Benton's Communications-related Headlines for 3/11/2004

LEGISLATION
No Need to Rewrite Telecom Law, Hundt Says
House SHVIA Debate

ADVERTISING
Senators Say Political Groups Are Circumventing Finance Law
Groups Discuss Changes in the Way Commercial Time Is Bought

FCC
Was Bono's Blurt A Verb or Modifier?
Powell Calls For New Phone Pacts

INTERNET
Cooking with the Internet -- A Recipe for Grassroots Success

QUICK HITS
Top E-Mail Providers Sue Spammers Under New Law
Broadband Overtaking Dial-up in Major Cities
Left on Your Dial: Radio Network Sets March Debut
'Can You Hear Us Now?'
Consumers Challenge FCC Antipiracy Rules
FCC Releases Net Phone Guidelines

LEGISLATION

NO NEED TO REWRITE TELECOM LAW, HUNDT SAYS
Ears have been perked in DC as policymaker after policymaker calls for a
rewrite of the Telecommunications Act of 1996. But one voice has stepped up
to say it is not needed. Former FCC Chairman Reed Hundt told an audience at
the AEI-Brookings Joint Center that there's only two reasons for a Telecom
Act rewrite: "To go back to monopoly as the paradigm" and "To do for the
FCC what it might not be able to do for itself: Come up with rules that are
sustained on appeal. I reject both these reasons." Mr Hundt called for a
national broadband policy to save the US from an "economic graveyard." He
said the problems with broadband that "need solving sooner rather than
later" are 1) avoiding subsidizing old networks by taxing new networks, 2)
encouraging universal construction of "big broadband," 3) deciding how
broadband service providers should be permitted to use the physical mediums
of broadband and 4) finding a useful interconnection paradigm for the
physical mediums but also for the service providers on top of those
physical mediums.
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

HOUSE SHVIA DEBATE
The House Telecom Subcommittee held a hearing Wednesday on reauthorization
of Satellite Home Viewer Improvement Act (SHVIA). Here are some highlights.
House Commerce Committee ranking member John Dingell (D-MI) said the
Committee should pursue these policy goals: 1) strengthen the ability of
DBS to compete with cable, 2) empower consumers to receive programming of
their choice and 3) do not "unduly" weakening local broadcasters and their
revenue streams. EchoStar has a two-dish system that came under attack.
Broadcasters say the practise should be illegal noting that Hispanic and
PBS stations are most often relegated to the second dish that many
customers do not hook up. The cable industry suggests: 1) giving local
cable systems access to DBS local-to-local signals, 2) requiring DBS to
provide a "broadcast basic level" of service to all customers where DBS
provides local broadcast signals and 3) granting cable operators standing
to file complaints against DBS for violations of SHVIA's broadcast carriage
requirements. The Consumers Union offered the following suggestions: 1)
impose limits on media ownership, 2) require content providers to
sell each channel to cable distributors on an individual basis and 3)
require cable companies to sell its channels to consumers "a la carte."
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)
See Also:
VIACOM, ECHOSTAR SETTLE DISPUTE
In the wee hours of Thursday morning, EchoStar and Viacom came to an
agreement restoring CBS, Comedy Central, MTV, MTV2, Nickelodeon, Noggin,
GAS, VH1, VH1 Classic, MTV Espanol, BET and order to the lives of DISH
subscribers. Ah, relief.
[SOURCE: Wall Street Journal]
http://online.wsj.com/article/0,,SB107898792551052425,00.html?mod=home_w...
(requires subscription)

ADVERTISING

SENATORS SAY POLITICAL GROUPS ARE CIRCUMVENTING FINANCE LAW
Yesterday we reported on the $5 ad campaign by the Media Fund to oppose
President Bush, the main sponsors of campaign fiance reform, Senators John
McCain (R-AZ) and Russell D. Feingold (D-WI), told the Senate Rules
Committee that the groups, called 527 committees, running these and similar
ads using unregulated donations are circumventing the new campaign finance
law. The senators said that the Federal Election Commission should tighten
regulation of these groups to put them out of the soft money business.
"Section 527 groups need to play by the rules that all other political
committees are bound by" said Sen McCain. Sen Feingold said, "The F.E.C.
must not bless a new circumvention of the election laws."
[SOURCE: New York Times, AUTHOR: Glen Justice & Jim Rutenberg]
http://www.nytimes.com/2004/03/11/politics/campaign/11ADS.html
(requires registration)

GROUPS DISCUSS CHANGES IN THE WAY COMMERCIAL TIME IS BOUGHT
The economics of prime time television are being questioned by those who
supply the money to fund it: advertisers. They are dissatisfied with the
current "upfront" buying system and considering changes. Here's what they
are thinking. 1) They proposed beginning the market in May rather than in
the fall, when most marketers have a far better idea of their ad budgets
for the coming year. 2) They also suggested extending the buying and
selling period, which can sometimes last less than a week. 3) They thought
that there should be no drastic changes in the prime-time lineups, which
lead to the disappearance of shows that the advertisers had agreed to buy.
4) And, they suggested that the networks limit the replacement of scripted
series with reality shows, which have less predictable and more potentially
objectionable content. "We should as an industry, and I'm probably in legal
hell here, all get together to wrestle this thing to the ground," said one
advertiser, because now "we're spending the gross national products of
entire continents on a whim. Now is the time. If we miss this opportunity,
we miss it forever."
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
http://www.nytimes.com/2004/03/11/business/media/11adco.html
(requires registration)

FCC

WAS BONO'S BLURT A VERB OR A MODIFIER?
Getting to know you, getting to know David Solomon, chief of enforcement
for the FCC. Trying to decide if Bono was crude and offensive, trying to
decide if Bono uttered a verb, an adjective or an adverb...
At the center of the indecency storm is David Solomon who must decide when
to find that stations violate decency rules. His job changes with the
political winds which is why a South Carolina radio station was not fined
in 1992 for a different banned vulgarity because it only happened once in a
live broadcast and a 1991 National Public Radio broadcast of an excerpt of
a wiretapped conversation of organized crime figure John Gotti, in which he
says the f-word or some derivation 10 times, was not held in violation. The
Journal reviews the history of indecency laws and Mr. Solomon's enforcement
of them.
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo at
annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB107896625981052125,00.html?mod=home%5...
(requires subscription)
See Also:
Powell Raises Concerns Over Indecency Legislation
After his NARUC speech, FCC Chairman Powell said he feared indecency
legislation moving through Congress could be slowed or killed because of
amendments to roll back the FCC's June 2003 media ownership deregulation
rules. He also feared a constitutional challenge if the bill includes
provisions to regulate violence on cable and satellite television.
http://online.wsj.com/article/0,,SB107892958385351421,00.html?mod=politi...

POWELL CALLS FOR NEW PHONE PACTS
In a speech to the National Association of Regulatory Utility
Commissioners, FCC Chairman Powell called for the Baby Bells and competing
phone companies to reach new network agreements within the next 30 days or,
if those talks fail, he will propose an interim set of rules designed to
head off any disruptions of service for consumers. The FCC's rules were
rejected by the U.S. Court of Appeals for the District of Columbia and will
expire on May 3. Speaking to same group earlier this week, FCC Commissioner
Kevin Martin called for a stay of the Appeals Court ruling while the
Commission takes the case to the Supreme Court. The competitors to the
regional carriers and consumer groups were quick to criticize Powell,
noting that he opposed the rules he now wants to keep in place, at least
temporarily. The moratorium proposed by Powell would have the effect of
delaying the impact of the court's decision until well after the coming
presidential election.
[SOURCE: Washington Post, AUTHOR: Christopher Stern]
http://www.washingtonpost.com/wp-dyn/articles/A48235-2004Mar10.html
(requires registration)
See Powell's speech:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-244737A1.pdf
Martin's speech:
http://www.fcc.gov/commissioners/martin/documents/NARUC3-8-04.pdf
Reaction from competitors:
http://www.comptelascent.org/news/recent-news/31004.html
NYT: http://www.nytimes.com/2004/03/11/technology/11bell.html
LATimes:
http://www.latimes.com/business/printedition/la-fi-phones11mar11,1,76163...

INTERNET

COOKING WITH THE INTERNET -- A RECIPE FOR GRASSROOTS SUCCESS
Don't let the demise of the Howard Dean campaign fool ya, argues Peizer,
the Internet is a great tool for organizing, communicating, and, most
importantly, winning the day. The five main ingredients for success online
advocacy are: A Salient Issue, Effective Organizers, An Efficient Platform
for Organizing, Resources and Leadership. While some of the most popular
grassroots advocacy sites have lost just about every major issue they've
organized around, (the Clinton impeachment, election 2000, media ownership
regulation, etc.), they, nevertheless, have managed to attract and grow a
critical mass of constituents. What this shows is that building and
maintaining momentum with web-based tools and approaches does work. It's
simply the key ingredient of leadership that promotes the breakthrough
process of winning an issue by using this momentum to best effect. A
movement with critical mass, technology and resources is lost without
charismatic leadership, whether online or off.
[SOURCE: Media Channel, AUTHOR: Jonathan Peizer, Chief Technology Officer
for the Open Society Institute]
http://www.mediachannel.org/views/dissector/affalert151.shtml

QUICK HITS

TOP E-MAIL PROVIDERS SUE SPAMMERS UNDER NEW LAW
With the help of the CAN-SPAM Act EarthLink, Microsoft, Yahoo and America
Online are suing hundreds of online marketers who obscured their identities
and used other deceptive tactics to send out hundreds of millions of
pitches for get-rich-quick schemes, pornography and other types of spam.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=45415...
WP: http://www.washingtonpost.com/wp-dyn/articles/A48041-2004Mar10.html
NYT: http://www.nytimes.com/2004/03/11/technology/11SPAM.html
LATimes:
http://www.latimes.com/business/printedition/la-fi-spam11mar11,1,1308733...

BROADBAND OVERTAKING DIAL-UP IN MAJOR CITIES
ComScore Networks released results of a new study Wednesday finding that
64% of all online Americans still use a dial-up service. But broadband
connections are growing increasing popular and in San Diego 52% of those
online connect via broadband.
[SOURCE: C-Net|News.com, AUTHOR: Jim Hu]
http://news.com.com/2100-1038-5172107.html?tag=cd_top
SJMerc:
http://www.mercurynews.com/mld/mercurynews/business/technology/8158805.htm

LEFT ON YOUR DIAL: RADIO NETWORK SETS MARCH DEBUT
Air America Radio will debut Wednesday March 31 in New York, Chicago, Los
Angeles and San Francisco. It will be radio by and for the Left with such
well-known entertainers as Al Franken, Janeane Garofalo and Chuck D as
hosts. Company executives expressed hope that operating their own stations
will enable them to build an audience more effectively than trying to
syndicate liberal hosts on stations where listeners expect conservative talk.
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A48180-2004Mar10.html
(requires registration)
NYT: http://www.nytimes.com/2004/03/11/business/media/11radio.html

'CAN YOU HEAR US NOW?'
Nearly 8,000 letters from consumers fed up with poor cell phone service
were delivered this week to wireless companies by Consumers Union's
EscapeCellHell.org campaign demanding better contract terms, details about
where phones work and an end to the practice of "locking down" useable
phones so they won't operate on other compatible networks. The letters
asked for: 1) A policy against artificially "locking down" cell phone
handsets with software to prevent phones from being used on otherwise
compatible carriers' networks. 2) Better information about where cell
phones will work before customers sign up for a plan. Cell providers
perform frequent network testing and have more detailed maps than they
currently give to prospective customers. 3) Pro-rated early contract
termination charges. Consumers shouldn't have to pay the full fee, which
can be as much as $200, if they cancel near the end of a contract.
[SOURCE: Consumers Union Press Release]
http://www.consumersunion.org/pub/campaigncellhell/000910.html

CONSUMERS CHALLENGE FCC ANTIPIRACY RULES
The American Library Association, the Consumers Union and the Electronic
Frontier Foundation are leading a coalition of groups suing the FCC over
rules adopted last year aimed at blocking digital TV piracy. "We're saying
the FCC action went beyond its jurisdiction," said Fred von Lohmann, an
attorney with the Electronic Frontier Foundation. "We don't think there was
enough basis to support the ruling."
[SOURCE: C-Net|News.com, AUTHOR: John Borland]
http://news.com.com/2100-1025-5172171.html?tag=cd_top
http://www.eff.org/IP/Video/HDTV/20040309_eff_pr.php
http://www.eff.org/IP/Video/HDTV/ALA_v_FCC/

FCC RELEASES NET PHONE GUIDELINES
The FCC released late Wednesday its Notice of Proposed Rulemaking (NPRM) on
Internet telephone services (VoIP). The FCC appears to have left room for a
varied set of opinions. The agency will use the public comments to
determine whether calls that travel over the Internet and the traditional
phone network should be regulated.
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny and Declan McCullagh]
http://news.com.com/2100-7352_3-5172220.html?tag=nefd_top
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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. Headlines are compiled by
Kevin Taglang (ktaglang( at )etpost.net) -- we welcome your comments.
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