Benton's Communications-related Headlines for 2/09/05

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

MUST CARRY FIGHT CONTINUES
NCTA: Belo Paper Breached Ethics
Some House Dems Oppose DTV Vote

BROADCAST INDECENCY
Indecency Bill Slated for Wed. Markup
FCC Aims to Speed Evaluation of Indecency Complaints
What's indecent?
Republicans Make 'Indecent' Proposal to Bush

MORE MEDIA POLICY
LPFM Bill Reintroduced
The Fairness Doctrine -- How we lost it, and why we need it back

ED TECH
$500M ed-tech grant slated for elimination
Tiny District Finds Bonanza of Pupils and Funds Online

OWNERSHIP
AT&T's Long-Term Benefits To SBC May Be a Big Stretch
MCI Holders Aren't Jumping at Bid
Tribune breakup? Investors wonder...

QUICKLY -- "Less is More" Is A Success; Who Killed Telecom?; What Call Is=20
Worth a Life?; Could Your Car Catch a Virus?; Changes to Children's Online=
=20
Privacy Act; Ask Jeeves Buys Bloglines; Podcasting; High-Speed Wireless=
Links

MUST CARRY FIGHT CONTINUES

NCTA: BELO PAPER BREACHED ETHICS
The National Cable & Telecommunications Association has written the Dallas=
=20
Morning News telling the Belo Corp.-owned paper that it failed in its=20
ethical duty to disclose its parent's financial interest in the=20
digital-TV-multicasting issue. The paper, in a Feb. 7 editorial entitled=20
"Go Digital, Stay Local," argued that the FCC should mandate cable carriage=
=20
of all of a broadcasters' digital channels, an argument that Belo Chairman=
=20
Robert Decherd has been making to Congress and the FCC.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA502374?display=3DBreaking+New...
ferral=3DSUPP
http://www.multichannel.com/article/CA502441.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
In a related story, over 80 cable networks have signed an "open letter to=20
Congress" asking members to oppose TV stations' "bid for multicast=20
must-carry." Notably absent were cable nets including ESPN, Bravo, USA,=20
Nickelodeon, Sci Fi, TV Land, and others, owned by either Disney, Viacom,=20
NBC Universal or Fox, all of whom also own TV stations seeking multcast=20
carriage.
http://www.broadcastingcable.com/article/CA502569.html?display=3DBreakin...
ws&referral=3DSUPP
http://www.multichannel.com/article/CA502573.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

SOME HOUSE DEMS OPPOSE DTV VOTE
Reps Butterfield (D-NC), Diane Watson (D-CA), David Price (D-NC), Neil=20
Abercrombie (D-Hawaii), Sam Farr (D-CA), Mike McIntyre (D-NC), Sheila=20
Jackson Lee (D-TX), Charles Melacon (D-LA), Stephanie Tubbs Jones (D-OH),=20
and Sanford Bishop (D-GA) have written a letter to the FCC asking the=20
Commission to delay the vote on multicasting mustcarry scheduled for=20
Thursday. They want Congress to have the opportunity to weigh-in on a DTV=20
transition plan or for the Commission to offer a comprehensive plan. A=20
plan, they say, should take into account new DTV public interest=20
obligations, and the possibility that broadcasters would provide more=20
"diverse, public-oriented programming" with additional channels.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA502570?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

BROADCAST INDECENCY

INDECENCY BILL SLATED FOR WED MARKUP
The House Commerce Committee is expected to vote today on the Broadcast=20
Decency Enforcement Act of 2005. The bill would: 1) boost FCC fines for=20
indecency from $32,500 per violation to $500,000 and for performers from=20
$11,000 to $500,000; 2) remove the first warning for performers (although=20
the FCC has never fined a performer, under the present rules it cannot do=20
so until it has issued one warning); 3) make license revocation a potential=
=20
penalty for three violations; 4) require the FCC to act within 180 days on=
=20
complaints and make annual reports to Congress on its enforcement actions;=
=20
5) take mitigating factors into account when levying fines, including=20
ability to pay, whether the broadcast was live or taped, and whether the=20
broadcaster had ample time to review the material; and 6) require=20
broadcasters, as part of their penalty, to air PSA's that reach up to five=
=20
times the audience of the indecent broadcast.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]]
http://www.broadcastingcable.com/article/CA502322?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

FCC AIMS TO SPEED EVALUATION OF INDECENCY COMPLAINTS
The Federal Communications Commission is overhauling the system it uses to=
=20
process complaints about indecency on the public airwaves after struggling=
=20
to deal with the flood of concerns it received last year over the content=20
of television and radio shows. The Commission is creating a new complaint=20
inbox to keep tabs on the e-mailed, written and phoned-in complaints when=20
they arrive and will scan the filings promptly to determine whether they=20
warrant action, in hopes of clearing cases more quickly. In 2004, the FCC=20
received 1.07 million complaints about racy or off-color fare, largely=20
spurred by Janet Jackson's brief exposure during the Super Bowl halftime=20
show. The outpouring was enough to buckle the system: In 2000, the agency=20
received just 111 indecency complaints.
[SOURCE: Washington Post, AUTHOR: Frank Ahrens]
http://www.washingtonpost.com/wp-dyn/articles/A9272-2005Feb8.html
(requires registration)
To air =97 or is that err?
A look at the FCC's indecent year.
[SOURCE: USAToday]
http://www.usatoday.com/printedition/news/20050209/opcom09.art.htm

WHAT'S INDECENT?
[Commentary] Clearing up confusion about just what programming is=20
"indecent" should be a priority for the next chairman of the FCC. Currently=
=20
the Commission defines broadcast indecency as =93language or material that,=
=20
in context, depicts or describes, in terms patently offensive as measured=20
by contemporary community broadcast standards for the broadcast medium,=20
sexual or excretory references.=94 And its Web site adds with emphasis:=20
=93Context is key!=94 As long as there is uncertainty, TV executives will=
err=20
on the side of not airing or producing shows with the slightest chance of=20
bumping up against the indecency strictures. That will include programs on=
=20
important, if sensitive, topics. The lack of clarity also undermines any=20
valid concerns about indecent programming. The new chairman should take a=20
new look at the agency's indecency rules and process. He or she also should=
=20
start a dialogue with the public and industry to find some kind of a=20
consensus about what exactly are the nation's proper =93community broadcast=
=20
standards.=94 There also needs to be a mechanism that provides quick and=20
ongoing guidance to broadcasters.
[SOURCE: USAToday, AUTHOR:John Solomon]
http://www.usatoday.com/printedition/news/20050209/oplede09.art.htm

REPUBLICANS MAKE 'INDECENT' PROPOSAL TO BUSH
Approximately three-dozen House members have sent a letter to the White=20
House asking that President Bush name a new Federal Communications=20
Commission Chairman who is just as proactive on indecency enforcement as=20
Michael Powell. "We would like to stress our belief in the need for a=20
Chairman who will continue to uphold the laws passed by Congress and=20
continue to crack down on patently offensive material on public airwaves,"=
=20
the legislators wrote.
URL below includes text of Congressional letter.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA502343?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
Variety
http://www.variety.com/index.asp?layout=3Dstory&articleid=3DVR1117917561&p=
=3D0&s=3Dh

MORE MEDIA POLICY

LPFM BILL REINTRODUCED
Longtime low-power FM-radio advocate Sen. John McCain (R-AZ) has=20
reintroduced a bill that would allow more of the stations to be added to=20
the radio dial by reducing the separation between them and existing=20
full-power stations. Under current rules, LPFM's must now be separated by=20
two channels (no closer than the third adjacent channel) from existing=20
FM's, while Sen McCain's bill would allow only a single channel to separate=
=20
the new stations. Sens Maria Cantwell (D-WA) and Patrick Leahy (D-VT) are=20
co-sponsoring the bill.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA502525?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See Press Release from Sen McCain's office:
http://mccain.senate.gov/index.cfm?fuseaction=3DNewsCenter.ViewPressRele...
Content_id=3D1514
The FCC held a LPFM forum yesterday. See Chairman Powell's remarks at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256625A1.doc
NAB Urges Congress Not To Remove LPFM Protections
Surprisingly, not everyone is a fan of low power radio. The National=20
Association of broadcasters is urging Congress to keep in place=20
restrictions on the number of LPFM stations.
[SOURCE: National Association of Broadcasters Open Letter to Congress]
http://www.nab.org/Newsroom/Issues/lpfm/020705letter.htm

THE FAIRNESS DOCTRINE -- HOW WE LOST IT, AND WHY WE NEED IT BACK
There are many fewer broadcast licenses than people who would like to have=
=20
them. Unlike publishing, where the tools of the trade are in more or less=20
endless supply, broadcasting licenses are limited by the finite number of=20
available frequencies. Thus, as trustees of a scarce public resource,=20
licensees accept certain public interest obligations in exchange for the=20
exclusive use of limited public airwaves. One such obligation was the=20
Fairness Doctrine, which was meant to ensure that a variety of views,=20
beyond those of the licensees and those they favored, were heard on the=20
airwaves. The Fairness Doctrine had two basic elements: It required=20
broadcasters to devote some of their airtime to discussing controversial=20
matters of public interest, and to air contrasting views regarding those=20
matters. Stations were given wide latitude as to how to provide contrasting=
=20
views: It could be done through news segments, public affairs shows or=20
editorials. From the 1920s through the =9270s, the history of the Fairness=
=20
Doctrine paints a picture of public servants wrestling with how to maintain=
=20
some public interest standards in the operation of publicly owned=97but=20
corporate-dominated=97airwaves. That all changed when Ronald Reagan became=
=20
president.
[SOURCE: Extra!, AUTHOR: Steve Rendall]
http://www.fair.org/index.php?page=3D2053

ED TECH

$500 MILLION ED-TECH GRANT SLATED FOR ELIMINATION
President Bush is asking Congress to cut more than $1 billion in total=20
education spending and eliminate entirely the $500 million Enhancing=20
Education Through Technology (EETT) state block-grant program, the primary=
=20
source of federal funding for school technology. Still reeling from a=20
last-minute decision by Congress to cut EETT by nearly 30 percent in=20
2005--from $692 million in fiscal year 2004 to $500 million this fiscal=20
year--several ed-tech advocates nationwide condemned President Bush's=20
proposed dismantling of the program as "short-sighted" and criticized the=20
administration for failing to provide the leadership and funding necessary=
=20
to support the use of technology in the nation's schools.
[SOURCE: eSchool News, AUTHOR: Corey Murray]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D5502

TINY DISTRICT FINDS BONANZA OF PUPILS AND FUNDS ONLINE
Vouchers and charter schools have gotten a good deal of attention, but a=20
new entry in the school choice movement is online or cyberschools. Local=20
educators around the country, working in partnership with private=20
companies, have founded at least 100 Internet-based public schools. They=20
can be a financial windfall for some communities, but their academic=20
performance is in question. A report on online schools nationwide, issued=20
last May by the North Central Regional Educational Laboratory, a nonprofit=
=20
group based in Illinois, concluded that states should monitor the academic=
=20
and other performance of Internet schools more closely. "The rapid=20
expansion of K-12 online learning threatens to outpace the development of=20
appropriate state-level policies," it said.
[SOURCE: New York Times, AUTHOR: Sam Dillon]
http://www.nytimes.com/2005/02/09/education/09online.html?hp&ex=3D110801...
&en=3D2b01f17ca88d243b&ei=3D5094&partner=3Dhomepage
(requires registration)

OWNERSHIP

AT&T'S LONG-TERM BENEFITS TO SBC MAY BE A BIG STRETCH
SBC has told investors that it is buying AT&T to become a national player=20
and shore up its business servicing corporations, an area of strength for=20
AT&T. It also believes scale will help it compete better in a marketplace=20
beset by falling prices. There are some ancillary benefits to the deal,=20
too. The deal eliminates the most powerful lobbying counterweight to the=20
regional Bells. Washington still has vital telecommunications regulatory=20
issues on its plate. But it is hard to avoid a nagging feeling that SBC may=
=20
be empire-building just for the sake of it. SBC and its partner BellSouth=20
just made an acquisition in the wireless industry last year, when their=20
joint venture Cingular bought AT&T Wireless. Ostensibly, that deal was=20
meant to improve Cingular's position so that SBC would have more exposure=20
to the growth area of telecom, wireless. Now, however, its most recent deal=
=20
exposes SBC to a business in rapid decline, long distance. Would SBC have=20
been better off waiting patiently to merge with BellSouth?
[SOURCE: Wall Street Journal, AUTHOR: Jesse Eisinger jesse.eisinger( at )wsj.com]
http://online.wsj.com/article/0,,SB110789444137749127,00.html?mod=3Dtoda...
s_money_and_investing
(requires subscription)

MCI HOLDERS AREN'T JUMPING AT BID
After making a $6.3 billion tentative offer for MCI, Qwest seems eager to=20
buy the long-distance company. Yet a number of MCI shareholders are=20
indicating they could have problems with a Qwest deal if it offers little=20
or no premium to the current share price. The shareholders are hoping=20
Verizon will enter the bidding for MCI.
[SOURCE: Wall Street Journal, AUTHOR: Gregory Zuckerman=20
gregory.zuckerman( at )wsj.com]
http://online.wsj.com/article/0,,SB110790874436549455,00.html?mod=3Dtoda...
s_money_and_investing
(requires subscription)
See also --
NYTimes: http://www.nytimes.com/2005/02/09/business/09phone.html

TRIBUNE BREAKUP? INVESTORS WONDER...
Could someone be looking to buy the Tribune Company? The company's stocks=20
are selling low, making it attractive. Analysts have long speculated that=20
Time Warner, the largest U.S. media conglomerate, would like to own=20
Tribune's broadcast stations in order to merge its WB Network with the=20
largest station group carrying it, essentially creating a true network.=20
Time Warner could either enter the newspaper business or sell the papers to=
=20
a publisher such as New York Times, Washington Post or McClatchy.
[SOURCE: Chicago Business, AUTHOR: Jeremy Mullman]
http://chicagobusiness.com/cgi-bin/news.pl?id=3D15412

QUICKLY

CLEAR CHANNEL SAYS "LESS IS MORE" IS A SUCCESS
Clear Channel says two independent listenership studies confirm the value=20
and effectiveness of fewer interruptions and shorter commercial breaks to=20
listeners. The first, a national study commissioned by Clear Channel Radio=
=20
from Burke Inc. found that creative, compelling commercials are effective=20
at any length. Among the specific conclusions: 1) Over time, fewer=20
commercials and more music are likely to improve listener loyalty; 2) A=20
commercial=92s effectiveness is not dependent on length; and 3) Creative,=20
well-executed, relevant spots generate strong recall. The second study,=20
from Atlanta-based media and market intelligence company Navigauge,=20
measures audience behavior during and around commercial breaks. Among this=
=20
study=92s findings: 1) A first-position, 30-second spot retained more=20
audience than a first-position, 60-second spot, no matter how many spots=20
are in the break; 2) With shorter commercial breaks (i.e., those having=20
four or fewer ads), roughly 80% of the qualified audience is still=20
listening after the second commercial, and roughly 70% are still listening=
=20
after the third spot.
[SOURCE: RadioInk]
http://www.radioink.com/HeadlineEntry.asp?hid=3D127169&pt=3Dtodaysnews

WHO KILLED TELECOM? WHY THE OFFICIAL STORY IS WRONG
[Commentary] Video killed the radio star and former FCC Chairman Reed Hundt=
=20
killed the telecom revolution. Who knew?
[SOURCE: Cato Institute, AUTHOR: Lawrence Gasman]
http://www.cato.org/pub_display.php?pub_id=3D3662
http://www.cato.org/pubs/pas/pa533.pdf

WHAT CALL IS WORTH A LIFE?
[Commentary] Phone driving is the drunken driving of the new millennium.=20
Seemingly everyone does it, and all of them seem to believe that they are=20
skilled in a way that prevents their powers of perception from being=20
clouded by the fog of isolation that envelops drivers who talk on the=20
phone. Everyone who isn't on the phone while driving sees evidence of it=20
every day, as drivers weave and stutter drunkenly through traffic while=20
negotiating peace in the Middle East over the phone, or their kid's=20
allowance, or some other question that, while too important to wait,=20
doesn't merit pulling over to the side and parking for a few minutes to=20
make the call.
[SOURCE: Washington Post, AUTHOR: Dan Carney]
http://www.washingtonpost.com/wp-dyn/articles/A9443-2005Feb8.html
(requires registration)

PHONES, CAR ENGINES FACE SECURITY THREATS
Daily computer security headaches such as viruses and spam threaten to=20
spread to a far wider range of devices -- from phones to car engines, a=20
survey to be published by IBM on Wednesday has found.
[SOURCE: Reuters, AUTHOR: Eric Auchard]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DJKTYZKDFKAOAICRBAE...
A?type=3DtechnologyNews&storyID=3D7574852

CHANGES TO CHILDREN'S ONLINE PRIVACY ACT
Commercial Web sites which want to gather information from children under=20
13 for their own use, but which do not plan to share the information with=20
others, can currently meet their obligation to obtain parental approval=20
first simply by getting an e-mail from the parent=92s e-mail address. This=
=20
rule, which was initially temporary, would become permanent under proposed=
=20
changes to the Children=92s Online Privacy Protection Act (COPPA). Advocates=
=20
worry that this is not a sufficient safeguard, because there is no=20
guarantee parents will ever be aware of the exchange of e-mails. The=20
Federal Trade Commission is seeking public comments, which must be filed by=
=20
February 14.
http://www.ftc.gov/opa/2005/01/coppafrn.htm
(from Connect for Kids)

ASK JEEVES BUYS BLOG SEARCH PROVIDER BLOGLINES
Web search company Ask Jeeves said late on Monday it bought privately held=
=20
Bloglines, which helps users search for articles posted on Web logs, or=
blogs.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D7...
93

PODCASTING
Follow the URLs below to get a handle on the "podcasting" phenomenon.
[SOURCE: USAToday, AUTHOR: Byron Acohido]
http://www.usatoday.com/printedition/money/20050209/b_podcastcover.art.htm
http://www.usatoday.com/printedition/money/20050209/podcastingbasics.art...
http://www.usatoday.com/printedition/life/20050209/d_cover09.art.htm

ON-LINE REGISTRATION FOR HIGH-SPEED WIRELESS LINKS
As part of the President=92s initiative to streamline U.S. spectrum policy,=
=20
fiber-speed wireless communications links in several spectrum bands may now=
=20
be coordinated and approved for non-federal use in a matter of=20
minutes. These extremely large =93millimeter wave=94 bands were once used=
=20
exclusively by the federal government and radio astronomers. Commercial=20
users can now establish high-speed, point-to-point data links through a=20
Web-based registration process first activated on Tuesday. Before now,=20
applications in these bands could take months to be processed while the=20
potential interference to government systems was assessed. Under the new=20
system, non-federal users and third party database operators can determine=
=20
whether a proposed high-speed point-to-point link could be operated without=
=20
causing interference to government operations, and register the link=20
immediately. The public may access the automated system at the following=20
url: http://FreqCoord.ntia.doc.gov. Applicants must have a Federal=20
Communications Commission Registration Number (FRN) and license in order to=
=20
file using the new Universal Licensing System (ULS). Applicants can obtain=
=20
an FRN using the FCC Wireless Telecommunications Bureau web site at=20
http://wireless.fcc.gov. and selecting CORES/Call Sign Registration from=20
the right-hand menu under the heading of Licensing.
[SOURCE: National Telecommunications and Information Administration Press=20
Release]
http://www.ntia.doc.gov/ntiahome/press/2005/708090website_02082005.htm
--------------------------------------------------------------
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.
--------------------------------------------------------------