The DTV transition, FTC and Commerce Department nominations, Satellite Home=
=20
Viewer Extension and Reauthorization Act... Congress is back and you're=20
going to be in trouble. Hey la, hey la, our Congress is back.
For these and other upcoming media policy events (we promise to NOT sing=20
about them), 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. 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.
TELECOM
Could Telephone Rates Become a Campaign Issue?
Phony Federalists
Qwest and MCI Set Lease Rates For Local Service
Bells Loosen Their Grip
MEDIA
XM Asks Subscribers to help Petition the FCC, Congress
Political Payoffs
Congress and FCC Take Aim
Hill Pushes Narrated TV For Blind
FCC Begins EEO Audits
Cable Gears up for Digital-ready TV Sets
QUICKLY
Public Voice WSIS Sourcebook
Truckers Warm to Wireless Hot Spots
TELECOM
COULD TELEPHONE RATES BECOME A CAMPAIGN ISSUE?
Gas, milk and... local telephone service? Washington insiders are wondering=
=20
if and when someone will pull the trigger linking the Bush Administration=20
to rising prices. Even though many people can't even understand their phone=
=20
bills, a decision by the Bush Administration to not seek a Supreme Court=20
review of an appeals court ruling on phone network leasing rates could,=20
well, decide the election. In the eyes of Blair Levin, an analyst at=20
investment firm Legg Mason, the issue has the potential to sway the=20
presidential race in four closely contested states: Ohio, Florida,=20
Pennsylvania and Michigan. Thanks to aggressive state regulation, Ohio and=
=20
Michigan consumers have seen telecom competition flourish and phone bills=20
shrink. Therefore, Levin said, any rate increases might influence their=20
vote for president. Similarly, the recent public outcry in Florida over a=20
proposed rate hike might inflame voters again. With a close election=20
predicted, a swing of 10,000 to 20,000 voters in any one of the four states=
=20
might be enough to determine the election, Mr. Levin said. "It's not clear=
=20
the Bush administration controls gas prices," he said, "but one could argue=
=20
that they have more control over phone rates." A trade group representing=20
Bell competitors called CompTel/ASCENT is "seriously thinking" about an ad=
=20
blitz on phone rates as is AARP, a nonprofit advocacy organization for=20
people 50 and older.
[SOURCE: Los Angeles Times, AUTHOR:Jube Shiver Jr]
http://www.latimes.com/business/printedition/la-fi-presphone1jun01,1,665...
.story?coll=3Dla-headlines-pe-business
PHONY FEDERALISTS
This op-ed strongly supports FCC Chairman Michael Powell's stand on=20
(de)regulating the rates telephone companies charge competitors to lease=20
parts of their networks. Over Chairman Powell's objections, the FCC adopted=
=20
rules allowing states to set those rates, but a federal court found the=20
rules to be "lawless," the authors write. They ask that the FCC and=20
Solicitor General Theodore Olson not seek Supreme Court review of a March 2=
=20
decision by the U.S. Court of Appeals in Washington, D.C.: "The appeals=20
court decision should stand. Deregulation works, recent history proves it,=
=20
and a proper understanding of the principle known as federalism supports=20
it." They conclude: "This is more than a communications industry issue. It=
=20
is part of a much larger argument over the proper role of states in the=20
regulatory process, and how to limit government interference in competitive=
=20
markets. Federalism is a treasured principle that is crucial for=20
maintaining balance between competing governmental powers, and for=20
fostering a dynamic economic environment. Properly applied, it can open the=
=20
American economy to a new birth of growth -- growth in new learning tools=20
for schools and universities; growth in access to the very best medical=20
consultation for people in remote areas as well as in big cities; growth in=
=20
new technologies as we harness the greater bandwidth to the greater dreams=
=20
of inventors and entrepreneurs; growth that benefits every worker and=20
family in our nation. The real federalism we speak of increases freedom --=
=20
and with it the fruits of freedom."
[SOURCE: Wall Street Journal, AUTHORS: John Engler, the former governor of=
=20
Michigan (1991-2003), C. Boyden Gray, former counselor to the President's=20
Task Force on Regulatory Relief (1981-1989), and Kenneth Starr, the=20
incoming dean of the Pepperdine Law School.]
http://online.wsj.com/article/0,,SB108605009909825376,00.html?mod=3Dtoda...
s_opinion
(requires subscription)
Mr. Starr will be speaking tomorrow on "The Supreme Court and the Future of=
=20
the Telecom Act of 1996." See=20
http://www.pff.org/news/news/2004/052704starr.html for details.
QWEST AND MCI SET LEASE RATES FOR LOCAL SERVICE
Instead of heading to the family BBQ, representatives of the nation's=20
largest phone companies were requested by FCC officials to spend the=20
holiday weekend at the Commission's Washington, DC headquarters negotiating=
=20
network lease rates. The FCC was hoping for a negotiated solution to the=20
leasing dispute -- instead of sending the matter back to the courts. The=20
results were mixed. AT&T called the talks a failure. But Qwest and MCI=20
signed a pact outlining a series of wholesale rates Qwest will charge MCI=20
to lease its network to offer local phone service to consumers and=20
businesses, overriding rates set by regulators. The deal calls for existing=
=20
prices through the end of this year, followed by a transition period=20
through January 2007. The two companies say there will be price increases=20
at scheduled points throughout the transition period. During the transition=
=20
period, MCI may develop more of its own means to deliver local phone=20
service by building its own telecom hubs.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com]
http://online.wsj.com/article/0,,SB108604238029125198,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
WP: http://www.washingtonpost.com/wp-dyn/articles/A5137-2004May31.html
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-phones1jun01,1,779114...
ory?coll=3Dla-headlines-pe-business
BELLS LOOSEN THEIR GRIP
Last week's admission that Verizon is selling "naked DSL" to some customers=
=20
is the jumping off point for this discussion on the business strategies of=
=20
the four Baby Bell companies. Allowing customers to buy high-speed Internet=
=20
access without requiring them to also purchase local phone service is a big=
=20
move for the Bells who are trying to match the bundle of services offered=20
by cable companies. The Bells are servicing fewer and fewer local phone=20
lines and they are trying to find new models of profitability as that trend=
=20
is expected to consider: people are choosing cell phone service over=20
landline service for second telephone lines, 30% of consumers are expected=
=20
to make the jump to cell phone-only service in the next four years AND=20
there's this whole VoIP thing to worry about, too. What's a local monopoly=
=20
to do?
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/Bells+loosen+their+grip/2100-1034_3-5222816.html?tag...
efd.top
MEDIA
XM ASKS SUBSCRIBERS TO HELP PETITION THE FCC, CONGRESS
Comments are due Friday on a National Association of Broadcasters petition=
=20
asking the FCC to clarify that satellite radio can be only national and not=
=20
offer local weather and traffic to subscribers. In addition, legislation=20
also has been introduced in the House to prohibit local broadcasting by=20
satellite. To ward off these efforts by the National Association of=20
Broadcasters, XM radio is asking subscribers to contact the FCC and their=20
Members of Congress in support of the company. "NAB=92s preference is that=
we=20
not have dedicated channels for different metro areas. What that amounts to=
=20
is regulating speech and content and that=92s a First Amendment issue and=
not for
NAB to decide," a XM spokesperson said.
[SOURCE: Communications Daily, AUTHOR: Jeanene Timberlake]
(Not available online)
POLITICAL PAYOFFS
Early results of the 2004 election have identified clear winners: TV=20
stations. Network affiliates in the 21 battleground states could see=20
double-digit increases in political revenue, compared with this point in=20
2000. Industry analysts predicted last fall that stations' take from this=20
year's election would jump sharply=9760% from 2000=97to as high as $1.6=20
billion. But pundits seem surprised that so much has been spent so quickly.=
=20
"The money is much greater than before and being spent much earlier," says=
=20
Tim McAuliff, CEO of Petry Media, which links TV-station groups with the=20
campaigns and other buyers of ad time. Cable is likely to pick up steam as=
=20
the campaigns become more desperate to reach that crucial 4% of undecided=20
voters who will determine the election's outcome. Broadcasters will=20
continue to reap a windfall as candidates sustain a full-court press. In=20
addition, the controversial 527 nonprofit organizations have promised to=20
spend hundreds of millions. They have barely made a dent in the money=20
pledged to them. Says Sanford Bernstein & Co. analyst Tom Wolzien, "The=20
cost per thousand to reach the three voters who decide this election is=20
astronomical."
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA421960?display=3DWashington
(requires subscription)
USAToday is reporting on George Soros' efforts to defeat George Bush. His=20
money will buy a lot of political advertising.
[SOURCE: USAToday, AUTHOR: Rick Hampson]
http://www.usatoday.com/usatonline/20040601/6248227s.htm
http://www.usatoday.com/usatonline/20040601/6248221s.htm
CONGRESS AND FCC TAKE AIM
Although indecent broadcast content has grabbed most of the headlines this=
=20
year -- at least after the Super Bowl -- violence on TV may be the next=20
election year issue. "It is not harmless entertainment," complains Sen Joe=
=20
Lieberman, a longtime critic of TV violence. To finally put a muzzle on it,=
=20
the Connecticut Democrat is pushing legislation that would require the=20
National Institutes of Health to study the impact of TV violence and other=
=20
types of media exposure on children's development. His purpose is clear:=20
Data showing any link between exposure to violent shows and aggressive=20
behavior in children will be fuel to drive anti-violence restrictions=20
through. Some legislators would like to see the return of a family-friendly=
=20
prime time viewing period that would lack violent or indecent content. The=
=20
FCC will begin an examination into TV-violence that will focus on whether=20
the government can limit violent programs without violating free-speech=20
rights. If those constitutional issues can be resolved, then the FCC must=20
decide how tough the limits should be. The biggest quandary over regulating=
=20
TV violence is actually defining what "excessive" violence is. Privately,=20
Washington lobbyists are playing down chances of any crackdown passing=20
Congress or the FCC soon. In public, however, they're scrambling to show=20
that the issue is taken seriously.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA422019?display=3DSpecial+Report
(requires subscription)
HILL PUSHES NARRATED TV FOR BLIND
Rep Ed Markey (MA), the House Telecommunications Subcommittee=92s top=20
Democrat, along with John McCain (AZ) and Ernest Hollings (SC) -- the=20
chairman and ranking Democrat, respectively, of the Senate Commerce=20
Committee -- have introduced legislation giving the FCC power to reinstate=
=20
its rules requiring narration of some prime time and children=92s=
programming=20
on broadcast and cable TV. The rules were adopted in 2000, but broadcasters=
=20
sued and a court ruled that the FCC was authorized by Congress only to=20
study whether a narration mandate would benefit the blind, not to actually=
=20
impose one.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA421799?display=3DBreaking+News
(requires subscription)
FCC BEGINS EEO AUDITS
On May 28, 2004, the Federal Communications Commission (FCC) began mailing=
=20
the first of its Equal Employment Opportunity (EEO) audit letters to=20
randomly selected broadcast stations and multi-channel video program=20
distributors (MVPDs). In accordance with the Commission's EEO rules, the=20
FCC will audit the EEO programs of randomly selected broadcast licensees=20
and MVPDs. Each year, approximately 5% of all licensees and MVPDs will be=
=20
selected. Sample copies of the audit letters can be viewed by accessing the=
=20
Media Bureau's EEO page on the FCC website at=20
http://www.fcc.gov/mb/policy/eeo. A list of the stations and MVPDs to=20
which this group of letters were sent is also available on the=20
website. Audit letters will be mailed to additional broadcast licensees=20
and MVPDs at a later date, although the language in the letters will not=20
necessarily remain the same.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-1536A1.doc
CABLE GEARS UP FOR DIGITAL-READY TV SETS
On July 1, the FCC will begin to require that cable TV systems be able to=20
handle a new generation of digital cable-ready TVs and home theater units.=
=20
The new gear can tune in digital and high-definition TV signals without a=20
cable system's proprietary set-top box. Beyond cable-ready TVs, the change=
=20
will make possible a range of new product choices to meet consumers' needs.=
=20
For example, if the box your operator offers lacks a connection for your=20
digital-video recorder, you can buy a different box that does -- or buy a=20
new DVR with a card slot and its own tuner. CableCard's "convenience is a=20
powerful tool to sell digital cable" packages that add about $10 to the=20
monthly bill, says In-Stat/MDR analyst Gerry Kaufhold. It will help cable=20
compete with satellite providers: "Nobody's coming out with a=20
satellite-ready TV."
[SOURCE: USAToday, AUTHOR:David Lieberman]
http://www.usatoday.com/usatonline/20040601/6248466s.htm
More on the DTV transition will be discussed at a House hearing this week.=
=20
See=20
http://energycommerce.house.gov/108/Hearings/06022004hearing1289/hearing...
QUICKLY
PUBLIC VOICE WSIS SOURCEBOOK
EPIC has published The Public Voice WSIS Sourcebook, a resource to promote=
=20
a dialogue on the issues, the outcomes, and the process of the World Summit=
=20
on the Information Society (WSIS). This reference guide provides the=20
official United Nations documents, regional and issue-oriented=20
perspectives, as well as recommendations and proposals for future action.=20
There is also a useful list of resources and contacts for individuals and=20
organizations that wish to become more involved in the WSIS process. For=20
more information about this and other EPIC publications, see the EPIC=20
Bookstore. The Public Voice is a project started by EPIC to promote the=20
involvement of the public and non-profit community in policy decisions=20
concerning the Internet.
[SOURCE: Electronic Privacy Information Center]
http://www.epic.org/bookstore/pvsourcebook/
TRUCKERS WARM TO WIRELESS HOT SPOTS
Citizens' band radios, cell phones, GPS... and now Wi-Fi Internet access.=20
Truckers always appear to be on the cutting edge of wireless communication.=
=20
Find out how these mobile workers are tapping into the Internet at the URL=
=20
below.
[SOURCE: Washington Post, AUTHOR: Kimberly Edds]
http://www.washingtonpost.com/wp-dyn/articles/A4786-2004May31.html
(requires registration)
--------------------------------------------------------------