Benton's Communications-related Headlines for 6/16/04

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. 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.

MEDIA
Stations' Good Deeds Worth $9.6 Billion
A $5 Billion Proposal
Diversity Advisory Committee Adopts Interim Reports
and Recommendations
Eliminating Market Entry Barriers for Small Telecommunications =
Businesses
Piracy Fight Spreads to Radio Airwaves

MEDIA & POLITICS
Voters Are Harder to Reach As Media Outlets Multiply
Gun Group's Radio Show Tests Limits on Advocacy

INTERNET
FTC Declines to Create Do-Not-Spam Registry

MEDIA

STATIONS' GOOD DEEDS WORTH $9.6 BILLION
The National Association of Broadcasters says broadcast stations aired =
$7.3=20
billion worth of public-service announcements (PSAs) and helped raise =
$2.1=20
billion for national and local charities and disaster relief. The latter =

figure includes $158 million for victims of tornadoes, hurricanes,=20
wildfires, and floods. But many regulators and public interest advocates =
do=20
not believe this fulfills broadcasters public interest obligations. FCC=20
Commissioner Michael Powell says he's more interested in what =
programming=20
broadcasters provide to serve communities with the spectrum they receive =

for free. Andrew Schwartzman, of the Media Access Project, dismisses the =

fundraising as cause-related marketing. "It's no different than what =
Giant=20
supermarket does in conjunction with Toys for Tots," he says. "It's not=20
something that is unique or special to broadcasting and would justify =
the=20
free use of the public spectrum. That stuff to me is just feel-good=20
marketing. Sending Bozo the Clown to the hospital doesn't count. It's =
got=20
to be programming." NAB lobbyist Dennis Wharton has heard it all and=20
doesn't like it. "That is the most outrageous assertion you can make," =
he=20
says. "To them, going on the air and raising money for breast-cancer=20
research is not as important as offering a political debate for dog=20
catcher." Mr. Schwartzman also says NAB inflates the value of PSAs. The=20
broadcasters generally use unsold time for the PSAs, he says. The value =
of=20
such time is minimal, yet, he suggests, broadcasters assign it the =
highest=20
possible value in calculating their PSA contribution. According to Mr.=20
Schwartzman, broadcasters have to go beyond the PSAs and the fundraising =

and begin offering "more and better" programming that addresses the =
needs=20
of the community regardless of its commercial attractiveness. "What we =
are=20
looking for is vastly increased service to the community in light of the =

value that broadcasters have been receiving since 1996 when they =
received a=20
second digital channel and greater protection from competition." But the =

NAB's Wharton says broadcasters' public service is second to none: "You =

can look at the amount of money that is raised by foundations, and =
nobody=20
comes close to the billions and billions of dollars that broadcasters =
raise."
[SOURCE: Broadcasting&Cable, AUTHOR: Harry Jessell]
http://www.broadcastingcable.com/article/CA425963?display=3DTop+of+the+We=
ek
(requires subscription)

A $5 BILLION PROPOSAL
Public Broadcasting Service President Pat Mitchell is quietly pushing an =

plan that would free public-TV stations from their annual federal=20
allowance. PBS would get a one-time $5 billion payment from the =
government=20
in return for a 2007 return of spectrum noncommercial stations currently =

use for analog television broadcasts. An auction of these airwaves would =

then generate revenue for the government. But Ms. Mitchell's plan is =
also=20
to deliver more innovative programming to the public and free PBS from=20
finding deep-pocketed, corporate sponsors for programming. "We must =
figure=20
out a more sustainable model for public broadcasting to work in this=20
country," she says, noting that the government's annual contribution to=20
PBS, which covers about 15% of its budget, lags far behind that of most=20
other countries. "It's astonishing that we've survived this long with so =

little coming from Congress. It's a fundamental flaw. We can't have such =
a=20
small foundation."
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA425964?display=3DTop+of+the+We=
ek
(requires subscription)

DIVERSITY ADVISORY COMMITTEE ADOPTS INTERIM REPORTS AND RECOMMENDATIONS
The FCC Advisory Committee on Diversity for Communications in the =
Digital=20
Age at its third meeting adopted a wide range of resolutions and=20
recommendations aimed at promoting opportunities for minorities and =
women=20
in telecommunications and related industries. Initially, the Committee=20
expressed its strong belief that tax-based incentives such as the former =

tax certificate program would open opportunities for socially and=20
economically disadvantaged persons, including minorities and=20
women. Recognizing that any revitalization of such a program is not =
within=20
the FCC's immediate power, the Committee went on to recommend that the=20
Commission consider ways to use its own rules to promote opportunity. =
Those=20
recommendations included: retaining and possibly expanding the =
Commission's=20
Distress Sale Policy; creating incentives within FCC ownership and=20
licensing rules; and considering a Supplier Diversity Program that might =

provide auction credits to companies that do business with diverse=20
entities. The Committee also recommended that the Commission adopt a =
rule=20
specifically prohibiting intentional discrimination on the basis of =
race,=20
color, national origin, or gender in the purchase or sale of any=20
FCC-licensed facility.
Committee member Henry Rivera, a partner at law firm Vinson & Elkins, =
also=20
serve's on the Benton Foundation board of directors.
[SOURCE: FCC]
http://www.fcc.gov/Daily_Releases/Daily_Business/2004/db0614/DOC-248391A1=
.doc

ELIMINATING MARKET ENTRY BARRIERS FOR SMALL TELECOMMUNICATIONS =
BUSINESSES
The FCC's Media Bureau is seeking comment on constitutionally =
permissible=20
ways to further the mandates of Section 257 of the Telecommunications =
Act=20
of 1996 which directs the FCC to identify and eliminate market entry=20
barriers for small telecommunications businesses, and Section 309(j) of =
the=20
Communications Act of 1934 which requires the FCC to further =
opportunities=20
in the allocation of spectrum-based services for small businesses and=20
businesses owned by women and minorities. The Commission is =
specifically=20
encouraging commenters to discuss possible next steps to further these=20
statutory objectives in a constitutionally permissible manner, =
especially=20
in light of two recent Supreme Court decisions (Grutter v. Bollinger and =

Gratz v. Bollinger). Commenters should discuss and proffer specific=20
recommendations for building on the series of market entry barrier =
studies=20
listed at the URL below.
For further information, contact Anne Levine at (202) 418-7027 or via =
email=20
at Anne.Levine( at )fcc.gov.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-1690A1.doc

PIRACY FIGHT SPREADS TO RADIO AIRWAVES
The Recording Industry Association of America is expected to ask the FCC =

today to require broadcasters to either encrypt their digital signals or =

transmit a special marker that discourages replication. The fight over=20
digital radio could echo battles over digital television, which promises =

sharper pictures and clearer sound than traditional analog broadcasts. =
The=20
rollout of digital television, originally scheduled to be completed in=20
2006, has been slowed, in part, by squabbles between studios and TV-set=20
manufacturers over copy protection. The consumer electronics industry =
and=20
broadcasters say that the RIAA position will just slow down the rollout =
of=20
digital radio service so they do not support it.
[SOURCE: Los Angeles Times, AUTHOR: Jube Shiver Jr]
http://www.latimes.com/business/printedition/la-fi-hdradio16jun16,1,59663=
80.story?coll=3Dla-headlines-pe-business
(requires registration)
Public Knowledge is a public interest advocate which has great deal of=20
work in this area. For more information see =
http://www.publicknowledge.org/

MEDIA & POLITICS

VOTERS ARE HARDER TO REACH AS MEDIA OUTLETS MULTIPLY
Political campaigns are finding it harder to reach people with political =

advertising as their media options grow and harder to poll public =
opinion=20
as people use technology to screen unwanted phone calls or use cell =
phones=20
which pollsters are prohibited from calling. Political consultants =
compare=20
rising media costs to an arms race, as ever-greater sums produce =
messages=20
that reach fewer and fewer eyes and ears. Media costs are by far the=20
biggest single expenditure for the two major-party presidential =
campaigns.=20
Advertising and promotion of all types accounted for about 60 percent of =

President Bush's record spending of $129.8 million, and about 48 percent =
of=20
Sen. Kerry's $88.7 million through the end of April, according to =
Federal=20
Election Commission figures.
Find out more about modern campaigns at the URL below.
[SOURCE: Washington Post, AUTHOR:Paul Farhi]
http://www.washingtonpost.com/wp-dyn/articles/A44697-2004Jun15.html
(requires registration)

GUN GROUP'S RADIO SHOW TESTS LIMITS OF ADVOCACY
"There are 90 million gun owners in America," says National Rifle=20
Association executive vice president Wayne LaPierre. "And a lot of them=20
don't believe they are getting accurate news from the media." For these =
90=20
million truth-deprived Americans, a new voice will be hitting the=20
(satellite) airways -- NRANews. The 3-hour news and commentary is viewed =
by=20
some as a way for the gun lobby to get around new campaign finance laws=20
aimed at curtailing political advertising in the days just prior to the=20
election. "If the N.R.A. is successful at this, we will definitely see=20
other groups explore going down the same road," said Larry Noble, =
executive=20
director of the Center for Responsive Politics and former general =
counsel=20
to the Federal Election Commission. Mr. LaPierre said the program, to be =

broadcast on Sirius satellite radio, would be a step toward a larger =
media=20
enterprise. The organization is looking to acquire radio stations in the =

Midwest, the Rockies and the South
[SOURCE: New York Times, AUTHOR: James Dao]
http://www.nytimes.com/2004/06/16/national/16nra.html
(requires registration)

INTERNET

FTC DECLINES TO CREATE DO-NOT-SPAM REGISTRY
In the law intended to crack down on junk e-mail (spam) that passed last =

December, Congress ordered the Federal Trade Commission to report on the =

feasibility of allowing e-mail users to place their e-mail addresses on =
a=20
registry for those who do not want unsolicited messages. But in its =
report,=20
the FTC finds that a do-not-spam list might be counterproductive,=20
suggesting such a list might help spammers find legitimate e-mail=20
addresses. Instead, the FTC says that the most promising way to reduce =
spam=20
is to create new technology that can verify that an e-mail message was =
sent=20
from the address that it claims to be from. Senders of the most =
offensive=20
spam often use false return addresses. The FTC said it would defer to =
the=20
private sector on which authentication standard should be employed. If a =

standard does not emerge, the commission proposed creating a federal=20
advisory committee to encourage the adoption of a standard.
[SOURCE: New York Times, AUTHOR: Saul Hansell]
http://www.nytimes.com/2004/06/16/technology/16spam.html
(requires registration)
See http://www.ftc.gov/opa/2004/06/canspam2.htm for a release from the =
FTC=20
and a link to the report to Congress.
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