For upcoming media policy events, see http://www.benton.org/calendar.htm
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. Headlines are compiled by=20
Kevin Taglang (headlines( at )benton.org) -- we welcome your comments.
BROADCASTING
Fighting for Free Speech Means Fighting for...Howard Stern
New Threat to Broadcasters
Local Broadcasters Offer Cheaper Premium Services
Stations' Rights
Fritts Survives. Can the NAB?
CPB Board Actions on Future Fund and Transition to Digital Broadcasting
CABLE
MAP Asks FCC to Delay Cable Mergers
Seven Things That Will Change Cable TV in 2004
TELECOM
New FCC Order on Lifeline and Link-Up
Is a Truce Possible in Phone Fight?
CTIA Proposes 800 MHz Compromise
QUICKLY
How VoIP Can Connect the Disabled
New Internet Site Turns Critical Eyes and Ears to the Right
Downloading Again
Challenge to Ban on Internet Gambling Upheld
California Toughens E-voting Standards
Google Plans Foundation to Take Aim at Global Ills
BROADCASTING
FIGHTING FOR FREE SPEECH MEANS FIGHTING FOR...HOWARD STERN
In this editorial, Cohen asks readers to rise to defend on-air flatulence=20
jokes. Although the raunchy Mr. Stern has garnered most of the headlines=20
and half of the indecency fines since 1990, it is important to remember=20
that the FCC's new approach to curbing the programming applies to everyone.=
=20
"The danger it poses to the culture is real," Cohen writes. The FCC's new=20
rules mean profanity is off limits which means "the most commonplace of=20
divine imprecations, such as 'Go to Hell' or 'God damn it,' are now=20
actionable," according to opponents of the new approach. As disturbing as=20
the new rules, Cohen writes, is the FCC's warning that it does not intend=20
to hold itself to any specific definitions of indecency. The commission=20
states, at the end of a list of vague categories of forbidden speech, that=
=20
it will "analyze other potentially profane words or phrases on a=20
case-by-case basis." While making its criteria hopelessly vague, the FCC is=
=20
removing longstanding protections that give speakers breathing room. While=
=20
the law has long said that violations must be "repeated" before a penalty=20
can be imposed, the FCC now says an isolated incident is enough. Instead of=
=20
requiring that offenses be "willful," the new rules hold that a=20
broadcaster's good-faith efforts to understand highly subjective standards=
=20
are "irrelevant" to whether it will be punished. This will stifle artistic=
=20
expression and political dissent, Cohen writes.
[SOURCE: New York Times, AUTHOR: Adam Cohen]
http://www.nytimes.com/2004/05/03/opinion/03MON4.html
(requires registration)
NEW THREAT TO BROADCASTERS
The broadcast industry appears to be in no rush to rewrite the=20
Telecommunications Act of 1996. The industry fears legislation that could=20
set tighter limits on the number of broadcast stations one company can own,=
=20
as well as new public-interest obligations regarding local-election=20
coverage and kids programs. Congress might also move to speed-up the=20
transition to digital television, recovering spectrum and auctioning off=20
the resource to wireless companies. McConnell writes, "a bill is expected=20
in two years tops."
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA414425?display=3DTop+of+the+Week
LOCAL BROADCASTERS OFFER CHEAPER PREMIUM SERVICES
In the late 1990's, broadcasters throughout the country were given large=20
chunks of the airwaves at no cost with the understanding that they would=20
provide free digital signals as part of the government's push for=20
high-definition television. But because of improvements in digital signal=20
compression, it no longer takes nearly as much bandwidth to broadcast=20
digital television, so the broadcasters are left with plenty of bandwidth=20
to use, and profit from, however they see fit. Some broadcasters are=20
beginning to use this new capacity to offer a dozen or so of networks like=
=20
ESPN and Discovery for much less than cable and satellite providers do. A=20
number of companies are sprouting up to provide these services, but not=20
without critics including the Media Access Project, a public interest law=20
firm in Washington. "It doesn't make me jump for joy," Andrew Jay=20
Schwartzman, the group's president, said of plans to exploit extra=20
bandwidth. "But at least we were able to ensure in that process that the=20
broadcasters would be forced to pay a spectrum fee." Mr. Schwartzman=20
acknowledged that the new services might potentially benefit consumers by=20
offering competition to cable.
[SOURCE: New York Times, AUTHOR: Ian Austin]
http://www.nytimes.com/2004/05/03/business/media/03band.html
(requires registration)
STATION'S RIGHTS
A proposal is expected this month from the FCC that would allow local=20
broadcasters to preempt national network programming with local news and=20
sports or to drop programming they think is too racy for their hometowns. A=
=20
vote could come as early as June. This is a big issue for network=20
affiliates. Networks own so many stations they can threaten to terminate a=
=20
station's affiliation agreement without risking much damage to overall=20
ratings. "Because of that leverage, contracts are now written that we can't=
=20
reject a show unless the format dramatically changes," says Alan Frank,=20
president of Post-Newsweek Stations. Networks don't mind legitimate=20
preemptions. But they take umbrage at bumping series for a local basketball=
=20
game or election debate or to shield tender townsfolk from edgy fare. [So=20
election coverage isn't "legitimate"?]
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA414450?display=3DWashington
(requires subscription)
FRITTS SURVIVES. CAN THE NAB?
On April 26, we reported on efforts by National Association of Broadcasters=
=20
Joint Board Chairman Phil Lombardo's efforts to oust the lobby group's=20
president, Eddie Fritts. With a two-year extension all but worked out, Mr.=
=20
Fritts has survived the coup. But the internal turmoil still exists.=20
Affiliates of TV networks and owners of small radio- station groups remain=
=20
at odds and could possibly split the organization in two. The TV members=20
have pushed the NAB to wage an unrelenting fight to cap the growth of=20
network station ownership, which they say has given the nets too much=20
leverage over affiliation contracts. They also want NAB to take a higher=20
profile in fighting the anti-indecency regulations that are working their=20
way through Capitol Hill. Radio members say a $1 million-plus bill for=20
lobbying the FCC and Congress against the networks is a waste. Instead, the=
=20
group should be seeking ways to bring the networks and their lobbying clout=
=20
back into the fold.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA414452?display=3DWashington
(requires subscription)
CPB BOARD ACTIONS ON FUTURE FUND AND TRANSITION TO DIGITAL BROADCASTING
The CPB board of directors last week took formal action that will lead to=20
the end of the Television Future Fund upon board approval of the FY2005=20
budget which will eliminate its funding. =93In taking this action, we=20
recognize that public broadcasting is an interconnected group of local=20
stations who best know how to serve their local communities. We also=20
recognized the enormous financial pressure many stations are under,=94 said=
=20
Kenneth Y. Tomlinson, Chair of the CPB Board. =93Returning these funds to=20
local stations will help them serve their communities. We also recognized=20
that through the important work of the Future Fund, CPB has identified and=
=20
funded significant projects that will help stations move toward greater=20
financial stability.=94
The Board also unanimously approved a plan for allocating nearly $50=20
million in special funds provided by Congress to help public radio and=20
television stations make the transition to cutting edge digital technology.=
=20
This action will set aside more than $4 million to fund efforts to create=20
digital content and services for public television, the first time such=20
funding has been available.The funds, part of nearly $150 million that=20
Congress has provided to aid the digital transition over the last four=20
years, will help public stations cover the substantial costs of acquiring=20
basic transmission equipment and conducting research and development of new=
=20
digital multicast and datacast services, and secondary audio made possible=
=20
by the new technology. To date, CPB has provided grants to more than 170=20
public television stations and 118 public radio stations to begin their=20
digital transition. Stations will be able to apply for FY04 digital funding=
=20
this summer. Additional awards for public television and radio to convert=20
to digital also will be announced this spring.
[SOURCE: Corporation for Public Broadcasting Press Release]
http://www.cpb.org/programs/pr.php?prn=3D352
CABLE
MAP ASKS FCC TO DELAY CABLE MERGERS
The Media Access Project and the Georgetown University Law Center -- on=20
behalf of Consumers Union, Consumer Federation of America and the United=
Church
of Christ -- have asked the FCC to delay any other mergers by Comcast and=20
Time Warner until there=92s a new national cap on cable audience reach. The=
=20
cap has been in limbo for three years since a court ruling struck down the=
=20
previous cap limiting one operator's reach to 30% of pay-TV subscribers.=20
The consumer groups complained that the FCC has let the issue linger=20
unnecessarily. =93Despite repeated public and private assurances from the=20
staff that action on this [issue] would be forthcoming, it appears that it=
=20
will be months, at the least, before the Commission will consider the=20
question,=94 the letter said. Privately, FCC officials have told us they=20
continue to work on it, though it=92s not considered a front burner issue=20
given the agency=92s current focus on the digital transition and indecency.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA414160?display=3DBreaking+News
(requires subscription)
[SOURCE: Communications Daily, AUTHOR: Brigitte Greenberg]
(Not available online)
SEVEN THINGS THAT WILL CHANGE CABLE TV IN 2004
The cable industry is in flux for many reasons including federal policy.=20
Congress is considering whether cable should be under stricter indecency=20
standards, taxing high-speed Internet services, and the forcing cable to=20
sell networks "=E0 la carte." Here's B&C's seven things that will transform=
=20
the cable industry as we know it: 1) Some big cable companies will get=20
bigger as they buy Adelphia, Cablevision Systems and/or Insight=20
Communications. 2) A la carte pricing may mean the demise of some networks=
=20
and increased costs to consumers for popular networks. 3) Increased=20
competition from DirecTV with services like digital video recorders and=20
Interactive-TV capabilities. 4) NBC's takeover of USA network. 5) With=20
"Queer Eye" helping to double Bravo's prime time audience, all networks are=
=20
trying to find the next big hit that will put them on the map. 6)=20
Congressional pressure will get cable to reign in indecent programming. 7)=
=20
By pushing new digital video recorders (DVRs) into millions of homes, cable=
=20
operators are giving subscribers a degree of control that threatens to=20
dramatically disrupt broadcast-network business.
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins, Allison Romano, Bill=
=20
McConnell]
http://www.broadcastingcable.com/article/CA414509?display=3DTop+of+the+Week
(requires subscription)
With the cable industry holding its annual meeting in New Orleans this=20
week, a couple of stories look at how profits are doing and how operators=20
are focusing on providing telephone services over their networks.
HOPING TO ATTRACT CALLERS TO THE INTERNET
[SOURCE: New York Times, AUTHOR: Ken Belson & Matt Richtel]
http://www.nytimes.com/2004/05/03/technology/03voice.html
LOOKING PAST CABLE'S PROFITS TO THE RIVALS ON ITS HEELS
[SOURCE: New York Times, AUTHOR: Geraldine Fabrikant]
http://www.nytimes.com/2004/05/03/business/media/03cable.html
(requires registration)
TELECOM
NEW FCC ORDER ON LIFELINE AND LINK-UP
Lifeline provides low-income consumers with discounts of up to $10 off of=20
the monthly cost of telephone service for a single telephone line in their=
=20
principal residence. Link-Up provides low-income consumers with discounts=20
of up to $30 off of the initial costs of installing telephone service. On=20
Thursday, the FCC released a Report and Order which the Commission believes=
=20
will result in a more inclusive and robust Lifeline/Link-Up program. First,=
=20
the FCC adopted income-based eligibility criteria for the program. Now a=20
family of four whose annual income is at or below $24,840 to qualify for=20
Lifeline/Link-Up. The FCC estimates this move will increase=20
Lifeline/Link-Up subscribership by 1.17 million to 1.29 million. Second,=20
the FCC adopted outreach guidelines: A) states and carriers should utilize=
=20
outreach materials and methods designed to reach
households that do not currently have telephone service; B) states and=20
carriers should develop outreach advertising that can be read or accessed=20
by any sizeable non-English speaking populations within a carrier=92s=
service=20
area; and C) states and carriers should coordinate their outreach efforts=20
with governmental agencies/tribes that administer any of the relevant=20
government assistance programs. The FCC also adopted a voluntary survey=20
form which asks states to provide information about the eligibility=20
criteria, certification and verification procedures, and outreach efforts=20
implemented as a result of the changes adopted in this Order.
Finally, the Commission issued a call for public comment asking, in effect,=
=20
if these rules changes go far enough.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-87A1.doc
IS TRUCE POSSIBLE IN PHONE FIGHT?
The companies that own the nation's local telephone networks want more for=
=20
leasing their lines and equipment. Their rivals figure they can't pay=20
higher rates and stay profitable. Nobody wants to send customers bigger=20
monthly bills. How can the problem be solved? Perhaps the proposal offered=
=20
by AT&T last week is a sign of a possible solution. The nation's largest=20
seller of long-distance service proposed a different approach to relations=
=20
with the Bell companies, saying that it would use more of its own gear and=
=20
lessen its dependence on Bell equipment in exchange for concessions on the=
=20
Bells' part. "I think this proposal would be considered a success if it did=
=20
nothing more than start all parties thinking of new ways of coming=20
together," said Jeff Kagan, an independent telecom analyst in Atlanta.=20
"They've been butting heads since 1996, and their positions haven't changed=
=20
much." Scott C. Cleland, chief executive of Washington research firm=20
Precursor Group Inc., said the significance of AT&T's proposal is the=20
willingness to wean itself off Bell-owned equipment. But Cleland said in a=
=20
report last week that he remained skeptical that industrywide negotiations=
=20
would be fruitful.
[SOURCE: Los Angeles Times, AUTHOR:James S. Granelli]
http://www.latimes.com/business/printedition/la-fi-phones3may03,1,661149...
ory?coll=3Dla-headlines-pe-business
CTIA PROPOSES 800 MHz COMPROMISE
The Cellular Telecommunications & Internet Association (CTIA) last week=20
urged the FCC to adopt a new compromise proposal on 800 MHz. The new plan=
=20
provides more than a three-fold increase in funds for public safety=20
communications over the =93Consensus=94 Plan and grants Nextel 10 MHz of=20
spectrum at 2.1 GHz - the same spectrum Nextel originally requested when it=
=20
first presented its 800 MHz transition plan to the FCC. In its letter to=20
the FCC, CTIA asked that if the Commission determines it is necessary to=20
reband public safety assignments and grant spectrum to Nextel outside the=20
800 MHz band, that it go forward with several key principles in mind. These=
=20
include: a) requiring Nextel to deposit a minimum of $3 billion into a=20
trust fund for Public Safety and Critical Infrastructure licensees to=20
ensure adequate funding; b) using an independent trustee to manage the=20
money and payments; c) granting Nextel the spectrum it originally requested=
=20
at 2.1 GHz; and d) in order to provide Nextel a strong incentive to reband=
=20
quickly and nationally, requiring Nextel to relocate and pay for Public=20
Safety before getting its spectrum grant on a market by market basis. To=20
ensure a resolution to this complicated issue in public safety=92s favor,=20
CTIA proposed, =93Public Safety would work with a Trust Fund administrator=
to=20
ensure that rebanding is completed and interference problems are solved=20
efficiently, effectively, and in a timely manner.=94 The plan guarantees,=
=93A=20
minimum of $3 billion from Nextel to fund rebanding and other measures=20
ordered by the Commission to address the interference problem.=94 In=20
addition to contiguous spectrum in the 800 MHz band after rebanding, Public=
=20
Safety would receive an additional 2.5 MHz of spectrum within 800 MHz, as=20
detailed in the Consensus Plan proposal.
See the CTIA filing at http://files.ctia.org/pdf/800MHzfiling.pdf
[SOURCE: Cellular Telecommunications & Internet Association Press Release]
http://www.ctia.org/news_media/press/body.cfm?record_id=3D1400
QUICKLY
HOW VOIP CAN CONNECT THE DISABLED
While VoIP is creating quite a stir in the telecommunications field=20
overall, it's an especially promising technology for people with=20
disabilities. VoIP integrates the phone, voice mail, audioconferencing,=20
e-mail, instant messaging, and Web applications like Microsoft Outlook on=20
one secure, seamless network. Plus, workers can use their PC, laptop, or=20
handheld as a VoIP phone from virtually anywhere, with the same phone=20
number, which benefits telecommuters, including those whose mobility is=20
impaired and must work from home. There's much more on what this technology=
=20
could mean for the disabled community at the URL below.
[SOURCE: BusinessWeek, AUTHOR: Suzanne Robitaille]
http://www.businessweek.com/technology/content/apr2004/tc20040428_4395_t...
.htm
NEW INTERNET SITE TURNS CRITICAL EYES AND EARS ON THE RIGHT
Former right-wing journalist David Brock is launching a web site -- Media=20
Matters (www.mediamatters.org) -- he says will monitor and correct the=20
erroneous assertions of conservative commentators and journalists in real=20
time. Funding comes from the Center for American Progress, the policy group=
=20
headed by John D. Podesta, the former Clinton chief of staff.
[SOURCE: New York Times, AUTHOR: Jim Ruttenberg]
http://www.nytimes.com/2004/05/03/business/media/03BROC.html
(requires registration)
DOWNLOADING AGAIN
While downloading has not rebounded to the levels it reached before the=20
music industry=92s legal campaign, a survey by the Pew Internet and American=
=20
Life Project has found that online music downloading and file sharing is on=
=20
the rise again. Based on responses to a survey conducted in February, Pew=92=
s=20
researchers estimate that 23 million people downloaded music during that=20
period compared with 18 million in December 2003. =93The increase is highly=
=20
significant precisely because it occurred in such a short period of time,=94=
=20
said Mary Madden, a research specialist at Pew. Paid services now account=20
for 17% of downloads.
[SOURCE: New York Times, AUTHOR: Ian Austen]
http://www.nytimes.com/2004/05/03/business/media/03MOSTWANTED.html
(requires registration)
See more from Pew including "Preliminary Results of Survey of Musicians
http://www.pewinternet.org/
CHALLENGE TO BAN ON INTERNET GAMBLING UPHELD
A WTO panel has ruled that the US ban on Internet gambling violates the=20
country's WTO commitments. The panel agreed the US prohibitions were=20
designed to achieve protection of public morals and public order, but=20
faulted the US for not pursuing good faith negotiations with other=20
countries that might have identified WTO-consistent alternatives to the=20
ban. The US will appeal the decision.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DJZ4SOVD4XZZVYCRBAE...
A?type=3DinternetNews&storyID=3D5004853
CALIFORNIA TOUGHENS E-VOTING STANDARDS
California barred a third of existing electronic voting machines on Friday=
=20
and ordered new security measures before thousands of others can be used.=20
All but four counties in the state may use e-voting machines in November if=
=20
the machines produce a printed receipt. The state's Secretary of State=20
Kevin Shelley (D) also called for a criminal investigation into the state's=
=20
largest e-voting machine supplier, Diebold, for deceiving California with=20
aggressive marketing that led to the installation of touch-screen systems=20
that were not tested or approved nationally or in California. Diebold had=20
said federal approval was forthcoming when it was not.
[SOURCE: Reuters]
http://news.com.com/2100-1028_3-5203769.html?tag=3Dnefd.top
See also:
WHO HACKED THE VOTING SYSTEM? THE TEACHER
[SOURCE: New York Times, AUTHOR: John Schwartz]
http://www.nytimes.com/2004/05/03/technology/03vote.html
(requires registration)
GOOGLE PLANS FOUNDATION TO TAKE AIM AT GLOBAL ILLS
Hiding in Google's filing with the U.S. Securities and Exchange Commission=
=20
are these two sentences: "We intend to contribute significant resources to=
=20
the foundation, including employee time and approximately 1 percent of=20
Google's equity and profits in some form. We hope someday this institution=
=20
may eclipse Google itself in terms of overall world impact by ambitiously=20
applying innovation and significant resources to the largest of the world's=
=20
problems."
[SOURCE: Reuters, AUTHOR: Brendan Intindola]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3D2JN3C3ONUGVA2CRBAE...
Y?type=3DtechnologyNews&storyID=3D5004852
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