For upcoming media policy events, see http://www.benton.org/calendar.htm
LEGISLATIVE UPDATE
Senate OKs Four-year Ban on Net Access Tax
Lawmakers Vow to Pass New Law Against Spyware
POLITICS AND MEDIA
Cheney Praises Fox News Channel
Sinclair To Preempt Nightline
AT THE FCC
Equal Employment Supporters Urge FCC to Halt Broadcast License Renewals
Cell-Phone Trade Group Goes Against Nextel
Wireless Portability Complaints
CABLE
Conservative Groups Pushing a la Carte
700 Channels and Nothing On
BROADBAND
Broadband in the US Will Grow in '04
'Underbrush of Regulation' and Broadband Deployment
The Choice: Coffee or Headlines?
LEGISLATIVE UPDATE
SENATE OKs FOUR-YEAR BAN ON NET ACCESS TAX
The Senate on Thursday voted to renew a four-year ban on taxes on Internet
connections such as DSL and cable modems instead of a competing plan that
would have made a moratorium permanent. Tense negotiations are expected in
a conference committee with the House of Representatives, which
overwhelmingly approved a permanent ban in September. The ban on access
taxes, first enacted in 1998, expired in November. Although the legislation
does not affect sales taxes on items purchased over the Internet, the
compromise affects taxes singling out Internet access including digital
subscriber line, wireless and even BlackBerry services. Its supporters said
it does not change whether or not states may tax Internet telephone (VoIP)
services.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/2100-1028_3-5202140.html?tag=nefd.top
Reuters
http://www.reuters.com/newsArticle.jhtml;jsessionid=W4QH2MPPYPLBICRBAEZS...
SENATE APPROVES INTERNET ACCESS TAX MORATORIUM
[SOURCE: Communications Daily, AUTHOR:Patrick Ross]
(Not available online)
NYT: http://www.nytimes.com/2004/04/30/politics/30INTE.html
WSJ:
http://online.wsj.com/article/0,,SB108326145125697450,00.html?mod=politi...
WP: http://www.washingtonpost.com/wp-dyn/articles/A54744-2004Apr29.html
USAToday: http://www.usatoday.com/usatonline/20040430/6164107s.htm
SJ Merc:
http://www.mercurynews.com/mld/mercurynews/business/technology/8556868.htm
LATimes:
http://www.latimes.com/business/printedition/la-fi-itax30apr30,1,3209287...
LAWMAKERS VOW TO PASS NEW LAW AGAINST SPYWARE
An EarthLink scan of 1.1 million computers released two weeks ago turned up
more than 300,000 malevolent programs. "There is no more pernicious,
intrusive activity going on on the Internet today," said Rep Joe Barton
(R-TX), chairman of the House Energy and Commerce Committee. "We really
intend to do something about this." Rep Barton joined other members on the
panel backing a proposal from Rep Mary Bono (R-CA) would require 1)
purveyors of spyware on the Internet to notify people before loading new
software on their machines, 2) companies to identify themselves to
computer users, and 3) spyware to be easily removable. [Define "easy" in
computerspeak.] "The problem is not one of legal authority. It is one of
developing and bringing a case in federal court," FTC consumer protection
chief Howard Beales told the committee. Mr. Beales said some spyware is
actually used to help computer users. He and FTC Commissioner Mozelle
Thompson said it would be difficult to craft a law that would distinguish
between spyware and legitimate software. Mr. Beales also said new laws
could be burdensome to legitimate software companies, requiring consent
every time any piece of software is added to their customers' machines.
Commissioner Thompson advised committee members to give the software
industry a chance to solve the problem without new government intervention.
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
http://www.reuters.com/newsArticle.jhtml;jsessionid=1S3FN4BRFIBRECRBAELC...
See Also:
FTC OFFICIALS BLAST SPYWARE MEASURES
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/2100-1023_3-5202016.html?tag=nefd.top
CDT TESTIFIES ON APPROACHES TO "SPYWARE" THREAT
Testifying before the House Subcommittee on Commerce, Trade, and Consumer
Protection, CDT commended legislators for bringing attention to the growing
"spyware" threat. CDT told the Subcommittee that the best way to have an
immediate impact on the spyware problem is to prosecute the many "spyware"
practices that are already illegal; to pressure industry to develop codes
of best-practices and improve anti-spyware technologies; and to pass
baseline online privacy legislation. April 29, 2004
CDT's Testimony before the House Subcommittee on Commerce, Trade, and
Consumer Protection on Spyware, April 28, 2004:
http://www.cdt.org/testimony/20040429schwartz.pdf
POLITICS AND MEDIA
CHENEY PRAISES FOX NEWS CHANNEL
It is official: cable all-news channel Fox News has been named the official
media outlet of the Bush Administration. Well, no, the relationship is not
that formal; here's what Vice President Dick Cheney told tens of thousands
of Republicans who were gathered across the country to celebrate a National
Party for the President Day organized by the Bush-Cheney campaign. "It's
easy to complain about the press -- I've been doing it for a good part of
my career. It's part of what goes with a free society. What I do is try to
focus upon those elements of the press that I think do an effective job and
try to be accurate in their portrayal of events. For example, I end up
spending a lot of time watching Fox News, because they're more accurate in
my experience, in those events that I'm personally involved in, than many
of the other outlets." Allen writes: "It is unusual for a president or vice
president to single out a commercial enterprise for public praise."
[SOURCE: Washington Post, AUTHOR: Mike Allen]
http://www.washingtonpost.com/wp-dyn/articles/A53974-2004Apr29.html
(requires registration)
SINCLAIR TO PREEMPT NIGHTLINE
Ted Koppel plans to read the names of over 500 soldiers killed in Iraq
during tonight's Nightline. But for ABC viewers who receive their signals
from Sinclair-owned TV stations, the show will not be available. "Despite
the denials by a spokeswoman for the show," Sinclair said in a statement on
its Web site (http://www.sbgi.net/), "the action appears to be motivated by
a political agenda designed to undermine the efforts of the United States
in Iraq." The Wall Street Journal reports that Sinclair President and Chief
Executive David D. Smith and his family have donated more than $50,000 this
year to the Republican National Committee and Republican candidates. Mark
Hyman, Sinclair's vice president of corporate relations, has been outspoken
about what he views as the media's "negative" spin on Iraq news.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton & Steve McClellan]
http://www.broadcastingcable.com/article/CA413971?display=Breaking+News
(requires subscription)
SINCLAIR TO BLOCK 'NIGHTLINE' BROADCAST
[SOURCE: Wall Street Journal, AUTHOR: Julia Angwin at julia.angwin( at )wsj.com]
http://online.wsj.com/article/0,,SB108327066319797656,00.html?mod=mm%5Fm...
(requires subscription)
AT THE FCC
EQUAL EMPLOYMENT SUPPORTERS URGE FCC TO HALT BROADCAST LICENSE RENEWALS
In March 2003, the FCC ruled that it would conduct random audits and
targeted investigations resulting from reports of possible Equal Employment
Opportunity (EEO) violations, targeting 5% each of radio and TV licenses
per year. But the Commission has not conducted one audit since then. "It is
a travesty that so many licenses have been or are soon to be renewed
without the Commission conducting a single EEO audit or investigation," the
Office of Communication (OC) of the United Church of
Christ said in a letter to the FCC this week. The OC and other EEO
supporters, including the Minority Media & Telecom Council (MMTC) and the
Institute of Public Representation at Georgetown University Law Center,
urged the FCC to make good on its promise and start EEO random audits and
targeted investigations of TV
and radio licensees at renewal time. MMTC estimated about 3,000 radio
licenses have been renewed and about 150 should have been audited under the
FCC's rules. The Radio-Television News Directors Association estimates that
since 1993 the percentage of minority radio general managers has dropped
from 5.7% to 2.5% in 2003.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)
See Also:
Broadcasting&Cable:
http://www.broadcastingcable.com/article/CA413968?display=Breaking+News
CELL-PHONE TRADE GROUP GOES AGAINST NEXTEL
The Cellular Telecommunications & Internet Association has stepped into the
Nextel spectrum swap debate, siding with rivals to Nextel. The lobbying
group voted to support a plan to move Nextel to a less-valuable spectrum --
a proposal the Federal Communications Commission is considering. Under
CTIA's plan, Nextel would also pay $3 billion to relocate the public safety
and other wireless carriers. The trade group plans to file its proposal
with the FCC today.
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/articles/A54644-2004Apr29.html
(requires registration)
WIRELESS PORTABILITY COMPLAINTS
Since wireless phone number porting began on November 24, 2003, the FCC has
received approximately 7,040 informal complaints about wireless local
number portability as of April 24, 2004. Most of the complaints concern
alleged delays in porting numbers from one wireless carrier to another. A
much smaller number of complaints, estimated at about 15 percent of the
total, involve porting from wireline to wireless carriers. The carriers
most often mentioned in the complaints as either the carrier ported from or
the carrier ported to are: AT&T Wireless (3104); Sprint PCS (1712);
Verizon Wireless (1059); T-Mobile (991); Cingular Wireless (991); and
Nextel (501). Many of the complaints concern more than one carrier so the
total number of complaints received is smaller than the number of times a
carrier is mentioned in a complaint.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-246604A1.doc
CABLE
CONSERVATIVE GROUPS PUSHING A LA CARTE
Concerned Women of America will release a poll on May 5 showing that the
majority of parents do not want to pay cable companies for indecent
programming as a condition of receiving channels that they think are
appropriate for their children. The organization also plans a radio and TV
ad campaign to let consumers know that purchasing cable a la carte will
allow parents to filter indecent programming in a cost-effective manner.
"Americans have no choice in selecting their basic-cable package under the
current market controls. The people voted for choice in our poll, and we're
asking cable companies and Congress to listen to the people," CWA chief
counsel Jan LaRue said. Joining CWA in the effort are Citizens for
Community Values, Family Research Council, Focus on the Family, Parents
Television Council and Consumers Union.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA413967?display=Breaking+News
(requires subscription)
In a related story, the Parents Television Council will pressure Capital
One to pull ads from CBS dramas C.S.I. and C.S.I. Miami.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA413976?display=Breaking+News
(requires subscription)
700 CHANNELS AND NOTHING ON
Jeff Chester writes: As Congress begins preliminary hearings aimed
ultimately at rewriting the 1996 Telecommunications Act, one key goal must
be cable TV industry reform. Cable now provides almost 70 percent of U.S.
households with daily TV service. A tiny handful of companies, including
Comcast, Time Warner, Charter, Cox, and Adelphia (the scandal-ridden
company that will soon be consumed by the others), determine what Americans
can see on cable. According to a recent FCC filing, this handful of
companies control much more than the existing TV schedule, however, for
each cable operator is actually capable of delivering more than 700
channels of programming. The public is unaware of cable's capacity to
provide greater program diversity. Nor are most local and national
programmers well-informed about the potential opportunity. It's time to
take action on cable TV reform."
[SOURCE: Center for Digital Democracy]
(http://www.democraticmedia.org/index.html)
BROADBAND
BROADBAND IN THE US WILL GROW IN '04
A new report from Strategy Analytics estimates that the number of homes
using high-speed Internet service will grow from 25 million today to 33.5
million by the end of the year. Cable modem users will account for 5.2
million of these new subscribers, while 2.9 million households will add DSL
service. About 400,000 homes will use alternate broadband access
technologies such as fiber, wireless, and two-way satellite services. The
report, "Broadband in the US: Service Provider Strategies in a Changing
Market," also predicts that the year ahead will see major changes in the
competitive positioning of telephone and cable TV companies delivering
broadband. While lower prices and branded content have helped DSL attract
first-time customers making the switch from dial-up to broadband, cable
operators can target a wider range of consumers by delivering faster access
speeds and multi-service bundles. "Cable's combination of higher access
speeds, wider availability and more compelling bundles lets the leading
operators target several classes of consumers," notes James Penhune,
Director of Strategy Analytics' Broadband Media & Communications practice.
"These include new users as well as a growing number of consumers seeking
advanced video services such as High Definition TV (HDTV) and Video On
Demand (VOD). At the same time, aggressive cable telephony deployments from
leaders like Time Warner, Comcast and Cox will help these companies reach
customers seeking simplicity and savings from triple-play bundles combining
video, data and telephony. To match these advantages, regional phone
companies, like SBC and Verizon, must make the most of their partnerships
with satellite TV operators," adds Penhune. "Previous telco-satellite
partnerships often failed to produce the simplicity and reliability that
bundling is meant to deliver. But if tighter strategic alliances like SBC's
deal with EchoStar prove credible to consumers, they will help the telcos
keep pace with cable on bundling and postpone the need to consider more
costly video strategies such as fiber deployments."
[SOURCE: Strategy Analytics Press Release]
http://www.strategyanalytics.com/press/PR00118.htm
'UNDERBRUSH OF REGULATION' AND BROADBAND DEPLOYMENT
The Bush Administration today urged the FCC to clarify rules that govern
the deployment of fiber optics and other high speed Internet services to
millions of Americans residing in large apartment complexes known as
"multi-unit premises." In a letter to FCC Chairman Michael Powell, Acting
Assistant Secretary of Commerce for Communications and Information Michael
D. Gallagher urged the FCC to act "as expeditiously as possible" on
petitions before it that seek "to clarify the unbundling requirements
applicable to fiber loops serving residential multi-unit premises." "On
Monday, President Bush called for government to clear the regulatory
hurdles for broadband deployment," Dir Gallagher said. "Today, NTIA is
calling on the Commission to act quickly on these petitions to provide the
regulatory certainty the industry needs to deliver broadband to the one
hundred million Americans that live in apartment buildings. By taking this
action, the FCC will help ensure that we meet the President's goal of
universal and affordable broadband access by 2007." Under the FCC's present
rules, the high-tech services provided via fiber optic loops under the
fiber-to-the-home designation would not be as readily available to
customers living in apartment complexes.
See text of letter at
http://www.ntia.doc.gov/ntiahome/fccfilings/2004/FTTHLetter_04292004.htm
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/2004/mduletter_04292004.htm
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Given the choice at work between personal use of the Net or a morning cup
of coffee, employees say the coffee can go, according to a survey released
this week by Websense, which makes software designed to let companies
control employee Net access. We at Headlines say it is not an either-or.
Get that cup of coffee, settle in for some gripping telecommunications
policy news and we'll have you ready to greet that ten o'clock staff
meeting with a smile.
[SOURCE: C|Net News.com]
http://news.com.com/2100-7355-5201726.html?tag=cd.top
Happy weekend, all.
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