Benton's Communications-related Headlines for 1/12/04

If you can stop envisioning whirled peas for a moment, today's a chance to
think about the Future of Digital Public Service Media
(http://www.newamerica.net/index.cfm?pg=event&EveID=446). For this and
other upcoming media policy events, see http://www.benton.org/calendar.htm

MEDIA & POLITICS
Critics Question No-Bias Finding By CBS Panel
Group FOIA's Feds Over Propaganda
Staples, Activists in Battle of Words

CONSUMER PROTECTIONS
Kraft to Curb Snack-Food Advertising
FTC Wins Order to Shut Down Spam From Adult Web Sites
Nation's Consumer Advocates file Federal Appeal to Protect Internet
Telephone Customers
Watchdog Sets Sights on a la Carte
PUC Delays Vote on Axing Telecom 'Bill of Rights'

WIRELESS
Largent Expects Very Busy Year for CTIA

109th CONGRESS
Significance of Senate Communications Subcommittee Questioned
Content Owners, Fair Use Advocates Prep for New Copyright Fight

E-RATE
FCC Overturns E-Rate Rule
eRate Delays Require More Work, Creativity

OWNERSHIP
Viacom Considers Buying Cable Networks, Selling Smaller-Market TV
Stations

QUICKLY
$weet Charity
Hill's Rothschild Heads to Verizon
Debra Tica Sanchez, APTS Director of Government Affairs
OC, Inc: The Untold Story

MEDIA & POLITICS

CRITICS QUESTION NO-BIAS FINDING BY CBS PANEL
It may be hard to prove bias, but critics of an independent panel's report
on Memogate think there was evidence. The report lists a five-year pursuit
of the Guard story by Dan Rather and producer Mary Mapes; the use of
strongly anti-Bush sources; and Mapes's call to Joe Lockhart, which put the
John Kerry campaign adviser in touch with Bill Burkett, the source of the
suspect Guard documents about President Bush's military service. But was it
bias or just a competitive push to get the story on the air? Hard-charging
reporters, by their nature, push to get stories on the air or in print,
sometimes against the reservations of their superiors. They are trained to
see patterns, connect the dots, nail down the case against the politician
or businessman in their sights. No one wins fame, fortune and journalism
prizes by sitting on an explosive report.
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A2148-2005Jan11.html
(requires registration)
Similar story in WSJ:
http://online.wsj.com/article/0,,SB110548655355523361,00.html?mod=todays...
USAToday:
http://www.usatoday.com/printedition/life/20050112/d_mediamix12.art.htm
LA Times:
http://www.latimes.com/news/printedition/opinion/la-ed-cbs12jan12,1,6064...
(Editorial)
http://www.latimes.com/news/printedition/asection/la-na-rather12jan12,1,...
Christian Science Monitor:
http://www.csmonitor.com/2005/0112/p03s01-usgn.html

GROUP FOIA'S FED OVER PROPAGANDA
Following revelations that the Bush administration paid a conservative
commentator and columnist to tout the president's "No Child Left Behind"
program, Citizens for Responsibility and Ethics, a citizens' watchdog
group, has filed Freedom of Information Act requests with 22 federal
agencies seeking contracts with public-relations firms that might have set
up similar arrangements. "How extensively has the administration used
propaganda to shore up its controversial policies?" asked Melanie Sloan,
executive director of Citizens for Responsibility and Ethics in Washington
a non-profit group dedicated to holding public officials to high standards
of behavior. "Did it pay any commentators to speak out in support of the
Patriot Act? Is it paying anyone now to convince the public that Social
Security is in crisis? By filing these FOIAs, we hope to answer these
questions."
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA495480?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Response for the White House:
http://www.whitehouse.gov/news/releases/2005/01/20050110-8.html#4
More coverage of this issue in --
* NYTimes
http://www.nytimes.com/2005/01/12/business/media/12adco.html
* USAToday (Lawmakers call for 'propaganda' probe)
http://www.usatoday.com/printedition/news/20050112/a_capcol12.art.htm
Bush launches PR campaign to change Social Security -- The effort will be
similar to the one he used to pass his education bill, No Child Left
Behind, in 2001.
http://www.usatoday.com/printedition/news/20050112/a_social12.art.htm
* The Nation
http://www.thenation.com/edcut/index.mhtml?bid=7&pid=2118
* BlackAmericaWeb.com
http://www.blackamericaweb.com/site.aspx/bawnews/armstrongpayola
* Hollywood Reporter (Sinclair Broadcast Group is conducting an inquiry
into an appearance made on one of its news shows by pundit Armstrong Williams.)
http://www.hollywoodreporter.com/thr/television/brief_display.jsp?vnu_co...
* AlterNet
http://www.alternet.org/mediaculture/20946/
* People for the American Way
http://www.pfaw.org/pfaw/general/default.aspx?oid=16842

STAPLES, ACTIVISTS IN BATTLE OF WORDS
Media Matters for America last week claimed victory in its e-mail campaign
to persuade Staples to drop its ads from Sinclair's local television news
programs. But the announcement has led to denials, countercharges and even
legal threats by Staples, the activists and Sinclair. Staples contends that
it changed its advertising buying on its own, based on a routine and
seasonal media-buying process. MMFA claims Staples saw, edited and approved
its initial press release. Sinclair, meanwhile, claims that it is being
harassed by organizations with "far-left-leaning political agendas" that
have conducted "an ongoing Internet-based campaign of harassment." Citing
its 1st Amendment rights to control programming, Sinclair said, "continued
misrepresentation of the facts surrounding any company's advertising
practices regarding Sinclair stations constitutes 'trade defamation,' which
would entitle Sinclair to seek damages in a court of law." Although
activists are attempting to pressure Sinclair by pointing to its use of the
public airwaves, broadcasters aren't legally required to provide balance in
presenting political views, Sinclair spokesman and lawyer Barry Faber said.
"To us, it's not so much if [viewers] like the opinion, but are they tuning
in?" Faber said. "If you don't agree certain programming should be on the
air, don't watch it."
[SOURCE: Los Angeles Times, AUTHOR:Lynn Smith]
http://www.latimes.com/business/printedition/la-fi-sinclair12jan12,1,700...
(requires registration)

CONSUMER PROTECTIONS

KRAFT TO CURB SNACK-FOOD ADVERTISING
Today the government is set to release new dietary guidelines, which are
expected to emphasize fruit and vegetables, whole grains, milk and
healthful fats such as those in nuts and olive oil. Meanwhile, Kraft Foods,
the nation's largest food company, is expected to announce that it will
curb its advertising of many popular snack food items to children under 12.
The maker of Oreos, Chips Ahoy, Kool-Aid and Oscar Mayer lunch meat will
begin phasing out ads for its less nutritious products on television and
radio shows and in print publications aimed at audiences of 6- to
11-year-olds. The company doesn't aim any media advertising at children
under 6. Kraft will not stop all promotions to young children; it will
still use cartoon characters in its products and packaging. It will also
continue to offer contests, prizes and other promotions as well as games on
its Web sites. And its traditional Lunchables and Kool-Aid products, as
well Oreos and other cookies, will still be advertised on TV and radio
shows and in magazines and other publications aimed at kids 12 and older.
[SOURCE: Washington Post, AUTHOR: Caroline E. Mayer]
http://www.washingtonpost.com/wp-dyn/articles/A2266-2005Jan11.html
(requires registration)

FTC WINS ORDER TO SHUT DOWN SPAM FROM ADULT WEB SITES
The Federal Trade Commission filed civil charges against six companies and
five individuals in U.S. District Court in Nevada, accusing the defendants
of sending out sexually explicit e-mail solicitations without clear warning
labels, "unsubscribe" links and other information required by the 2003
Controlling the Assault of Non-Solicited Pornography and Marketing Act,
commonly referred to as CAN-SPAM. Defendants can face fines of as much as
$250,000 for individuals and $500,000 for an organization. The case also is
notable because it targets "affiliate marketing," a common practice among
online adult-entertainment and mortgage companies where independent
spammers are hired to drive traffic to Web sites. "The message of this case
is that you are strictly liable for the practices of third parties who do
your marketing for you," said Eileen Harrington, director of the FTC's
Marketing Practices Division.
[SOURCE: Wall Street Journal, AUTHOR: Christopher Conkey
christopher.conkey( at )wsj.com]
http://online.wsj.com/article/0,,SB110546792517722953,00.html?mod=todays...
(requires subscription)
See also --
USAToday
http://www.usatoday.com/printedition/money/20050112/1b_spam12.art.htm
Reuters
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=7295503
News.com:
http://news.com.com/FTC+sues+to+stop+porn+spammers/2100-1030_3-5532669.h...
NYTimes:
http://www.nytimes.com/2005/01/12/technology/12porn.html

NATION'S CONSUMER ADVOCATES FILE FEDERAL APPEAL TO PROTECT INTERNET
TELEPHONE CUSTOMERS
On November 9, the FCC decided that VoIP companies are to be exempt from
many state regulations that apply to other local and long-distance
telephone providers. On Tuesday, the National Association of State Utility
Consumer Advocates (NASUCA) appealed that decision which, unless
overturned, will restrict the ability of states to protect consumers who
use a broadband connection for their local and long-distance telephone
service. The advocates filed their appeal in the United States Court of
Appeals for the 8th Circuit in St. Louis. NASUCA believes the FCC order was
unreasonable and unlawfully takes away the ability for states to provide
consumer protection standards. Under the FCC's ruling, states are
prohibited from requiring VoIP companies to provide customers with access
to 9-1-1. The FCC also prohibits state utility commissions from
registration requirements that apply to traditional telephone companies.
Typically, states have existing service quality standards that registered
telephone companies must follow. NASUCA believes that states - not the FCC
- should determine the state consumer protections to which VoIP customers
are entitled. Beyond 9-1-1 and other public safety issues, service quality,
billing and dispute resolution are important areas for states to address.
NASUCA also believes that customers are entitled to receive understandable
contracts with clear disclosure of all fees before signing up for VoIP service.
[SOURCE: National Association of State Utility Consumer Advocates Press
Release]
http://www.nasuca.org/newsroom/PR-nasuca%20voip%20appeal%201-11-05.doc
See text of appeal:
http://www.nasuca.org/filings/Vonage%20Petition%2001-11-05.pdf

WATCHDOG SETS SIGHTS ON A LA CARTE
The watchdog Parents Television Council is planning to lobby vigorously
this year for a la carte legislation that would give consumers the right to
choose and pay for only the cable programming they want in their homes.
"This is going to be the next indecency fight," said Lara Mahaney, PTC
director of corporate and entertainment affairs. "There is definitely a
rising tide of anger among consumers who simply want to get the Disney
Channel and they're forced to pay for and accept the likes of MTV and FX
into their homes." PTC is already urging its members to write lawmakers and
the FCC to support a la carte. It has also posted a PTC study that
documents off-color incidents gleaned from basic cable channels. "The cable
industry announced an initiative last year under which cable companies
agreed to provide free channel-blocking technology to customers who wish to
prevent specific channels from entering their home, which is a far better
solution than government regulation driving up prices while reducing choice
and diversity in media," said Brian Dietz, a spokesman for the National
Cable & Telecommunications Association.
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/article.cms?articleId=26869
(requires free registration)

PUC DELAYS VOTE ON AXING TELECOM 'BILL OF RIGHTS'
Facing mounting criticism over a proposal to suspend sweeping new consumer
rights for phone customers, the California Public Utilities Commission
moved Tuesday to postpone a vote scheduled on the issue this week.
California Attorney General Bill Lockyer on Tuesday joined various consumer
advocates in opposing the proposed suspension. His office filed papers
questioning "this haste" in a vote on suspending the rights or, in fact,
any need to suspend them at all. Although Gov. Arnold Schwarzenegger had
appointed two new members to the commission, earlier this week his office
indefinitely postponed their swearing-in scheduled for Tuesday. There is a
clear 2-1 majority for suspension of the rights until the new members take
office. Among the consumer advocacy groups opposing the suspension are The
Utility Reform Network, the Greenlining Institute and Disability Rights
Advocates.
[SOURCE: San Jose Mercury News, AUTHOR: John Woolfolk
jwoolfolk( at )mercurynews.com ]
http://www.mercurynews.com/mld/mercurynews/business/technology/10624957.htm
See also --
LATimes
http://www.latimes.com/business/printedition/la-fi-puc12jan12,1,1754807....

WIRELESS

LARGENT EXPECTS VERY BUSY YEAR FOR CTIA
Former Member of Congress Steve Largent, President of CTIA, the lobbying
organization for wireless phone companies, is expecting a busy 2005. The
agenda includes intercarrier compensation, universal service, and a rewrite
of the telecom act. In December, the groups board approved the creation of
a "grassroots and a grass-tops organization" that will spend tens of
millions of dollars on a campaign to rally wireless users and industry
employees to lobby the states, the FCC and Congress against regulation and
taxation. The organization that will oversee the program will be completely
separate from CTIA, with its own board and budget. Carriers will support
the organization. "We haven't modeled" the new lobbying organization after
any other group, though it will be similar to outreach program on legal
reform set up by the U.S. Chamber of Commerce, he said. A major target of
the group will be fighting state regulation of wireless, which he described
as "anathema to our industry, which limits what we believe is a potentially
unlimited future."
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk, Terry Lane]
(Not available online)

109th CONGRESS

SIGNIFICANCE OF SENATE COMMUNICATIONS SUBCOMMITTEE QUESTIONED
Incoming Senate Commerce Committee Chairman Ted Stevens (R-Alaska) is
considering the Subcommittee on Communications. Sen Stevens would like to
keep those issues at the full committee level so that he can better control
the agenda. Many communications issues are often elevated to the full
committee level, as they were in the 108th Congress. The Communications
Subcommittee held no hearings on media ownership, indecency, DTV
transition, VoIP and several other high-profile communications issues in
the most-recent session. While the full Committee had 30
communications-related hearings last session, the Subcommittee had just 7
hearings, including two on the Internet Corporation for Assigned Names &
Numbers (ICANN). Although some think the move by Sen Stevens is payback to
outgoing Commerce Chairman John McCain (R-AZ) who was thought to be pursing
the subcommittee chair, others see it as a way for Sen Stevens to grasp
jurisdiction over the communications industry since he was losing some
clout by relinquishing the powerful Appropriations Committee chairmanship.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

CONTENT OWNERS, FAIR USE ADVOCATES PREP FOR NEW COPYRIGHT FIGHT
Fair use advocates and the content industry are gearing up for a rematch in
the 109th Congress. The last Congress failed to pass significant copyright
reform legislation despite a major effort by the music and movie business
lobbies. Both sides expect to see familiar issues trotted out again, though
there appears to be a new realization
that Congress is increasingly savvy about what's at stake. All eyes are on
the expected rewrite of the Telecom Act of 1996. "Telecom reform affects
all of information
technology because it is all about the ways we will communicate tomorrow,"
said Will Rodger, lobbyist for the Computer & Communications Industry
Association.
[SOURCE: Communications Daily, AUTHOR: Randy Barrett]
(Not available online)
Also see:
Let a Thousand Googles Bloom (Commentary/Lawrence Lessig)
http://www.latimes.com/news/printedition/opinion/la-oe-lessig12jan12,1,7...

E-RATE

FCC OVERTURNS E-RATE RULE
On Monday, the FCC released an appeal decision in which the Commission
overruled a procedure that the School and Library Division of the Universal
Service Administration Company has been using for more than two years
whereby it would treat "unsubstantiated" funding requests the same as
"ineligible requests" when applying the "30% Rule." If, for example, an
applicant filed a telephone funding request assuming $500/mo. in charges
but, when asked for supporting bills, could only produce $300 worth, the
SLD would deny the request because more than 30% of the original request
was unsubstantiated/ineligible. The FCC indicated that the 30% Rule should
apply only to strictly ineligible requests. Unsubstantiated requests should
be reduced, but not denied.
[SOURCE: E-Rate Central, AUTHOR: Winston Himsworth]
http://www.e-ratecentral.com/archive/Bulletins/Bulletins2004/29_2004Bull...
The FCC decision is available at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-54A1.dochttp://h...

ERATE DELAYS REQUIRE MORE WORK, CREATIVITY
At least 3,300 applicants for E-rate funds still await a decision on
roughly $800 million to help pay for their 2004 Internet, telephone, and
internal wiring costs. The delay makes it difficult for these applicants to
apply for the 2005 program year before the Feb. 17 deadline. Consultants
have some important advice for schools and libraries awaiting those
decisions: Reapply now for discounts on these same products and services to
cover all your bases before the 2005 deadline passes.
[SOURCE: eSchool News, AUTHOR: Cara Branigan]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=5457

OWNERSHIP

VIACOM CONSIDERS BUYING CABLE NETWORKS, SELLING SMALLER-MARKET TV STATIONS
"We are in the market for any good cable channels that are in our price
range," said Viacom Chairman and CEO Sumner Redstone, speaking at a Smith
Barney investor conference in Phoenix, though he admitted such networks are
a "rare commodity." At the same time, Viacom co-President and co-Chief
Operating Officer Leslie Moonves said the company may also sell off some of
its television stations in smaller markets, though he provided no details
of which properties could be put up for sale. Viacom owns 20 CBS stations
and 18 UPN stations. The pondering of a cable network acquisition comes as
the company rethinks the importance of its A-minus credit rating. Mr.
Redstone said Viacom is deciding whether to reduce its credit rating one
notch to BBB-plus to increase the company's leverage, have greater
borrowing capacity for such acquisitions and increase Viacom's share
buyback program.
[SOURCE: TVWeek, AUTHOR: Jay Sherman]
http://www.tvweek.com/news.cms?newsId=7060
(requires free registration)

QUICKLY

$WEET CHARITY
Mayor Michael Bloomberg may sell Bloomberg L.P., the financial information
giant, in order to fund a philanthropic effort after he leaves public
office. Possible buyers include Microsoft, Toronto-based media giant
Thomson Corp, and GE. The company's value is estimated at $10 billion.
Mayor Bloomberg faces reelection this year.
[SOURCE: New York Post, AUTHOR: Keith Kelly]
http://www.nypost.com/business/38274.htm

HILL'S ROTHSCHILD HEADS TO VERIZON
Gregg Rothschild is leaving the House Commerce Committee to join Verizon
Communications' lobbying team. Rothschild became telecom and media adviser
to the committee's ranking Democrat, John Dingell (MI) in 2003. Previously
he was legislative director for Sen. John Kerry (D-MA).
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA495562?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

DEBRA TICA SANCHEZ, APTS DIRECTOR OF GOVERNMENT AFFAIRS
The Association of Public Television Stations (APTS) announced Tuesday the
promotion of Debra Tica Sanchez to the position of Director of Government
Relations. Since joining APTS in July 2001, Ms Sanchez has played an
integral role in numerous legislative matters. She has primary
responsibility for legislation before key appropriations subcommittees and
education committees. As such, Ms. Sanchez manages APTS' efforts to secure
funding for education programs like Ready To Learn and Ready To Teach, for
CPB, Interconnection and the digital transition. She has also spearheaded
APTS efforts in rural services, legislation and funding. She previously
served as the Senior Federal Liaison for APTS.
[SOURCE: Association of Public Television Stations]
http://www.apts.org/news/Debra_Sanchez.cfm

OC, INC.: THE UNTOLD STORY
[Video] Reverend Everett Parker in the 1960s lead a campaign to open up the
airwaves to people of color and women. See how broadcasters, the FCC, and
other regulatory bodies were made accountable to including all segments of
society.
http://www.ucc.org/ocinc/
--------------------------------------------------------------
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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