Benton's Communications-related Headlines for 2/11/05

DIGITAL TELEVISION
FCC Denies Multicast, Dual Must-Carry
Powell Drops DTV-Transition Plan
House Panel Sets DTV Hearing
Comcast, Sinclair Near Digital, HDTV Deal
Cablevision to Sell Remaining Assets Of Voom to Dolan

MORE MEDIA POLICY
McCain Calls for a la Carte Trials
E/I Bug Not Yet a Requirement
Consuming Kids: How Marketing Undermines Children=92s Health,
Values & Behavior
TV Plugs Not Inherently Deceptive
PBS Creates Programming-Audit Panel
Children's Show Faces PBS Inquiry

TELECOM
Verizon-MCI Talks Advance; Merger Deal May Be Days Away
Telecom-Gear Mergers May Start to Heat Up
Chairman Stevens Reacts to AT&T's Use of Prepaid Calling Cards to
Lobby on the Universal Service Fund

QUICKLY -- # of Broadcast Stations; Online Banking Growing Rapidly;=20
Flexibility in the 900MHz Spectrum Band; 2005 Susan G. Hadden Awards

REACTION TO FCC DIGITAL MUST CARRY DECISION

DIGITAL TELEVISION

FCC DENIES MULTICAST, DUAL MUST-CARRY
As expected, the FCC has denied broadcasters mandatory cable carriage of=20
both their analog and digital television (DTV) signals during the DTV=20
transition or of any DTV signal but their primary one. The vote was a 5-0=20
victory on dual must carry and 4-1 on multicasting must carry, with=20
Commissioner Kevin Martin dissenting on the multicasting part of the=20
decision. The FCC concluded that such carriage was not necessary to the=20
survival of over the air TV, and was not sufficiently narrowly tailored to=
=20
justify the expansion of must carry and curtailment of cable speech. The=20
Commission did not address the public interest obligations associated with=
=20
broadcasters primary digital signal, saying it would address those by the=20
end of the year. That did not sit well with Commissioners Michael Copps and=
=20
Jonathan Adelstein. Commissioner Jonathan Adelstein said he voted to deny=20
multicasting must-carry, though with some trepidation, in part because=20
public interest obligations were not made part of the decision, and that=20
without that guarantee of public service, he was not ready to grant that=20
carriage. In an extensive statement, he also argued that granting multicast=
=20
must-carry without some public interest strings attached would not=20
necessarily mean more diversity of voices, but could give a bigger=20
megaphone for big media companies with ideological agendas. The battle over=
=20
the transition to DTV is now expected to move to Congress.
The decision has garnered lots of coverage (see below) and lots of reaction=
=20
(see section at end of this e-mail).
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA502953.html?display=3DBreakin...
ws&referral=3DSUPP&referral=3DSUPP
(free access for Benton's Headlines subscribers)
See FCC Press Release:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256701A1.doc
Links to additional coverage:
http://www.multichannel.com/article/CA502996.html?display=3DBreaking+New...
ferral=3DSUPP
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DUCD2FJINH1YSWCRBAE...
Y?type=3DtechnologyNews&storyID=3D7597876
http://www.tvweek.com/news.cms?newsId=3D7285
http://www.washingtonpost.com/wp-dyn/articles/A15539-2005Feb10.html
http://www.usatoday.com/printedition/money/20050211/fcc11.art.htm
http://www.latimes.com/business/printedition/la-fi-fcc11feb11,1,5504120....
y?coll=3Dla-headlines-pe-business

POWELL DROPS DTV-TRANSITION PLAN
Federal Communications Commission Chairman Michael Powell expects to leave=
=20
the agency next month before finishing work on a plan to end TV stations'=20
conversion to digital-only transmission by Dec. 31, 2008. Chairman Powell=20
is stepping down from the Commission next month. Congress is expected to=20
consider digital-TV-transition legislation this year. House Energy and=20
Commerce Committee Chairman Joe Barton (R-TX) supports ending the=20
transition Dec. 31, 2006, two years earlier than the deadline in Powell=92s=
plan.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA503079.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

HOUSE PANEL SETS DTV HEARING
The House telecommunications subcommittee has announced a hearing Feb. 17=20
to consider "the role of technology in achieving a hard deadline for the=20
DTV transition."
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=3D7289
(requires free registration)

COMCAST, SINCLAIR NEAR DIGITAL, HDTV DEAL
Comcast, nation=92s largest cable company, and Sinclair Broadcasting --=
which=20
owns, operates or provides sales services to 62 TV stations in 39 markets=20
-- are close to agreeing on a long-term digital-HDTV-carriage deal.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA503059.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

CABLEVISION TO SELL REMAINING ASSETS OF VOOM TO DOLAN
In a last-ditch effort to save his cherished Voom satellite TV service,=20
Charles Dolan, the chairman of Cablevision, has decided to acquire what=20
remains of the service himself. This includes Voom's 21 high-definition=20
channels, customer agreements and satellite licenses. While Voom no longer=
=20
owns its own satellite, it would be able to keep providing service by=20
leasing capacity on other spacecraft. The service had 26,000 subscribers at=
=20
the end of the third quarter.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com]
http://online.wsj.com/article/0,,SB110808819331652160,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
http://www.multichannel.com/article/CA503192.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

MORE MEDIA POLICY

MCCAIN CALLS FOR A LA CARTE TRIALS
Sen. John McCain (R-Ariz.) Thursday called on cable networks to permit a la=
=20
carte market tests by cable companies to determine whether such a=20
program-purchase system can hold down cable rates. Sen McCain's statement=20
came in response to the recent Federal Communications Commission report=20
showing that cable rates rose 5.4% in 2003. The senator claimed that cable=
=20
rates keep rising faster than inflation due to the absence of significant=20
wireline competition to cable incumbents. The FCC report, Sen McCain said,=
=20
showed that cable rates don't rise as quickly in so-called overbuild=20
markets, where consumers can choose between two local cable providers.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA503172.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

E/I BUG NOT YET A REQUIREMENT
New FCC children's television rules require an on-screen logo throughout=20
the show indicating that the station wants the program to qualify for the=20
three hours/per week minimum the FCC mandates. But the requirement is=20
considered an information collection obligation, which must first be=20
approved by Office of Management and Budget per the Paperwork Reduction=20
Act. The FCC expects the OMB OK in April or May. Once OMB signs off, the=20
FCC will release a public notice. It could technically make the effective=20
date immediate, but would probably give broadcasters, both commercial and=20
noncommercial, 30 days to add the logo.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA503086?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

CONSUMING KIDS: HOW MARKETING UNDERMINES CHILDREN'S HEALTH, VALUES &=
BEHAVIOR
Howard University, Blackburn Center, Washington, DC March 11-13, 2005
Presenations include: Sacrificing Development for Dollars: The Corruption=20
of Child's Play Michael Brody =B7 Gun Play and Greed: The Marketing of=20
Violence to Children Nancy Carlsson Paige =B7 So Sexy, So Soon: The=20
Sexualization of Childhood in the Commercial Culture Diane Levin =B7 How=
=20
Consumer Culture Undermines Children's Well-Being: Evidence from a Survey=20
of 10-13 year olds Juliet Schor =B7 ACME Style Media Literacy Education:=20
Turning Couch Potatoes Into Citizen Activists Rob Williams =B7 Life=
Lessons=20
from Marketing: If Values are Right, than What's Left? Susan Linn =B7=20
Government: Hand-Maiden of Commercial Exploitation of Children . . . And=20
What To Do About It Rep. Sean Faircloth =B7 Promising Approaches for=20
Reducing Junk Food Marketing to Children Margo Wootan =B7 Protecting=
Children=20
and Free Speech Angela Campbell =B7 Youth of Color: Commercialism's=20
Challenges to Health and Wellbeing Velma Lapoint, and Carlota=20
Ocampo =B7 The 90-Minute Commercial: Using Feature Films to Sell to Kids=
=20
Nell =93The Movie Mom=94 Minow =B7 Children in Poverty: A Target for Food=
=20
Marketing Fern Gale Estrow =B7 Building Resilience to Consumer Culture=20
through Community Involvement Tim Kasser =B7 Safeguarding Children in the=
=20
Digital Marketplace Kathryn Montgomery =B7 Hidden (In Plain Sight)=20
Persuaders Rob Walker =B7 Kid Can Make a Difference Larry Levine. Plus=
=20
presentations and workshops by Jeff Chester =B7 Enola Aird =B7 Joan=20
Almon =B7 Patti Miller =B7 Rob Williams =B7 Frank Vespe =B7 Makani=20
Themba-Nixon =B7 CCFC =96 Quad Cities
[SOURCE: Campaign for Commercial-free Childhood]
http://www.commercialexploitation.org/events.htm

TV PLUGS NOT INHERENTLY DECEPTIVE
Mary Engle, the Federal Trade Commission's associate director for=20
advertising practices, told Commercial Alert that there=92s nothing=20
inherently deceptive about product placements that should trigger a=20
requirement that programmers tell viewers that Coca-cola, Budweiser or=20
McDonald=92s paid to have their products appear or be named in a show. She=
=20
added however, that the commission will continue its policy of judging on a=
=20
case-by-case basis whether some product placements are deceptive. Gary=20
Ruskin, executive director of Commercial Alert, said it still has a=20
complaint pending at the FCC and will also push for a product placement=20
disclosure act on Capitol Hill. =93As TV programs look more like commercials=
=20
our case will get stronger and stronger.=94
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA503093?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
Additional coverage --
WashPost:=
http://www.washingtonpost.com/wp-dyn/articles/A15671-2005Feb10.html

PBS CREATES PROGRAMMING-AUDIT PANEL
PBS has formed an independent review board -- chaired by PBS Board Chairman=
=20
Alberto Ibarguen, Publisher of the Miami Herald -- to vet its programming's=
=20
"quality, integrity and independence," with a report due in June. The first=
=20
meeting of the board, comprising academics, journalists and station=20
representatives, is slated for Feb. 14. Members include former CNN anchor=20
Bernard Shaw; Marvin Kalb, senior fellow at the Joan Shorenstein Center on=
=20
the Press, Politics and Public Policy; and John Siegenthaler, founder of=20
the First Amendment Center at Vanderbilt University. Tom Rosenstiel,=20
director of the Project for Excellence in Journalism, will be an adviser to=
=20
the committee.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA503004.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

CHILDREN'S SHOW FACES PBS INQUIRY
The head of PBS has ordered an internal review of the children's show=20
"Postcards From Buster" after Education Secretary Margaret Spellings and=20
other critics attacked an episode that featured real-life lesbian mothers.=
=20
Pat Mitchell, president and chief executive of the Public Broadcasting=20
Service, said in an interview Thursday that she had asked an internal team=
=20
to analyze events leading up to the controversial "Buster" episode. The=20
team will outline the chronology and seek input from the series' producers=
=20
at Boston public television station WGBH, Mitchell said. Separately, PBS=20
announced that next week it would convene an independent panel of=20
journalists and academics to review its editorial standards. (SEE ABOVE)
[SOURCE: Los Angeles Times, AUTHOR: Lynn Smith]
http://www.latimes.com/news/printedition/asection/la-na-pbs11feb11,1,698...
.story?coll=3Dla-news-a_section
(requires registration)

TELECOM

VERIZON-MCI TALKS ADVANCE; MERGER DEAL MAY BE DAYS AWAY
Talks between Verizon Communications and MCI advanced yesterday, and the=20
two companies could announce a deal in the next few days. Movement toward a=
=20
deal has gathered momentum.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com and=
=20
Dennis K. Berman dennis.berman( at )wsj.com]
http://online.wsj.com/article/0,,SB110808295781552014,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

TELECOM-GEAR MERGERS MAY START TO HEAT UP
Having survived a three-year bust, the suppliers of the gear used in the=20
world's communications networks are facing a new challenge: the sudden and=
=20
rapid consolidation of their customers. A wave of acquisition activity=20
among U.S. wireless and traditional fixed-line carriers is forcing the=20
telecommunications-equipment companies to ponder their futures, including=20
whether to do deals of their own. Such transactions have thrust several=20
equipment companies into the spotlight as possible targets, including=20
Lucent Technologies, Nortel Networks and Marconi. Some of these companies=20
also could become acquirers to strengthen their positions.
[SOURCE: Wall Street Journal, AUTHOR: Christopher Rhoads=20
christopher.rhoads( at )wsj.com]
http://online.wsj.com/article/0,,SB110809109601452235,00.html?mod=3Dtoda...
s_money_and_investing
(requires subscription)

CHAIRMAN STEVENS REACTS TO AT&T'S USE OF PREPAID CALLING CARDS ON THE=20
UNIVERSAL SERVICE FUND
AT&T is using its prepaid calling cards in an effort to lobby Congress on=20
Universal Service Fund payments. Sen Stevens (R-Alaska)'s office has been=20
inundated with calls from other Senators about the practice of AT&T. He=20
said that AT&T has launched a disinformation campaign on the Universal=20
Service program - a program that he helped begin back in 1996. The=20
Universal Service Program assesses a small fee on long distance calls to=20
help offset the high cost of telephone service to rural America. In=20
addition, the fund is used to bring the Internet to schools, libraries, and=
=20
health facilities across the nation. Sen Stevens is none too happy. See the=
=20
URL below.
[SOURCE: US Senate]
http://commerce.senate.gov/newsroom/printable.cfm?id=3D232004

QUICKLY

BROADCAST STATIONS
Just how many radio and TV stations are there in the US. Well, we have some=
=20
numbers for you. 13,525 radio stations including 2,533 stations. And 1,748=
=20
TV stations including 382 educational stations.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256657A1.doc

ONLINE BANKING GROWING RAPIDLY, PEW FINDS
Nearly half of all U.S. adult Internet users now manage their bank accounts=
=20
online, making banking the fastest-growing online activity, according to a=
=20
survey by the Pew Internet and American Life Project.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3D32UQG1SMIAEMYCRBAE...
A?type=3DtechnologyNews&storyID=3D7582874
http://www.pewinternet.org/PPF/r/149/report_display.asp

FLEXIBILITY IN THE 900 MHz SPECTRUM BAND
On Thursday the FCC proposed to eliminate unnecessary regulatory=20
restrictions in the 900 MHz spectrum band. The Commission's proposal would=
=20
allow more flexible use of "white space" in the 900 MHz band and allow=20
users in the band to respond to evolving market demands.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256704A1.doc

APT PRESENTS 2005 SUSAN G. HADDEN AWARDS
The Alliance for Public Technology (APT) (www.apt.org) presented the 2005=20
Susan G. Hadden Awards today at the National Press Club in Washington, D.C.=
=20
to the following recipients:
* Senator Conrad Burns (R-MT), United States Senate, for his authorship of=
=20
Section 706 of the Telecommunications Act, and his leadership in promoting=
=20
advanced telecommunications capability to improve life in rural areas and=20
revitalize communities across the nation.
* Carolyn Breedlove, Senior Professional Associate, National Education=20
Association, for her work in ensuring that the key educational provisions=20
of the Telecommunications Act became law, and her support for innovative=20
educational technology and quality children=92s television programming.
* Raul Yzaguirre, National Council of La Raza, for his efforts to improve=20
opportunities for Hispanic Americans through advanced technologies, which=20
help to scale barriers that impact educational attainment and socioeconomic=
=20
mobility.
http://apt.org/confer/

REACTION TO FCC DIGITAL MUST CARRY DECISION

* Statement of FCC Commissioners
- Powell: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256701A2.doc
-=
Abernathy:http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256701A3.do=
c
- Copps: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256701A4.doc
- Martin: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256701A5.doc
- Adelstein:=
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256701A6.doc

* Statement of Meredith McGehee, Director of the Campaign Legal Center's=20
Media Policy Program:
This morning, the Federal Communications Commission put the cart before the=
=20
horse in voting on multicasting must-carry rights for broadcasters. The=20
agency missed a golden opportunity to address the public interest=20
obligations of digital broadcasters. Indeed, there has been a Notice of=20
Inquiry into this subject outstanding at the FCC for more than five years.=
=20
Until the Commission acts to implement meaningful public interest standards=
=20
for broadcasters, there is no compelling case to be made either for or=20
against multicasting must-carry. As the FCC moves forward to consider two=20
important items -- the Notice of Proposed Rulemaking dealing with=20
disclosure and the five-year-old NOI on the public interest obligations of=
=20
digital broadcasters -- and as Congress considers legislation on the=20
digital television transition, the public interest must be at the forefront=
=20
of any debate. Otherwise, we are left simply with competition between=20
commercial interests, and any notion of service to the American people will=
=20
again be overlooked.
http://www.campaignlegalcenter.org/press-1505.htmlhttp://www.campaignlegal=
center.org/press-1505.html

* Rare Victory Against Media Concentration (CCVM)
We've been tough on FCC Chairman Michael K. Powell. But this time, he's got=
=20
it right. And we are pleased that Commissioners Copps, Adelstein, and=20
Abernathy joined him to deny multi-cast must carry. In the absence of any=20
showing that broadcasters truly serve the public interest, there's no=20
reason for our nation=92s policymakers to give them preferential treatment=
by=20
requiring cable to carry their extra digital channels. Such a huge giveaway=
=20
would only further concentrate an already overly-concentrated media. It=92s=
=20
not in the public interest, it=92s only in the broadcasters=92 interest.
http://www.creativevoices.us/php-bin/news/showArticle.php?id=3D106&PHPSE...
=3D0ba23efd349bbbe2235945c49292cb3f

* Statement of Jeff Chester, executive director, Center for Digital=
Democracy
The FCC's expected decision on "multicasting must-carry" [February 10] for=
=20
broadcasters fails to grapple meaningfully with the real problem at hand:=20
media consolidation. The cable industry's monopoly over much of what=20
America can view just got stronger--thanks to FCC Chairman Powell. There=20
clearly need to be policies that force cable to open up its pipeline to a=20
host of programmers, especially independent and community producers. The=20
broadcast lobby was relying on its brute political power to advance its=20
interests. But broadcasters are unwilling to provide the public with any=20
meaningful commitment to decent public service: with programming tailored=20
to the needs of voters, parents, and children, for example. Thus they don't=
=20
deserve a federally sanctioned multi-billion public handout. As Congress=20
takes up this media industry food fight, it should keep the needs of the=20
public in mind. The new TV and broadband landscape permits the emergence=20
of many new local and national programmers. Content providers interested in=
=20
serving the public interest must be given access to tightly controlled=20
cable and satellite distribution. People now cut off from the TV=20
business--especially women and people of color--could gain an important=20
foothold in the media marketplace. A new generation of quality children's,=
=20
public affairs, and entertainment content would be the result.
http://www.democraticmedia.org/news/JCMulticastatement.html

* Consumers Must Benefit Before Cable Must Carry (Benton Foundation)
At the dawn of the digital television age, federal policymakers have a=20
fresh opportunity to create meaningful public interest obligations for=20
broadcasters. But once again broadcasters and the FCC missed a valuable=20
opportunity to adopt meaningful public interest obligations which might=20
have brought new value and reason for extending must carry obligations to=20
more channels. I continue to believe consumers must benefits before cable=
=20
must carry. Creating meaningful public interest obligations will put the=20
television policy remote control back into the public's hands and give the=
=20
public greater control over the children they raise, the kind of democracy=
=20
they participate in, and the discourse they deserve. I look forward to=20
working with a new commission and Congress as they contemplate the digital=
=20
television transition and rethink television."

* Statement of National Association of Broadcasters President Eddie Fritts:
In Washington, there are no final victories and no final defeats. We salute=
=20
Commissioner Martin for recognizing the importance of providing additional=
=20
programming choices for consumers. NAB will be working to overturn today's=
=20
anti-consumer FCC decision in both the courts and in Congress. We look=20
forward to the fight, because consumers deserve more. And broadcasters will=
=20
continue to serve our communities, because that is what local stations do=
best.
http://www.nab.org/newsroom/pressrel/statements/021005multicasting.htm

* Statement of Robert Sachs, President & CEO National Cable &=20
Telecommunications Association:
Today=92s decision is a major victory for consumers because it ensures that=
=20
the marketplace, not government, will determine which programs local cable=
=20
systems carry, ensuring greater consumer choice, and more diverse and=20
better quality programming.... Cable operators want to carry HDTV and other=
=20
compelling digital TV content, especially if that content addresses local=20
needs. In fact, cable operators already carry the digital signals of more=20
than 500 local TV stations. To further advance the DTV transition, on=20
January 31, 2005, the National Cable & Telecommunications Association, the=
=20
Association of Public Television Stations, and the Public Broadcasting=20
Service announced a long-term agreement that will ensure the carriage of=20
public TV stations' digital signals on cable systems. Consumers who=20
purchase digital TVs can look forward to enjoying a wealth of HDTV and=20
other high-value content in the digital era. It=92s time now for all parties=
=20
concerned to direct their energies to helping our country complete the=20
digital TV transition.
http://www.ncta.com/press/press.cfm?PRid=3D579&showArticles=3Dok

* Statement of Belo Corp Chairman Robert W. Decherd:
Belo, along with other broadcasters, will continue to pursue this vital=20
issue because of its importance to local broadcasters and the communities=20
they serve. We look forward to working with the new FCC Chair and members=20
of Congress to readdress multicast must carry, along with other aspects of=
=20
the transition to digital television that still need to be considered.=20
Significant concerns exist about today's decision because it restricts=20
local broadcasters' ability to use today's digital technology to offer=20
consumers additional news, information and other local programming.=20
Instead, today's FCC decision allows cable operators to take advantage of a=
=20
portion of local broadcasters' licensed spectrum for their own financial=20
gain without any public interest obligation.
http://media.prnewswire.com/en/jsp/myPRNJ.jsp?profileid=3D1112624&resour...
=3D2873926
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See you Monday; have a good weekend.
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