Next week, the FCC will hear from the Advisory Committee on Diversity for=20
Communications in the Digital Age and a House subcommittee will look at=20
problems with the E-rate program. But Headlines will not be back to remind=
=20
you until WEDNESDAY JUNE 16. For upcoming media policy events, see=20
http://www.benton.org/calendar.htm
NEWS FROM THE FCC
FCC Chair to Pen New Phone-Line Rules
Long-Distance Carriers Take a Blow, but It's No Knockout
Deployment of Wireless Broadband Services
Inquiry Concerning Report to Congress on Video Competition
Spectrum Sharing Plan
QUICKLY
Univision Sues to Stop TV Rating System in Los Angeles
FTC: All Eyes on Consumer Privacy
Health of US Democracy Tied to New Model for Public Access to
Online Information
NEWS FROM THE FCC
FCC CHAIR TO PEN NEW PHONE-LINE RULES
On Thursday, FCC Chairman Michael Powell announced plans to draft new rules=
=20
for leasing access to the local telephone carriers' networks after the Bush=
=20
administration decided not to defend the old ones. "We will begin=20
immediately," he told reporters after the agency's monthly open meeting.=20
"I'm quite optimistic with the new guidance and, understanding what our=20
limits are, we'll be relatively expeditious at this." Chairman Powell hopes=
=20
to have new rules by the end of the year. "My goal will be to do something=
=20
that will limit disruption and will be as simple and as easy to execute as=
=20
possible," Chairman Powell said. He added that the agency has several=20
options available from its past attempts to rewrite the rules. One analyst=
=20
said the agency would likely have a hard time fashioning interim rules that=
=20
would satisfy the Bells. "From a Bell perspective, they think the rules are=
=20
going away in a few days," said Legg Mason analyst Blair Levin. "The=20
question is, are there any burdens the Bell guys will find OK?"
[SOURCE: Reuters]
http://news.com.com/FCC+chair+to+pen+new+phone-line+rules/2100-1037_3-52...
1.html?tag=3Dnefd.top
Also see:
STATES' BIG ROLE IN PHONE RATES MAY BE ONLY A CAMEO
If the Supreme Court does not entertain an appeal concerning the FCC's=20
phone competition rules (and most expect it will not intervene), then=20
states will have authority to oversee commercial negotiations and=20
arbitration to set new phone network leasing rates. But their authority may=
=20
be short-lived. In the long run, the new position of the commission and the=
=20
Bush administration could make state regulators the biggest losers.
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2004/06/11/business/11regs.html
(requires registration)
WSJ=20
http://online.wsj.com/article/0,,SB108690495206534344,00.html?mod=3Dtoda...
s_marketplace
LATimes=20
http://www.latimes.com/business/printedition/la-fi-phones11jun11,1,30897...
tory?coll=3Dla-headlines-pe-business
LONG-DISTANCE CARRIERS TAKE A BLOW, BUT IT'S NO KNOCKOUT
Phone companies like AT&T, MCI and Sprint, with their long-distance=20
businesses in trouble, suffered a big blow on Wednesday with the Bush=20
administration's decision to side with the regional Bell companies on the=20
issue of local access fees. But that decision is unlikely to cause any=20
immediate consolidation in the industry or damage the long-distance giants=
=20
as quickly or harshly as they have predicted, industry analysts said. That=
=20
is because those carriers have been pushing to develop new sources of=20
revenue, the analysts said, and this week's bad news will most likely=20
accelerate those efforts. Legal challenges by the long-distance carriers,=20
state governments and others could also delay any damage.
[SOURCE: New York Times, AUTHOR: Ken Belson & Matt Richtel]
http://www.nytimes.com/2004/06/11/business/11phone.html
(requires registration)
Also coverage in:
WSJ=20
http://online.wsj.com/article/0,,SB108690160089634192,00.html?mod=3Dtoda...
s_marketplace
See Also
PHONE FIRMS APPEAL OVER LOCAL ACCESS
[SOURCE: Washington Post, AUTHOR: Christopher Stern]
http://www.washingtonpost.com/wp-dyn/articles/A32762-2004Jun10.html
(requires registration)
DEPLOYMENT OF WIRELESS BROADBAND SERVICES
As part of its ongoing efforts to promote the deployment of wireless=20
broadband services, the FCC adopted a Report and Order (Order) and Further=
=20
Notice of Proposed Rulemaking (Further Notice) that transforms the rules=20
governing the Multipoint Distribution Service (MDS) and Instructional=20
Television Fixed Service (ITFS) in the 2495-2690 MHz band. These rules=20
provide greater flexibility and a more functional band plan for licensees.=
=20
In the Order, the FCC takes a number of important steps to restructure the=
=20
2495-2690 MHz band and facilitate more efficient use of the=20
spectrum. First, the Order creates a new band plan for 2495-2690 MHz which=
=20
eliminates the use of interleaved channels by MDS and ITFS licensees and=20
creates distinct band segments for high power operations, such as one-way=20
video transmission, and low power operations, such as two-way fixed and=20
mobile broadband applications. By grouping high and low power users into=20
separate portions of the band, the new band plan reduces the likelihood of=
=20
interference caused by incompatible uses and creates incentives for the=20
development of low-power, cellularized broadband operations, which were=20
inhibited by the prior band plan. In order to reflect these new=20
opportunities for providing broadband service, today's Order renames the=20
MDS service the Broadband Radio Service (BRS), while maintaining the ITFS=20
label for ITFS licenses and operations. The Order also expands the original=
=20
MDS-ITFS band by adding to it five megahertz of additional spectrum from=20
below 2500 MHz, which increases the total size of the band to 194=20
megahertz. This will provide room for the future relocation of MDS Channels=
=20
1 and 2, which are presently located in the 2.1 GHz band. The Order retains=
=20
the existing eligibility rules for ITFS spectrum. Therefore, ITFS licenses=
=20
in the new band plan will continue to be subject to existing rules that=20
limit eligibility for licensing to qualified educational institutions. The=
=20
Order also allows ITFS licensees to lease spectrum to BRS providers,=20
provided they comply with existing educational content requirements, and=20
grandfathers all existing MDS-ITFS leases. In addition, the Order lifts=20
all non-statutory eligibility restrictions on BRS spectrum, including those=
=20
applicable to cable operators. However, the cable/BRS cross-ownership=20
restriction prohibiting cable operators from providing multichannel video=20
programming distribution (MVPD) services using BRS licenses, which is=20
mandated by statute, will remain in effect. The Order establishes simpler=20
and more flexible rules for licensees, including geographic area licensing=
=20
and the ability to employ the technology of their choice. In addition, the=
=20
new rules allow for spectrum leasing under the FCC's secondary market=20
rules, but grandfather all existing leasing arrangements between MDS and=20
ITFS licensees. Finally, the Order establishes a mechanism for transition=20
from the existing band configuration to the new band plan. BRS and ITFS=20
providers will have a three-year period during which they may propose=20
transition plans for relocating existing facilities of all other licensees=
=20
within the same Major Economic Area (MEA) to new spectrum assignments in=20
the revised band plan. Plan proponents must notify all licensees in the=20
MEA and file their plans with the Commission. This will trigger a 90-day=20
Transition Planning Period during which licensees negotiate and coordinate=
=20
their transition with other licensees in the MEA. Transitions to the new=20
band plan must be completed within 18 months of the conclusion of=20
negotiations. In the Further Notice, the Commission seeks comment on=20
alternative transition options for markets in which no transition plan is=20
proposed within the initial three-year period. Among other options, the=20
Further Notice seeks comment on whether to accomplish the transition in=20
such markets by offering existing licensees tradable instruments that they=
=20
can use to bid for spectrum at auction.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-248267A1.doc
See coverage in:
WSJ=20
http://online.wsj.com/article/0,,SB108688250788033800,00.html?mod=3Dtoda...
s_marketplace
WP http://www.washingtonpost.com/wp-dyn/articles/A32706-2004Jun10.html
INQUIRY CONCERNING REPORT TO CONGRESS ON VIDEO COMPETITION
The FCC initiated its 11th annual inquiry, as required by Congress, into=20
the status of competition in the market for the delivery of video=20
programming. The Notice of Inquiry is designed to assist the FCC in=20
gathering the information, data, and comments for the 2004 Competition=20
Report. In the 2004 Competition Report, the FCC expects to report on=20
changes in the competitive environment over the last year. The NOI seeks=20
information that will allow the FCC to evaluate the status of competition=20
in the video marketplace, changes in the market since the 2003 Report,=20
prospects for new entrants to that market, factors that have facilitated or=
=20
impeded competition, and the effect of competition on industry groups and=20
most importantly, consumers. The Notice seeks comments and information on=20
video distributors in the market for the delivery of video programming=20
including those using both wireline and wireless technologies. Video=20
programming distributors include cable systems, direct broadcast satellite=
=20
(DBS) providers, home satellite dish providers, broadband service=20
providers, private cable or satellite master antenna television systems,=20
open video systems, multichannel multipoint distribution services or=20
wireless cable systems (MMDS), local exchange carrier (LEC) systems,=20
utilities, and over-the-air broadcast television stations. Video=20
programming is also distributed on videocassettes and DVDs through retail=20
distribution outlets and over the Internet. The Notice also requests=20
information that will allow the FCC to evaluate horizontal concentration in=
=20
the video marketplace, vertical integration between programming=20
distributors and programming services, and other issues relating to the=20
programming available to consumers. The Notice requests information on=20
technical issues, including equipment and emerging services. The Notice=20
further asks for comments regarding developments in foreign markets, as=20
they may contribute to the FCC's understanding of domestic markets.
The 2004 Competition Report should be sent to Congress by the end of the=
year.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-248338A1.doc
SPECTRUM SHARING PLAN
The FCC adopted a spectrum sharing plan for low earth orbit satellite=20
systems (Big LEOs) in the 1.6 GHz and 2.4 GHz bands. The spectrum sharing=
=20
plan will further the Commission's goal of efficient spectrum utilization=20
by increasing the number of providers offering services to consumers over=20
the same spectrum, and will promote the deployment of more innovative=20
services to consumers.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-248343A1.doc
QUICKLY
UNIVISION SUES TO STOP TV RATING SYSTEM IN LOS ANGELES
Univision Communications filed a lawsuit in Los Angeles Superior Court on=20
Wednesday, seeking to stop Nielsen from introducing electronic devices=20
known as local people meters to gather ratings data in Los Angeles, where=20
they are scheduled to begin July 8. Univision, the country's largest=20
Spanish-language television broadcaster, contends in its lawsuit that=20
Nielsen is engaging in unfair, unlawful and deceptive business practices=20
because the changes would significantly undercount Univision's core viewers=
=20
in Los Angeles: Hispanics who are younger, in large families and speak=20
mostly Spanish rather than mostly English.
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
http://www.nytimes.com/2004/06/11/business/media/11nielsen.html
(requires registration)
FTC: ALL EYES ON CONSUMER PRIVACY
According to Director of Consumer Protection Howard Beales, the Federal=20
Trade Commission plans to make consumer privacy rights a higher priority.=20
The FTC is gearing up to bring more privacy-related cases against Internet=
=20
operators, with one expected in the coming weeks.
[SOURCE: C-Net|News.com, AUTHOR: Stefanie Olsen]
http://news.com.com/FTC%3A+All+eyes+on+consumer+privacy/2100-1024_3-5230...
html?tag=3Dcd.top
HEALTH OF U.S. DEMOCRACY TIED TO NEW MODEL FOR PUBLIC ACCESS TO ONLINE=20
INFORMATION
The Free Expression Policy Project released "The Information Commons", a=20
report that links the vitality of 21st century democracy to the creation of=
=20
online communities dedicated to producing and sharing information. The=20
report begins: =93For democracy to flourish, citizens need free and open=20
access to information. In today=92s digital age, this means access to=20
information online.=94 The information commons movement promoted by the=20
report recognizes that public access to online information is being damaged=
=20
by a combination of restrictive technology, unbalanced changes to=20
intellectual property law, onerous licenses, and media industry=20
consolidation. Essential ingredients for a healthy democracy =AD political=
=20
discourse, free speech, civic participation, and creativity =AD all suffer=
as=20
a result. According to the report, these threats to democracy can be=20
remedied, or at least dampened, by adopting the emerging concept of the=20
information commons.
Nancy Kranich, a former president of the American Library Association, is=20
the report=92s author.
[SOURCE: Brennan Center for Justice at NYU School of Law/Press Release]
http://www.brennancenter.org/presscenter/releases_2004/pressrelease_2004...
8b.html
http://www.fepproject.org/policyreports/infocommons.contentsexsum.html
--------------------------------------------------------------
...and we are outta here. Have a great weekend. We'll be live from the home=
=20
office on K Street come Wednesday.
--------------------------------------------------------------