Benton's Communications-related Headlines for 4/09/04

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

BROADCASTING
Update: Indecency Fines
Broadcaster to Face Trial Over Airplay Practices

LEGISLATION
Foes of '96 Telecom Law Feel Encouraged
Legislation Update: Internet Taxation and Indecency

TELECOM
Verizon Pledges $5 Billion for Spectrum Auction
Update: VoIP Regulation
Indian Telecommunications Initiatives

ON TAP NEXT WEEK
FCC Open Meeting Agenda

BROADCASTING

UPDATE: INDECENCY FINES
The FCC took two actions Thursday to curb indecent content on radio. 1) The
Commission issued a Notice of Apparent Liability for Forfeiture against
Clear Channel Communications for apparently willfully broadcasting indecent
material in connection with the "Howard Stern Show" program over stations
WBGG(FM) Fort Lauderdale, Florida, WTKS-FM Cocoa Beach, Florida, WTFX-FM
Louisville, Kentucky, KIOZ(FM) San Diego, California, WNVE(FM) Honeoye
Falls, New York, and WXDX-FM Pittsburgh, Pennsylvania. The Commission
proposed a total of $495,000 in forfeitures against these Clear Channel
stations, representing the maximum statutory amount of $27,500 for each of
eighteen total apparent indecency violations. The program materials
included repeated, graphic and explicit sexual descriptions that were
pandering, titillating or used to shock the audience. Of the decision, FCC
Commissioner Michael Copps wrote, "I have long advocated that the
Commission use all of the tools it has to tackle indecency on the public's
airwaves. Today's decision is a step forward towards imposing meaningful
fines. For the first time, the Commission assesses a fine against more
than a single utterance, rather than counting an entire program as one
utterance. In addition, the Commission makes clear that its indecency
enforcement will address not only the station that is the subject of a
complaint, but also any other station that aired the same programming. I
therefore vote to approve this decision." Communications Daily reported
that Clear Channel permanently dropped Howard Stern from its stations in
wake of the fines.
2) The Federal Communications Commission today released a Memorandum
Opinion and Order affirming a $14,000 forfeiture penalty against Emmis
Radio License Corporation for willfully broadcasting indecent material over
Station WKQX(FM), Chicago, Illinois. The Commission agreed with the
Enforcement Bureau that the station had repeatedly aired indecent material
during its "Mancow's Morning Madness" program. The Commission rejected
Emmis's arguments that the complaints did not include enough information to
support indecency findings. Commissioner Copps dissented from this ruling
calling it "woefully inadequate."
[SOURCE: FCC]
Clear Channel decision:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245911A1.pdf
Emmis decision:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245908A1.pdf
WashPost: Clear Channel Fined $495,000, Dumps Stern
http://www.washingtonpost.com/wp-dyn/articles/A63071-2004Apr8.html
USAToday: FCC wants $495,000 sanction for Howard Stern show
http://www.usatoday.com/usatonline/20040409/6100800s.htm
LATimes: Radio Chain Boots Stern Off Stations
http://www.latimes.com/business/printedition/la-fi-stern9apr09,1,433852....

NYTimes: F.C.C. to Fine Clear Channel $495,000 Over Stern
http://www.nytimes.com/2004/04/09/business/media/09radio.html

BROADCASTER TO FACE TRIAL OVER AIRPLAY PRACTICES
U.S. District Judge Edward Nottingham this week ordered Clear Channel
Communications to stand trial in August and defend its business practices
after finding there was reason to believe that "Clear Channel intends to
manipulate artists' promotion decisions and interfere with competitors by
withholding airplay." Much of the evidence in the case remains under seal.
But in his 125-page decision, Judge Nottingham cited excerpts from several
depositions and e-mails that allegedly show that Clear Channel executives
tied airplay on Clear Channel stations to artists' appearances at Clear
Channel concerts. And, oh boy, is Clear Channel gonna take this out on
Howard Stern or what?
[SOURCE: Los Angeles Times, AUTHOR: Jeff Leeds]
http://www.latimes.com/business/printedition/la-fi-clear9apr09,1,578690....

LEGISLATION

FOES OF '96 TELECOM ACT ENCOURAGED
Congress is hearing from both consumer groups and special corporate
interests asking for revision of the Telecommunications Act of 1996. With
new Congressional leadership taking the reigns this year and next, those
requests are finding a sympathetic ear. Rep. Joe Barton (R-TX), elected
chairman of the House Energy and Commerce Committee this year, and Sen. Ted
Stevens (R-Alaska), who is expected to become chairman of the Senate
Commerce Committee in January, both have said they wanted to change the
law. Chris Murray, legislative director for Consumers Union in Washington,
said reform was needed not "because the law didn't contemplate new
technology; it needs to be rewritten to provide consumers more choice in
the cable and telecom services." But don't hold your breath waiting for new
legislation: "There is strong consensus that telecommunications law is
totally screwed up," said Scott Cleland, a technology analyst at the
Precursor Group, a research firm in Washington, "but there is little
consensus on how to fix it."
[SOURCE: Los Angeles Times, AUTHOR: Jube Shiver Jr]
http://www.latimes.com/business/printedition/la-fi-telecom9apr09,1,43913...

LEGISLATION UPDATE: INTERNET TAXATION AND INDECENCY
The week of May 3 is now the target for a debate and vote on S-150, a bill
by Sens. Allen (R-VA) and Wyden (D-OR) to make the moratorium permanent and
ensure DSL is not taxed as a telecom service. Sen Allen and Sen Alexander
(R-TN) continue to try to work out a compromise on their competing bills.
The Senate left for recess without considering indecency bill. Hold up is
because Sen Hollings (D-SC) wants assurances that his provisions on media
violence would not be removed in a House-Senate conference. The provisions
would require FCC to study effectiveness of V-chip and, if the technology
is found failing, FCC would have to apply the same restrictions to violent
content now applied to indecency.
[SOURCE: Communications Daily, AUTHOR: Patrick Ross,Terry Lane]
(Not available online)

TELECOM

VERIZON PLEDGES $5 BILLION FOR SPECTRUM AUCTION
We reported yesterday that there appears to be enough votes at the FCC to
approve a spectrum swap for Nextel. On Thursday, Verizon Wireless told the
Commission it would begin bidding for nationwide PCS spectrum at 1.9 GHz at
$5 billion, if the FCC decided to auction the spectrum. "Our willingness to
specify an opening bid amount of $5 billion once again shows why the 1.9
GHz spectrum must be licensed through an auction," wrote the company to the
FCC. The Commission is considering a plan that would have Nextel pay up to
$1.5 billion more than the $850 million it had pledged for relocating
incumbents.
[SOURCE: Communications Daily, AUTHOR: Mary Greczyn]
(Not available online)
NYT: Verizon Moves to Head Off Nextel in a Spectrum Swap
http://www.nytimes.com/2004/04/09/technology/09wire.html

UPDATE: VOIP REGULATION
The Independent Telephone & Telecom Alliance (ITTA), the National Exchange
Carrier Association (NECA), the Organization for the Promotion &
Advancement of Small Telecom Companies (OPASTCO) and the United States
Telecom Association filed comments with the FCC Wednesday urging the
Commission to rule that any call touching the public switched telephone
network (PSTN) must be subject to access charges. Their joint comments are
in response to Inflexion petition which asks for exemption from access
charges because the company aims to serve underseved populations. Inflexion
argues that paying access charges would prevent it from reaching its goal
of providing phone service to 99.9% of the American population. Competitors
argue saying that Infexion's use of local networks is not significantly
different from other carriers and in no way reduces costs for local
carriers. They also point out that the FCC's universal service programs
target subsidies for low income consumers.
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

INDIAN TELECOMMUNICATIONS INITIATIVES
As part of the FCC's Indian Telecommunications Initiatives program (ITI),
and in cooperation with the National Tribal Telecommunications Association,
an organization of Tribally-owned, operated and regulated telephone
companies, the FCC will host its second Regional Workshop and Roundtable on
May 26 and 27 at the Rushmore Plaza Civic Center in downtown Rapid City,
SD. The event is free of charge to registrants. Tribal leaders and
representatives, planning and economic development managers are encouraged
to attend. ITI Rapid City is designed to increase the understanding of
essential telecommunications issues and policies affecting Indian Country
and to increase the intergovernmental consultation with American Indian
Tribes and Alaska Native Villages on telecommunications issues and
policies. Issues important to telecommunications deployment on tribal
lands will be examined. Subjects addressed will also highlight
opportunities for increased economic growth, consumer choice, and homeland
security planning. The event will build upon the successes of the FCC's
first ITI Regional Workshop and Roundtable, held in Reno, Nevada, in July
2003 and attended by over 100 representatives of 28 Tribes from North
Carolina to Alaska. With ITI Rapid City, the FCC seeks to promote and
encourage increased substantive dialogue to further working relationships
with Tribal governments, Tribal organizations, and the telecommunications
industry.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-979A1.pdf

ON TAP NEXT WEEK

FCC OPEN MEETING AGENDA
The FCC released the agenda for the open meeting planned for Thursday
April 15. The three items are: 1) The Commission will consider a Third
Report and Order concerning rule changes for radio frequency identification
systems operating at 433 MHz, 2) The Commission will consider a Further
Notice of Proposed Rulemaking concerning rule changes for radio stations
that broadcast digital audio using In-Band On-Channel ("IBOC") technology,
and 3) The Commission will consider a Notice of Proposed Rulemaking
concerning use of the 3650-3700 MHz band. Additional information concerning
this meeting may be obtained from Audrey Spivack or David Fiske, Office of
Media Relations, (202) 418-0500.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245919A1.pdf

--------------------------------------------------------------
Good Friday... see ya Monday.
--------------------------------------------------------------