Benton's Communications-related Headlines for 3/23/05

For upcoming media policy events, see http://www.benton.org/calendar.htm

INTERNET REGULATION
Brand X Ruling Offers Multiple Scenarios
McCain-Feingold Online

TELEVISION
Tribune's Strategy Is Buffeted By Order to Sell a TV Station
It's Hard to See the Harm in Buster the Bunny
CEA Releases Digital TV Survey

TELECOM
Level 3 Withdraws Access Charge Petition
Communications Policy for 2005 and Beyond
Municipal Wireless Grows Local Economies, AES Says
Philly Wi-Fi Project Has High Aims, Few Funding Details
Wireless Industry Loses On Civil Rights Issue In Supreme Court

QUICKLY -- Martins March on Washington; Texas Attorney General Sues Vonage
Over 911; Study Says TV Is No. 1 Advertising Medium

FROM THE BLOG-O-SPHERE

INTERNET REGULATION

BRAND X RULING OFFERS MULTIPLE SCENARIOS
Legg Mason Wood Walker analyst Blair Levin offers three possible scenarios
to the National Cable & Telecommunications Association vs. Brand X Internet
Services, a case pending before the Supreme Court. At stake is whether the
Federal Communications Commission properly classified cable-modem service
as an unregulated information service. 1) The Supreme Court could uphold
the FCC, in which case cable companies are winners, as well as the Baby
Bell phone companies, which want the same hands-off policy the FCC granted
cable in March 2002. But would the FCC then be able to set some regulation
-- like preventing the blocking of competing voice-over-Internet-protocol
traffic? 2) The Supreme Court could remand the case, ordering the Ninth
Circuit to review the FCC's ruling on the merits -- something the lower
court rejected based on the need to follow circuit precedent. A remand
would trigger a new litigation cycle. That would be a small win for cable,
but a loss for the Bells as the FCC and Congress would likely postpone
deregulatory moves. 3) The Supreme Court could uphold the Ninth Circuit. In
that case, the cable industry could file waivers seeking FCC removal of
open-access requirements. An FCC so inclined could approve cable petitions
simply by not acting within the 15-month statutory deadline. "Thus, in this
case, agency inaction would lead to deregulation. Although this would be an
available legal option to get around an adverse Supreme Court opinion, it
would generally be viewed as unseemly, as we do not believe the [FCC] is
likely to use this loophole," Levin said.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA512262.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

MCCAIN-FEINGOLD ONLINE
[Commentary] The WSJ is critical of the Federal Election Commission's
inquiry into applying McCain-Feingold campaign-finance reform to
Internet-related activities. "One of the more exciting things about last
year's elections was how the Internet galvanized voter interest and turnout
-- from the Howard Dean grassroots movement to the bloggers who kept Dan
Rather on his toes. Some 75 million Americans are estimated to have used
the Internet to get political information in 2004. Too bad the very law
that was supposed to encourage this buzz may ultimately be its demise."
[SOURCE: Wall Street Journal, AUTHOR: Editorial Staff]
http://online.wsj.com/article/0,,SB111153913729187102,00.html?mod=todays...
(requires subscription)

TELEVISION

TRIBUNE'S STRATEGY IS BUFFETED BY ORDER TO SELL A TV STATION
In a blow to Tribune Company's strategy of owning newspapers and television
stations in the same markets, a federal judge in Connecticut ordered a
Tribune unit to comply with a regulatory order by selling a TV station
there "forthwith." Local crossownership was at the center of Tribune's
acquisition of Times Mirror Co. five years ago. Under Federal
Communications Commission cross-ownership rules, no license for a TV
station may be granted to a party that owns or controls a daily newspaper
in the same community. As a result, the FCC in 2001 ordered Tribune to sell
station WTXX, an affiliate of the WB Network in the nearby town of
Waterbury. The company received a couple of temporary waivers, but never a
permanent one. In 2003, a complaint was filed in U.S. District Court by
Neil Ellis, a real-estate developer and husband of Elizabeth Ellis,
publisher of the Manchester Journal Inquirer, a small newspaper just
outside Hartford. Ellis's suit challenged Tribune's compliance with the
2001 FCC order.
[SOURCE: Wall Street Journal, AUTHOR: Joseph T. Hallinan
joe.hallinan( at )wsj.com]
http://online.wsj.com/article/0,,SB111152929637786767,00.html?mod=todays...
(requires subscription)

IT'S HARD TO SEE THE HARM IN BUSTER THE BUNNY
[Commentary] Under pressure from conservatives led by Education Secretary
Margaret Spellings, PBS pulled today's planned episode of the children's
travelogue Postcards From Buster from the national schedule because the
family little Buster visits is led by two women. PBS, however, is a loosely
aligned system of independent stations, not a centrally run network, so
individual public broadcasting outlets were able to decide for themselves
whether to run the episode. Fifty-eight stations, covering slightly more
than half the nation, either already have done so or will do so today. How
exactly does the mere sight of two women living together put parents in an
awkward position? If children want to know why these Vermont kids have two
moms, isn't a possible answer "Because some people do these days," which
has the virtue of being both age-appropriate and true? As for people who
are worried that they might have to address more "sensitive" questions, do
those parents routinely describe the imagined sexual activities of every
couple that crosses the screen, gay and straight? How can we blame PBS when
we've structured the system so that it can't afford to be brave? We force
PBS to operate on a shoestring budget and then make it beg for what little
money it gets from three separate sources: government, corporations and
viewers. It can't afford to do anything that might offend any one of those
groups, so it most often does nothing -- bowing to pressure from whatever
group is complaining most loudly at the moment.
[SOURCE: USAToday, AUTHOR:Robert Bianco]
http://www.usatoday.com/printedition/life/20050323/first.lifea-.art.htm
Also see --
A Response to George Will
Dr. Mickie Edwardson, a longtime supporter of WUFT, Gainesville (FL) and an
emeritus faculty member of the UF College of Journalism & Communications,
responds to George Will's "Cut Buster Loose" column.
http://www.apts.org/

CONSUMER ELECTRONICS ASSOCIATION RELEASES DIGITAL TV SURVEY
Nearly half of all consumers plan to make their next television purchase a
high-definition (HDTV) television set, according to a new consumer survey
released by the Consumer Electronics Association (CEA). According to the
survey results, awareness of DTV terminology has sky-rocketed in the past
18 months. Nine out of 10 adults are now aware of at least one term used to
refer to high-definition television, such as "digital television" or
"HDTV." Seventy-six percent of U.S. adults say they are familiar with
details about the new TV sets. In addition, the percentage of adults who
are not familiar has fallen by half, from 42 percent in 2003 to 22 percent
today. Finally, 84 percent of consumers have seen an HDTV somewhere in the
last 12 months, whether it was in a retail store or in their own home. CEA
also surveyed consumers' reaction to the eventual analog cut-off. When
consumers who receive television signals, in part or in whole, via antenna
on their primary TV were asked what they would do if they could no longer
receive these signals with the antenna they currently use, 52 percent (up
from 46 percent in 2003) said they might buy a digital to analog set-top
box converter and 66 percent (up from 57 percent in 2003) said they might
subscribe to a cable or satellite service. Among those homes that receive
television signals only via antenna (12 percent of homes, according to this
survey), the figures are 48 percent and 56 percent, respectively. Only 21
percent of antenna-only households are very likely to "do nothing."
[SOURCE: Consumer Electronics Association Press Release]
http://www.ce.org/press_room/press_release_detail.asp?id=10719

TELECOM

LEVEL 3 WITHDRAWS ACCESS CHARGE PETITION
Level 3 had petitioned the FCC not to apply access charges to Internet
traffic terminating on the Public Switched Telephone Network (PSTN). The
firm urged reciprocal compensation instead. The FCC was facing a statutory
deadline to rule on the petition last week just as it was facing a
leadership transition as well, so Level 3 withdrew the petition, deciding
to live and fight another day. Analysts had expected the petition to be
denied or withdrawn. Legg Mason speculated that Level 3 and VoIP providers
might have feared a formal FCC denial could sap their legal position in
access charge disputes with the Bells and other ILECs. Legg Mason said the
FCC is likely to deal with the Level 3 issue in the broader context of the
intercarrier compensation proceeding, not expected to reach completion
before year's end. Level 3 and other VoIP providers had called the issue
too important to delay until the larger proceeding was completed. The Bells
and rural carriers argued against such "piecemeal" action.
[SOURCE: Communications Daily, AUTHOR: Edie Herman, Howard Buskirk]
(Not available online)
Reaction to the decision --
CompTel: http://www.comptelascent.org/news/recent-news/032205.html
NTCA: http://www.ntca.org/ka/ka-3.cfm?content_item_id=3088&folder_id=522
USTA: http://www.usta.org/news_releases.php?urh=home.news.nr2005_0322

COMMUNICATIONS POLICY FOR 2005 AND BEYOND
Reed E. Hundt, former chairman of the Federal Communications Commission
(FCC) and Gregory L. Rosston, deputy director of the Stanford Institute for
Economic Policy Research (SIEPR) and former deputy chief economist of the
FCC have put together their ideas for a clearly defined set of goals for
communications policy. The authors write that the United States has a
communications policy in place that does not state clearly its own goals,
yet applies regulations that greatly affect outcomes. A better
communications policy would substitute markets for regulation as a way to
determine both what is sold and what price is paid while continuing to be
conscious of specific market power concerns and obtaining efficiently
social benefits. Hundt and Rosston believe the Administration and Congress
should create a bipartisan and independent commission to suggest a complete
overhaul of the law and policy for communications, and to do so by mid-2005
(Stanford Institute for Economic Policy Research)
http://siepr.stanford.edu/papers/pdf/04-07.html

MUNICIPAL WIRELESS GROWS LOCAL ECONOMIES, AES SAYS
A new study by George Ford, founder of Applied Economic Studies (AES) finds
that the number of cities providing any public communications services has
grown 37% since 2001. The study concludes that these public networks are
great for new entrants into telephone service as they often piggyback on
public safety or educational networks at cheap, wholesale rates. At least
11 states are considering legislation that would bar municipal networks.
[SOURCE: Communications Daily, AUTHOR: Ian Martinez]
(Not available online)
LATimes:
http://www.latimes.com/news/printedition/asection/la-na-scotus23mar23,1,...

PHILLY WI-FI PROJECT HAS HIGH AIMS, FEW FUNDING DETAILS
Construction on Philadelphia's municipal wireless network starts this
summer and by fall 2006 the last area should be online, city chief
information officer Dianah Neff said. She said the project is not being
funded with city money, but did not indicate how it will remain
"cost-neutral" for city government. The city, at Mayor John Street's
request, launched the first municipal Wi-Fi hotspot on a trial basis last
June in Love Park. In 2 months 1,200 individuals had registered to use city
Wi-Fi through its website, spurred by "Wireless Friday" events to help
users configure their devices to access the hotspot. The city now has 6
pilot hotspots. Each costs $60,000-$70,000 to set up. Neff said the city is
responding to a lack of broadband access in some parts of the city and
hopes to revitalize its lagging economy with citywide wireless broadband.
[SOURCE: Communications Daily, AUTHOR: Greg Piper]
(Not available online)

WIRELESS INDUSTRY LOSES ON CIVIL RIGHTS ISSUE IN SUPREME COURT
The Supreme Court ruled unanimously Tues. that wireless carriers can't get
damages and attorneys fees under the civil rights laws from local
governments when wireless tower zoning decisions violate the Telecom Act.
It reversed a lower court decision, concluding civil rights remedies aren't
available for violations of Sec. 332 of the Act. "The wireless industry
lost big time on the civil rights issue," said Joe Van Eaton, an attorney
representing local governments. Attorney Gerry Lederer who also represents
local governments said the ruling meant "wireless companies will have fewer
incentives to challenge local tower citing decisions, and more incentive to
work with communities to develop siting solutions that protect legitimate
local interests... This could bode well for local governments who are now
facing challenges to local telecommunications franchising ordinances."
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

QUICKLY

MARTINS MARCH ON WASHINGTON (Last Item)
It's a big month for the Martin family of Washington. On March 16, Kevin J.
Martin was named chairman of the Federal Communications Commission.
Yesterday, Washington lawyer Catherine J. Martin, who has worked at the
Commerce Department and has been a spokeswoman for Vice President Cheney,
was named White House deputy communications director for policy and
planning. (I forget, is this Toby's position or Sam's?) This is Washington
power-couple level.
[SOURCE: Washington Post, AUTHOR: Al Kamen]
http://www.washingtonpost.com/wp-dyn/articles/A58178-2005Mar22.html
(requires registration)

TEXAS ATTORNEY GENERAL SUES VONAGE OVER 911
Texas Attorney General Greg Abbott Tuesday sued Vonage Holdings for failing
to properly inform consumers about possible shortcomings with its 911
service. Two Vonage subscribers were shot in a home invasion but could not
use 911 to seek help.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA512263.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
WashPost: http://www.washingtonpost.com/wp-dyn/articles/A58598-2005Mar22.html
LATimes:
http://www.latimes.com/business/printedition/la-fi-911calls23mar23,1,303...

STUDY SAYS TV IS #1 ADVERTISING MEDIUM
According to a study conducted by Roper Public Affairs & Media and
sponsored by marketing company The MediaCenter, TV reaches 94 percent of
all adults, radio 73%, and Internet 42%.
[SOURCE: TVWeek, AUTHOR: Wayne Friedman]
http://www.tvweek.com/news.cms?newsId=7501
(requires free registration)

FROM THE BLOG-O-SPHERE

An Ally's Undemocratic Media
Rory O'Connor on Japan's media.
(Media Is Plural)
http://www.roryoconnor.org/blog/

From Meet the Press to Be the Press
The Economist just said it: the "the traditional notion that the media play
a special role in informing people is breaking down." Rising up: government
as a "purely neutral" news provider, credible where a sinking press corps
is not.
(PressThink)
http://journalism.nyu.edu/pubzone/weblogs/pressthink/

OurMedia.org
There's a new home for grassroots media. OurMedia.org provides free storage
and bandwidth for your videos, audio files, photos, text and software.
http://www.ourmedia.org/
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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. 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.
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