TELECOM
Tearing Down the Walls in Telecom
How VoIP Hits the Sticks
Next Step In Telecom: Deregulation of Rates?
CONTENT
Caught in the Crosshairs
Hearing: Senate Commerce Committee on Broadcast
Decency Enforcement Act of 2004 (3/9)
Fueling the Fire
BROADCASTING
Localism Task Force Announces Date of Rapid City (SD) Hearing (5/26)
UHF Discount Aids Big Station Groups
In the Eye of the FCC Storm
Slowly, Radio Stations Shift to Digital Broadcasts
INTERNATIONAL
Pirate Radio as Public Radio, in the President's Corner
Telefonica Buying BellSouth's Latin American Wireless Operations
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. Headlines are compiled by=20
Kevin Taglang (ktaglang( at )etpost.net) -- we welcome your comments.
TELECOM
TEARING DOWN THE WALLS IN TELECOM
Although author Olga Kharif does not mention the legislation, but maybe the=
=20
promise of the 1996 Telecom Act is finally arriving. Analysts are seeing=20
telephone, cable and electric companies competing against each other to=20
provide customers a wide array of services: local, long distance and=20
wireless phone, pay-TV and high-speed Internet. Consumers could benefit --=
=20
at least until another wave of consolidation comes. But that won't happen=20
until after service providers in a variety of communications industries=20
have gone through a wrenching revolution. Within five years, a relative=20
handful of players might provide TV, phone service, and Net connections --=
=20
and some of them may even bill for those along with your electricity,=20
water, and garbage fees, says Jeff Kagan, an independent telecom analyst.=20
Telecom "will be a sectorless industry," he predicts. Industry names like=20
"cable" and "telecom" could eventually be replaced by terms such as CET --=
=20
for the cable, entertainment, and telecom industry. Kharif describes the=20
changes as a war that's just beginning, "the bloodiest battle" in the=20
history of telecom, cable, and related industries.
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif ]
http://www.businessweek.com/technology/content/mar2004/tc2004032_4116_tc...
htm
HOW VOIP HITS THE STICKS
A look at why AT&T and other carriers want to move their long distance=20
traffic onto the Internet and how this affects traditional local phone=20
service providers in sparsely populated rural areas. By treating phone=20
traffic as data, AT&T can avoid paying access fees to rural service=20
providers, fees which the long distance company argues are too high. With=20
the FCC looking at how to regulate Internet phone service (VoIP), some $22=
=20
billion/yr in access fees is up for grabs. If rural carriers lose too much=
=20
of these subsidies, they say they will have to raise local phone services=20
$25/month. But since every state has some rural areas and some 80% of US=20
counties are considered rural, VoIP regulation will be a hot political=20
issue. Don't expect anything but a narrow decision from the FCC before the=
=20
November election.
[SOURCE: BusinessWeek, AUTHOR: Alex Salkever, Technology editor for=20
BusinessWeek Online]
http://www.businessweek.com/technology/content/mar2004/tc2004032_2726_tc...
htm
NEXT STEP IN TELECOM: DEREGULATION OF RATES?
In time for the National Association of Regulatory Utility Commissioners in=
=20
Winter Meeting on March 7-10 in Washington, The Progress & Freedom=20
Foundation released the transcript of a recent seminar at which a diverse=20
panel of experts, including NARUC's general counsel, debated the findings=20
of a Foundation special report, =93Trends in the Competitiveness of=20
Telecommunications Markets: Implications for Deregulation of Retail Local=20
Services.=94 =93The report concludes that the time is ripe for a full retail=
=20
price deregulation of residential markets,=94 said Joseph S. Kraemer, a=20
co-author of the report. =93The only policy issue is how, not if or when.=94=
He=20
said there is now =93effective competition throughout most of the industry=
=20
and at least contestability, if not effective competition, all the way=20
through and including the residential market=85the incumbent carriers have=
=20
lost pricing power.=94 The panel did not agree on this assertion.
[SOURCE: Progress and Freedom Foundation Press Release]
http://www.pff.org/news/news/2004/030504telecomtranscript.html
The Progress & Freedom Foundation is a market-oriented think tank that=20
studies the digital revolution and its implications for public policy. It=20
is a 501(c)(3) research & educational organization.
CONTENT
CAUGHT IN THE CROSSHAIRS
By a 49-1 vote, the House Commerce Committee passed legislation aimed at=20
curbing indecent broadcast content. The bill will: raises the threat of=20
license revocation for decency violations, makes performers and program=20
suppliers liable for content, raises maximum fines to $500,000 and creates=
=20
a "shot clock" for the FCC, which now has to respond to complaints within=20
180 days. The lone vote against the bill came from Rep Janice Schakowsky=20
(D-IL). "I strongly believe in the First Amendment, and if I have to stand=
=20
alone to defend it, I will do it." The bill could be passed by the House=20
this week and a similar bill will be considered by the Senate Commerce=20
Committee this week (see below). Legislation could be on the President's=20
desk by the end of the month.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA401913?display=3DTop+of+the+Week
(requires subscription)
See also:
FCC RULING ON INDECENCY VIOLATION
The Federal Communications Commission today issued an order summarily=20
rejecting a petition filed by Infinity Broadcasting Operations, Inc.,=20
licensee of Station WKRKFM, Detroit, Michigan, seeking reconsideration of a=
=20
Commission Forfeiture Order imposing the statutory maximum forfeiture=20
amount of $27,500 for willful violation of statutory and regulatory=20
provisions that prohibit the broadcast of indecent material between 6 a.m.=
=20
and 10 p.m. The forfeiture was based on material that aired on WKRK-FM=92s=
=20
=93Deminski and Doyle Show.=94 The Commission found that the broadcast=
included=20
explicit and graphic sexual and excretory references, that the material was=
=20
extremely lewd and vulgar, and that it was used to pander, titillate and=20
shock. Thus, the Commission concluded that the material was indecent and=20
warranted a significant sanction.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-244627A1.pdf
CRACKDOWN ON CURSING STARTS WITH BONO
The FCC with issue fines in a couple dozen indecency cases in the coming=20
weeks. First may be a ruling that Bono's use of a vulgarity during NBC's=20
Golden Globes broadcast last year was a violation.
[SOURCE: USAToday, AUTHOR: Paul Davidson]
http://www.usatoday.com/usatonline/20040308/5985436s.htm
IT'S NOT FREE SPEECH WHEN FCC IS FINING
In the past 12 months, the FCC has issued more than $1 million in fines to=
=20
radio and television stations for broadcasting allegedly indecent content.=
=20
As if these Draconian penalties aren't enough, some commissioners are=20
suggesting that violators of the Commission's ambiguous indecency policy=20
should be slapped with license revocation hearings. This government=20
intimidation has already resulted in the removal of two controversial radio=
=20
voices in several markets. Fearful of further government extortion, Clear=20
Channel Communications, itself recently hit with $715,000 in indecency=20
fines, fired its popular morning personality Bubba The Love Sponge whose=20
show aired in four Florida markets and on XM Radio. Clear Channel also=20
suspended the carriage of Infinity Broadcasting's Howard Stern Show on its=
=20
six stations that aired the highly-rated syndicated program. Clear Channel=
=20
and Infinity Broadcasting have also issued zero tolerance policies on=20
indecent broadcasts. Get an indecency fine, and you're fired. The result:=20
the FCC is successfully squelching controversial discussions about sex on=20
the airwaves.
[SOURCE: National Writers Union Press Release]
http://www.nwu.org
Hearing: Tuesday, March 9 2004 - 9:30 AM - SR - 253
Members of the Senate Commerce Committee will consider S. 2056, The=20
Broadcast Decency Enforcement Act of 2004. Open to the public.
[SOURCE: US Senate]
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1099
FUELING THE FIRE
TV political ad spending could reach $1.6 billion this year with help from=
=20
MoveOn.org, George Soros' America Coming Together, and a dozen other=20
organizations. "The FEC validated the groups. That's good for Democrats and=
=20
even better for broadcasters," says Sanford Bernstein media analyst Tom=20
Wolzien. MoveOn.org, a group formed to fight President Clinton's=20
impeachment, says it has raised $10 million. Americans Coming Together has=
=20
pledges of $55 million from union, environmental, and abortion-rights=20
groups. The Media Fund, led by former Clinton aide Harold Ickes, promises=20
to raise $95 million. That money is reserved exclusively for attacks on=20
President Bush.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA401984?display=3DWashington
(requires subscription)
BROADCASTING
LOCALISM TASK FORCE ANNOUNCES DATE OF RAPID CITY HEARING
The Federal Communications Commission=92s Localism Task Force announced that=
=20
its next broadcast localism hearing will be held in Rapid City, South=
Dakota,
on May 26, 2004. Further details regarding the Rapid City hearing will be=20
released as they become available. Scheduling conflicts and logistical=20
difficulties required the Task Force to change its original timeframe for=20
the remaining localism hearings. Dates for the California, Maine and=20
Washington, D.C. hearings will be announced as they are established. For=20
additional information concerning the Task Force visit the Task Force=92s=
web=20
site at http://www.fcc.gov/localism, or contact the Task Force directly at=
=20
(202) 418-7777, or at
localism( at )fcc.gov.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-244629A1.pdf
UHF DISCOUNT AIDS BIG STATION GROUPS
Last June, the FCC, in a broad media-ownership rulemaking, raised the=20
national TV-station cap to 45% (later reduced to 39% by Congress) and=20
retained what is know as the UHF discount. The discount counts allows UHF=20
TV stations to reach twice the number of TV households as VHF stations when=
=20
applying the ownership cap rules. For large station groups, this ruling is=
=20
very important: without it, Viacom, News Corp., Paxson, Tribune and=20
Univision would each exceed the 39% limit and would likely have to sell=20
stations at some point. Now the FCC=92s media-ownership rules, including the=
=20
UHF discount, are before the U.S. Court of Appeals for the 3rd Circuit and=
=20
Paxson and Univision are arguing that in adopting a 39% cap and barring the=
=20
FCC from changing, Congress likewise made the UHF discount permanent and=20
placed it beyond the FCC=92s reach. On Feb. 20, the FCC released a notice=20
asking for comment on the impact of the new 39% cap on the UHF discount.=20
The FCC also asked the 3rd Circuit to delay, in light of the notice, a=20
ruling on whether retention of the UHF discount in June was legal.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA401873?display=3DPolicy
(requires subscription)
IN THE EYE OF THE STORM
A B&C "People" on Erin Dozier, the FCC's lead staff on media ownership=20
rules. She will overseeing the FCC's 2006 review of all its media-ownership=
=20
rules. In addition, she must resolve the 30-plus angry appeals sparked by=20
the latest review and rules changes. She graduated Georgetown Law School in=
=20
1998 after working at the school's Institute for Public Representation=20
which represents clients who can't afford to hire private attorneys on=20
telecom and other public-policy issues. While there Ms. Dozier worked for=20
Angela Campbell who is the lead attorney for Prometheus Radio Project, an=20
advocate group for low-power radio, challenging the new FCC rules. Ms.=20
Dozier has also worked for Washington firm Akin Gump Strauss Hauer & Feld=20
and joined the FCC two years ago. Ms. Dozier helped review the Comcast/AT&T=
=20
Broadband and News Corp./DirecTV mergers.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA401920?display=3DPeople
(requires subscription)
SLOWLY, RADIO STATIONS SHIFT TO DIGITAL BROADCASTS
Since the FCC approved digital radio technology in 2002, 80 of the nation's=
=20
13,000 radio stations have started broadcasting digital signals make=20
possible CD-quality sound and transmission of extras like real-time stock=20
prices and sports scores to special receivers. "It's a fundamental change,=
=20
like the shift from black-and-white TV to color," said Bob Struble,=20
president of IBiquity Digital Corp, which developed and licenses the=20
technology in the United States. "Virtually every other consumer=20
electronics product has already gone digital. Now it's radio's turn."=20
Digital radio receivers cost $400, but prices are expected to drop 75% in=20
the next 18 months. Some advertising agencies are eagerly anticipating the=
=20
technology, especially the text features that could allow a marketer to=20
display a toll-free number or website address while a commercial is=20
running. The transition to digital radio is going smoother than the same=20
transition in television: digital receivers are cheaper, the costs to radio=
=20
broadcasters are lower and radio broadcasters are using the same airwaves=20
they use for analog broadcasts.
[SOURCE: Los Angeles Times, AUTHOR: Jube Shiver Jr]
http://www.latimes.com/business/printedition/la-fi-hdradio8mar08,1,98804...
ory?coll=3Dla-headlines-pe-business
INTERNATIONAL
PIRATE RADIO AS PUBLIC RADIO, IN THE PRESIDENT'S CORNER
Instead of shutting down news media outlets that criticize him, Venezuelan=
=20
President Hugo Ch=E1vez ignores him as much as he cans while his government=
=20
supports a growing chain of community-based radio and television stations.=
=20
"This year, we will not only legalize and enable approximately 200 more=20
communitarian radios and televisions with equipment, but we will also=20
promote them," the communication and information minister, Jesse Chac=F3n,=
=20
said in an interview posted on a pro-Ch=E1vez Web site. The stations are run=
=20
mostly by volunteers and the content is mostly the mundane: trash pickups=20
or road conditions. The main objective, say those who work at the stations,=
=20
is to show there is another side to neighborhoods that, in the popular=20
press, are presented as crime-ridden ghettos.
[SOURCE: New York Times, AUTHOR: Juan Forero]
http://www.nytimes.com/2004/03/08/international/americas/08VENE.html
(requires registration)
TELEFONICA BUYING BELLSOUTH'S LATIN AMERICAN WIRELESS OPERATIONS
BellSouth will concentrate on its US holdings after selling its wireless=20
operations in 10 Latin American countries to Spain's Telefonica for $4.1=20
billion. The deal will make Telefonica the largest wireless operator in the=
=20
region followed by Mexico's America Movil and Telecom Italia Mobile.
[SOURCE: Wall Street Journal, AUTHOR: Carlta Vitzthum=20
carlta.vitzthum( at )wsj.com and Almar Latour almar.latour( at )wsj.com ]
http://online.wsj.com/article/0,,SB107869947357448644,00.html?mod=3Dtech...
gy_main_whats_news
(requires subscription)
-----------------