Benton's Communications-related Headlines for 2/25/05

MEDIA & GOVERNING
White House Press Room as Political Stage
Confessions of a Payola Pundit
Why Your Broadband Sucks
Lafayette Hits Snag in Fiber Build

AT THE FCC
FCC Investigates 'No Power' Low Powers
San Diego TV Station Vows to Fight 'Fine-Crazy' FCC
FCC Upholds Infinity Phone Fine
Tech Firms Want New FCC Box Rule

OWNERSHIP
Viacom Reports a Big Quarterly Loss
Qwest, Revising Its Bid, Puts MCI Board on Spot
Sinclair Shareholders Drop Suit Over Kerry Documentary

INTERNET
Rapid Growth in Online News Consumption
'Digital Divide' Narrowing Fast, World Bank Says

QUICKLY -- The Couch-Potato Censor; Lawmakers Promise Action on Identity=20
Theft; In the Know; Weapons of Mass Deception; Broadband over Powerlines

MEDIA & GOVERNING

WHITE HOUSE PRESS ROOM AS POLITICAL STAGE
Once the clubby preserve of big-name newspapers and networks, the White=20
House briefing room has lately become a political stage where a growing=20
assortment of reporters, activists and bloggers function not only as=20
journalists but as participants in a unique form of reality TV. Jeff Gannon=
=20
has attracted a lot of attention. He never received a White House press=20
pass because he lacks a congressional pass, which is one of the=20
requirements for permanent clearance into the White House. Instead, like=20
other reporters without permanent credentials, he gained access to the=20
White House briefing room by getting a daily press-office clearance through=
=20
security. Before such clearance is granted, security officials do a fast=20
check based on the petitioner's date of birth and Social Security number.=20
White House officials and Mr. Gannon himself say he used his real name=20
rather than his pseudonym to get his clearance. Lesser-known reporters have=
=20
traveled a similar path to get inside the White House bubble; the WSJ gives=
=20
them their 15 mins.
[SOURCE: Wall Street Journal, AUTHOR: Christopher Cooper=20
christopher.cooper( at )wsj.com and John D. McKinnon john.mckinnon( at )wsj.com]
http://online.wsj.com/article/0,,SB110929763947364024,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
See also --
* An Identity Crisis Unfolds in a Not-So-Elite Press Corps
http://www.latimes.com/news/printedition/asection/la-na-whpress25feb25,1...
1001.story?coll=3Dla-news-a_section
* Before Gannon: New Book Spotlights White House Press Corps Incidents
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
_id=3D1000817436
* Capital Games: Problems With Gannongate?
http://www.thenation.com/capitalgames/index.mhtml?bid=3D3&pid=3D2219
plus http://www.thenation.com/capitalgames/index.mhtml?bid=3D3&pid=3D2196

CONFESSIONS OF A PAYOLA PUNDIT
What happens when a progressive journalist gets called on the carpet for=20
taking money from an institution he covers? Conservative media outlets are=
=20
hammering Ian Williams for a fee he received from the UN to discredit the=20
Armstrong Williams scandal. Here is his response in a MediaChannel=
exclusive.
[SOURCE: MediaChannel.org, AUTHOR: Ian Williams]
http://www.mediachannel.org/views/dissector/affalert328.shtml

WHY YOUR BROADBAND SUCKS
[Commentary] City leaders stepping in to provide cheap broadband when the=20
market hasn't? What's next -- providing street lights when private=20
interests don't? This sort of insanity is raging across the US today.=20
Pushed by lobbyists, at least 14 states have passed legislation similar to=
=20
Pennsylvania's that blocks municipal Internet networks. Lessig says he's=20
always wondered what almost $1 billion spent on lobbying state lawmakers=20
gets you. Now we're beginning to see. He concludes: City and state=20
politicians should have the backbone to stand up to self-serving lobbyists.=
=20
Citizens everywhere should punish telecom toadies who don't. Backwater=20
broad=ADband has been our fate long enough. Let the markets, both private=
and=20
public, compete to provide the service that telecom and cable has not.
[SOURCE: Wired, AUTHOR: Lawrence Lessig lawrence_lessig( at )wiredmag.com (You=20
saw him on West Wing, but didn't he look like the guy from Taxi?)]
http://www.wired.com/wired/archive/13.03/view.html?pg=3D5

LAFAYETTE HITS SNAG IN FIBER BUILD
On Wednesday, a state district judge ruled that the Lafayette Utilities=20
System (LUS) must follow a different portion of state law to issue $125=20
million in bonds to pay for its planned fiber-optic telecommunications=20
business. The ruling opens the door for a special election to decide=20
whether the LUS can borrow the money necessary to fund the project. The=20
utility system, which built a fiber network to service its utilities=20
business, has been offering wholesale bandwidth services to at least 11=20
Internet service providers, and providing retail broadband services to city=
=20
agencies, since 2002. Now the LUS wants to expand this network, and provide=
=20
residents and businesses with cable, phone and high-speed Internet services=
=20
over fiber connections into homes and businesses.
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
http://news.com.com/Lafayette+hits+snag+in+fiber+build/2100-1034_3-55893...
tml?tag=3Dnefd.top

AT THE FCC

FCC INVESTIGATES 'NO POWER' LOW POWERS
Following up on a Center for Public Integrity report released yesterday,=20
the FCC is investigating a California company -- MS Communications --=20
holding more than 200 low-power-TV licenses nationwide since 2000, but not=
=20
yet on the air with any of them. License holders are expected to be on the=
=20
air within three years or risk losing the license, and the FCC says MS has=
=20
reported to it that its stations are on the air. The FCC has sent a letter=
=20
to MS asking it to explain the reports of its dark stations, and expects a=
=20
reply by March 1. The owner of MS, Mark Silberman, says he had planned to=20
launch wireless cable nets in underserved areas, but has never broadcast=20
more than a test pattern on any of them, citing "regulatory changes and=20
other factors," intervened.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA506487?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

KUSI VOWS TO FIGHT 'FINE-CRAZY' FCC
Two San Diego TV stations were none too happy to fined yesterday by the FCC=
=20
for not providing closed captioning in their coverage of a devastating fire=
=20
in 2003. KUSI-TV San Diego owner Michael McKinnon vowed to fight the fine=20
saying the station was able to caption 80%-90% of its three days of=20
reporting. "The complaint was that we didn't totally closed-caption? We=20
were happy to see the reporters get out alive." McKinnon points out that=20
the station was understaffed as it was, with half of his employees at home=
=20
trying to save their property, including the GM, who was on his roof with a=
=20
hose. "This was a disaster, not an inconvenience," he said.=20
Closed-captioning requirements don't kick in fully until 2006, he said,=20
"and we are working toward that."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA506322?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

FCC UPHOLDS INFINITY PHONE FINE
The Federal Communications Commission Thursday upheld a $4,000 fine against=
=20
Infinity Broadcasting's WBLK(FM) Buffalo (NY), levied for a telephone=20
conversation that was broadcast without the caller's knowledge or consent,=
=20
a violation of FCC rules. In an appeal, Infinity argued that it had taken=20
remedial action and the fine should be reduced or eliminated as had those=20
for some other stations. The company also argued that the FCC was wrong to=
=20
use an earlier forfeiture notice Infinity had never paid for a different,=20
similar, offense to rebut Infinity's claims that it had no prior=20
violations. On the first point, the Commission countered that Infinity's=20
remedial actions came after it was cited, while others had taken action=20
before. On the second point, the FCC argued that it had simply used the=20
facts of the previous unpaid forfeiture order to suggest that the telephone=
=20
broadcast was not an isolated incident.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA506382?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

TECH FIRMS WANT NEW FCC BOX RULE
An array of technology firms, including major computer and TV-set=20
manufacturers, is pressing federal regulators to enforce new set-top-box=20
rules against the cable industry. =93The time has come to end consumers=92=
=20
exclusive reliance on [set-top boxes] provided by their cable company. In=20
fact, it=92s long overdue,=94 Hewlett-Packard Co. executive vice president=
=20
Shane Robinson said in a Feb. 17 letter to the FCC. In a separate letter,=20
H-P joined 11 other companies, including Sharp Electronics Corp. and Dell=20
Inc., in urging the FCC to reject cable=92s proposal that the agency should=
=20
eliminate the ban or postpone its effective date by 18 months.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA506380.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

OWNERSHIP

VIACOM REPORTS A BIG QUARTERLY LOSS
Viacom took an $18 billion goodwill write-down (the difference between the=
=20
purchase price of a company and the fair value of its assets) on its radio=
=20
and outdoor advertising units in the fourth quarter, an acknowledgement of=
=20
difficult business conditions confronting both industries. Radio has been=20
one of the biggest drags on Viacom's earnings for the past several years, a=
=20
result of an industry-wide slump dating to the end of 2001. Revenue growth=
=20
in the industry, which reached double digits in the late 1990s, slowed to=20
zero last year, according to the Radio Advertising Bureau. Radio ad revenue=
=20
is being hurt both by shrinking audiences, as people switch to alternatives=
=20
like satellite radio and cellphones, and increased competition for ad sales=
=20
from cable systems and the Internet. Last year radio industry revenues were=
=20
about $20 billion, estimated the Radio Advertising Bureau. Viacom is=20
looking to sell as many as 40 of its 185 radio stations. Outdoor=20
advertising has also suffered from weak industry growth in the U.S., and=20
Viacom's outdoor unit has been further hurt by losses on pricey transit=20
contracts signed during the dot-com boom. Radio and outdoor together=20
account for about 23% of Viacom's operating income.
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint joe.flint( at )wsj.com]
http://online.wsj.com/article/0,,SB110532953284421399,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
See also --
USAToday:=20
http://www.usatoday.com/printedition/money/20050225/1b_viacom25.art.htm
NYTimes: http://www.nytimes.com/2005/02/25/business/media/25viacom.html
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-viacom25feb25,1,49994...
tory?coll=3Dla-headlines-pe-business
B&C:=20
http://www.broadcastingcable.com/article/CA506312?display=3DBreaking+New...
ferral=3DSUPP

QWEST, REVISITING ITS BID, PUTS MCI BOARD ON SPOT
Qwest has offered MCI a new bid of $8 billion while also promising a=20
quicker payout to shareholders and has downside protection on the stock=20
portion of the bid from declines in Qwest's share price. Qwest says a=20
tie-up with MCI will bring significant cost savings. The bid puts the MCI=20
board on the spot -- it already accepted a lower bid from the financially=20
stronger Verizon. The pressure on the board is high. There already have=20
been at least four lawsuits filed by MCI shareholders, and several other=20
major holders also have expressed unhappiness with MCI's agreement with=20
Verizon. The battle over who will control MCI could become a test case for=
=20
how boards behave in this frenzied merger-and-acquisition environment.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com and=
=20
Jesse Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB110927937646963462,00.html?mod=3Dtoda...
s_money_and_investing
(requires subscription)
See also --
WashPost:=
http://www.washingtonpost.com/wp-dyn/articles/A51930-2005Feb24.html
USAToday:=20
http://www.usatoday.com/printedition/money/20050225/1b_qwest25.art.htm
NYTimes: http://www.nytimes.com/2005/02/25/business/25phone.html
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-qwest25feb25,1,406473...
ory?coll=3Dla-headlines-pe-business

SINCLAIR SHAREHOLDERS DROP SUIT OVER KERRY DOCUMENTARY
After Sinclair announced last Fall it planned to run a program titled=20
"Stolen Honor," which critics claimed featured unfair portrayals of John=20
Kerry, a controversy ensued that led Sinclair's stock price to tumble and=20
prompted several shareholders to claim that Sinclair was hurting their=20
investment by getting mired in the hotly contested presidential race. But=20
the shareholder suit was withdrawn Wednesday after the Baltimore-based=20
company filed a motion that noted that none of the claims made in the=20
original lawsuit had come to pass.
[SOURCE: TVWeek, AUTHOR: Jay Sherman]
http://www.tvweek.com/news.cms?newsId=3D7352
(requires free registration)

INTERNET

RAPID GROWTH IN ONLINE NEWS CONSUMPTION
A national study conducted by washingtonpost.com in partnership with=20
Nielsen/NetRatings and Scarborough has found that a rapidly growing number=
=20
of Americans are increasing their use of online sources for news and=20
information at the expense of other media. In the twelve months ending=20
December 2004, 47% of respondents to a survey reported significantly=20
increasing their usage of online media for news and information. In=20
contrast, traditional media showed modest gains with radio at 16%,=20
television at 18%, newspapers at 12% and magazines at 15%. Users cited=20
24-hour availability, ability to multi-task while browsing, breaking news,=
=20
easy ability to search and free access as the top reasons for preferring to=
=20
get their news online. The study also shows that online users of news and=20
information can be grouped into separate behavioral segments based on their=
=20
unique media choices. 1) The largest group, Wired, comprises 39% of online=
=20
users and the group for whom the Internet is essential for daily news and=20
information. The group uses the Internet as their primary source for news=20
and information, spending an average of 24 hours per week online, more than=
=20
8 hours more than any other medium. 2) The second largest group, Disengaged=
=20
(34%), shows a lack of interest in hard news on any medium and primarily=20
uses the Internet as an entertainment resource.For more see=20
http://www.washingtonpost.com/onlinenews
[SOURCE: WashingtonPost.com Press Release]
http://media.prnewswire.com/en/jsp/myPRNJ.jsp?profileid=3D1112624&resour...
=3D2884978

'DIGITAL DIVIDE' NARROWING FAST, WORLD BANK SAYS
As some 1,700 international experts gathered in Geneva to prepare for the=20
United Nations's World Summit on the Information Society (WSIS), the World=
=20
Bank said in a report that telecommunications services to poor countries=20
were growing at an explosive rate. Half the world's population now enjoys=20
access to a fixed-line telephone, the report said, and 77 percent to a=20
mobile network -- surpassing a WSIS campaign goal that calls for 50 percent=
=20
access by 2015. The United Nations hopes that widening access within the=20
developing world to technology such as mobile phones and the Internet will=
=20
help eradicate poverty and build stable democracies. Poorer countries,=20
particularly from Africa, are expected to repeat calls in Geneva Friday for=
=20
a "Digital Solidarity Fund" to help finance the infrastructure they say is=
=20
needed to close the perceived technology gap.
[SOURCE: Reuters, AUTHOR: Thomas Atkins]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3D3J2YMIEUNXAEQCRBAE...
Y?type=3DtechnologyNews&storyID=3D7731166

QUICKLY

THE COUCH-POTATO CENSOR
[Editorial] Raise your hand if you wouldn't mind paying a few extra bucks=20
for a device that promises to zap obscenity, nudity, over-the-top violence=
=20
and whatever else you don't want the kids to see while watching a DVD in=20
the living room. Imagine =97 no more awkward moments when the plot=20
unexpectedly tumbles into the bedroom, where the actors start shouting=20
words that George Carlin still can't whisper on broadcast television.
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
http://www.latimes.com/news/printedition/opinion/la-ed-filter25feb25,1,3...
9.story?coll=3Dla-news-comment
(requires registration)

LAWMAKERS PROMISE ACTION ON IDENTITY THEFT
Several Democratic lawmakers said they would introduce legislation to limit=
=20
the activities of data profilers, who sell Social Security numbers and=20
other consumer information to business and government clients. Sen. Arlen=20
Specter (R-PA) said his Senate Judiciary Committee would hold hearings,=20
while the Rep Joe Barton, Chairman of the House of Representatives Energy=20
and Commerce Committee, said his staff was conducting an investigation.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3D3J2YMIEUNXAEQCRBAE...
Y?type=3DtechnologyNews&storyID=3D7733328

IN THE KNOW
The latest bi-monthly update from Public Knowledge is now available online.=
=20
Items include: Broadcast Flag Oral Argument Held, Next Case Up: Grokster,=
=20
Keeping Watch on Open Access, Bollier=92s Book Gets Good Reviews, Love=
Letter=20
(Hate Mail?) from PFF =AD the sequel, PK=92s RSS Feeds.
http://www.publicknowledge.org/news/intheknow/newsletter.2005-02-24.5094...
62

Upcoming Event: Weapons of Mass Deception
UPCOMING EVENT: WEAPONS OF MASS DECEPTION
In Iraq, there were two wars being fought simultaneously -- one with armies=
=20
of soldiers, bombs and a fearsome military force, the other alongside it=20
with cameras, satellites, armies of journalists and propaganda techniques.=
=20
One war was rationalized as an effort to find and disarm WMD, Weapons of=20
Mass Destruction; the other was carried out by even more powerful WMD,=20
Weapons of Mass Deception. On Wednesday, March 2, 2005, from 6 =AD 9 p.m.,=
=20
the Center for American Progress will launch a new progressive film series,=
=20
REEL Progress, with a screening of WMD: Weapons of Mass Deception, a=20
100-minute nonfiction film. The film explores this story with the findings=
=20
of media insider-turned-outsider, former network journalist Danny=20
Schechter, who is one of America's most prolific media critics. The event=20
will be moderated by Mark Lloyd, senior fellow at the Center for American=20
Progress, and will feature Schechter along with Eric Alterman, senior=20
fellow at the Center for American Progress, and Dr. Steven Kull, director=20
of the Program on International Policy Attitudes at the University of=20
Maryland School of Public Policy.
http://www.kintera.org/htmlcontent.asp?cid=3D43038

POWERING THE BROADBAND MARKET IN 2005 AND BEYOND: VIEWS ON THE EMERGENCE OF=
=20
BROADBAND OVER POWER LINE TECHNOLOGY (BPL)
Is 2005 the year of BPL? This New Millennium Research Council (NMRC) white=
=20
paper seeks to further explore key issues surrounding the provision of=20
broadband Internet service over power lines (BPL), focusing on BPL=92s=20
prospects for success in providing widespread residential and commercial=20
broadband services. The NMRC has compiled a picture of the BPL industry to=
=20
provide a basis for discussion among industry experts and watchers.
http://www.newmillenniumresearch.org/archive/bpl_report022405.pdf
--------------------------------------------------------------
...and we are outta here. Have a great weekend.
--------------------------------------------------------------
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.
--------------------------------------------------------------