Benton's Communications-related Headlines for 11/09/04

For upcoming media policy events, see http://www.benton.org/calendar.htm

You can listen to the FCC open meeting this morning at
http://www.fcc.gov/realaudio/ There are four items on the agenda including
the Vonage petition (see next story), a report on the ITU World
Telecommunication Standardization Assembly, changes to the rules applicable
to the 4.940-4.990 GHz Band and (drum roll, please) the local competition
and broadband data gathering program.

TELECOM
FCC Seen Shielding Web-Phone from States, Sources
BellSouth's Call
GAO Clears FCC's 800 MHz Rebanding Order
USTA Urges Universal Service Fund Fix

MEDIA
Viacom Slams Jackson Decision at FCC
Satellite Radio and Localism

QUICKLY
Media Reform News
Slowdown Forces Many to Wander for Work
Cheryl Leanza Leaving MAP

TELECOM

FCC SEEN SHIELDING WEB-PHONE FROM STATES, SOURCES
At its meeting today, the FCC is expected to shield Internet-based
telephone services like Vonage from some key state regulations.
Specifically, the Commission may declare Vonage's service interstate in
nature and therefore exempt from state requirements that apply to
traditional phone services like rate regulation. Vonage, which has more
than 300,000 lines in service, allows a customer to make telephone calls
nationwide and to Canada for a flat fee using equipment attached to a
high-speed Internet, or broadband, connection. But Vonage is battling with
state regulators, like Minnesota, which are demanding Vonage obtain state
certification, be subject to rate regulation and offer emergency 911
services comparable to those of land lines. Minnesota tried to force Vonage
to comply with state regulations but the company won a federal court
decision that said it was exempt. Oral arguments for the state's appeal is
set for Nov. 17.
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=6747443
Also --
Federal Ruling on Web Calling Is Expected to Aid Sector's Growth
"The big concern is if other companies find a way to use this decision to
characterize their traffic as interstate, and there are big incentives for
them to do that," said Brad Ramsay, general counsel of the National
Association of Regulatory Utility Commissioners. About 24 states collect at
least $1.9 billion a year for their own Universal Service plans, which
subsidize rural phone service and Internet to schools nationwide. Mr.
Ramsay said that pool would shrink considerably as customers began
switching from traditional phone service to Internet-based plans.
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo
annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB109995886468268278,00.html?mod=todays...
(requires subscription)
USAToday
http://www.usatoday.com/printedition/money/20041109/3b_voip_09.art.htm

BELLSOUTH'S CALL
Since cable companies can discriminate against competing ISPs, BellSouth is
asking the FCC to repeal the open-access rule for teleco's broadband
services. BellSouth says that the different regulatory approach to the
services gives cable an unfair advantage when it already the market leader
in broadband. BellSouth said complying with FCC rules costs $3.50 per
month, per customer. "Those expenses translate directly into higher costs
for consumers," BellSouth said. Consumer Federation of America research
director Mark Cooper said his group would oppose BellSouth at the
appropriate time. The CFA and other consumer groups have unsuccessfully
urged the FCC to apply the same open-access rules to cable. "BellSouth
clearly wants to be done with nondiscrimination entirely," Cooper said.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA478505.html?display=Policy
(requires subscription)

GAO CLEARS FCC'S 800 MHZ REBANDING ORDER
The FCC's decision giving Nextel 1.9 GHz spectrum as part of the 800 MHz
rebanding doesn't violate federal law against private sale of public
resources, the General Accounting Office found. Verizon dropped its legal
objections to the rebanding order last week, and the GAO action was one
remaining area of uncertainty. FCC Chairman Michael Powell released the
following statement:
I am pleased that GAO recognizes the FCC's legal authority to implement a
solution to the 800 MHz interference problem. The GAO independently
confirmed that the Commission's authority to regulate spectrum in the
public interest is broad enough to include the tools we utilized to resolve
this critical public safety matter. GAO's decision provides further
impetus to the entire industry to work with the FCC as we implement our
plan to improve communications for public safety and emergency responders.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254076A1.doc

USTA URGES UNIVERSAL SERVICE FUND FIX
The United States Telecom Association has urged two key leaders on telecom
issues to take immediate legislative action that would help prevent a
potential disruption of universal service payments to telecom service
providers in rural areas across the nation. After recent action by the FCC
to comply with government accounting rules and the Anti-Deficiency Act, the
Universal Service Administrative Corporation has been forced to radically
change the timing for distributing universal service funds. Legislative
action would help ensure that there is not a steep increase in costs to
consumers or missed payments to providers. In letters sent to Senate
Appropriations Committee Chairman Ted Stevens and Senator Daniel Inouye, a
senior member of the Appropriations Committee and the incoming ranking
member of the Senate Commerce Committee, USTA President and CEO Walter B.
McCormick, Jr., urged the senators to include language in the final
appropriations bill for the year to remove USAC from the requirements of
the Anti-Deficiency Act. In doing so, Congress would ensure that there is
no disruption of universal service payments to service providers and that
the universal service system remains viable and sustainable. "Unless
Congress acts quickly, this situation could further undermine the stability
of the nation's Universal Service Fund," McCormick explained. "Senators
Stevens and Inouye understand the importance of preserving the stability of
universal service and we urge them to act now to help maintain the existing
system until long-term issues can be resolved."
[SOURCE: United States Telecom Association Press Release]
http://www.usta.org/news_releases.php?urh=home.news.nr2004_1108

MEDIA

VIACOM SLAMS JACKSON DECISION AT FCC
Viacom is making good on a promise to fight the FCC's decision to fine the
company for the Super Bowl halftime show. In an appeal of the Commission's
record $550,000 fine against Viacom owned and operated CBS TV stations,
Viacom suggests the Commission has run amok, "no longer recognize[ing] any
meaningful limits to its ability to regulate broadcast content," despite
Supreme Court warnings about overbroad speech regulation. Challenging the
so-called Pacifica Supreme Court decision that upheld the FCC's power to
regulate indecency, Viacom argues that it is now "implausible to justify
broadcast indecency regulations on the 'uniquely pervasive presence' of
broadcasting. In addition to being outmoded, Viacom argues that the FCC's
indecency standard is excessively vague. Viacom warns that if the
Commission's ruling stands, "it will lead to the end of live broadcasting
as we know it by placing broadcasters on notice that they risk massive
liability and perhaps even license revocation if they fail to adopt
technical measures to avoid the possibility of a spontaneous
transgression." See you in court.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA479033.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
Also see --
USAToday
http://www.usatoday.com/printedition/money/20041109/4b_viacom_09.art.htm

SATELLITE RADIO AND LOCALISM
In April, the National Association of Broadcasters filed a petition saying
that satellite radio and traffic services violated satellite digital audio
radio service authorizations and the FCC seemed close to deciding on the
matter. But now the NAB has asked the Commission to hold that thought and
wait and see how these services develop. NAB said XM reportedly intends to
use the local broadcast feed for Major League Baseball, strip out the
broadcasters' ads and add their own and split the ad revenue with MLB.
While that could decrease broadcasters' ability to provide local service,
these developments haven't played out enough to allow the FCC to make a
"reasoned" decision. [And believe you me, the NAB is all about reason and
reasonableness.]
[SOURCE: Communications Daily]
(Not available online)

QUICKLY

MEDIA REFORM NEWS
Second issue of Free Press newsletter is now available online. Articles
include: Focus of Media Policy to Expand in 2005; Town Meetings on the
Future of Media
Draw Hundreds of Concerned Citizens; Community Wireless Developers and
Policy Experts Gather for First-Time Summit; Debunking Media Mythology by
Robert W. McChesney; With no renomination, Adelstein to leave FCC.
[SOURCE: Free Press Newsletter]
http://www.freepress.net/newsletter/v1n2.pdf

SLOWDOWN FORCES MANY TO WANDER FOR WORK
Unemployment among tech workers, once almost nonexistent, is now higher
than the overall jobless rate for the first time in more than 30 years. See
what this means for tech workers at the URL below.
[SOURCE: Washington Post, AUTHOR: Greg Schneider]
http://www.washingtonpost.com/wp-dyn/articles/A35193-2004Nov8.html
(requires registration)
See also
Out of Sight, Out of Mind?
The offshore outsourcing issue will not go away.
[SOURCE: C-Net|News.com, AUTHOR: Charles Cooper ]
http://news.com.com/Out+of+sight%2C+out+of+mind/2010-1028_3-5439405.html

Cheryl Leanza, deputy director of Media Access Project, said Monday that
she is leaving the public-interest law firm to tackle telecommunications
issues as principal legislative counsel for the National League of Cities.
http://www.broadcastingcable.com/article/CA479037.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
--------------------------------------------------------------
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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