The Senate Commerce Committee has a full agenda of bills under=20
consideration today including the Satellite Home Viewer Extension Act, VOIP=
=20
Regulatory Freedom Act of 2004, low power FM radio stations (see story=20
below in Broadcasting section), and reauthorization of the Corporation for=
=20
Public Broadcasting. On the House side, there's another Oversight and=20
Investigations hearing concerning the E-rate. For these and other upcoming=
=20
media policy events, see http://www.benton.org/calendar.htm
LOCALISM/PUBLIC INTEREST OBLIGATIONS
FCC Tunes into California, Hears Static on Media Ownership Rules
Powell to Miss Monterey
Broadcasters Not Meeting Obligations to Kids, Says New Analysis
MORE ON BROADCASTING
House Members Debate How to Implement Hard Date for DTV
GAO: Preparation Key to Berlin DTV Plan
Burns Takes Aim At LPFM
Tribune Asks Court to Allow Cross-Ownership
TiVo's Plans Lead to Fight On Copyrights
CABLE
A La Carte Cable Good For What Ails Television
TELECOM
Phone Companies Raise Fees, Again
AT&T Fights Phone Fees on Calling Cards
Cell Phone Customers To Get Better Disclosure
Nextel Doubts Opponents Will Seek Stay of Rebanding Order
VoIP Could Take $400 Million From California Universal Service in 2008,=20
PUC Staff Says
LOCALISM/PUBLIC INTEREST OBLIGATIONS
FCC TUNES INTO CALIFORNIA, HEARS STATIC ON MEDIA OWNERSHIP RULES
Hundreds of media watchers and consumer advocates turned up the volume in=20
Monterey Wednesday night, telling members of the Federal Communications=20
Commission they are not doing enough to protect local radio and television=
=20
stations from corporate takeovers. "The FCC needs to create and uphold=20
regulations giving people free access to the airwaves and local access=20
during prime time," said Lindsay Kelliner, a Pacific Grove, Calif.=20
resident. Some speakers addressed the pressures on news operations due to=20
industry consolidation. "What we're able to cover changes and we can't=20
often get to the bottom of local stories that really matter," said Erin=20
Poh, California director of the Media Workers Guild. Some speakers at=20
Wednesday's hearing addressed the need for multilingual broadcasting and=20
how the new regulations could affect the nation's cultural literacy. "We=20
need a broad definition of public and local to include Spanish speakers,"=20
Blanca Zarazua, chair of the Hispanic Chamber of Commerce of Monterey=20
County, told the commissioners. Delia Saldivar, regional manager of=20
KHDC-FM, a Salinas radio station that offers in programs in English,=20
Spanish, Hawaiian and Tagalog, said representing linguistic minorities was=
=20
something independent broadcasters were uniquely situated to do. "I urge=20
the FCC to look closely at the demographics of our communities," she said.=
=20
"This is what it means to serve the public."
[SOURCE: San Francisco Chronicle, AUTHOR: Associated Press]
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/07/2...
ate2320EDT0210.DTL
POWELL TO MISS MONTEREY
FCC Chairman Michael Powell will miss the second Localism task Force=20
hearing, announcing he will not be in Monterey (CA) this evening because he=
=20
will be vacationing with his family in Cape Cod. Chairman Powell's top=20
legal aide, John Cody, will be there, as will audio-video people to record=
=20
it so that Chairman Powell can review the tape on his return, as he did=20
with the South Dakota localism hearing in late May that he missed due to a=
=20
dinner with President Bush, said Mr. Cody. Besides, says FCC spokesman=20
David Fiske, "there was never any expectation that all five of the=20
commissioners would go to all the hearings. Eighty percent of it is=20
listening to what people say, and between John Cody and the chairman, they=
=20
will be listening."
"The American public should be incensed," said Free Press managing director=
=20
Josh Silver, "that just last week Powell attended a series of industry=20
events in nearby Menlo Park and San Francisco, but now he can't attend the=
=20
very hearing he called for. As always, Michael Powell has plenty of time=20
for big media companies and no time for the people whose democracy is being=
=20
compromised by his policy choices."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA438002?display=3DBreaking+News
(requires subscription)
BROADCASTERS NOT MEETING OBLIGATIONS TO KIDS, SAYS NEW ANALYSIS
Children Now and the Institute for Public Representation at Georgetown=20
University looked at the public interest performance of broadcasters in the=
=20
Monterey-Salinas market will disturbing findings. there are no=20
locally-produced E/I programs in the market that are specific to the needs=
=20
and interests of a diverse community, where more than half of all children=
=20
are Latino. all 20 programs that broadcasters claim as core educational=20
programming either originate from networks or are syndicated. Two stations=
=20
failed to provide three hours per week of children's educational or=20
informational programming while two stations barely met the minimum set by=
=20
FCC rules. In addition, the market's Fox affiliate counts towards its=20
minimum "NFL Under the Helmet," a show "where football and pop culture=20
collide." The stations claims the no-holds barred show "showcases the=20
pro-social on and off the field activities of the NFL's leading players and=
=20
coaches."
[SOURCE: Children Now Press Release]
http://www.childrennow.org/newsroom/news-04/pr-07-21-04.cfm
MORE ON BROADCASTING
HOUSE MEMBERS DEBATE HOW TO IMPLEMENT HARD DATE FOR DTV
Communications Daily reports that there's growing support for setting a=20
hard date for the transition to digital-only broadcasting with House=20
Commerce Chairman Joe Barton (R-TX) suggesting December 31, 2006. Debate=20
during a House Telecom Subcommittee hearing on Wednesday focused more on=20
details about how to meet such a deadline than whether there should be a=20
deadline. Rep. Rick Boucher (D-VA) seemed to be the most skeptical of=20
transition plans, saying all U.S. analog set owners needed to be =93held=20
harmless.=94 In such a scenario, a converter box subsidy could run as high=
as=20
$4.5 billion, while the auction might bring in only $4 billion, or perhaps=
=20
less, Rep Boucher
said. He said predictions of auction receipts were almost always wrong.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)
Links to hearing testimony
http://energycommerce.house.gov/108/Hearings/07212004hearing1339/hearing...
GAO: PREPARATION KEY TO BERLIN PLAN
A Government Accountability Office of the Berlin digital television=20
transition finds that it was successful because regulators adopted a plan=20
that prepared consumers for the change and subsidized converters for=20
low-income people. The GAO report said Berlin=92s plan had three key=20
ingredients: a consumer-education effort, set-top-box subsidies for=20
low-income people and a date-certain for the analog shutoff that was=20
understood by all in the TV-distribution business. The report=92s release=
was=20
timed to coincide with a House Commerce Subcommittee on Telecommunications=
=20
and the Internet hearing on the U.S. digital-TV transition, which is to end=
=20
Dec. 31, 2006, in those markets where at least 85% of TV households have=20
digital-reception equipment, such as digital-cable boxes or digital-TV sets=
=20
with off-air tuners. Insight Communications Co. Inc. CEO Michael Willner=20
testified in favor of a firm digital-TV-transition date -- a view shared by=
=20
House Energy and Commerce Committee chairman Joe Barton (R-Texas), who=20
advocated support for Dec. 31, 2006. Some lawmakers expressed concern that=
=20
a firm cutoff date would have to include a plan dealing with about 45=20
million analog-TV sets that would be useless after analog broadcasting=20
ceased. The lawmakers noted that millions of cable and satellite homes have=
=20
TV sets that are not connected to those pay TV services.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA438007?display=3DBreaking+News
(requires subscription)
See the GAO report online:
German DTV Transition Differs from U.S. Transition in Many Respects, but=20
Certain Key Challenges Are Similar.
http://www.gao.gov/cgi-bin/getrpt?GAO-04-926T
BURNS TAKES AIM AT LPFM
The National Association of Broadcasters says that Senator Conrad Burns=20
(R-MT), a former broadcaster himself, will introduce a bill Thursday to=20
allocate $800,000 to further study interference issues related to low power=
=20
FM radio and slow a bill before the Senate Commerce Committee today that=20
would open more opportunities for LPFM stations. The amendment would=20
require the FCC to conduct independent audience testing, as well as conduct=
=20
an economic impact study on existing broadcasters.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
(http://www.businessweek.com/technology/index.html/)
TRIBUNE ASKS COURT TO ALLOW CROSS-OWNERSHIP
What Andy Schwartzman wineth, the Tribune Company tries to take away!=20
Tribune Co. asked a federal appeals court to allow mergers between=20
newspapers and broadcast stations in markets with at least nine television=
=20
stations. Tribune attorneys noted that the FCC found no limits were needed=
=20
in markets with nine television stations =97 precisely the markets in which=
=20
the company's newspapers operate, including the Los Angeles Times and the=20
Chicago Tribune.
[SOURCE: Los Angeles Times, AUTHOR:Dow Jones/Associated Press]
http://www.latimes.com/business/printedition/la-fi-rup22.12jul22,1,63560...
tory?coll=3Dla-headlines-pe-business
(requires registration)
TIVO'S PLANS LEAD TO FIGHT ON COPYRIGHTS
TiVo plans to roll out a system that will allow programs to be transferred=
=20
from the TiVo box to a computer via a small device attached to the PC. The=
=20
program could then be sent to other devices within the home and viewed on=20
them. Such devices, including laptops or desktop computers, would be=20
registered with the company and would share encoding and decoding=20
technology that prevents viewing by non-registered devices. Next year, TiVo=
=20
plans to expand the system to allow programs to be transferred to=20
registered devices outside the home, such as at an office, vacation cabin=20
or even a friend's house across the country. A maximum of 10 devices could=
=20
be registered by the subscriber. Hold your horses, says Hollywood studios=20
and the National Football League: the new technology could compromise the=20
copyrights of shows that broadcasters send over the airwaves in digital=20
form, which offers much higher sound and video quality than what viewers=20
typically get today. The organizations fear that computer enthusiasts would=
=20
capture those programs and begin trading them online in the same way that=20
millions of music files are shared daily, which record companies have said=
=20
has cut into their profit. TiVo insists its system will not allow such=20
mass Internet distribution. Opponents to TiVo's new technology have filed a=
=20
complaints at the FCC
[SOURCE: Washington Post, AUTHOR: Jonathan Krim]
http://www.washingtonpost.com/wp-dyn/articles/A4042-2004Jul21.html
(requires registration)
CABLE
A LA CARTE CABLE GOOD FOR WHAT AILS TELEVISION
Providing consumers with the right to choose which cable and satellite=20
networks they wish to subscribe to will enhance viewpoint diversity, reduce=
=20
media concentration, and avoid government regulation of so-called=20
"indecent" content on cable. It's no wonder, then, that the big cable=20
companies are against it. A la carte would give consumers the option of not=
=20
paying for and receiving channels in their homes they deem "indecent," as=20
they must today when those offending cable networks are bundled on a=20
take-it-or-leave-it basis. An a la carte option is far healthier for our=20
democracy and culture than the curbing of Constitutionally protected free=20
speech, and would eliminate the need for the Commission to expand its=20
overly-broad and vague new indecency regulations to cable.
[SOURCE: MediaChannel.org, AUTHOR: Jonathan Rintels, Executive Director of=
=20
the Center for Creative Voices in Media]
http://www.mediachannel.org/views/dissector/affalert234.shtml
TELECOM
PHONE COMPANIES RAISE FEES, AGAIN
As they complain about possible rate hikes to use local Baby Bell networks,=
=20
the biggest long distance companies are raising the costs of their long=20
distance services, trying to squeeze the last dollar out of subscribers to=
=20
plans they no longer promote. will show up in bills for the first time in=20
coming weeks -- some of them wrapped in tough-to-fathom terminology like=20
"mobile termination" fees (an extra charge for calls to cellphones in=20
foreign countries) or "regulatory recovery" fees (a charge that carriers=20
say helps them recover the cost of complying with government regulations=20
and taxes). The latest increases follow a series of nickel-and-dime hikes=20
over the past few years as the carriers try to make up for declines in=20
their consumer operations.
[SOURCE: Wall Street Journal, AUTHOR: Shawn Young at shawn.young( at )wsj.com]
http://online.wsj.com/article/0,,SB109044487974070127,00.html?mod=3Dtoda...
s_personal_journal
(requires subscription)
AT&T FIGHTS PHONE FEES ON CALLING CARDS
Using a prepaid long distance card at home or on the road? If you use an=20
AT&T card, you may have noticed an annoying message from the retailer=20
saying the FCC is considering applying regulatory fees to the card -- and=20
asking you "to tell the White House you want prepaid card rates to stay=20
low." At the heart of the dispute is AT&T's claim that calling cards are an=
=20
"information service," a regulatory term of art that refers to an offering=
=20
that is more than a simple telephone call. For instance, directory=20
assistance and call waiting are "information services." AT&T claims that=20
its prepaid cards are an information service because callers are subjected=
=20
to recorded advertisements during their calls. Information services are not=
=20
required to contribute to the Universal Service Fund, a federal program=20
that provides subsidies for low-income and rural telephone users.=20
Information services also are not required to pay access fees, which are=20
designed to compensate regional phone companies such as Verizon=20
Communications Inc. for the cost of connecting customers to the local=20
telephone network. In filings with the Securities and Exchange Commission,=
=20
AT&T has claimed that it may be required to pay as much as $110 million in=
=20
access charges and Universal Service Fund payments if it loses the fight at=
=20
the FCC.
[SOURCE: Washington Post, AUTHOR: Christopher Stern]
http://www.washingtonpost.com/wp-dyn/articles/A4301-2004Jul21.html
(requires registration)
CELL PHONE CUSTOMERS TO GET BETTER DISCLOSURE
Verizon Wireless, Cingular Wireless and Sprint PCS, which have 84 million=20
customers, agreed to provide coverage maps to customers and to give them at=
=20
least two weeks to terminate new contracts without being charged a penalty.=
=20
Additionally, new customers can terminate a service contract within the=20
first three days without being charged an activation fee. The companies=20
also must make surcharges, fees and taxes clear. The agreement is with 32=20
states that had been investigating the companies for possible violation of=
=20
consumer protection laws. Janee Briesemeister, director of=20
EscapeCellHell.org, a division of Consumers Union, said in a statement that=
=20
the settlement will be a significant improvement for customers who have=20
"been stuck in a cell phone hell of misleading advertising and meaningless=
=20
coverage maps."
"The fact that it took a massive investigation by states' attorneys to=20
force these cell phone companies to do many of the things they promised=20
they would do on their own shows the need for regulation," Briesemeister=20
said. "Maybe consumers can't be heard on their cell phones, but their=20
frustration with the market has come through loud and clear." The companies=
=20
will also pay $5 million to cover the cost of the inquiry and for "general=
=20
consumer education," such as public service announcements.
[SOURCE: Washington Post, AUTHOR: Lauren Bayne Anderson]
http://www.washingtonpost.com/wp-dyn/articles/A4046-2004Jul21.html
(requires registration)
See Consumers Union press release at
http://www.consumersunion.org/pub/campaigncellhell/001261.html
NEXTEL DOUBTS OPPONENTS WILL SEEK STAY OF REBANDING ORDER
As the FCC shoots for an August 8 deadline for releasing the 800 MHz=20
rebanding order, Nextel continues to study the details and consider whether=
=20
or not it should accept the plan. Part of that consideration is how much=20
resistance to expect from other carriers. The benefits of the order are so=
=20
significant for public safety groups that it=92s unlikely rival carriers=
will=20
go to court to seek a stay when the order is released by the FCC, said=20
Nextel Senior VP Robert Foosaner Wednesday. =93The decision right now is=
very=20
favorable to public safety,=94 Mr. Foosaner said. =93It reduces=
interference.=20
It increases the useful spectrum ... and it=92s fully funded, if we=20
understand it correctly. The benefits to public safety are so substantial=20
that I believe that will sway the opponents of the original consensus=20
plan.=94 He added, =93To pursue a stay would be a slap in the face to first=
=20
responders. I do not believe that the corporations who are opposing this=20
would deem that to be a responsible action.=94
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
VOIP COULD TAKE $400 MILLION FROM CALIFORNIA UNIVERSAL SERVICE IN 2008, PUC=
=20
STAFF SAYS
Estimating that up to 43% of California businesses may switch to VoIP by=20
2008, the state's Public Utilities Commission is predicting the following=20
losses for programs aimed at keeping people connected to phone networks:=20
$114-$253 million for the High Cost Funds A & B -- to promote service in=20
high-cost areas through subsidies to SBC, Verizon and 17 small companies,=20
the Universal Lifeline Fund, providing subsidies to low-income users, is=20
seen losing $48-$107 million, the Deaf & Disabled Communications Fund=20
$13-30 million and the California Teleconnect Fund for school, library and=
=20
rural medical and community-based organizations $8-$17 million. That would=
=20
have a =93huge impact=94 on the programs, for which California spends $750=
=20
million a year, the most in the country, a PUC official said. It=92s a =93bi=
g=20
concern=94 to the PUC that =93universal service funding will not be able to=
be=20
provided,=94 either from older providers whose conventional circuit-switched=
=20
service is severely eroded or from VoIP
providers if they are exempted from the requirement.
[SOURCE: Communications Daily, AUTHOR: Louis Trager]
(Not available online)
--------------------------------------------------------------
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.
--------------------------------------------------------------