CABLE VS BROADCASTING
Cable Might NAB a Win
No Cash, No Carry
MORE ON CABLE
L.A. Within Reach
Video Competition Report
Report on Cable Industry Prices
OWNERSHIP
Powell=92s Legacy: He Riled the Masses
Pay-to-Play Fracas Goes Prime-Time
Strike Four for Sinclair
Critics: Ad Bans Curry Bush Favor
As Piracy Battle Nears Supreme Court, the Messages Grow Manic
CONTENT
Remember Our First Priority
Political Perspectives With Tunnel Vision
FTC Boss Presses Industry To Self-Police
The Picture Isn't Perfect, But It Is Better
TELECOM
Nextel OK's $500M to TV Stations
Qwest Plays Field As MCI Gets Coy On Deal Proposal
Frontiers Change for Phone Giants
AT&T=92s Deal For Dominance Led to Its Demise
FCC Releases UNE Rules Order
INTERNET
Internet Radio Poised for a Tune-Around
Broadband Advertising Takes Flight
CABLE VS BROADCASTING
CABLE MIGHT NAB A WIN
Barring a major script change, the FCC is about to hand the National=20
Association of Broadcasters its biggest policy defeat in years, a setback=20
cemented by last week=92s announcement of a long-term digital carriage deal=
=20
between cable and public broadcasters. Broadcasters have been lobbying the=
=20
FCC for seven years in a quest to secure mandatory cable carriage of every=
=20
digital-TV service they provide free to their over-the-air viewers. While=20
limited to one signal in an analog world, broadcasters can use their=20
digital capacity to pump out five or six programming services, potentially=
=20
converting stations in each market into multichannel rivals to cable and=20
satellite. But broadcasters argue that multicasting for the benefit of=20
viewers who don't use pay TV is a digital pipe dream, if those services=20
can't reach cable=92s mass subscriber base. The FCC vote is expected to=20
include Chairman Powell and Republican Commissioner Kathleen Abernathy. The=
=20
all-important third vote is expected to come from Democrat Jonathan=20
Adelstein, whom cable helped get re-confirmed late last year, when his FCC=
=20
career was just days away from oblivion. An FCC source last week said that=
=20
agency officials told the National Cable & Telecommunications Association=20
more than a year ago that any hope of securing Adelstein=92s decisive vote=
=20
was contingent upon completion of a carriage deal with public-TV stations,=
=20
owing to Adelstein=92s concern about the fate of 350 public-TV stations in=
an=20
uncertain digital world.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA501656.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)
More on the digital must-carry decision coming on Thursday:
* The cable lobby told the FCC: "After four years and a steady stream of=20
comments and ex parte filings, it is clear that the commission's decision=20
not to require dual or multicast carriage was the right one. It was right=20
as a matter of statutory construction. It was right as a matter of=20
constitutional law. And it is right as a matter of sound public policy. It=
=20
should be affirmed and reconsideration should be denied."
http://www.broadcastingcable.com/article/CA501429?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
* The Boards of the National Cable & Telecommunications Association, the=20
Association for Public Television Stations, and PBS have all approved a new=
=20
noncom multicasting carriage deal which would require the majority of cable=
=20
systems to carry the digital multicast signals of noncommercial stations=20
after the switch to digital, and at least for multicast channels of one=20
station in each market in the interim. The deal must also be ratified=20
individually by stations reaching at least 80% of U.S. households, and=20
cable operators comprising at least 80% of U.S. subscribers.
[SOURCE: Broadcasting&Cable]
http://www.broadcastingcable.com/article/CA501420?display=3DBreaking+New...
ferral=3DSUPP
http://www.multichannel.com/article/CA501517.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
* Two members of the Congressional Black Caucus, G.K. Butterfield (D-SC)=20
and Diane Watson (D-CA), are trying to find Congressional support for a=20
delay of the multicast must-carry decision
[SOURCE: Broadcasting&Cable]
http://www.broadcastingcable.com/article/CA501516?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
NO CASH, NO CARRY
Unlike cable operators, over the past few years, DBS companies have paid=20
15-20 cents per subscriber monthly for local broadcast signals. But=20
broadcasters are starting to fight with cable operators to get them to pay=
=20
cash for carrying stations. At the heart of the fight is a 1992 law that=20
gives stations the right to attempt to negotiate payment or simply demand=20
guaranteed carriage for free. Now, with technology advances promising new=20
high-definition TV and digital channels, broadcasters think they have new=20
leverage to get some cash for their content. Broadcasters are also looking=
=20
for new payments for digital channels they plan to create as they make the=
=20
transition from analog signals. Their hopes could be dashed, however, by an=
=20
expected ruling this week that would hand cable tremendous leverage in=20
carriage of digital broadcast programming. Broadcasters are hoping to delay=
=20
the vote until after Chairman Michael Powell -- who favors cable in this=20
dispute -- actually departs in March.
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins and Bill McConnell]
http://www.broadcastingcable.com/article/CA501628.html?display=3DFeature...
ferral=3DSUPP
http://www.multichannel.com/article/CA501659.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)
MORE ON CABLE
LA WITHIN REACH
Part of what's at stake in the auction for Adelphia's properties is the=20
control of the #2 US market, Los Angeles. Los Angeles has long been a=20
target for consolidation. Currently, five separate cable companies,=20
including Adelphia, serve the area. Comcast appears willing to give up its=
=20
interest in the Los Angeles properties -- it owns a 25% interest in=20
Adelphia's systems there -- as well as its 500,000 wholly owned customers=20
in the area to Time Warner for other Adelphia or Time Warner Cable=20
properties. Time Warner currently has about 355,000 subscribers in the Los=
=20
Angeles market. Adding Adelphia's 1.2 million customers there and Comcast's=
=20
500,000 would give the media giant about 2.1 million Los Angeles customers.=
=20
That would dwarf other players in the market: Charter Communications has=20
507,000 and Cox Communications has 274,000 subscribers in nearby Orange=
County.
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
http://www.multichannel.com/article/CA501650.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
Los Angeles Times:
http://www.latimes.com/business/printedition/la-fi-adelphia7feb07,1,7862...
story?coll=3Dla-headlines-pe-business
(requires registration)
VIDEO COMPETITION REPORT
The FCC released its 11th Annual Assessment of the Status of Competition in=
=20
the Market for the Delivery of Video Programming, a report that examines=20
the status of competition in the market for the delivery of video=20
programming, changes that have occurred in the market over the past year,=20
and factors that have facilitated or impeded competition among video=20
programming providers. Almost all U.S. consumers have the choice between=20
over-the-air broadcast television, a cable service, and at least two direct=
=20
broadcast satellite (DBS) providers. In some areas, consumers also can=20
choose to receive service via one or more emerging technologies, including=
=20
digital broadcast spectrum, fiber, and video over the Internet. In=20
addition, the report finds that as a result of system upgrades and=20
increased competition from DBS services, cable subscribers are enjoying a=20
broad range of advanced services, such as digital tiers and video on=20
demand, as well as more channels of video programming. The report states=20
that overall cable subscribership remained relatively stable over the past=
=20
year, as the multichannel video programming distribution (MVPD) market=20
grew. In contrast, DBS subscriberships continued to increase at=20
double-digit rates of growth, which is due in part to the continued=20
increase in the number of markets where local broadcast television stations=
=20
are distributed by DBS under the authority granted to them by the Satellite=
=20
Home Viewer Improvement Act of 1999 (SHVIA). As of June 2004, 92.3 million=
=20
households subscribed to an MVPD - with 71.6 percent subscribing to a=20
franchised cable operator, 25.1 percent receiving their video programming=20
from a DBS operator, and 3.3 percent of subscribers choosing service from=20
other types of providers. The report offers analysis of other potential=20
competitors to cable television and discusses the transition of traditional=
=20
over-the-air broadcasting to digital technology, emerging technologies such=
=20
as Internet Protocol television, and developments in foreign markets. In=20
addition, the report examines horizontal concentration in the MVPD=20
marketplace, vertical integration between cable television systems and=20
programming services, competitive issues in small and rural markets, and=20
technical advances.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-13A1.doc
Press Release:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256563A1.doc
Chairman Powell:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-13A2.doc
Commissioners Copps & Adelstein:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-13A3.doc
REPORT ON CABLE INDUSTRY PRICES
The FCC released its annual report on cable industry prices. The report=20
shows that the overall average monthly rate for cable service -- including=
=20
basic and expanded basic cable programming services and equipment --=20
increased by 5.4% over the 12-month period ending January 1, 2004, from=20
$42.99 to $45.32 (Specifically, the average monthly charge for basic and=20
expanded basic services increased by 5.4 percent, from $38.95 to $41.04,=20
and the average charge for equipment increased by 5.9 percent, from $4.04=20
to $4.28, over the same period.). This was a slower rate of increase than=
=20
the 7.8% increase recorded over the 12-month period ending January 1, 2003.=
=20
The report also provides information on the number of channels offered in=20
each tier of service, the average capacity of cable systems, and the=20
percentage of cable subscribers that are offered advanced services such as=
=20
digital service, Internet access, and telephone service. In addition, the=
=20
report compares the prices charged by cable operators that face effective=20
competition, referred to in the report as the "competitive group", with the=
=20
prices charged by operators that do not face such competition, referred to=
=20
as the "noncompetitive group." (The determination of whether a cable=20
operator is eligible for effective competition status is based on an=20
objective statutory test.) As of January 1, 2004, cable operators facing=20
effective competition charged an average of $42.48 per month for=20
programming and equipment, while those not facing effective competition=20
charged $45.56.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-12A1.doc
Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256564A1.doc
Additional coverage --
http://www.broadcastingcable.com/article/CA501620?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
http://www.multichannel.com/article/CA501614.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
http://www.tvweek.com/news.cms?newsId=3D7246
OWNERSHIP
POWELL'S LEGACY: HE RILED THE MASSES
[Commentary] Michael Powell=92s legacy as chairman of the FCC may be that,=
=20
more than any other person, he is responsible for the emergence and success=
=20
of the nation=92s media-reform movement. His performance in the=20
media-ownership proceeding was a galvanizing example of how not to regulate=
=20
=93in the public interest,=94 prompting over 3 million Americans to file=20
protesting comments with the Commission. Now it appears the FCC will have=20
to take up yet again its media-ownership rules. This time, the media-reform=
=20
movement that Chairman Powell aroused calls on the FCC to reconsider its=20
fundamentally flawed 2003 order and establish new media policies that=20
promote its oft-stated -- and oft-ignored -- core values of localism,=20
competition and diversity of viewpoints and voices. And this time, before=20
the FCC adopts new rules, it must let the public meaningfully weigh in and=
=20
help define exactly what constitutes the =93public interest.=94 The full=20
Commission should, at a minimum, schedule hearings across the country to=20
engage the American people on the future of their media and gain a better=20
understanding of the impact of media consolidation on our nation=92s=20
communities, democracy and culture. If it does not, yet another flawed=20
media-ownership deal will emerge from behind closed doors to serve only the=
=20
interests of the media conglomerates. In our democracy, that is something=20
the public has no interest in.
[SOURCE: Broadcasting&Cable, AUTHOR: Jonathan Rintels, Executive Director=20
of the Washington-based Center for Creative Voices in Media]
http://www.broadcastingcable.com/article/CA501639?display=3DOpinion&refe...
=3DSUPP
(free access for Benton's Headlines subscribers)
PAY-TO-PLAY FRACAS GOES PRIME-TIME
Viacom-owned CBS got into major tussles last week with Walt Disney's=20
Touchstone Television and News Corp's 20th Century Fox Television over the=
=20
issue of coproductions, just as the network was announcing the last of its=
=20
drama pilot pickups. The unofficial practice of content providers such as=20
Touchstone or 20th sharing ownership in their projects in exchange for=20
network pickups-whether to pilot or to series-is hardly new; however, last=
=20
week's negotiations played out more overtly about ownership than in the=20
past because Viacom's Paramount Network Television unit brought nothing new=
=20
to any of the four projects in question. CBS is the only broadcast network=
=20
whose parent company has a stake in the back-end of virtually every=20
scripted series on its current prime-time schedule. (Other networks have a=
=20
stake in the majority of their shows.) And powerful multiple system cable=20
operators have begun taking stakes in cable networks seeking carriage on=20
their system. All of this raises the question of how good industry=20
consolidation really is for the business, as companies face the choices=20
between doing what they have power to do versus doing what might be best=20
for the creative product.
[SOURCE: TVWeek, AUTHOR: Christopher Lisotta]
http://www.tvweek.com/article.cms?articleId=3D27190
(requires free registration)
STRIKE FOUR FOR SINCLAIR
For the fourth time, the FCC this week will give the thumbs down to=20
Sinclair Broadcast Group=92s bid to buy five stations from Cunningham=20
Broadcasting. Sinclair already owns stations in the affected markets, which=
=20
are too small to permit two-station =93duopolies=94 under FCC rules. =
Sinclair=20
has tried every legal maneuver its lawyers can think of to keep the issue=20
alive. Chairman Michael Powell has been asking fellow commissioners to vote=
=20
down the latest request since August, but his colleagues have struggled to=
=20
craft their opinion tightly enough that it will close the door on a court=20
appeal by the Baltimore-based station group. Powell put the item on=20
Thursday=92s agenda because he is trying to wrap up lingering proceedings=20
before he steps down in March.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA501590?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
CRITICS: AD BANS CURRY BUSH FAVOR
TV networks claim the right to reject issue ads on controversial topics,=20
but are they arbitrarily choosing what to air and what to reject? Citizens=
=20
for Responsibility and Ethics in Washington is asking the FCC to=20
investigate each network's policy on advocacy advertising. Although the=20
networks say they reject all controversial issue ads, CREW argues only=20
spots likely to get stations in hot water with the White House are turned=20
down. CREW points out the nets have run ads advocating White House=96backed=
=20
ideas such as limits on asbestos lawsuits.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA501626?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
AS PIRACY BATTLE NEARS SUPREME COURT, THE MESSAGES GROW MANIC
With the Supreme Court scheduled next month to hear a pivotal case pitting=
=20
copyright holders (represented by MGM Studios) against the makers of=20
file-sharing software (Grokster and StreamCast Networks), some participants=
=20
are putting their message machines into high gear. Copyright owners say=20
they are threatened by digital piracy, while technology advocates voice=20
their opposition to strict controls on the copying of digital media.
[SOURCE: New York Times, AUTHOR: Tom Zeller Jr.]
http://www.nytimes.com/2005/02/07/technology/07sharing.html
(requires registration)
CONTENT
REMEMBER OUR FIRST PRIORITY
[Editorial] Just how scary is the new Knight Foundation report that found=20
that nearly three-quarters of American high school students are clueless=20
about the First Amendment, more than a third think it would be a good idea=
=20
if journalists received prior approval from the government before they=20
report anything, and that one-third think news organizations need even more=
=20
restrictions on what they produce? Well, put into the context of increased=
=20
FCC indecency fines, legislation in Congress to limit the flow of=20
information, and a White House bent on keeping every document under lock=20
and key. Television's First Amendment rights are in serious jeopardy, B&C's=
=20
Editor in Chief writes. Far too often, Big Media giants say nothing to=20
defend their First Amendment rights, too fearful to fight back and have the=
=20
government take retribution out in some other area of their far-flung=20
enterprises. The whole atmosphere of cowardice and inaction is only=20
worsened by errant news organizations that abuse the rights they possess.
[SOURCE: Broadcasting&Cable, AUTHOR: J. Max Robins, Editor in Chief]
http://www.broadcastingcable.com/article/CA501669.html?display=3DNews&re...
al=3DSUPP
(free access for Benton's Headlines subscribers)
A second B&C editorial thanks NAB Chairman Phil Lombardo for finally=20
speaking out against indecency fines, but questions why his message appears=
=20
to be "fine everyone."
[SOURCE: Broadcasting&Cable, AUTHOR: Editorial Staff]
http://www.broadcastingcable.com/article/CA501640.html?display=3DOpinion...
erral=3DSUPP
(free access for Benton's Headlines subscribers)
POLITICAL PERSPECTIVES WITH TUNNEL VISION
Taking money from the government without disclosing it is dumb, but too=20
many pundits these days shill for free. The world of opinion now resembles=
=20
a choose-up-sides playground, with the players rarely straying from their=20
assigned spots. The only real motion is when they jump back and forth=20
between politics and journalism, or demonstrate agility by keeping a foot=20
in both camps. "Everyone's more partisan now -- magazines, pundits,=20
individuals," says Washington Monthly Editor Paul Glastris. But he offers a=
=20
frankly partisan explanation, that it's "largely driven by the extreme=20
partisanship on the right." Says Weekly Standard Executive Editor Fred=20
Barnes, who wrote a piece last week calling Democrats "The Ruthless Party":=
=20
"We live in a more polarized time. There are so many people who've come=20
into journalism from politics and other fields rather than straight=20
reporting. . . . As Republicans and Democrats divide more, commentators who=
=20
are sympathetic to one party or the other divide more, and I'm no=
exception."
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A3418-2005Feb6.html
(requires registration)
FTC BOSS PRESSES INDUSTRY TO SELF-POLICE
New Federal Trade Commission Chairman Deborah Majoras has declared war on=20
ads for bogus diet drugs. For the past year, the FTC has been urging=20
broadcast stations, cable operators and other media to reject diet-drug ads=
=20
that make bogus claims and to report the marketers to the FTC. When=20
TV-station staff members spot ads that make claims too good to be true,=20
they have been asked to reject the ad and tip off the FTC. In addition,=20
the FTC is considering proceedings snack-food commercials during children=92=
s=20
programming, as well as paid product placements. The TV business could see=
=20
a drain on profits. The $3 billion spent yearly on TV food advertising to=20
kids is critical to the survival of children=92s programming on commercial=
=20
stations, and product placements are considered by the industry as a way to=
=20
counter the loss of ad dollars as more viewers use TiVos to zap through=20
commercials.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell ]
http://www.broadcastingcable.com/article/CA501672?display=3DNews&referra...
SUPP
http://www.broadcastingcable.com/article/CA501643?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
THE PICTURE ISN'T PERFECT, BUT IT IS BETTER
In 1999, NAACP President Kweisi Mfume referred to network TV as a =93virtual=
=20
whitewash=94 and threatened a boycott. The threat led the Big Four to=20
implement strong diversity efforts including writing and acting programs=20
and hiring diversity chiefs. In a study of prime time released in May 2004,=
=20
public-interest group Children Now found that 73% of all prime time roles=20
were played by whites, 16% by African-Americans and 6.5% by Latinos. Of all=
=20
ethnic groups, Latinos saw the greatest improvement from 2001 to 2003.=20
Behind the camera, the gains have not been nearly so great, according to an=
=20
October 2003 NAACP study. Initially, each network had just a handful of=20
minority writers, although those numbers have improved significantly. In=20
1999, Fox, to cite the most extreme example, reported that just 5% of its=20
writers were minorities; by 2002, that number was nearly 25%. The NAACP is=
=20
collecting new statistics now and will look at both cable TV and TV news.
[SOURCE: Broadcasting&Cable, AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/article/CA501677.html?display=3DSpecial...
ort&referral=3DSUPP
(free access for Benton's Headlines subscribers)
TELECOM
NEXTEL OK'S $500 MILLION TO TV STATIONS
Nextel CEO Tim Donahue today will approve a deal that gives TV stations up=
=20
to $500 million for some special channels the cell phone giant wants to=20
use. Nextel has until today to accept an FCC plan to hand the company a=20
chunk of frequencies used by local TV news crews to beam live remotes back=
=20
to their studios. In return, Nextel must compensate the stations, write a=20
$2.2 billion check to Uncle Sam, and give some of its current cell phone=20
spectrum back to the government.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA501612?display=3DBreaking+New...
ferral=3DSUPP
http://www.broadcastingcable.com/article/CA501670?display=3DNews&referra...
SUPP&referral=3DSUPP
(free access for Benton's Headlines subscribers)
QWEST PLAYS FIELD AS MCI GETS COY ON DEAL PROPOSAL
Doesn't anyone believe in commitment anymore? MCI has not responded to=20
Qwest's $6.3 billion acquisition and the long distance company begins talks=
=20
with Verizon. Qwest, in turn, has started exploring alternative scenarios=20
in case the deal falls through.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com=20
and Dennis K. Berman dennis.berman( at )wsj.com]
http://online.wsj.com/article/0,,SB110773503218447245,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
See also --
Qwest-MCI: A Ring of Desperation
BusinessWeek News Analyst Rosenbush sees the proposed merger of Qwest and=20
MCI as a combination of two companies that have dim prospects of surviving=
=20
on their own. But even if they pull off the deal, the new company would=20
emerge as a relatively small and weak player as other telcos are busy=20
joining up as well. And there's still a chance Verizon or BellSouth will=20
try to crash this party.
[SOURCE: BusinessWeek, AUTHOR: Steve Rosenbush]
http://www.businessweek.com/technology/content/feb2005/tc2005024_9429_tc...
htm
FRONTIERS CHANGE FOR PHONE GIANTS
The proposed SBC-AT&T and Qwest-MCI mergers speak to the perceived=20
importance of the corporate business, a $250 billion annual segment of the=
=20
telecommunications market. But the long-term implications are broader, some=
=20
industry analysts say, because they threaten to take the regional telephone=
=20
companies out of their geographic comfort zones. SBC and Qwest could use=20
the AT&T and MCI networks as entrees into new parts of the country and, in=
=20
turn, force Verizon and BellSouth to fight back. Could the war between the=
=20
Bells be poised to get a whole lot less civil? The fact that these=20
companies compete in the business market "does not mean the competition=20
will ever spread to the residential market," said Mark Cooper, director of=
=20
research for the Consumer Federation of America. The Bells' "primary=20
interest is in protecting their franchise product."
[SOURCE: New York Times, AUTHOR: Matt Richtel]
http://www.nytimes.com/2005/02/07/technology/07newcon.html
(requires registration)
AT&T'S DEAL FOR DOMINANCE LED TO ITS DEMISE
In exchange for being allowed monopoly status nearly a century ago, AT&T=20
agreed to be highly regulated. But when times changed and lawmakers fell=20
under the sway of its enemies, not even AT&T=92s legendary powers of=20
political persuasion could save it from its downfall. As recently as the=20
1970s, AT &T was considered invincible-but not because of its=20
Washington-based lobbyists. Its entire strength rested with the thousands=20
of Ma Bell employees who lived in virtually every city and burg in the=20
country. The 1984 consent decree to break up AT&T was the beginning of the=
=20
end. AT&T's homegrown lobbying network was inherited by the Baby Bells,=20
which started to deploy it to batter their former parent. The=20
telecommunications act of 1996 demonstrated the growing clout of the Baby=20
Bells. AT&T picked the right people and did the right things to lobby for=20
favor from Washington policymakers, but so did the Bells. The battle=20
between them was pitched enough to stall for the better part of a decade=20
legislation that would have made matters even worse for AT&T. But finally=20
regulators sided with the Baby Bells and took away the discount rates that=
=20
allowed AT &T to provide local phone service in addition to long distance.=
=20
Ma Bell was finally unmasked as a humbled giant. AT &T may well be gobbled=
=20
up by SBC and its voice of opposition to the Baby Bells will be silenced.=20
The fate of its lobbying program, however, is still up in the air. The Baby=
=20
Bells will need all the help they can get. After all, as with any companies=
=20
that have made that devil=92s deal, they will need to keep fighting to=
retain=20
the government=92s blessing. The next major contest: Baby Bells vs. the=
cable=20
companies.
[SOURCE: Washington Post, AUTHOR: Jeffrey Birnbaum]
(http://www.washingtonpost.com/)
(requires registration)
FCC RELEASES UNE RULES ORDER
Ending the first phase of post-Telecom Act of '96 phone competition, the=20
FCC released its latest order on phone network sharing on Friday. Although=
=20
other attempts at writing these rules were challenged and overturned in=20
court, that's not as likely this time as =93this is a narrow order=
addressing=20
the court=92s concerns,=94 said Precursor analyst Scott Cleland. =93This is=
the=20
elegy of UNE-P, the end of Tele-World War I.=94 Cleland said Tele-World War=
=20
II will be between the Bells and cable companies over franchising.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
Trouble sleeping? See the Order at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-290A1.doc
INTERNET
INTERNET RADIO POISED FOR TUNE-AROUND
Today, about 38 million Americans listen to the radio on their computers at=
=20
least once a month, according to a 2004 study by Arbitron and Edison Media=
=20
Research. Internet users can hear music, programs from National Public=20
Radio and an array of obscure fare. The highly specialized nature of=20
Internet radio means programming can be tailored to deliver precisely=20
targeted audiences to advertisers. Arbitron and ComScore Networks have just=
=20
begun jointly producing monthly ratings of online radio services from=20
America Online , Microsoft and Yahoo. Virgin Digital has begun to turn a=20
profit with a subscription service featuring 60 music channels produced by=
=20
its staff in Los Angeles.
[SOURCE: Los Angeles Times, AUTHOR:David Colker]
http://www.latimes.com/business/printedition/la-fi-radio7feb07,1,1102960...
ry?coll=3Dla-headlines-pe-business
(requires registration)
BROADBAND ADVERTISING TAKES FLIGHT
Madison Avenue's dalliance with broadband commercials may soon blossom into=
=20
a full-scale romance. While the broadband video ad marketplace pales in=20
comparison with the $60 billion TV ad market -- broadband brought in just=20
$121 million in 2004 revenues -- it is growing. Streamed to online users=20
with broadband access, the medium is similar to cable in the 1980s.
[SOURCE: Broadcasting&Cable, AUTHOR: Joe Mandese]
http://www.broadcastingcable.com/article/CA501592.html?display=3DAdverti...
&referral=3DSUPP
(free access for Benton's Headlines subscribers)
--------------------------------------------------------------
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.
--------------------------------------------------------------