Benton's Communications-related Headlines for 4/28/04

Today: Markup of House bill reauthorizing the Satellite Home Viewer
Improvement Act at 10am (Eastern)
http://energycommerce.house.gov/108/Markups/04282004markup1261.htm
Telecommunications Policy: A Look Ahead at 9:30 am (Eastern)
http://commerce.senate.gov/hearings/witnesslist.cfm?id=1166

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

LEGISLATION UPDATE
Senate Takes Up McCain Moratorium Compromise
The World Wide (Tax) Web

TELECOM POLICY
Telecommunications Policy Review: Lessons Learned from the Telecom Act of 1996
Broadband Over Power Line Report

BROADCASTING
TV Affiliates May Get Power to Reject Shows
DTV Group Pushes Dishes On Hill

PAY-PER SERVICES
Comcast: We're Keeping Content Promises
Local Programming and Satellite Digital Audio Radio Services

MEDIA POLICY REFORM
Philanthropist Benton Calls for Increased Funding for Media Policy Reform

PERSONALS
Charles Lewis Leaving the Center for Public Integrity
Elizabeth Peters Steps Down from Association of Independent Video and
Filmmakers

LEGISLATION UPDATE

SENATE TAKES UP MCCAIN MORATORIUM COMPROMISE
Sen John McCain (R-AZ) has offered an amendment to S-150, the bill under
consideration that would ban Internet access taxes. Sen McCain's amendment
would create a 4-year Internet access tax moratorium and exempt VoIP from
taxation. Sens Allen (R-VA) and Wyden (D-OR), the two main sponsors of the
bill, have endorsed the amendment. But opponents to S-150 are not
supporting the amendment which was supposed to be a compromise. The main
problem seems to be with how the legislation defines Internet access.
Majority Leader Bill Frist (R-TN) is trying to get a final vote on the bill
by Thursday, but a number of amendments could slow passage.
[SOURCE: Communications Daily, AUTHOR: Patrick Ross]
(Not available online)

THE WORLD WIDE (TAX) WEB
The Internet -- and its users -- have thrived mainly because government and
taxers have "stayed out of the way," writes the author of the Internet Tax
Nondiscrimination Act. "We must make sure that the avaricious tax
commissars from every county, city and state in America do not continue
conniving new ways to tax the Internet and the people who use it.
Otherwise, the Tax-the-Internet advocates will turn our freeways into toll
roads like the New Jersey Turnpike." Sen Allen endorses the McCain
amendment to his bill which calls for a four-year moratorium on Internet
taxes. The legislation also sunsets any current taxes on Internet access
and DSL service in three years. Sen Allen concludes: "With history as our
guide, I predict that if we protect the Internet and the American consumer
from stifling taxes now, we will see more economic growth in the future.
Those same bureaucrats who are hungry for short-term tax revenue today will
reap an even greater benefit from increased economic and consumer activity
tomorrow. It is up to us to show discipline and restraint and allow the
Internet to flourish unimpeded in the decades to come."
[SOURCE: Wall Street Journal, AUTHOR: Sen George Allen (R-VA)]
http://online.wsj.com/article/0,,SB108311007430995505,00.html?mod=todays...
(requires subscription)

TELECOM POLICY

TELECOMMUNICATIONS POLICY REVIEW: LESSONS LEARNED FROM THE TELECOM ACT OF 1996
The Senate Commerce Committee held the first of two hearings on telecom
policy reform Tuesday. Speaking of the Telecommunications Act of 1996, Sen
Ernest Hollings (D-SC), the Committee's Ranking Member, said to Qwest
Chairman Richard Notebaert, "It's not a complicated bill. You wrote it." He
also said the main mistake that Congress made was trusting the Baby Bells.
But Committee Chairman was more critical of the legislation, saying it has
been rendered useless by technological advances. Witnesses arguments were
not particularly new. Mr. Notebaert argued for regulatory parity for DSL
and cable. Representatives of competitors claimed the 96 Act has been
watered down by litigation and that the Baby Bells are too powerful to
negotiate with.
[SOURCE: US Senate]
http://commerce.senate.gov/hearings/witnesslist.cfm?id=1164
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

BROADBAND OVER POWER LINE REPORT
A report issued today by the Commerce Department's National
Telecommunications and Information Administration (NTIA) examines the
potential interference to federal radio systems that could result from the
deployment of broadband over power lines (BPL). The report concludes that
"rigorous technical solutions" would protect critical federal systems and
enable BPL to realize its promise as the "third broadband wire into the
home." There are 59,000 federal radio frequency assignments in the affected
bands of spectrum between 1.7 and 80 MHz. These frequencies provide
multiple services including: fixed, mobile, radio astronomy, radar, and
broadcasting. The NTIA report, which analyzed 10 million measurements of
BPL systems, suggests mitigation techniques to protect these critical
government radio systems. Among the solutions proposed in the report are:
a notch solution for the most sensitive and severely impacted systems;
local registration of BPL frequency use; intelligent power management; and
the use of a Web-based interface for potentially impacted parties. NTIA
will complete a Phase 2 study later this year that will assess the
potential interference risks due to aggregation and ionospheric propagation
of interfering signals from BPL systems; refine and apply BPL deployment
models; and evaluate the effectiveness of proposed Part 15 measurement
techniques.
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/fccfilings/2004/bpl/index.html

BROADCASTING

TV AFFILIATES MAY GET POWER TO REJECT SHOWS
The spotlight on indecent broadcast programming may help network affiliates
win more control over their programming. Affiliate station owners want the
ability to reject network shows they deem ''unsuitable'' or
''unsatisfactory'' or that they want to replace with programs of "greater
local or national importance." But NBC, ABC and Fox have forced the
stations to sign contracts sharply limiting pre-emptions. Acting on a three
year-old petition, the FCC could clarify what affiliates can reject,
forcing contract revisions. It's unclear if the Commission will address
claims that some contracts give networks too much control over new digital
programs and let them cancel affiliations if stations are sold.
[SOURCE: USAToday, AUTHOR:Paul Davidson]
http://www.usatoday.com/usatonline/20040428/6154486s.htm

DTV GROUP PUSHES DISHES ON HILL
The Digital Coalition wrote a letter to members of Congress Tuesday asking
them to modify the Satellite Home Viewer Improvement Act to allow satellite
companies to import digital TV signals to markets where broadcasters aren't
providing them. The Coalition believes the legislation would immediately
benefit consumers by providing them with digital TV signals and would help
accelerate the transition to digital only broadcasting. The group says the
majority of commercial broadcasters are abdicating their digital
responsibilities by either not having met their build-out deadlines or
delivering a digital signal to only a fraction of their viewing area. "They
are dodging their responsibilities to the American public, using a loophole
that allows them to keep the spectrum beyond 2006 if fewer than 85% of
households in a given market do not have DTV sets or tuners capable of
receiving the digital signal," the letter reads. "This Catch-22 arrangement
essentially encourages broadcasters to delay the digital conversion. As
long as little DTV programming is available, consumers have no incentive to
purchase digital television sets. If consumers don't purchases digital
televisions, local broadcasters can continue stalling their
conversion. It's time to change the equation and motivate them to act now;
otherwise the transition might last until 2016 or beyond." The letter is
signed by Charlie Ergen of EchoStar; Grover Norquist of Americans for Tax
Reform; Tom Schatz, Citizens against Government Waste; George Landrith,
Frontiers of Freedom; Andrew Jay Schwartzman, Media Access Project; Gigi
Sohn, Public Knowledge; and Karen Kerrigan, Small Business Survival Committee.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA413220?display=Breaking+News
(requires subscription)

PAY-PER SERVICES

COMCAST: WE'RE KEEPING CONTENT PROMISES
In an April 20 letter to key members of Congress and FCC Chairman Powell,
Comcast Cable Communications President Stephen Burke wrote that the company
has installed a dedicated toll-free line that consumers can call to speak
with a person trained to answer questions about parental controls. Comcast
will also include parental-control notices in subscriber bills in May and
June. Mr. Burke wrote that programming networks controlled by Comcast are
using, or will be using by early summer, the TV-rating system on all
programming except news and sports. The rating system is critical to
activating the V-chip in TVs
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA413221?display=Breaking+News
(requires subscription)

LOCAL PROGRAMMING AND SATELLITE DIGITAL AUDIO RADIO SERVICES
On April 14, 2004 the National Association of Broadcasters (NAB) filed a
Petition for Declaratory Ruling. NAB's Petition requests the Commission to
1) prohibit satellite digital audio radio service ("SDARS") from using any
technology to permit the delivery of content that would be aired on a
receiver in one location that differs from the content that would be aired
on a receiver in a different location; and 2) prohibit SDARS providers from
providing locally oriented services on nationally distributed
channels. Alternatively, NAB requests the Commission to reopen the SDARS
licensing proceeding to evaluate the impact of the service on local
broadcasting. The FCC requests public comment on the issues raised by this
Petition. This proceeding has been issued a Commission docket number, MB
04-160, in order to facilitate filing public comment. Parties may file
responses to the Petition on or before June 4, 2004 and replies on or
before June 21, 2004.
Media Bureau Contact: Rosalee Chiara, (202) 418-0754.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-1096A1.txt

MEDIA POLICY REFORM

PHILANTHROPIST BENTON CALLS FOR INCREASED FUNDING FOR MEDIA POLICY REFORM
While receiving the Council on Foundations' 2004 Distinguished Grantmaker
Award for lifetime achievement in philanthropy, Charles Benton, board chair
of the Benton Foundation, expressed alarm over the future of media in
America and called for greater funder involvement to encourage more open
and inclusive media policymaking. Noting consolidating media ownership and
the political and financial pressures faced by public broadcasters, Benton
let the audience know that his work in the fields of philanthropy and media
policy is far from over. "I believe the future of media and communications
in America is cause for serious concern. At stake is who controls what we
see, hear, and read. At stake is our ability to get our message out and
make a difference. At stake is nothing less than the health of our
democracy," Benton said in his acceptance speech. Earlier this month, the
Benton Foundation joined the Public Interest, Pubic Airwaves Coalition, an
alliance of public interest groups, media activists and grassroots
organizers, in urging the FCC to hold the nation's commercial broadcasters
to a more responsible standard of public service. The coalition's proposal,
since endorsed by FCC Commissioners Michael Copps and Jonathan Adelstein,
asks the regulatory agency to help ensure among other items that licensed
broadcasters air: 1) a minimum three hours per week of civic or electoral
affairs programming; and 2) independently produced programming for at least
25 percent of their prime time schedule.
[SOURCE: Benton Foundation Press Release]
http://www.benton.org/

PERSONALS

* Charles Lewis, founder of the Center for Public Integrity, will step down
in January 2005 as executive director of the nonprofit, nonpartisan
research organization based in Washington, D.C. He will continue to serve
on the Center's Board of Directors and also play a leadership role on
endowment and other long-term, strategic, institutional development issues.

* After five years at the helm of the Association of Independent Video and
Filmmakers as its Executive Director, Elizabeth Peters leaves us to pursue
other endeavors.
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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 (headlines( at )benton.org) -- we welcome your comments.
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