Benton's Communications-related Headlines for 12/09/04

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

LAST WORD FROM CONGRESS
Senate Approves Legislation On Range of Telecom Issues
Congress Passes DTV Advisory

OWNERSHIP
A Survival Analysis of Cable Networks
Fox News's Deal Will Make It a Radio Power, Analysts Say
Will Sprint and Nextel Connect?
Seismic Shifts in Telecom Put 2 Giants on the Block

CONTENT
Fair Use Lobby Cheers Death of Copyright Bill
Libraries Reach Out, Online
Fighting Indecency, One Bleep at a Time
In Danger of Disconnection
Holy Hypocrisy
On Local Sites, Everyone's A Journalist
A New French Headache: When Is Hate on TV Illegal?

BROADBAND
Phone Firms' Cable TV Plans Hit Local Obstacle
Should Local Governments Be Allowed to Provide Broadband Access?

QUICKLY -- FCC Open Meeting Agenda; At a Theater Near You

LAST WORD FROM CONGRESS

SENATE APPROVES LEGISLATION ON RANGE OF TELECOM ISSUES
Thwarting my Cubs/wait 'til next year analogies, the Senate approved by
voice vote late Wednesday a package of telecommunications legislation that
mirrored one passed by the House on Nov. 20 and would create a
spectrum-relocation trust fund, establish a program to speed state upgrades
of 911 call centers and exempt the Universal Service Fund from an
accounting requirement that has delayed payments of more than $1 billion to
schools and libraries for Internet connections.
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo
annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB110256318204595357,00.html?mod=todays...
(requires subscription)
See also:
http://www.reuters.com/newsArticle.jhtml;jsessionid=ZUNWRLFRLZF32CRBAEOC...

CONGRESS PASSES DTV ADVISORY
Included in the Intelligence Reform and Terrorism Prevention Act of 2004
(S. 2845) passed by the Senate Wednesday is language calling for an
acceleration of the transition to digital-only TV broadcasting in the US
because it will make valuable spectrum available for public safety
officials and for advanced wireless services. The bill, which now just
awaits President Bush's signature, calls for the FCC to "consider all
regulatory means available to expedite the return of the analog [TV]
spectrum" and for Congress to "pass legislation in the first session of the
109th Congress that establishes a comprehensive approach to the timely
return of analog broadcast spectrum as early as December 31, 2006"
[SOURCE: Thomas]
http://thomas.loc.gov/home/thomas.html
See also:
http://www.broadcastingcable.com/article/CA486508.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

OWNERSHIP

A SURVIVAL ANALYSIS OF CABLE NETWORKS
How many viewers does it take to make a cable network? The FCC's Media
Bureau asked and examined the question because over 88% of US households
now pay for TV, subscribing to either cable (~75%) or direct broadcast
satellite (~22%), so cable channels play an important role in the quality
of people's lives. [Hence the "I Want My MTV! campaign]. The study finds
that a network growing at the average rate requires over 19 million
subscribers at the end of five years to have a 70% probability of survival
over its first five years, and over 41.5 million subscribers to have a 70%
probability of survival over its first ten years. however, that a network
requires far fewer subscribers for survival if it acquires all of those
subscribers from day one. Thus, Comcast, which reaches over 21 million
subscribers, could confer a 70% chance of survival on that cable network
over the cable network's first 10 years by agreeing to carry a cable
network to half of its subscriber base from the network's first day.
Echostar, which reaches slightly less than 10 million subscribers, would be
unable to confer a 70% chance of survival to a cable network over that
cable network's first 5 years.
[SOURCE: Federal Communications Commission, AUTHOR: Keith Brown]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255118A1.pdf

FOX NEWS'S DEAL WILL MAKE IT A RADIO POWER, ANALYSTS SAY
In the agreement, announced earlier this week, Fox News will replace ABC
News as the sole provider of broadcast news material for Clear Channel
stations. Fox currently provides news for 275 stations nationwide; the deal
with Clear Channel will add over 100 channels starting in 2005. As many as
500 Clear Channel stations could be using Fox News by the middle of next
year. Michael Harrison, publisher of Talkers magazine, a radio industry
trade journal, called the new deal a "marriage made in heaven," with Clear
Channel, which operates approximately 1,200 stations, receiving the
"benefit of the Fox image, and Fox jumping into the arena with a total head
start." Fox is competing with ABC news (2,500 radio news affiliates) and
CBS (500+ affiliates). Andrew Jay Schwartzman, president of the Media
Access Project, a nonprofit, public interest, telecommunications law firm,
was not surprised by the Clear Channel-Fox union, calling it "a logical
fit." "Large, monopolistic companies are comfortable with other large,
monopolistic companies," Mr. Schwartzman said. "They have similar business
models and similar business philosophies. Put another way, they deserve one
another." Mr. Schwartzman said the union signified "the emergence of a
conservative programming perspective from companies that are rather
explicitly affiliated with conservative causes."
[SOURCE: New York Times, AUTHOR: Lola Ogunnaike]
http://www.nytimes.com/2004/12/09/arts/television/09fox.html
(requires registration)

WILL SPRINT AND NEXTEL CONNECT?
The buzz on Wall Street is that Nextel will merge with Sprint. The a
combination of the U.S.'s fifth-largest wireless carrier and the
third-largest, respectively, would create a large and potent megacarrier to
challenge Cingular Wireless and Verizon Wireless, the nation's first- and
second-largest cellular-telephone operators.
[SOURCE: Wall Street Journal, AUTHOR: Dennis K. Berman
dennis.berman( at )wsj.com & Jesse Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB110255995817095301,00.html?mod=todays...
(requires subscription)

SEISMIC SHIFTS IN TELECOM PUT 2 GIANTS ON THE BLOCK
Given the structural collapse of the long-distance industry, others agree
it's only a matter of when -- not if -- AT&T and MCI get purchase by
another telecommunications company. The "Baby" Bells -- Verizon, SBC or
possibly BellSouth -- are the most likely buyers
[SOURCE: USAToday, AUTHOR:Leslie Cauley]
http://www.usatoday.com/printedition/money/20041209/forsale_.art.htm

CONTENT

FAIR USE LOBBY CHEERS DEATH OF COPYRIGHT BILL
Fair-use advocates celebrated the apparent demise of an omnibus
Intellectual Property package (S-3021) they have battled from the very
beginning. Gigi B. Sohn, president of Public Knowledge, said, "Consumers
should be pleased that Congress ended its session without passing
legislation that would have restricted consumers' freedom to use digital
media, restricted their access to information or otherwise strengthened
copyright law beyond what the framers of the Constitution envisioned. Now
that two Congresses have ended without major copyright legislation, we hope
that the large content companies will focus their efforts on creating new
business models that take advantage of new technologies rather than on
legislation that would hobble the development of new technologies. But if
legislation is needed, Public Knowledge looks forward to working with
members of Congress and the content community on narrow fixes to copyright
law as well as on our initiatives, which are intended to bring balance to
copyright law and protect the rights of consumers to use digital content
and information."
[SOURCE: Communications Daily, AUTHOR: Randy Barrett]
(Not available online)
http://www.publicknowledge.org/pressroom/releases/pressrelease.2004-12-0...
See also:
http://www.latimes.com/business/printedition/la-fi-piracy9dec09,0,201588...

LIBRARIES REACH OUT, ONLINE
Libraries are going digital in a big way. They are breaking free from the
limitations of physical location by making many kinds of materials and
services available at all times to patrons who are both cardholders and Web
surfers, whether they are homebound in the neighborhood or halfway around
the world. For years, library patrons have been able to check card catalogs
online and do things like reserve or renew books and pay overdue fines. Now
they can not only check out e-books and audiobooks but view movie trailers
and soon, the actual movies. There's much more at the URL below.
[SOURCE: New York Times, AUTHOR: Tim Gnater]
http://tech.nytimes.com/2004/12/09/technology/circuits/09libr.html
(requires registration)

FIGHTING INDECENCY, ONE BLEEP AT A TIME
Who is the Parents Television Council? It is a nearly 10-year-old advocacy
group that defines its mission as "bringing America's demand for positive,
family-oriented television programming to the entertainment industry." The
PTC wants to bring that demand to American politicians, too. The group
declares itself nonpartisan, but that didn't stop executive director Tim
Winter from claiming partial credit when President Bush won reelection last
month. PTC has "entertainment analysts" who spend their days watching shows
and entering instances of questionable material into a database. The data
is used to used to rally parents, pressure advertisers, lobby Congress and
push the Federal Communications Commission to monitor the nation's airwaves
more aggressively. PTC employees think they are battling the trend that has
all of American culture becoming cruder and more explicit, defenders of the
First Amendment who see the Taliban when they look at groups like the PTC,
and defenders of the free market who argue that people must want sex and
violence since they sell.
[SOURCE: Washington Post, AUTHOR: Bob Thompson]
http://www.washingtonpost.com/wp-dyn/articles/A49907-2004Dec8.html
(requires registration)

IN DANGER OF DISCONNECTION
[Commentary] The rise of religious broadcasting has arguably been the most
important advance for the spread of Christianity since the publication of
the Gutenberg Bible 500 years ago. With the emergence of cable, satellite
and digital technology, the ability to share the Gospel over the airwaves
has been revolutionized over the past quarter century. Today more than 90
million American households and millions more worldwide can hear the Gospel
through a religious broadcast directly into their home. It can truly be
said that satellite and cable television have been second only to the Bible
as the most powerful evangelistic tool in history. But hark! From the lair
of the consumer advocate comes a demon -- a la carte pay-TV pricing -- that
threatens the existence of religious TV. As niche channels, religious
broadcasters need to be part of the basic cable line-up so they can reach
both their core audience and the viewers who stumble across their
programming channel surfing. Falwell concludes: "I hope and pray that the
bureaucrats and politicians are listening: adopt higher decency standards.
But protect the ability of broadcasters to share the message of God's love
with as large an audience as possible."
[SOURCE: Atlanta Journal-Constitution, AUTHOR: Jerry Falwell, chairman of
the Faith and Values Coalition]
http://www.ajc.com/search/content/opinion/1204/06falwell.html

HOLY HYPOCRISY
[Commentary] Heaven help us when television networks that regularly pander
to the lowest common denominator with titillating dramas and suggestive
sitcoms refuse to air a church commercial because it's "too controversial."
A heaping portion of hypocrisy was served up recently by CBS and NBC when
the networks rejected a national ad campaign by the Cleveland-based United
Church of Christ. What apparently was so controversial in the religious
denomination's ad was its message of inclusion and openness to encourage
more members to join the congregation. If that doesn't invite a deluge of
complaints from angry viewers coast to coast, what will? The UCC finds it
hard to comprehend how networks that have no trouble exploiting the gay
community for laughs draw the line "when it comes to a church's loving
welcome of committed gay couples." Viewers should condemn the double standard.
[SOURCE: Toledo Blade, AUTHOR: Editorial Staff]
http://toledoblade.com/apps/pbcs.dll/article?AID=/20041208/OPINION02/412...

ON LOCAL SITES, EVERYONE'S A JOURNALIST
Several notable ventures have launched or raised money this year to create
local news sites online in which readers contribute all or most of the
news. The big idea is that citizen-generated content lowers costs and
creates more loyal audiences. Advocates say do-it-yourself Web news
supported by advertising is more viable today than in the 1990s -- back
when Microsoft shuttered its Sidewalk network of entertainment guides and
the rival CitySearch network went deeply into the red. That's because more
people are online, and they're using faster connections and growing
increasingly comfortable posting their thoughts via forums, blogs and other
formats. The dream of local Web entrepreneurs is to reel in a new
generation of hyper-local advertisers -- those dry cleaners and car washes
that rarely advertise in big, daily newspapers.
[SOURCE: Washington Post, AUTHOR: Leslie Walker walkerl( at )washpost.com]
http://www.washingtonpost.com/wp-dyn/articles/A46519-2004Dec8.html
(requires registration)

A NEW FRENCH HEADACHE: WHEN IS HATE ON TV ILLEGAL?
Last month, France's public broadcasting regulator, the Audio-Visual Higher
Council, similar to the Federal Communications Commission, granted Al
Manar, a popular Arabic channel run by the Hezbollah militia out of
Lebanon, a license to operate in France as long as it abides by French law.
Al Manar had to agree "not to incite hate, violence or discrimination on
the basis of race, sex, religion or nationality." Four days later, however,
the channel broadcast one report claiming that for years Israel had spread
the AIDS virus and other diseases throughout the Arab world, and a second
calling for war against Jews and the destruction of Israel. The broadcasts
set off new demands by French officials, members of Parliament, academics
and commentators to shut down the channel.
[SOURCE: New York Times, AUTHOR: Elaine Sciolino]
http://www.nytimes.com/2004/12/09/international/europe/09france.html
(requires registration)

BROADBAND

PHONE FIRMS' CABLE TV PLANS HIT LOCAL OBSTACLE
As SBC and Verizon launch plans to provide pay-TV services, many cities are
arguing that they must first obtain local franchises which would require
the telecos to wire entire communities, not just the wealthiest parts --
and pay a 5% fee on revenue. The Bells counter that they want to install
fiber-optic networks in the public areas they already cover. They insist
they shouldn't have to negotiate franchise agreements to offer pay TV
services to consumers. Their offerings, they say, are fundamentally
different from traditional cable services that must strike franchise deals.
Federal law generally requires phone companies to obtain franchises for
video services that use the public right-of-way. SBC and Verizon say their
existing arrangements with local governments for their phone networks
should suffice. There's more -- regulatory parity, redlining, all your
favorite topics -- at the URL below.
[SOURCE: USAToday, AUTHOR: Paul Davidson]
http://www.usatoday.com/printedition/money/20041209/ipcable09.art.htm

SHOULD LOCAL GOVERNMENTS BE ALLOWED TO PROVIDE BROADBAND ACCESS?
Local municipalities across the country are looking to community-owned
broadband wireless access as a cost-effective way to bring affordable
broadband into their areas, sparking a battle with cable and telephone
providers. Democracy Now hosted a debate between Jeffrey Chester (Executive
director of the Center for Digital Democracy)
Steven Titch (senior fellow for information technology and telecom policy
at the Heartland Institute, a Chicago-based think tank) on community vs.
private Internet access.
[SOURCE: Democracy Now, AUTHOR: Amy Goodman]
http://www.democracynow.org/article.pl?sid=04/12/07/1451247

QUICKLY

FCC OPEN MEETING AGENDA
The FCC will hold an open meeting Wednesday 12/15. The Commission will
consider: 1) an Order concerning incumbent telephone companies' obligations
to make elements of their networks available on an unbundled basis, 2)
modifications to the Commission's rules to improve the effectiveness of the
rural health care universal service support mechanism, 3) changes to the
rule prohibiting the airborne use of cellular telephones, 4) commercial
air-ground telecommunications service, and 5) ultra-wideband transmission
systems. Arrive early -- seats are limited.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255155A1.doc
About cell phone use in flights see:
http://www.washingtonpost.com/wp-dyn/articles/A50320-2004Dec9.html

AT A THEATER NEAR YOU
The feature length documentary by Danny Schechter, WMD (Weapons of Mass
Deception), tackles the media's non-coverage of the Iraq war and why. It is
now playing around the country:
12/3 in Boston (Landmark Kendall Sq. Theater), Austin, Denver;
12/10 in SF, (Embarcadero); Berkeley, (Oaks) DC, and Washington, DC
(Landmark, E-Street)
12/17 in Seattle and St. Louis.
For more info, visit: wmdthefilm.com.
--------------------------------------------------------------
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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