www.nytimes.com/2005/01/06/technology/06cablebox.html
(requires registration)
DBS IS SLIGHT REIN ON CABLE PRICES
A new FCC study finds that the threat of losing subscribers to satellite TV=
=20
somewhat dampens cable operators=92 price hikes. =93Even for basic cable=20
services, consumers appear to turn to DBS as a substitute for cable=94 when=
=20
facing large price increases, wrote FCC economists Andrew Wise and Kiran=20
Duwadi. But the typical cable price hikes have not been sufficient to push=
=20
cable subscribers to flee to DBS because long-term contracts, installation=
=20
and equipment fees create =93switching costs=94 that discourage customers=
from=20
dropping their services after moderate price changes.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA491776.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
Competition between Cable Television and Direct Broadcast Satellite =AD It=
=92s=20
More Complicated
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255869A1.pdf
DIRECTV: FCC MERGER CONDITION MET
DirecTV vice president of government relations Susan Eid has reported to=20
the FCC that the company has added 30 local TV markets above what DirecTV=20
had planned before merging with News Corp, meeting conditions set by=20
regulators to win approval of the merger. The company now offers local TV=20
signals in 130 markets (out of 210 nationwide), including 92% of U.S. TV=20
households. DirecTV also plans to launch new satellites capable of=20
delivering up to 1,500 local TV stations in HDTV. The U.S. has 1,748=20
commercial and public TV stations, according to FCC data from last November.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA491619.html?display=3DBreaking+News
(free access for Benton's Headlines subscribers)
TELECOM
PUC MEMBER SEEKS DELAY OF 'BILL OF RIGHTS'
On Wednesday, Public Utilities Commission member Susan P. Kennedy proposed=
=20
shelving what would be the nation's first consumer protection rules for=20
those who use cellphones and other telecommunications services saying=20
carriers need more time to comply with the "bill of rights." Among other=20
things, the rules provide a 30-day trial period allowing customers to test=
=20
products and calling plans and to return them without paying penalties. The=
=20
rules also require clearly organized billing, specific disclosures and=20
writing that is unambiguous. Deceptive marketing is prohibited.=20
Commissioner Kennedy, a vociferous opponent of the consumer protection=20
rules, was on the short end of a 3-2 vote last May that adopted the bill of=
=20
rights. Gov. Arnold Schwarzenegger also had opposed the action, as did the=
=20
cellular phone industry.
[SOURCE: Los Angeles Times, AUTHOR:James S. Granelli]
http://www.latimes.com/business/printedition/la-fi-puc6jan06,1,5590417.s...
?coll=3Dla-headlines-pe-business
(requires registration)
FCC POISED TO ACT ON AT&T PREPAID CALLING CARDS
Because it considers its prepaid long distance calling cards an information=
=20
service, AT&T has been withholding millions of dollars of access charges=20
and universal service contributions. The company petitioned the FCC for a=20
permanent exemption and, apparently, a draft order has moved from the=20
Commission's Wireline Bureau to Chairmen Powell's office for review.=20
Chairman Powell could share the order with other commissioners by the end=20
of the week. The highly charged issue has become even more controversial=20
since Congress passed a resolution directing the FCC not to take any action=
=20
that would =93directly or indirectly=94 raise the rates charged to military=
=20
personnel for phone calls placed using prepaid cards. AT&T=92s enhanced=
cards=20
are often used by military personnel, although company officials say it=92s=
=20
nearly impossible to determine
what proportion of the cards. The FCC is expected to rule against AT&T.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
INTERNET
RESEARCHERS SEE GIGABIT DATA OVER POWER LINES
In a research paper released Wednesday, engineers at Penn State University=
=20
said they had found a way for power lines to transmit data to homes at=20
rates far faster than high-speed Internet connections from cable and=20
telephone companies. Pouyan Amirshahi and Mohsen Kavehrad estimate that=20
their system could deliver data at close to one gigabit per second over=20
medium-voltage electrical lines in ideal conditions, with speeds of=20
hundreds of megabits per second available to home users. Their system would=
=20
uses repeaters placed every one kilometer, (0.62 miles) and requires power=
=20
lines to have been modified to reduce interference with the data signals.=20
The engineers said their estimates were based on computer models, and that=
=20
the data speeds available in a real-world version would depend on how many=
=20
repeaters a power company used. The Penn State study was funded with a=20
grant from AT&T, which has taken part in prior trials of power-line=
broadband.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DNCMCQDS0K5NBICRBAE...
A?type=3DtechnologyNews&storyID=3D7247854
CURBING INTERNET GAMBLING
[Commentary] Last year, more than 1,800 gambling websites took in some $7=20
billion in online wagers. Those revenues could grow to $9.8 billion this=20
year and to $18.4 billion. Although the Justice Department has been=20
cracking down on companies carrying ads for gambling websites and has gone=
=20
after banks that have allowed their credit cards to be used for online=20
betting, Congress has done very little to control the expansion of online=20
gambling. One change Congress ought to make: Revise the 1961 Wire Act,=20
which prohibits placing or taking bets across state lines, to specifically=
=20
include the Internet. Federal, state, and local governments also should=20
remain mindful of the myriad problems that gambling can cause. They need to=
=20
help prevent a money-draining addiction to a belief in chance that has=20
adversely affected the lives of so many individuals, instead of playing to=
=20
special interests.
[SOURCE: Christian Science Monitor, AUTHOR: Editorial Staff]
http://www.csmonitor.com/2005/0106/p08s03-comv.html
COURT ENTERS PRELIMINARY INJUNCTION AGAINST SPYWARE PURVEYOR
Seismic Entertainment and Smartbot.net agreed to a court order requiring=20
that the companies cease exploiting security vulnerabilities to force=20
software onto Internet users' computers. The order extends a similar,=20
earlier injunction and also gives the FTC access to company business=20
records. No trial date has yet been set for the FTC's first spyware case,=
=20
brought in October on the basis of a complaint filed by CDT.
[SOURCE: Center for Democracy and Technology]
(http://www.cdt.org)
Preliminary Injunction Order:
http://www.cdt.org/privacy/spyware/20041220seismicorder.pdf
CDT's Spyware Page:
http://www.cdt.org/privacy/spyware
OWNERSHIP
HERALD PUBLISHER VOWS TO STOP DEAL: METRO'S SALE TO TIMES 'ANTICOMPETITIVE'
Not so fast New York Times Company, says Boston Herald publisher Patrick J.=
=20
Purcell. He says he will try to block the agreement by the New York Times=20
Co., owner of the Boston Globe, to buy a 49% stake in the free daily Metro=
=20
Boston. Purcell said, "This deal is aimed directly at the Herald. It is=20
clearly anticompetitive and not in the best interests of the general public=
=20
or advertisers. We intend to contest this on grounds that the largest=20
newspaper in Eastern Massachusetts is making an in-market acquisition that=
=20
does not meet Justice Department standards."
[SOURCE: Boston.com/Boston Globe, AUTHOR: Mark Jurkowitz=
jurkowitz( at )globe.com]
http://www.boston.com/business/articles/2005/01/05/herald_publisher_vows...
fight_deal=20
TECH FIRMS AIM TO CHANGE COPYRIGHT ACT
Several of the world's largest high-tech corporations plan to urge Congress=
=20
today to force Internet service providers to crack down more aggressively=20
on their users who swap copyrighted software, music or video files online.=
=20
Although members of the Business Software Alliance, including Microsoft,=20
International Business Machines, Intel and Adobe Systems, have not suffered=
=20
losses from illegal file sharing as great as the entertainment industry's,=
=20
they believe the problem will only worsen as technology improves and more=20
people get high-speed Internet access. The effort could reshape a long=20
legal tradition of shielding phone, cable and other communications=20
companies from liability for the actions of their customers. Mike Godwin,=20
legal and policy director for Public Knowledge, a digital rights advocacy=20
group, called the BSA interest in amending the digital copyright act a=20
"terribly bad idea." He said the country has long kept communications=20
services as neutral conduits, free from obligations to monitor how people=20
use them. "We already don't ask the phone companies to go after people who=
=20
engage in infringing performances of songs over the telephone," Godwin said.
[SOURCE: Washington Post, AUTHOR: Jonathan Krim]
http://www.washingtonpost.com/wp-dyn/articles/A51966-2005Jan5.html
(requires registration)
LAWSUIT CLAIMS APPLE VIOLATES LAW WITH iTUNES
An unhappy iTunes online music store customer is suing Apple Computer,=20
alleging the company broke antitrust laws by allowing iTunes to work only=20
with its own music player, the iPod, freezing out competitors.
[SOURCE: Reuters, AUTHOR: ]
http://news.com.com/Lawsuit+claims+Apple+violates+law+with+iTunes/2100-1...
3-5514244.html?tag=3Dnefd.top
INTERNATIONAL CONSUMER ELECTRONICS SHOW COVERAGE
* Washington Post
http://www.washingtonpost.com/wp-dyn/articles/A51742-2005Jan5.html
* Wall Street Journal
http://online.wsj.com/article/0,,SB110496816504118140,00.html?mod=3Dtoda...
s_personal_journal
http://online.wsj.com/article/0,,SB110496715215718100,00.html?mod=3Dtoda...
s_personal_journal
* USA Today
http://www.usatoday.com/printedition/money/20050106/1b_gatesintro06.art.htm
http://www.usatoday.com/printedition/money/20050106/2b_gatesside06.art.htm
http://www.usatoday.com/printedition/money/20050106/b_baig_06.art.htm
* San Jose Merc
http://www.mercurynews.com/mld/mercurynews/business/technology/10578736.htm
* LA Times:
http://www.latimes.com/business/printedition/la-fi-tv6jan06,1,1828400.st...
coll=3Dla-headlines-pe-business
*CSM
http://www.csmonitor.com/2005/0106/p12s02-stct.html
*Reuters
http://www.reuters.com/newsArticle.jhtml?type=3DtechnologyNews&storyID=3...
0785
http://www.reuters.com/newsArticle.jhtml?type=3DtechnologyNews&storyID=3...
9824
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DTHPFWIUYUQ0XGCRBAE...
Y?type=3DinternetNews&storyID=3D7246460
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DTHPFWIUYUQ0XGCRBAE...
Y?type=3DinternetNews&storyID=3D7247239
*News.com
http://news.com.com/CES+2005+Digitizing+entertainment/2009-7353_3-550138...
ml?tag=3Dnefd.lede
http://news.com.com/Gates+taking+a+seat+in+your+den/2008-1041_3-5514121....
?tag=3Dnefd.lede
--------------------------------------------------------------
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.
--------------------------------------------------------------