Benton's Communications-related Headlines for 11/02/04

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AT STAKE TODAY
Kerry Win Could Extend FCC Gridlock
Regardless of Election, Changes Coming to Congressional Committees
Future of Federal Rulemaking Caught Up in Election

MEDIA & ELECTIONS
Pappas Decision Released
Last-Minute Campaign Ads Give Broadcasters a Boost
Docu-Trauma
Lessons From The Election (Already)

BROADCASTING
Free Press Challenges Sinclair Licenses
NAB Unveils New DTV-Carriage Plan
Noncoms Get Dough for Digital Archiving
Industry Moves Forward on Digital Radio

QUICKLY
How to Move the IP Era Out of Neutral
Wireless Carriers Protest Possible EAS Mandate

AT STAKE TODAY

KERRY WIN COULD EXTEND FCC GRIDLOCK
Legg Mason Wood Walker foresees girdlock at the FCC, if Sen Kerry wins
today's election. Analyst Blair Levin, a former FCC chief of staff, wrote
that leadership turnover at the agency, coupled with stalled nominations in
the Senate, could produce a deadlock that would prevent the FCC from
issuing new policies on a range of topics. The scenario assumes Republican
control of the Senate, two vacant seats on the Commission with Democrat
Michael Copps serving as chairman along with Republicans Kevin Martin and
Kathleen Abernathy. "Such a scenario could go for some time, likely
limiting the work the FCC could accomplish in 2005 and maybe beyond," Levin
wrote in a detailed report handicapping policy moves at the FCC if either
Kerry or President George W. Bush wins the election.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA476872.html?display=Breaking+News
(requires subscription)

REGARDLESS OF ELECTION, CHANGES COMING TO CONGRESSIONAL COMMITTEES
Turn and face the stranger Ch-ch-Changes. No matter what happens today,
ch-ch-changes are coming and the next Congress will have several new
legislators overseeing telecom and Internet law. The Baby Bells are losing
a few supporters and a noteworthy detractor thanks to retirement. In the
House, former Commerce Committee
Chairman Billy Tauzin (R-LA) is retiring, but has already given his
leadership seat to current Chairman Joe Barton (R-TX). In the Senate, Bell
supporter Breaux (D-LA) is retiring as is critic Hollings (SC). The Senate
Commerce Committee is also losing Sen Fitzgerald (R-IL) and could lose Sen
Kerry (we should know by Thanksgiving). Regardless of the election's
outcome, as current Chairman McCain (R-AZ) must resign the chairmanship due
to term limits. If Republicans maintain the Senate, Sen Stevens (R-Alaska)
is expected to take the seat. If Democrats regain the Senate, Sen Inouye
(D-Hawaii) will likely be the Committee Chairman.
[SOURCE: Communications Daily, AUTHOR: Terry Lane & Bowie]
(Not available online)

FUTURE OF FEDERAL RULEMAKING CAUGHT UP IN ELECTION
The war in Iraq, terrorism and the economy (stupid). These are the big
issues on voters' minds today. But how do the candidates differ on their
approach to regulation? President Bush addresses regulation as part of his
"Plan for Creating Opportunity for America's Workers." He promises to
reduce the regulatory "burden" by continuing to insist on good science and
economics; making sure new rules are flexible and don't harm small
business; and streamlining existing rules and paperwork requirements. He
advocates tax credits and market incentives to address energy needs and
environmental challenges. It's harder to discern Sen Kerry's overall
philosophy of regulation. But past votes in the Senate and positions he has
taken on domestic issues indicate he would use the regulatory tools
available to him more often. He would push more funding for the Superfund
program to clean up polluted industrial sites. He promises to reverse the
recent rule determining eligibility for overtime, push for deep reductions
in mercury emissions, increase fuel-efficiency standards and institute a
mandatory federal standard to prevent repetitive-motion injuries on the
job. "He understands you don't need to over-regulate, but he believes in
basic protections. There is a role for government. He'll get everyone to
the table and find the right balance," said Sarah Bianchi, policy director
for the Kerry campaign.
Sure -- the future of regulation -- now we've got your blood pumping and
all of a sudden you are interested in this election.
[SOURCE: Washington Post, AUTHOR: Cindy Skrzycki]
http://www.washingtonpost.com/wp-dyn/articles/A17353-2004Nov1.html
(requires registration)

MEDIA & ELECTIONS

PAPPAS DECISION RELEASED
Pappas Telecasting is complying with the FCC's equal-time ruling but hasn't
ruled out appealing the decision to the full Commission, Communications
Daily reports. The ruling came as no surprise to Media Access Project
President Andrew Schwartzman, who called Pappas' action "absurd."
Schwartzman said the Pappas incident was reflective of broadcasters'
election actions. "This is an accumulative affect of broadcasters thinking
the FCC no longer cares what they do. I'm glad to say they're wrong," he said.
The FCC has released its decision on Pappas decision to offer free air time
to California candidates. Titled "In the Matter of Equal Opportunities
Complaint Filed By
Nicole Parra Against Pappas Telecasting Companies." DA 04-3494
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-3494A1.doc
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)
Broadcasting&Cable covered the decision Monday morning. See
http://www.broadcastingcable.com/article/CA476775.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

LAST-MINUTE CAMPAIGN ADS GIVE BROADCASTERS A BOOST
Most political ad spending is on local TV. Over the past week, about $57
million has been spent on broadcast TV commercials related to the
presidential race, representing more than one-quarter of the $200 million
spent on such ads in the entire 2000 race. Florida, Pennsylvania, Ohio and
Michigan have seen much of that spending and TV station owners like Media
General, E.W. Scripps, the Washington Post, Gannett and Meredith should
profit from it.
[SOURCE: Reuters, AUTHOR: Martha Graybow ]
http://www.reuters.com/newsArticle.jhtml?type=televisionNews&storyID=668...

DOCU-TRAUMA
Although a big part of the story of the 2004 election, political
documentaries, many made by first-time filmmakers, have fared poorly at the
cineplex with the exception of Michael Moore's "Fahrenheit 9/11" ($119
million domestic box office). "It seems like people might be talking about
these movies more than seeing them," says Robert Stone, the filmmaker
behind the upcoming "Guerrilla: The Taking of Patty Hearst." "They seem to
lack artistry or story. They're right in your face," he says. "I think
there is a feeling of burnout." See a discussion of films you should feel
guilty you didn't see before voting at the URL below.
[SOURCE: Washington Post, AUTHOR: William Booth]
http://www.washingtonpost.com/wp-dyn/articles/A17419-2004Nov1.html
(requires registration)

LESSONS FROM THE ELECTION (ALREADY)
This election has taught us lessons about network technology and a new form
of interaction between candidates, citizens and the media. 1) Targeting and
mobilizing a specific grassroots demographic can have advantages not just
in viral, on-the-ground organization but in practical terms for raising
money. 2) The Internet was used to test and distribute ads, but the bulk of
candidates' financial resources is still used to buy television time,
particularly in the closing stages of the campaign. So far, an estimated
$526 million has been spent in the country's top 100 television
markets--and with so many states still in play, that relentless torrent of
over-exposure, enriching no one but the broadcasters, will continue right
up to the wire. 3) The function of the journalist, particularly on cable
news stations, has become almost reduced to that of a mere referee between
two talking--or more frequently, shouting--heads as they go at it with
often scant regard for the factual accuracy of their talking points. To
counter this has been the growth of independent fact-checking sites, a true
manifestation of how the Internet is facilitating the evolution of a new
intellectual gathering place.
There's more at the URL below.
[SOURCE: Forbes.com, AUTHOR: Steve McGookin]
http://www.forbes.com/columnists/2004/11/01/cz_sm_1101mcgookin.html
The NYTimes asked bloggers what the most important moment in the election
was. See their answers at:
http://www.nytimes.com/2004/11/02/opinion/02blogger-final.html
The NYTimes also has an article about what advertisers learned from the
election:
http://www.nytimes.com/2004/11/02/business/media/02adco.html

BROADCASTING

FREE PRESS CHALLENGES SINCLAIR LICENSES
On Monday, media activist Free Press asked the FCC to revoke some TV
licenses controlled by the Sinclair Broadcasting Group. Free Press alleges
that Sinclair is illegally operating duopolies in Asheville (NC) and
Charleston (SC) in conjunction with local marketing agreement partner
Cunningham Broadcasting. Eight station licenses are at stake including
Sinclair stations WXLV Winston-Salem (NC), WUPN Greensboro (NC), WLFL
Raleigh (NC), WRDC Durham (NC), WLOS Asheville (NC), and WMMP Charleston
(SC). Free Press also opposes renewals of Cunningham stations WBSC
Asheville (SC), and WTAT Charleston (SC). Free Press accuses Cunningham of
being "a sham owner" that has "relinquished complete economic and editorial
control of its stations to Sinclair." Carolyn Smith, mother of Sinclair CEO
David Smith, is the controlling shareholder of Cunningham. Free Press also
charged that Sinclair ignores its obligations to provide programming that
serves the local interests of its stations' communities. In some markets
Sinclair has cut news operations and relied on regional and national feeds
from its News Central operations in Baltimore for much of its news
programming. The FCC is in the middle of a multi-staged review of TV
licenses that will continue through 2007. Petitions to deny renewals of
North and South Carolina stations were due Monday. Licenses in those states
expire Dec. 1.
B&C is also reporting that Common Cause and Free Press asked the FCC to
deny renewal of the television license of WBTW in Florence, South Carolina.
The station owner, Media General, has filed a license renewal application
and a request for a permanent waiver to own both WBTW and the only local
daily newspaper, the Florence Morning News, in violation of the FCC's
newspaper-broadcast cross-ownership rule.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA476949.html?display=Breaking+...
http://www.broadcastingcable.com/article/CA477016.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
Additional coverage:
Watchdog Group to File Petitions Against Sinclair
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=6636
Group Challenges Sinclair Licenses
[SOURCE: Los Angeles Times, AUTHOR: Walter F. Roche Jr.]
http://www.latimes.com/news/printedition/asection/la-na-sinclair2nov02,1...
(requires registration)

NAB UNVEILS NEW DTV-CARRIAGE PLAN
The National Association of Broadcasters has unveiled a new
digital-TV-carriage plan that would deny cable systems the unfettered
freedom to convert digital-TV signals to analog at the headend in order to
protect consumers without digital sets or set-tops. The plan would mandate
that by the end of the transition to digital TV, cable systems would be
required to transmit digital-TV signals from the headend to consumer homes.
After that threshold had been met, the NAB would leave cable two choices:
Either provide set-tops to consumers with analog-TV sets or send
downconverted analog signals to satisfy subscribers with analog sets who do
not want set-tops. "Thus, any plan to end the transition and return analog
spectrum must ensure that all consumers are able to receive, at their TV
set, the full program offerings provided by free over-the-air broadcast
service," the NAB said. The NAB added that TV-spectrum-auction proceeds
should be tapped to defray the cost of conversion equipment for analog-only
consumers.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA476704.html?display=Breaking+News
(requires subscription)
See more coverage:
Broadcasters Ask FCC to Modify Digital Conversion Plan
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=6634
Broadcasters Offer Own Ferree TV Plan
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA477015?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

NONCOMS GET DOUGH FOR DIGITAL ARCHIVING
The Library of Congress' National Digital Information Infrastructure and
Preservation Program (NDIIPP) is granting nearly $3 million to a
partnership of WNET New York and WGBH Boston (the two largest PBS' program
suppliers), PBS; and New York University to help archive and preserve
digital, noncommercial television programming and related Web content. The
library is trying to prevent the sort of wholesale losses of TV programming
that typify the early days of analog television, when many live shows were
not recorded, or if they were, the recordings were eventually destroyed for
lack of space and interest.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA476878.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

INDUSTRY MOVES FORWARD ON DIGITAL RADIO
The radio industry is moving ahead with plans to convert to digital
technology. There's wide agreement on the industry's need to settle on
technical standards for HD Radio, a task before the National Radio Systems
Committee (NRSC), formed by National Association of Broadcasters and the
Consumer Electronics Association. "The rules and standards in some ways are
as important as the technology," said David Layer, NAB Science & Technology
Department Engineering Director. The failure of AM stereo is proof that
failure to unify on standards would be disastrous, he says. Of the digital
radio transition, Layer said, "Everyone wants it to be market-driven. No
one wants the government to tell them when to switch their signal." The
opportunity to split the digital audio channel into multiple programming
streams, or add data, is intriguing for new revenue opportunities, Lyons
said. "Real-time traffic is probably the hottest button or hottest feature
being discussed within the auto industry," he said, referring
to information provided by displaying maps and text alerts.
[SOURCE: Communications Daily, AUTHOR: Louis Trager]
(Not available online)

QUICKLY

HOW TO MOVE THE IP ERA OUT OF NEUTRAL
[Commentary] Congress seems poised to begin a rewrite of telecommunications
laws next year and one of the first things it is likely to do is take a
close look at the existing system of "silos" that has governed the
communications sector for decades. These inflexible divisions assume clear,
unwavering distinctions, but in today's Internet-based world, the lines
between various services and technologies are quickly blurring. If our
legal thinking and structures are not adapted to technology and
market-driven realities, future competition and innovation will be stifled.
MCI advocates replacing silos with four software-derived data layers:
first, the physical layer, which represents the physical infrastructure
(for example, copper lines); second, the logical layer, which connects the
physical infrastructure (for example, Internet Protocol); third, the
applications layer (for example, Web browsers); and fourth, the content
layer (for example, the words in this brilliant summary). The framework's
guiding principle seeks to fit our laws and regulations to the ways that
the Internet is constructed and operated, rather than the other way around.
The proposal looks to the existence of significant market power as the
chief rationale for economic regulation. Conversely, the presence of
competition in a particular network layer means that no such regulation is
warranted.
[SOURCE: C-Net|News.com, AUTHOR: Richard Whitt, MCI]
http://news.com.com/How+to+move+the+IP+era+out+of+neutral/2010-1071_3-54...

WIRELESS CARRIERS PROTEST POSSIBLE EAS MANDATE
Wireless carriers told the FCC they shouldn't be forced to transmit
emergency messages through text messages on mobile phones. Led by CTIA,
carriers noted that efforts to develop a more effective Emergency Alert
System (EAS) were under way and a voluntary approach would work best.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
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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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