Benton's Communications-related Headlines for 2/28/05

Three items of note on this week's agenda: 1) Brown Bag Lunch: The Future
of Programs for Connecting Schools, Libraries & Rural Healthcare
Facilities; 2) Hearing: Competition in the Communications Marketplace: How
Technology Is Changing the Structure of the Industry; and 3) Debate:
Broadcast vs Cable: Should DTV Must-Carry be Expanded, Sunset, or Preserved
As-Is? For these and other upcoming media policy events, see
http://www.benton.org/calendar.htm

OWNERSHIP
FCC Pressured to Reopen Sale of Stations by Former Senator
Rumors and Other Tales
Media Ownership Rules Argued
Members Likely to Ask Telecom CEOs about Investments, Jobs, Competition
Don't Create a Duopoly
BellSouth, Indifferent to Mergers, Seems Certain of Its Path

MEDIA & SOCIETY
Advocacy Ads: Easy Money?
Will Stunts of Sweeps Month Sober Up?
Religious B'casters Don't Back Indecency Bill
They Can't Handle the Truth

QUICKLY -- Copps on the Mess of US Broadband Policy; WiMax May Pose Fresh
Challenge to Broadband; NCTA Welcomes New President Kyle McSlarrow;
Mitchell Stands By Buster Call; FCC Approves Vampire Sex; Hollywood Bets on
Chris Rock's 'Indecency'; iBiquity & Digital Radio; Attorney Honors Program
at FCC; Telco VOD Plans Take Shape; Tech Could Save Small Schools

FROM THE BLOG-O-SPHERE -- Reading the Vanishing Newspaper: A Guide;
Government Paid Public Relations; In the Press Room of the White House that
is Post Press; Air Jesus

OWNERSHIP

FCC PRESSURED TO REOPEN SALE OF STATIONS BY FORMER SENATOR
The Media Access Project urged the FCC to reconsider a Media Bureau
decision that approved the transfer of licenses of four radio stations by a
former state senator convicted of committing perjury -- a type of
transaction the Commission has never before permitted. At issue is an
unpublished Jan. 18 staff decision letting former long-time state Sen. Gene
Stipe (D-OK.) sell Little Dixie Radio and Bottom Line Broadcasting stations
to the successor to his Senate seat, Richard Lerblance. Stipe ,78, whose
net worth is $26 million, was convicted last year of perjury, conspiracy
and federal elections fraud for falsely reported campaign contributions.
One of the entities through which Stipe's illegal campaign contributions
were laundered is a media company. If that media company is one of Stipe's
radio stations, the misconduct was broadcast-related. He was sentenced to 5
years' probation, 6 months' house arrest and fines and forced to surrender
his law license. Under the longstanding Jefferson Radio policy, licensees
found to lack the character to serve as licensees aren't allowed to sell
their stations.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)
The NYTimes covered this story Saturday; see:
http://www.nytimes.com/2005/02/26/business/media/26radios.html?
(requires registration)

RUMORS AND OTHER TALES
Have you heard the rumor about Time Warner buying the Tribune Company? B&C
becomes at least the second publication to speculate on the possibility.
After a fairly quiet couple of years for media dealmakers, the business is
awash in rumors about multibillion-dollar deals. Some are clearly
well-grounded; some are far more speculative. But the end of the stock
slump means that some media companies are getting past memories of the days
their stocks were 50%-100% higher and may be willing to use shares as
currency again for big takeovers. Other rumors: a teleco buys EchoStar to
control a play in the video market; Time Warner buys Cablevisision's
metropolitan-New York systems; Comcast buys Viacom combining the #1 cable
company with the #1 broadcast network; Viacom buys Univision to tap into
the growing Spanish-language market; and a Disney -- Hearst combination.
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins jhiggins( at )reedbusiness.com]
http://www.broadcastingcable.com/article/CA506979.html?display=News&refe...
(free access for Benton's Headlines subscribers)

MEDIA OWNERSHIP RULES ARGUED
Denver Post publisher William Dean Singleton, Common Cause President
Chellie Pingree, and Sen. Wayne Allard (R-CO) debated the merits of media
ownership rules last week in Denver. Singleton would like to purchase a
local TV station and radio station, which he claims would improve local
news coverage by sharing resources. "With so many places to share
information, it is impossible to create a monopoly in a market," he said.
Sen Allard is wary of media consolidation but says the Federal
Communications Commission should act delicately in restricting such
ownership. Pingree cautions that cross-ownership of media sources could
stifle diversity of opinion: "What if you've got one owner with one point
of view who endorses certain candidates and issues? With more
consolidation, there are less local choices."
[SOURCE: Denver Post, AUTHOR: Will Shanley wshanley( at )denverpost.com]
http://www.denverpost.com/Stories/0,1413,36~33~2731378,00.html

MEMBERS LIKELY TO ASK TELECOM CEOs ABOUT INVESTMENTS, JOBS, COMPETITION
Scrutiny of recently proposed telecommunications mergers could move to the
House this week. The House Commerce Committee has a hearing scheduled on
Wednesday on competition in the communications workplace. Apparently, the
committee would like to hear from CEOs of SBC, Verizon, AT&T and/or MCI to
discuss how the proposed mergers will impact job creation, investment in
infrastructure, research and development. On the Senate side, Judiciary
Committee Chairman Arlen Specter (R-PA) said Thursday that the full
Judiciary Committee or the Antitrust Subcommittee should conduct hearings
into telecom mergers. Commerce Committee Chairman Ted Stevens (R-Alaska)
has already met with top-ranking AT&T and SBC officials about that merger
and he's unlikely to hold a public hearing on it.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

DON'T CREATE A DUOPOLY
[Commentary] The proposed mergers of SBC-AT&T and Verizon-MCI will result
in industry concentration which, in turn, will promote: size for size's
sake and geographic dominance; initial job cuts followed by inflated
bureaucracy; reduced pricing competition; limited innovation; and
frustrated regulation. The result is that the technological backbone of our
country will have no safety net, no margin for error. If the mergers are
approved, the new companies would dwarf their nearest competitors and
control 79% of the business/government segment -- one of the most lucrative
in the telecom industry. These two giants are likely to use this muscle to
squeeze out smaller competitors, not to compete against eachother.
Regulation must produce not simply bigger, more powerful providers of
indistinguishable service offerings, but real innovation with real customer
focus.
[SOURCE: Wall Street Journal, AUTHOR: Dick Notebaert, Chairman and CEO of
Qwest]
http://online.wsj.com/article/0,,SB110954561778665306,00.html?mod=todays...
(requires subscription)

BELLSOUTH, INDIFFERENT TO MERGERS, SEEMS CERTAIN OF ITS PATH
BellSouth is focused on bolstering revenue from wireless and broadband
services, not buying its way into the fixed-line phone market, which has
been shrinking. A look at the numbers behind the thinking.
[SOURCE: New York Times, AUTHOR: Ken Belson]
http://www.nytimes.com/2005/02/28/business/28bellsouth.html
(requires registration)

MEDIA & SOCIETY

ADVOCACY ADS: EASY MONEY
The 2004 elections may be over, but broadcasters are likely to continue to
reap in million in 2005 in political advertising. Social security, tort
reform, gay marriage and even telecommunications reform are among the hot
button issues coming to a TV near you. TV-station owners love the cash but
are discovering that advocacy ads can also be a headache. Because of the
high stakes, activists not only mount ad campaigns but have taken to
public-relations attacks on stations that run opponents' ads or fail to run
their own. More worrisome, some activists -- on both the right and left --
hint they'll force stations to fend off costly FCC complaints or challenges
to their broadcast licenses for showing favor. The prospect of paying
lawyers' fees and spending months navigating an FCC investigation is a
worry many activists don't mind planting in station managers' minds.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA506891?display=News&referral=...
(free access for Benton's Headlines subscribers)

WILL STUNTS OF SWEEPS MONTH SOBER UP?
Can Nielsen's people meters improve the quality of local TV newscasts? Then
bring them on -- Hillary Clinton be damned! "The stations are no longer
doing these artificially designed and hyped special reports like 'Salad
Bars That Kill,' " said Paul La Camera, president and general manager of
WCVB, an ABC affiliate owned by Hearst-Argyle Television. "There's no more
of that in Boston, and it's wonderful."
[SOURCE: New York Times, AUTHOR: Lorne Manly]
http://www.nytimes.com/2005/02/28/business/media/28meter.html
(requires registration)

RELIGIOUS B'CASTERS DON'T BACK INDECENCY BILL
Religious broadcasters have decided not to support broadcast indecency
legislation making its way through Congress in part because they fear new
legislation could one day be used against them. "While we don't want people
to take the Lord's name in vain," said one industry representative, "we
don't want the government to prevent us from praising it either." The
1,700-member National Religious Broadcasters (NRB) wants to see better
enforcement of current indecency legislation and an increase in the fines
levied for indecency. The organization fears an expanded definition of
indecency could include religious expression.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA506863?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
See a B&C editorial in favor of NRB's decision:
* No "Amen" for House Bill
http://www.broadcastingcable.com/article/CA506959?display=Opinion&referr...
(free access for Benton's Headlines subscribers)
Also see:
* Air Jesus
http://www.mediatransparency.org/

THEY CAN'T HANDLE THE TRUTH
Taiwan's media have the reputation of being among the most aggressive in
Asia. In a region where print and broadcast reporters are often de facto
cheerleaders for governments and billionaires, Taiwan's no-holds- barred
journalism is alternately seen as a gutsy check on authority and the
embodiment of chaos. Concerned about the media's excesses and ability to
ruin reputations and lives, reformers in and outside the industry are
trying to stem the sensationalism, partisanship and corruption that
characterize the business. Some argue that the media are merely a
reflection of Taiwanese society, which is one of the most freewheeling in Asia.
[SOURCE: Los Angeles Times, AUTHOR: Mark Magnier]
http://www.latimes.com/news/printedition/front/la-fg-hounds28feb28,1,278...
(requires registration)

QUICKLY

WHY OUR BROADBAND POLICY'S STILL A MESS
An interview with FCC Commissioner Michael Copps on the state of US
broadband policy. Commissioner Copps believes broadband is "the most
central infrastructure challenge facing the country right now." Copps
suggests that during reform of universal service policy, Congress should
decide if everybody should have access to comparable broadband
communications at comparable and reasonable prices.
[SOURCE: C-Net|News.com, AUTHOR: Jim Hu]
http://news.com.com/Why+our+broadband+policys+still+a+mess/2008-1034_3-5...

WIMAX MAY POSE FRESH CHALLENGE TO BROADBAND
U.S. cities and companies are eyeing an emerging technology known as WiMax
as a way to make high-speed wireless Internet services available in areas
much larger that a typical Wi-Fi coffee bar or the local McDonald's. But it
may prove difficult to make such services commercially viable, analysts
say. Roughly 85% of U.S. households can now buy broadband services and
about 70% have a choice between cable and DSL, according to Yankee Group
analyst Patrick Mahoney. This means that most commercial WiMax services are
likely to be small in scale as markets would be limited to hard-to-reach
rural areas or city neighborhoods that are not already hooked up for
broadband.
[SOURCE: Reuters, AUTHOR: ]
http://www.reuters.com/newsArticle.jhtml?type=technologyNews&storyID=774...

FILM DOWNLOADED, SEARCH FIRMS TO LINK SERVICES
A deal between two little-known California technology companies is the
first step, some experts say, in what could be the next big thing on the
Web: search engines that let you find movies and TV episodes -- and then
buy or rent them.
[SOURCE: Los Angeles Times, AUTHOR:Chris Gaither]
http://www.latimes.com/business/printedition/la-fi-blinkx28feb28,1,79695...
(requires registration)

READ ALL ABOUT HIM (KYLE MCSLARROW, NCTA
Kyle McSlarrow will assume Tuesday his role as new President of the
National Cable & Telecommunications Association. Some publications would
like to introduce him to you. See the URLs below.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA506894.html?display=News&refe...
* Incoming NCTA Chief Willing to Take Risks
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA506970.html?display=Top+Stories&re...
(free access for Benton's Headlines subscribers)

MITCHELL STANDS BY BUSTER CALL
PBS President Pat Mitchell told the American Women in Radio and Television
Friday that she stands by her decision not to distribute an episode of
Postcards from Buster that included a family with two mothers. "I wouldn't
inject PBS stations into a culture war they did not start and cannot stop,"
she said.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA506949?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

FCC OK'S CLOTHED SEX WITH VAMPIRE
Keep your pants on, Spike. The FCC has denied a complaint filed by the
Parents Television Council alleging that a Washington (DC) TV station aired
an episode of the program Angel in violation of the federal restrictions
regarding the broadcast of indecent material. The FCC concluded that the
scenes of the episode in question were not patently offensive because they
were brief, contained no nudity, and were not sufficiently graphic or
explicit.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA506825?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
FCC Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256988A1.doc
FCC decision: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-37A1.doc

HOLLYWOOD BETS ON CHRIS ROCK'S 'INDECENCY'
Hollywood can read the numbers. Once the feds vowed to smite future
"wardrobe malfunctions," the customers started bolting the annual TV
franchises where those malfunctions and their verbal counterparts are apt
to occur. An award show sanitized of vulgarity and encased in the
prophylactic of tape delay is an oxymoron. So Chris Rock will host the
Oscars which organizers imply will be so indecent that even the winner of
the Jean Hersholt Humanitarian Award may let loose with a Dick Cheney
expletive.
[SOURCE: New York Times, AUTHOR: Frank Rich]
http://www.nytimes.com/2005/02/27/arts/27RICH.html?8hpib
(requires registration)

IBIQUITY DIGITAL'S MAKE-OR-BREAK POINT APPROACHES
Broadcast radio is going digital like other media and here's a look at the
company that developed digital radio technology.
[SOURCE: Washington Post, AUTHOR: Terence O'Hara]
http://www.washingtonpost.com/wp-dyn/articles/A58846-2005Feb27.html
(requires registration)

FCC LAUNCHES NEW ATTORNEY HONORS PROGRAM
The FCC is now accepting applications from graduating law school students
and recent law school graduates for several openings in the Attorney Honors
Program's fall 2005 inaugural class. From Internet telephone service to
video-on-demand, digital television to homeland security, attorneys at the
FCC work on cutting-edge issues in the communications and high-tech
arenas. They also review mergers and acquisitions of Fortune 500
companies, promote the deployment of broadband technologies, and protect
the rights of consumers. Much of the FCC's work involves interacting with
other government agencies, Congress, and the private sector to resolve
complex policy issues. All participants will be located at the FCC's
headquarters in Washington, DC. Applications must be received by March 31,
2005.
[SOURCE: Federal Communications Commission]
Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-257005A1.doc
Attorney Honors Program: http://www.fcc.gov/attorneyhonorsprogram/

TELCO VOD PLANS TAKE SHAPE
SBC Communications and Verizon Communications have begun to turn their eyes
toward video on demand (VOD), as both telcos negotiate to secure rights for
traditional entertainment and adult content.
[SOURCE: Multichannel News, AUTHOR: R. Thomas Umstead]
http://www.multichannel.com/article/CA506974.html&referral=SUPP
(free access for Benton's Headlines subscribers)

TECH COULD SAVE SMALL SCHOOLS
West Virginia Gov. Joe Manchin (D) believes distance-learning technology
might be the answer to the dilemma of how to expand curricula throughout
the state without sacrificing small schools to consolidation.
[SOURCE: eSchool News]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=5534

FROM THE BLOG-O-SPHERE

READING THE VANISHING NEWSPAPER: A GUIDE
Philip Meyer, a University of North Carolina journalism professor, wrote
"The Vanishing Newspaper, Saving Journalism in the Information Age," as "an
attempt to isolate and describe the factors that made journalism work as a
business in the past and that might also make it work with the changing
technologies in the present and the future." In other words, Meyer sought
connections between components of newspaper journalism -- quality,
credibility, accuracy, size of staffs and newshole -- and the financial
success of newspapers.
[SOURCE: First Draft, AUTHOR: Tim Porter]
http://www.timporter.com/firstdraft/

GOVERNMENT PAID PUBLIC RELATIONS
Along with doubling spending on external PR contracts, the Bush
administration has increased PR positions inside government agencies,
called public affairs. Public affairs staffs grew by 9 percent since 2000,
"even faster than the federal work force," for a cost increase of more than
$50 million. The Pentagon "added the greatest number of PR officials."
Other increases occurred at the State, Agriculture and Interior Departments
and the Social Security Administration. The Forest Service's Communications
Director said "a growing number of advisory panels required by Congress and
a controversial program that opens some forests to logging" necessitated
the PR boost. He said media tracking had intensified, adding that "after
talking to Newsday for this story, he would have to call his boss to report
the interview."
[SOURCE: Spin of the Day]
http://www.prwatch.org/spin/

IN THE PRESS ROOM OF THE WHITE HOUSE THAT IS POST PRESS
Before the certification of "Jeff Gannon" as a White House reporter there
was the Bush Administration's de-certification move against the Washington
press. These two things are deeply related.
[SOURCE: Press Think]
http://journalism.nyu.edu/pubzone/weblogs/pressthink/
See also:
* Talon News Web Site Closes Amid Heavy Criticism
http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=7746368

AIR JESUS
As Christian broadcasting's leading lights gathered at the National
Religious Broadcasters' convention in Anaheim, California, only
power-mongering and profiteering could keep their contradictions from
bubbling to the surface.
[SOURCE: Cursor's Media Transparency]
http://www.mediatransparency.org/
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------