BROADCASTING
Notice of Inquiry on Localism Coming
FCC Will Look at Violence
Making Money Now on HDTV: Practical Lessons from the Field
Networks Debate Age Groups' Value to Advertisers
The Campaign Media Guide
CABLE
Why I'm Filing Chapter 11
Adelstein Opposed to Brand X Appeal
SPECTRUM
FCC's Powell Retracts Vote On Nextel Spectrum Request
Powell: Wireless Vital to Broadband Future
TELECOM
Sprint's Role as Wholesaler: 'Arms Dealer' to the Industry
New York Classifies Vonage as Phone Company
Intermodal Competition in Telecom: A Vision, not a Reality
FCC's Number Portability Rule Likely to Hurt Rural Carriers
INTERNET
CAN-SPAM Act
WWW Conference Mulls Web as Personal Memory Store
BROADCASTING
NOTICE OF INQUIRY ON LOCALISM COMING
According to FCC Commissioner Jonathan Adelstein, the FCC will soon launch=
=20
a proceeding on localism which would look at what the Commission can do to=
=20
ensure that news and issues of local concern are properly covered by=20
broadcasters and that broadcasters fulfill their public interest=20
obligations. A big question is whether local ownership of broadcast=20
stations makes a difference in how well the station serves the public =97 or=
=20
whether out-of-state owners, which tend to be larger companies, do just as=
=20
good a job, Commissioner Adelstein said. =93That issue, I don't know that it=
=20
has been completely settled. We get arguments on both sides,=94 he said.=20
Commissioner Adelstein said out-of-state owners argue that localism is in=20
many ways market driven because a station that=92s unresponsive to the=20
viewers won't be watched. Local owners say local ownership is vital. What=20
isn't clear, Commissioner Adelstein said, is whether localism should be=20
left entirely to the market or whether the government should get involved.=
=20
Commissioner Adelstein said he didn't know when the item would be released.
[SOURCE: Communications Daily, AUTHOR: Brigitte Greenberg]
(Not available online)
FCC WILL LOOK AT VIOLENCE
In March, House Commerce Chairman Joe Barton (R-TX), Telecommunications=20
Subcommittee Chairman Fred Upton (R-MI), and the respective committees'=20
ranking Democrats John Dingell (D-MI) and Ed Markey (D-MA), requested that=
=20
the FCC conduct an inquiry into broadcast violence to be completed and=20
reported on by Jan. 1, 2005. FCC Chairman Michael Powell's staff is now=20
saying that the Commission's Media Bureau will draft a Notice of Inquiry=20
for review by FCC commissioners soon. The House committee wants the report=
=20
to address the harm that excessively violent programming does to children.=
=20
It also wants to know whether it is in the public interest to define=20
programming that would be considered "excessively violent," whether it is=20
constitutional to prohibit that programming when children are likely to be=
=20
viewing, and whether the FCC already has the authority to make that=20
prohibition or whether it needs Congress to authorize that power for the=
FCC.
[SOURCE: BusinessWeek, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA419866?display=3DBreaking+News
MAKING MONEY NOW ON HDTV: PRACTICAL LESSONS FROM THE FIELD
Communications Daily and Consumer Electronics Daily co-hosted an=20
audioconference Thursday on the transition to digital TV and how we all=20
(well, mostly broadcasters) can benefit from it. The greatest barrier to=20
the transition may be continued lack of consumer education and confusion in=
=20
the marketplace, some claimed. People don't choose a new technology because=
=20
they see it in stores, but because a friend has made the purchase. But high=
=20
definition is driving the consumer electronics market now. Sets sell with=20
high margins and also induce consumers to buy other products like audio=20
equipment and DVD players.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins, Steve Booth]
(Not available online)
NETWORKS DEBATE AGE GROUPS' VALUE TO ADVERTISERS
Are you more valuable to advertisers if you are 18- to 49-years-old or 25-=
=20
to 54-years-old? Television networks are debating this now because the=20
answer is worth hundreds of millions of dollars to them. CBS President=20
Leslie Moonves told advertisers this week that 18-year-olds aren't likely=20
to buy cars and don't maintain their own homes. Nielsen data show that 51=20
percent of the sought-after "young affluent audience" -- 18- to=20
34-year-olds living in households that make more than $75,000 per year --=20
are dependent on someone else's money. "The 18-to-24 group doesn't have a=20
lot of discretionary income," said Shari Ann Brill, a media buyer for Carat=
=20
USA. "They're in school, so [Moonves] does have a point. But that younger=20
[group] is very good for movies and fast food [advertising], though, yes,=20
to a certain extent, it is their parents' money." NBC counters: "We listen=
=20
to our customers, and they consistently tell us that the 18-to-49 viewers=20
are the most valued audience in television. NBC can deliver that=20
demographic better than any network." Advertisers in search of youth don't=
=20
always act expectedly. Suppose "Show A" has 5 million viewers ages 18-49=20
and 1 million 50 and older, for a total of 6 million viewers. "Show B" also=
=20
has 5 million 18- to 49-year-old viewers but 5 million who are 50 and=20
older, for a total of 10 million viewers. Common sense would suggest that=20
advertisers should pick "Show B," which delivers the younger audience plus=
=20
5 million bonus viewers. But they do not. They pick "Show A" -- and pay=20
more for it -- because a greater percentage of the show's total viewership=
=20
is younger.
[SOURCE: Washington Post, AUTHOR: Frank Ahrens]
http://www.washingtonpost.com/wp-dyn/articles/A44031-2004May20.html
(requires registration)
THE CAMPAIGN MEDIA GUIDE
This is a comprehensive primer on candidates' and citizens' rights -=20
broadcasters' obligations - during the 2004 election season. This Guide is=
=20
designed to be a hands-on resource for all those involved in political=20
broadcasting, including advertising and news coverage, during federal=20
elections - candidates, media buyers, ad makers, broadcasters and citizen=20
organizations alike. The Guide includes the most recent Federal=20
Communications Commission and Federal Election Commission regulations=20
regarding the application of the new campaign finance laws (the Bipartisan=
=20
Campaign Reform Act of 2002, or "McCain-Feingold") as well as other new=20
requirements and rules. Features within the Guide include: 1)=20
Identification of candidates' rights to airwaves during election season, 2)=
=20
Descriptions of broadcasters, cable operators, and Digital Broadcast System=
=20
(DBS) operators political discourse obligations, 3) Case studies of=20
successful and unsuccessful challenges of broadcaster actions, 4) Important=
=20
contact information for filing informal and formal complaints, 5) Detailed=
=20
analysis of broadcast station political files and available information for=
=20
candidates and citizens, and 6) Sponsorship identification requirements for=
=20
both the FEC and FCC including sample language.
[SOURCE: Campaign Legal Center]
http://www.campaignlegalcenter.org/attachment.html/CLC_MediaGuide+%28FIN...
9.pdf?id=3D1121
CABLE
WHY I'M FILING CHAPTER 11
Cable, phone and video provider RCN will be filing Chapter 11 bankruptcy in=
=20
the next couple of weeks, the company's CEO writes. Why? "The cable=20
industry remains in the grip of a monopoly mindset. Despite all the=20
innovation, the surge in new players, and the billions of dollars lost=20
since the passage of the 1996 Telecom Act, cable rates have soared 40% and=
=20
the industry giants continue to think in terms of how to dominate markets=20
rather than of how to drive innovation. The bankruptcies that sidelined so=
=20
many upstart cable providers have effectively spared the cable incumbents=20
from facing competitive pressures -- at least for the moment." The cable=20
business model relies on local service monopolies; closed, proprietary=20
technology to inhibit open competition; and packaging programming -- which=
=20
the cable operators own -- so that consumers have to buy channels they=20
don't want, so they can get the channels they do want. McCourt predicts the=
=20
next wave in telecom: companies that bring Voice-over-IP technology to the=
=20
cable world, creating "Video-over-IP" competitors who change the way=20
customers bring television into their homes. That possibility should worry=
=20
today's cable giants who have been ignoring the logic of economics, the=20
possibilities of technology and the interests of consumers for far too long.
[SOURCE: Wall Street Journal, AUTHOR: David McCourt, chairman and CEO of=20
RCN Corporation]
http://online.wsj.com/article/0,,SB108509359741217460,00.html?mod=3Dtoda...
s_opinion
(requires subscription)
ADELSTEIN OPPOSED TO BRAND X APPEAL
Two weeks ago, Comcast CEO Brian Roberts told the Senate Commerce Committee=
=20
the Brand X case was one of the biggest regulatory risks facing his=20
industry. The uncertainty was heightened, he added, by the fact that it was=
=20
unclear whether the Department of Justice would ask the Supreme Court to=20
overturn the decision by the U.S. Court of Appeals for the Ninth Circuit=20
ruling that cable-modem service is partly an information service and partly=
=20
a telecommunications service. Although information services are largely=20
unregulated, telecommunications-service providers are required to make=20
their transport facilities available on nondiscriminatory terms and=20
conditions -- forced-access mandates that cable has been fighting for=20
years. Yesterday, FCC Commissioner Jonathan Adelstein told reporters he=20
does not support the DOJ joining in the cable industry's appeal of the=20
case. =93I really don't see any reason myself to seek [Supreme Court review]=
=20
on the case,=94 Commissioner Adelstein said. =93I think we can operate=
within=20
the bounds of that decision and accomplish the goals of deregulation=20
through other means, such as forbearance.=94 Commissioner Adelstein believes=
=20
the FCC needs to move away from the classification debate and "get to the=20
real point of how do you treat these services under the rules." At stake is=
=20
the legal right of competing Internet-service providers such as EarthLink=20
to lease bandwidth from cable operators at wholesale rates. The deadline to=
=20
file with the Supreme Court is June 29. A few weeks ago, FCC chairman=20
Michael Powell declined to reveal whether he had secured DOJ cooperation in=
=20
taking the case -- know as Brand X Internet Services vs. FCC -- to the high=
=20
court.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA419948?display=3DBreaking+News
(requires subscription)
SPECTRUM
FCC'S POWELL RETRACTS VOTE ON NEXTEL SPECTRUM REQUEST
Because of interference with emergency response radio systems caused by=20
Nextel's mobile phone service, the company devised a plan that would pay=20
the cost of relocating public safety radio services to a different portion=
=20
of the 800 Megahertz band, where both Nextel and the police radios operate,=
=20
and require the company to give up some of its airwaves in the 800 MHz=20
range in exchange for airwaves in the 1.9 Gigahertz band. But the rest of=20
the wireless industry has bitterly opposed the grant of 1.9 GHz spectrum.=20
The 10 MHz swath is the last remaining nationwide chunk in a band used by=20
most mobile phone providers. In March, FCC Chairman voted his support for=20
the Nextel "consensus" plan, but he has now withdrawn it. Chairman Powell=20
is considering granting Nextel spectrum in the 2.1 GHz range. Nextel has=20
opposed the idea for a variety of reasons, citing cost of adapting=20
equipment, inferior propagation characteristics of the band, and the fact=20
that some competitors are incumbent users on the band who would have to be=
=20
moved.
[SOURCE: Wall Street Journal, AUTHOR:Mark Wigfield=20
mark.wigfield( at )dowjones.com ]
http://online.wsj.com/article/0,,SB108508816822717284,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
WP: http://www.washingtonpost.com/wp-dyn/articles/A43621-2004May20.html
(requires registration)
POWELL: WIRELESS VITAL TO BROADBAND FUTURE
At the FCC Wireless Broadband Forum earlier this week, FCC Chairman Powell=
=20
said the Commission is looking at reallocating spectrum for broadcast=20
television to wireless and expanding bands in the 5GHz range to help meet=20
President Bush's goal of universally available broadband by 2007. These=20
goals "only will be met by the use of every possible tool in our broadband=
=20
tool kit," Chairman Powell said. "It will be critical that wireless play a=
=20
major role in our ability to provide these benefits to the American=20
consumer." Chairman Powell added that wireless has certain technical=20
advantages that allow companies to reach consumers in ways that wired=20
services can't. And by not relying on any one technology, the threat of=20
monopoly control and bottlenecks can be avoided. "From Day 1, we have been=
=20
working hard to change the traditional 'command and control' approach that=
=20
does not respect innovation and the need to move spectrum to its highest=20
and best uses. The bottom line is: All the raw material is there, the=20
recognition is there, and the understanding of its importance has begun to=
=20
gel," Chairman Powell said. "Now, all that is left is the easy part of=20
actually making it happen."
[SOURCE: C-Net|News.com, AUTHOR: Richard Shim]
http://news.com.com/Powell%3A+Wireless+vital+to+broadband+future/2100-10...
-5217044.html?tag=3Dnefd.hed
See full remarks at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-247411A1.doc
TELECOM
SPRINT'S ROLE AS WHOLESALER: 'ARMS DEALER' TO THE INDUSTRY
Volume, volume, volume. Sprint is moving to a business model of selling its=
=20
telecommunications services at a deep discount to other companies, which=20
then turn around and sell the service under their own brands -- competing=20
against Sprint. The next big customers on Sprint's horizon are telephone=20
companies who want to offer a complete bundle to customers -- local,=20
long-distance and wireless phone, high-speed Internet and TV service. "I do=
=20
see a year from now, a number of cable companies will see that wireless is=
=20
not only a very valuable service to offer, but required service to fulfill=
=20
some customers for the bundle," says Len J. Lauer, Sprint's president and=20
chief operating officer. Sprint has invested billion in expanding the=20
capacity of its networks and is trying to ensure a return on that=20
investment. But some analysts are scratching their heads. Sprint's "selling=
=20
point is they can offer an integrated bundle of services to large=20
enterprises, including wireless, which set them apart from the MCIs and=20
AT&Ts of the world -- now they've lost that advantage," said Patrick=20
Comack, a telecommunications analyst at Guzman & Co., an investment banking=
=20
firm that does work for Sprint. "It's basically giving your enemy another=20
weapon to defeat you."
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB108508486331117175,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
NEW YORK CLASSIFIES VONAGE AS PHONE COMPANY
In October 2003, a federal judge rejected an attempt by Minnesota's Public=
=20
Utilities Commission to regulate Vonage, saying its services fell outside=20
the traditional definition of a phone company. But on Wednesday, the New=20
York State Public Service Commission ruled that Vonage is a telephone=20
company and is thus subject to state regulation. The PSC added that it=20
hopes to apply "only minimal regulations to ensure that it does not=20
interfere with the rapid, widespread deployment of new technologies."
"While today's decision means that Vonage will be subject to some form of=20
regulation, we are limiting the effect of our decision to allow Vonage an=20
opportunity to address the framework of that regulation," PSC Chairman=20
William Flynn said in a statement.
[SOURCE: C-Net|News.com, AUTHOR: Evan Hansen]
http://news.com.com/New+York+classifies+Vonage+as+phone+company/2100-735...
5216639.html?tag=3Dnefd.top
INTERMODAL COMPETITION IN TELECOM: A VISION, NOT A REALITY
Are rules requiring the baby Bells to lease the elements of their networks=
=20
still necessary with all the phone choices consumers have? Yes, is the=20
answer of this report. Many of those choices are a vision, not a reality.=20
VoIP (Voice over Internet Protocol), which enables consumers to use their=20
broadband connection to make phone calls, is highly promising, but in its=20
infancy: only a few hundred thousand Americans now use VoIP as their main=20
residential phone service. Fiber to the home, which could greatly increase=
=20
communications options for consumers, also is in a start up phase.=20
Broadband over power lines consists of a few small pilot programs. Phone=20
over cable TV lines is available in only a handful of markets. And for most=
=20
Americans, cell phones are a complement, not a substitute, for the nation=92=
s=20
183 million copper phone lines.
[SOURCE: CompTel/ASCENT]
http://www.comptelascent.org/public-policy/federal-regulatory/documents/...
/intermodal_res_guide_may19_2004.pdf
CompTel/ASCENT is the largest association representing facilities-based=20
carriers, providers using unbundled network elements, global integrated=20
communications companies, and their supplier partners.
FCC'S NUMBER PORTABILITY RULE LIKELY TO HURT RURAL CARRIERS
Starting Monday, cellphone customers in small and midsize markets will gain=
=20
the same right their big-market cousins enjoy: They'll get to keep their=20
numbers when they switch carriers. Analysts think this could cause a wave=20
of defections from small carriers to large companies like Verizon and=20
Sprint. But about 900, or 90%, of rural wireline companies have asked state=
=20
regulators for delays of several months.
[SOURCE: USAToday, AUTHOR:Paul Davidson]
http://www.usatoday.com/usatonline/20040521/6223180s.htm
INTERNET
CAN-SPAM ACT
Members of the Senate Commerce Committee heard testimony on the=20
effectiveness of the CAN-SPAM Act and the anticipated effect of new=20
anti-spam initiatives in curtailing the delivery of unwanted e-mail, known=
=20
as spam, to consumers. See links to testimony at the URL below.
A report on the hearing from Reuters (see link below) focuses on the=20
comments of spammer Ron Scelson who said he is now complying with the law,=
=20
but would start using deceptive tactics if large Internet Service Providers=
=20
like America Online continue to block his messages. He sends out=20
approximately 30 million messages a day (one-third of which are apparently=
=20
targeted at this email address) promoting a range of businesses from eBay=20
to car warranties.
[SOURCE: US Senate]
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1199
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DYRCHBSP1B1NHQCRBAE...
A?type=3DinternetNews&storyID=3D5210736
See a similar article in the Washington Post
http://www.washingtonpost.com/wp-dyn/articles/A43622-2004May20.html
(requires registration)
See Also:
CAN-SPAM LAW NOT DOING THE JOB, SENATE COMMITTEE TOLD
Since the federal anti-spam law went into effect in January, consumers=20
appear to be receiving as much unwanted e-mail as ever, and Congress should=
=20
refine the law to make it more effective in blocking spam, the president of=
=20
Consumers Union testified today before a Senate committee. Jim Guest,=20
president of the non-profit publisher of Consumer Reports, told the Senate=
=20
Commerce Committee that 80 percent of respondents in a national online=20
survey conducted by the magazine reported no reduction in spam during the=20
three months after the law went into effect. About two-thirds also noted=20
that spam comprised at least half of their e-mails. =93In order to truly=20
can-spam, Congress will need to update the law to keep abreast of new=20
developments in technology, such as wireless spam, and keep on the trail of=
=20
elusive spammers who are finding new ways to beat spam filters and evade=20
anti-spam technologies,=94 Guest said. Guest said the magazine recommended=
to=20
policymakers in August that the law allow consumers to =93opt-in=94 to spam=
=AD=20
meaning they must give their permission to be e-mailed. However, the law=20
Congress passed only allows consumers to =93opt-out=94 of spam =AD meaning a=
=20
consumer must respond to each unwanted e-mail and ask not to be sent the=20
messages. =93We recommend consumers not click on unsubscribe or =91opt-out=
=92=20
links, as this may signal a spammer that the user=92s e-mail address works,=
=20
causing them to get more spam,=94 Guest said. =93Unfortunately, this leaves=
=20
users in a difficult position with perhaps no real remedy against spam for=
=20
the time being. =93Our bottom line is Congress should not place the burden=
on=20
consumers to fight the flood of spam, the burden should be on the=20
marketers,=94 he said. =93If we can stop solicitors from ringing our=
doorbells,=20
if we can stop solicitors from calling us at home, then there should be the=
=20
same protection in our view to stop spam.=94
[SOURCE: Consumers Union Press Release]
http://www.consumersunion.org/pub/core_telecom_and_utilities/001138.html...
e
WWW CONFERENCE MULLS WEB AS PERSONAL MEMORY STORE
Imagine you could recall every interesting conversation you have ever held=
=20
in your life -- every waking moment even. Some of us think we can (or did=20
before we had children, of course). But with advances in digital recording=
=20
and storage devices, one day we might be able to access any moment from our=
=20
lives instantly. Top Internet researchers attending the annual World Wide=20
Web conference in New York this week are wondering what it will mean. Now=20
that I've piqued your interest, there's other topics being covered, too,=20
like how to create a smarter "back" button on Internet browsers. Check it=20
out at http://www.www2004.org
[SOURCE: Reuters, AUTHOR: Eric Auchard]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DZUFN5Q4TAVEAGCRBAE...
A?type=3DtechnologyNews&storyID=3D5209463=20
--------------------------------------------------------------
Have a great weekend!
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. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
For upcoming media policy events, see http://www.benton.org/calendar.htm
--------------------------------------------------------------