There's a full agenda of media policy events this week -- see=20
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.
$$$
House Approves Commerce-Justice-State Appropriations
G.O.P. Hopes Web Sites Will Be a Link to the Small Donor
MEDIA
NAB Says Buck Stops on Cable=92s Desk
Compromising Positions
INTERNET
Online File Swapping Endures
FCC Boss Launches Blog Aimed at High-Tech Industry
REACTIONS TO FCC DECISIONS
The Nextel Deal
Pick-and-Choose vs All-or-Nothing
$$$
HOUSE APPROVES COMMERCE-JUSTICE-STATE APPROPRIATIONS
Late Thursday, the House passed HR-4754, "Making appropriations for the=20
Departments of Commerce, Justice, and State, the Judiciary, and related=20
agencies for the fiscal year ending September 30, 2005." The measure covers=
=20
funding for the FCC. Communications Daily reports that the bill=92s=20
$39.8-billion funding for FY 2005 exceeds the Bush administration=92s=
request=20
of $39.6 billion and last year=92s funding of $37.6 billion. The FCC would=
=20
see a $6-million increase to $280 million for FY 2005, while the FTC
would receive an $18-million increase to $203 million (including =93full=20
funding for the Do-Not-Call program=94). The Commerce Department would get=
=20
$186 million less than last year with a mark of $5.8 billion, $301 million=
=20
less than the Administration=92s request.
[SOURCE: House of Representatives]
http://www.congress.gov/cgi-bin/bdquery/z?d108:H.R.4754:
GOP HOPES WEB SITES WILL BE LINK TO THE SMALL DONOR
The Republican National Committee will this month start paying Web site=20
owners 30 cents for every dollar they raise for the party through their=20
sites. Under the program, site owners registered on Commission Junction can=
=20
direct donors from their sites to the Republican National Committee's site=
=20
through a banner ad or other link. Still, by enlisting others to help it=20
raise money, the committee hopes to reach audiences that might not donate=20
otherwise.
[SOURCE: New York Times, AUTHOR: Ken Belson]
http://www.nytimes.com/2004/07/12/business/12rnc.html
(requires registration)
MEDIA
NAB SAYS BUCK STOPS ON CABLE'S DESK
Hearn opens, "Stung by criticism over their alleged lack of local election=
=20
coverage, broadcasters responded by doing what they have been known to do=20
best: Blame the cable industry." In a letter to FCC Chairman Powell and=20
Senate Commerce Committee Chairmen John McCain (R-AZ), National Association=
=20
of Broadcasters President Eddie Fritts complained that cable giants are=20
arguing against so-called multicast carriage rules because they fear the=20
programming commercial broadcasters will make available -- like campaign=20
coverage. =93Since broadcasters have steadily reduced public-affairs=20
programming in an analog world, there is absolutely no evidence or reason=20
to believe that they will undertake more political coverage in a digital=20
world,=94 countered National Cable & Telecommunications Association=
spokesman=20
Brian Dietz after seeing a copy of Mr. Fritts=92s letter. =93It=92s curious=
that=20
the broadcasters are suggesting that multicasting would increase their=20
local public-affairs coverage when they have steadfastly fought against=20
having any public-service obligations applied to their digital signals,=94=
=20
NCTA=92s Dietz added. In June, Chairmen McCain and Powell called on=20
broadcasters to expand their election coverage in light of a study by the=20
University of Southern California=92s Annenberg School and the University of=
=20
Wisconsin, which showed that more than half of the top-rate local news=20
broadcast aired no campaign coverage in the seven weeks leading up to the=20
2002 elections. =93The same study also found when local broadcasters did air=
=20
campaign stories on local news broadcast, only 24% of the stories were=20
about issues,=94 McCain and Powell wrote in their June 16 letter. =93The=20
majority the stories focused on campaign strategy and polling data. While=20
this information is newsworthy and interesting, it does not provide voters=
=20
with the knowledge necessary to make an informed decision on whether to=20
vote for a candidate.=94
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA435152?display=3DPolicy
(requires subscription)
See full text of NAB letter at=20
http://www.nab.org/Newsroom/PressRel/070204lettertoMcCainPowell.htm
COMPROMISING POSITIONS
Faced with the prospect of the FCC regulating network affiliate agreements,=
=20
NBC and ABC have come to term with affiliate stations. The contracts=20
contain two key clauses: one giving affiliates more power to reject network=
=20
shows, the other banning the network from monopolizing the additional=20
channels that stations can offer in digital. (CBS hammered out a deal two=20
years ago while Fox is still working on a new contract.) The bargaining was=
=20
applauded by FCC Chairman Michael Powell, who had hoped a private deal=20
could be brokered. The two sides made little progress until Chairman=20
Powell's staff drafted a plan that gave affiliates most of what they=20
wanted. The affiliates' hand was further strengthened by the Super Bowl=20
debacle. They used the incident as evidence that the networks frequently=20
foist offensive programming on local communities, which they are powerless=
=20
to block.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA435253?display=3DWashington
(requires subscription)
INTERNET
ONLINE FILE SWAPPING ENDURES
Despite entertainment industry attempts to curb online song and movie=20
swapping with lawsuits and education campaigns, more people than ever are=20
using peer-to-peer services. 8.3 million people were online at any one time=
=20
in June using unauthorized services like Kazaa and eDonkey -- up 19% from=20
6.8 million in June 2003. BigChampagne, which tracks Internet file sharing,=
=20
says 1 billion songs were available for free trading in June. That compares=
=20
with 820 million a year ago.
[SOURCE: USAToday, AUTHOR:Jefferson Graham]
http://www.usatoday.com/usatonline/20040712/6356647s.htm
In a somewhat related story, see
E-Commerce Report: Online Battle of Low-Cost Books
[SOURCE: New York Times, AUTHOR: Bob Tedeschi]
http://www.nytimes.com/2004/07/12/technology/12ecom.html
(requires registration)
FCC BOSS LAUNCHES BLOG AIMED AT HIGH-TECH INDUSTRY
FCC Chairman Michael Powell now has his own blog. His motivation is to=20
encourage the high-tech community to contribute more to regulatory debates.=
=20
"I am looking forward to an open, transparent and meritocracy-based=20
communication -- attributes that bloggers are famous for!" Chairman Powell=
=20
wrote in his first posting, adding he wanted to get out of "the Beltway=20
Washington world where lobbyists filter the techies." He specifically asked=
=20
bloggers to send in their thoughts on the coming transition to digital=20
television and possibly using airwave frequencies between television=20
stations for new wireless services. Andrew Schwartzman, a public interest=20
lawyer who has crossed swords and won a court battle initially halting=20
Chairman Powell's attempts to relax media ownership limits, also chided the=
=20
chairman for not seeking input on other issues. "I wish he would do the=20
same outreach with the public interest community," he told Reuters. Powell=
=20
was criticized during the FCC's review of media ownership limits for not=20
holding many official forums for public input on the rules.
Find the blog at http://www.alwayson-network.com/
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
http://www.reuters.com/newsArticle.jhtml?type=3DtechnologyNews&storyID=3...
3324
See also:
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-powell12jul12,1,98802...
ory?coll=3Dla-headlines-pe-business
REACTIONS TO FCC DECISIONS
BALL IS IN NEXTEL'S COURT, BUT CHOICE IS NO SLAM DUNK
There was little reaction from Nextel to the FCC's vote to correct the=20
interference problems the wireless carrier has with public safety=20
officials. Why? Well, the devil's in the details of the order, but that may=
=20
not be released for another month. Although the plan calls for Nextel to=20
get the 10 MHz in the 1.9 GHz band it covets, the wireless carrier's=20
blessing on the deal isn't assured. Guzman & Co. telecom analyst Patrick=20
Comack has said for months that the market would not like the idea of=20
Nextel having to pay more than $2 billion cash to get the 1.9 GHz spectrum.=
=20
The FCC order calls for Nextel to pay a minimum of $3.2 billion cash with=20
no cap on expenses if rebanding costs more than estimated. The company=20
could end up paying more than market value for new spectrum and the deal=20
could still be nixed by a legal challenge. But does Nextel have a real=20
choice to walk away from the deal now that it has done such a good job of=20
making the public aware of the problem? The company needs the new spectrum=
=20
to offer broadband services being provided by competitors and the order=20
that requires Nextel to adhere to "extended best practices" if it doesn't=20
opt for the rebanding plan. These technical guidelines will set a new=20
standard for what is "unacceptable interference" at 800 MHz, will establish=
=20
responsibility for the interference, and will dictate that the responsible=
=20
party must pay to fix the problem. This provision could mean big money to=20
the company down the line. Nextel's choice promises to be a turning point=20
for the carrier and the future of public-safety communications.
[SOURCE: Telephony's Regulatory Insider, AUTHOR: Donny Jackson]
djackson( at )primediabusiness.com
FCC 800 MHz DECISION FALLS SHORT
Steve Largent, President and CEO of the Cellular Telecommunications &=20
Internet Association, called the FCC's decision in the Nextel/800 MHz=20
proceeding =93disappointing=94. CTIA has argued repeatedly that the 800 MHz=
=20
interference problem must be solved quickly, fairly, to the benefit of=20
Public Safety, and in a way that will survive judicial scrutiny. Largent=20
believes the FCC=92s decision fails on all counts. =93The FCC clearly=
didn't=20
keep its eye on the ball. Its primary responsibility in this case is to=20
look out for Public Safety and the American public and that didn't happen,=
=94=20
observed Largent. =93It is unfortunate that the Commission=92s plan does=
less=20
to solve the Public Safety interference problem than other alternatives=20
that were available. Among all of the FCC=92s choices, this one provides=20
Public Safety with the fewest assurances of success.=94
[SOURCE: CTIA Press Release]
http://www.ctia.org/news_media/press/body.cfm?record_id=3D1414
COMPTEL/ASCENT COMMENTS ON FCC PICK AND CHOOSE ACTION
CompTel/ASCENT CEO H. Russell Frisby Jr said: The FCC has once again=20
revised its rules to further limit the choices available to competitive=20
carriers. The FCC's action is an overly broad prohibition on small=20
carriers' ability to opt in to portions of interconnection agreements that=
=20
have already been determined to be in compliance with the law.=20
CompTel/ASCENT believes that the elimination of 'pick and choose' does=20
nothing to promote commercially negotiated agreements between small=20
competitors and the Bells, which continually wield their control over=20
last-mile facilities in an effort to lock alternative providers out of the=
=20
market. The impact on small competitive carriers, and the consumers and=20
businesses they serve, will be great. By doing away with the ability to=20
opt-in to favorable provisions of existing agreements, competitors will be=
=20
faced with more 'take it or leave it' offers from the Bells - the same=20
Bells that have previously demonstrated their intent to thwart=20
facilities-based competition. Moreover, there will be needless litigation=20
costs to competitors, as they will be forced to dedicate their limited=20
resources to legal fees related to contracting interconnection agreements,=
=20
rather than investing in new technologies and networks.
[SOURCE: Competitive Telecommunications Association (CompTel) and the=20
Association of Communications Enterprises (ASCENT Press Release]
http://www.comptelascent.org/news/recent-news/070804.html
ALTS DECRIES FCC REVERSAL OF PRO-COMPETITIVE PICK AND CHOOSE RULES
John Windhausen, Jr., President, Association for Local Telecommunications=20
Services said: The FCC=92s abrupt decision to throw out its pick and choose=
=20
rules is difficult to
understand. The Commission claims that its decision to reverse itself will=
=20
lead to more commercial negotiations, yet the loudest voices in support of=
=20
this change were the
incumbent LECs, the monopolists who have the least incentive to negotiate=20
with competitors. It is the smaller competitive carriers =AD who have no=20
market power =AD that
needed the negotiation rights that Congress put in the 1996 Act, and that=20
the Supreme Court unanimously affirmed. The FCC=92s decision to ignore the=
=20
Congress and the
Supreme Court is a gift to the Bell companies, offered at the expense of=20
consumers and small businesses that rely on the innovative service=20
offerings of the ALTS membership. This is, unfortunately, another example=20
of policy-makers whittling away at the foundations of local telecom=20
competition set forth in the 1996 Telecom Act. ALTS can only hope that this=
=20
latest FCC action does not presage further moves to restrict CLECs=92 access=
=20
to ILEC last mile transmission facilities. The FCC=92s stated goal of=20
promoting facilities-based competition needs to be backed up by concrete=20
action, and today=92s decision is a step in the wrong direction.
[SOURCE: Association for Local Telecommunications Services Press Release]
http://206.161.82.210/NewsPress/070804PR%20on%20Pick%20and%20choose.pdf
USTA PRAISES FCC ACTION ON PICK-AND CHOOSE RULE
Walter B. McCormick, Jr., President and CEO of USTA said: Today=92s decision=
=20
by the Commission will help bring the telecom industry closer to a=20
market-driven environment because it will encourage companies to negotiate=
=20
commercial agreements in good faith instead of allowing some carriers to=20
exploit the system and will help promote further investment in the nation=92=
s=20
communications infrastructure and speed the deployment of innovative=20
services to consumers.
[SOURCE: Unites States Telecom Association]
http://www.usta.org/news_releases.php?urh=3Dhome.news.nr2004_0708
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