Benton's Communications-related Headlines for 3/03/2004

See a schedule of upcoming events on our new Media Policy-Related Calendar
http://www.benton.org/calendar.htm

TELEPHONE COMPANIES
Court Rebuffs FCC's New Telecom Rules
Telephone Vs. Cable Heats Up

CONTENT
Update: Decency Enforcement
TV Ads Hit for Fat Content
US High Court Weighs Sidelined Internet Porn Law
No More 'Paid-Inclusion' Search Plan for Ask Jeeves

BROADCASTING
Update: Public Broadcasting Trust Fund
Update: Low Power Radio Report

TELEPHONE COMPANIES

COURT REBUFFS FCC'S NEW TELECOM RULES
The U.S. Court of Appeals for the District of Columbia vacated much of the
FCC's rules aimed at creating competition in local phone service markets.
the court ruled that the FCC was wrong to force the Baby Bells to force
local phone companies to share specific parts of their networks with rivals
as well as to push important decisions about telecommunications competition
to the states. The court ruled, however, that the FCC was correct in not
forcing the baby Bells to share or "unbundle" their new advanced broadband
networks. A majority of FCC Commissioners -- that does not include Chairman
Michael Powell -- announced quickly that the decision will be appealed to
the Supreme Court. The FCC has tried since 1996 to write local competition
rules that have continually been challenged in court and garnered bitter
criticism from all sides. "The implication to the consumer is that the
Bells aren't going to let people use their networks, and we'll have two
crummy incumbents who don't compete with each other a great deal," said
Mark Cooper, the director of research for Consumer Federation of America.
"There are not enough ISPs competing for my business, and that's the
competition that drove and created a consumer friendly Internet. That's
what we're losing."
[SOURCE: C-Net|News.com, AUTHOR: John Borland]
http://news.com.com/2100-1034_3-5168628.html?tag=nefd_lede
There's lots of coverage of this decision, here's additional links:
Statement by FCC Chairman Powell:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-244539A1.pdf
Statement by FCC Commissioners Martin, Copps and Adelstein
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-244538A1.pdf
NYT: Appeals Court Favors Bells On Rates For Access
http://www.nytimes.com/2004/03/03/business/03bell.html
WSJ: Baby Bell's Victory
http://online.wsj.com/article/0,,SB107825809785044363,00.html?mod=home_w...
WP: FCC Rule on Local Service Rejected
http://www.washingtonpost.com/wp-dyn/articles/A24725-2004Mar2.html
USAToday: Ruling Could Hinder Phone Service
http://www.usatoday.com/usatonline/20040303/5972808s.htm
LATimes: Court Tosses Lease Rule
http://www.latimes.com/business/printedition/la-fi-fcc3mar03,1,6648168.s...

TELEPHONE VS. CABLE HEATS UP
The Baby Bells are gearing up to offer customers discounted satellite
television service through partnerships with DirecTV and DISH. Although
most of the money collected will go to the satellite operators, the
telephone companies see an opportunity to bundle more services into one
bill, a high priority for many consumers. "We have found that when a
customer has two services with us and they add a third," the customer is
40% less likely to close their account, said Jeff Battcher, a spokesman for
Atlanta-based BellSouth. SBC and Verizon bundles will offer savings to
customers of about $350/year. "These deals will allow the Bell companies to
match the bundles offered by cable-television companies while also
providing wireless services, which are not included in cable television
company bundles," said Allen Long, president of the telecom consulting firm
Long & Associates in San Francisco.
[SOURCE: Wall Street Journal, AUTHOR: Associated Press]
http://online.wsj.com/article/0,,SB107827192389244757,00.html?mod=teleco...
(requires subscription)

CONTENT

UPDATE: DECENCY ENFORCEMENT
How much indecency are you ready to read about? There's a new wave of
coverage today as the House Commerce Committee moves to mark-up legislation
on the issue. Here's what people are talking about. 1) FCC Commissioner
Kevin Martin is telling anyone who will listen that the Commission has the
authority to regulate indecent content delivered via satellite. 2) Senate
Minority Leader Thomas Daschle (D-SD) said the industry should police
itself. He is also promising to push for legislation to tighten media
ownership rules even though conventional wisdom says there's little chance
of passage. 3) House Majority Leader Tom Delay (R-TX) is telling
broadcasters he's not one for regulation, but if changes are not made there
will be more than economic ramifications. He'd like to see family-friendly
bundles of channels offered to parents or voluntary a la carte offerings.
4) The cable industry is responding to the pressure by launching "Cable
Puts You in Control," a campaign of PSAs, a website, and media literacy
workshops. The website will be a clearinghouse for information about
responsible viewing, including a description of cable technology that
allows viewers to block channels, viewing tips and sample descriptions of
children's and family programming.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins and Brigitte
Greenberg]
(Not available online)
Daschle Wants Tighter Ownership Limits
http://www.broadcastingcable.com/article/CA388017?display=Breaking+News
DeLay: Self-Regulate or Else
http://www.broadcastingcable.com/article/CA388025?display=Breaking+News
DeLay Calls on Cable to Go a la Carte
http://www.multichannel.com/article/CA388065?display=Breaking+News
From Imprisoning Media To Censoring 'Gyrating Transvestites,' FCC Gets
Earful On Jackson
thesmokinggun.com found that many of the complaints the FCC received about
the Super Bowl did not arrive until after the American Family Association
and other conservative groups began "screaming."
http://www.broadcastingcable.com/article/CA388077?display=Breaking+News
Supreme Court Revisits Internet Pornography Law
http://www.usatoday.com/usatonline/20040303/5972771s.htm

TV ADS HIT FOR FAT CONTENT
Although recent studies have gained some headlines, a Senate hearing on
links between advertising and children's obesity is not generating much
coverage. "There's still time to reverse this dangerous trend in our
children's lives," Surgeon General Richard Carmona told the Senate
Competition, Foreign Commerce, and Infrastructure Subcommittee (Commerce).
Carmona said TV plays a role in poor eating habits and lack of exercise
that is making kids fat. "The average child spends four hours a day in
front of some type of screen," he said. "All the foods marketed to children
are high in sugar and calories and low in nutrition," testified Margo
Wootan, director of nutrition policy for the Center for Science in the
Public Interest. Victoria Rideout, the Kaiser Family Foundation's director
of media and health programs, called for bans on advertising to
pre-schoolers, "junk" food advertising to older kids and on food placements
in children's shows. Find links to written testimony at the Senate URL below.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA388090?display=Breaking+News
(requires subscription)
http://commerce.senate.gov/hearings/witnesslist.cfm?id=1079

US HIGH COURT WEIGHS SIDELINED INTERNET PORN LAW
The Supreme Court heard oral arguments Tuesday on the 1998 Child Online
Protection Act which requires Web site operators to wall off risque
material from underage visitors. The law requires Web site operators to
check visitors' credit cards or otherwise ensure that they are over age 18
before allowing them to see material deemed harmful to minors. Violators
face up to six months in jail and fines of up to $50,000 per day. Ann
Beeson, who argued on behalf of the American Civil Liberties Union, said
Web sites might take down adult material rather than risk going to jail.
"The majority of rational adults, faced with this choice, would choose to
self-censor," she said. Solicitor General Theodore Olson of the Justice
Department compared the law to state laws that require stores to place
pornographic material behind blinder racks. A decision in the case is
expected in June.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=44818...
See also:
Justices Hear Arguments on Internet Pornography Law
http://www.nytimes.com/2004/03/03/politics/03SCOT.html
High Court Hears Arguments
http://online.wsj.com/article/0,,SB107825149082044242,00.html?mod=politi...
Porn Law Before Court
http://www.washingtonpost.com/wp-dyn/articles/A24683-2004Mar2.html

NO MORE 'PAID-INCLUSION' PLAN FOR ASK JEEVES
Internet search company Ask Jeeves is discontinuing its program allowing
advertisers and Web site operators to pay to ensure inclusion in search
results. The company will phase-out the program as current contracts expire
over the next 30 days. The company announced that it is making enough money
off of advertising. The web site's users worried that the program
influenced the ranking of search results and most searches seem to want
neutral, technology-driven approach that clearly distinguishes
advertisements from the results generated by search technology.
[SOURCE: Wall Street Journal, AUTHOR: Mylene Mangalindan
mylene.mangalindan( at )wsj.com]
http://online.wsj.com/article/0,,SB107827881934145010,00.html?mod=e%2Dco...
(requires subscription)

BROADCASTING

UPDATE: PUBLIC BROADCASTING TRUST FUND
One consequence of all the uproar over the Super Bowl half time show is the
new respect Members of Congress -- from both sides of the aisle -- have for
public broadcasting. In part trying to capitalize on that new mood, the
Association of Public Television Stations (APTS) is moving ahead with plans
to formulate a proposal for an early return of public broadcasters analog
television spectrum in return for 1) full digital signal carriage on cable
and satellite systems, 2) encouragement of the development of a cheap
analog-to-digital converter or set-top box and 3) a trust fund to finance
public TV's new digital content that would "motivate consumers to buy
set-top boxes." Some pubcasters are aiming at $14 billion for the trust
fund to be financed by sale of their analog spectrum. APTS is working with
Sen Ernest Hollings (D-SC) and hopes to have legislation introduced by the
second half of 2004. There's no illusion of getting a bill passed in the
Congress, but hopes of having something to rally a coalition around for
next year.
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

UPDATE: LOW POWER RADIO REPORT
Sen Judd Gregg (R-NH) criticized the FCC's report to Congress on low-power
FM (LPFM) stations. "The Mitre study contained several technical and
methodological errors that adversely and prejudicially affected its
results," Sen Gregg said. The senator claims Mitre disregarded accepted
scientific methods, including: 1) Using just 6 radio receivers in its tests
when the FCC had earlier indicated that 21 receivers was a statistically
insignificant amount. 2) Offered no public disclosure of the characteristics
of the receivers. 3) Failed to use a common antenna in the test vehicle to
ensure consistent reception. (4) Failed to test any lower-adjacent channels
for interference. Congress authorized 9 test markets, Mitre test used just
six. Sen Gregg said Congress wanted to know what the impact would be on
small market and minority broadcasters.
[SOURCE: Communications Daily]
(Not available online)
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