For upcoming media policy events, see http://www.benton.org/calendar.htm
TELECOM
FCC Releases Interim Phone Competition Rules
Nextel Noncommittal in First Meeting on Rebanding Order
The Call Is Cheap. The Wiretap Is Extra.
TELEVISION
FCC to Set Kids' DTV Quota
FCC=92s Crammed Menu
Brand Me, Baby!
NBC Universal and Paxson: An Odd Dance to a Divorce
RADIO
NAB Fights Radio-Reg Changes
Advertising: A Radio Challenge to Arbitron
INTERNET
Stopping Spam at the Source
SLD Temporarily Suspends Issuance of Funding Commitment Decision Letters
POLICYMAKERS
On Shaky Ground
TELECOM
FCC RELEASES INTERIM PHONE COMPETITION RULES
On Friday afternoon, the FCC released a Report & Order on interim phone=20
competition rules that aim to assure continuity until the FCC acts on=20
permanent rules later this year. Telephone companies that provide local=20
calling by renting other carriers' equipment have received a six-month=20
extension on discounted leasing rates while regulators work on new=20
competition rules. After the period ends, local phone companies will be=20
able to raise prices for existing customers "moderately," or as much as=20
15%. Commissioners Adelstein and Copps dissented from the rules; Copps said=
=20
he =93strongly=94 dissented because he thought =93the current Commission is=
on=20
track to butcher the pro-competitive vision of the 1996 [Telecom] Act.=94 He=
=20
said, =93The majority characterizes this effort as a comprehensive plan to=
=20
stabilize the market. The truth is just the opposite. In exchange for a=20
standstill today, they commit to price increases tomorrow.=94 Commissioner=
=20
Adelstein called the order a continuation of "the =91one step forward, two=
=20
steps back=92 saga of the local competition provisions of the [Telecom=
Act].=94=20
CompTel/Ascent (see=20
http://www.comptelascent.org/news/recent-news/082004.html) CEO Russell=20
Frisby said, =93While the process that has led to this situation is=20
regrettable, we are gratified that the FCC has acknowledged the critical=20
need to keep existing arrangements in place while permanent rules are=20
drafted.=94 He said the 6-month freeze =93will provide some stability =97 at=
=20
least in the short-term =97 and give carriers additional time to evaluate=20
their on-going business plans.=94
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
SOURCE: New York Times, AUTHOR: Bloomberg News]
http://www.nytimes.com/2004/08/23/business/23fcc.html
(requires registration)
See also:
WSJ:=20
http://online.wsj.com/article/0,,SB109303734061497434,00.html?mod=3Dtoda...
s_marketplace
Order: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-179A1.doc
Statements from Commissioners
* Powell: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-179A2.doc
* Abernathy:=
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-179A3.doc
* Copps: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-179A4.doc
* Adelstein:=
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-179A5.doc
NEXTEL NONCOMMITTAL IN FIRST MEETING ON REBANDING ORDER
Nextel is beginning to react to the plan the FCC adopted to facilitate=20
moving the carrier onto a different spectrum band so it will not interfere=
=20
with public safety officials. Nextel held a conference call last week with=
=20
public safety officials, at which it made clear it has real reservations=20
about the order as released. Nextel apparently indicated some of the issues=
=20
could be deal breakers, though public safety sources said they remain=20
hopeful all can be addressed. On many of Nextel's concerns, public safety=20
officials agree with the carrier while on others public safety had no=20
interests at stake.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
THE CALL IS CHEAP. THE WIRETAP IS EXTRA.
Earlier this month, the FCC voted unanimously to move forward with rules=20
that would compel Internet telephone service providers to make it possible=
=20
for law enforcement agencies to eavesdrop on Internet calls. But developing=
=20
systems to wiretap calls that travel over high-speed data networks - a task=
=20
that the companies are being asked to pay for - has caused executives and=20
some lawmakers to worry that helping the police may stifle innovation and=20
force the budding industry to alter its services. That requirement, they=20
say, could undermine some of the reasons Internet phones are starting to=20
become popular: lower cost and more flexible features. "All the costs=20
carriers incur are ultimately going to be passed on to the consumer," said=
=20
Tom Kershaw, vice president for voice-over-Internet services at VeriSign,=20
which provides surveillance support for Internet phone companies.
[SOURCE: New York Times, AUTHOR:Ken Belson]
http://www.nytimes.com/2004/08/23/technology/23wiretap.html
(requires registration)
TELEVISION
FCC TO SET KIDS' DTV QUOTA
The FCC is preparing a Report & Order on children's television rules for=20
digital broadcasters. Sources say that the Commission will require an=20
additional three hours of educational fare for each new channel that a=20
digital broadcaster multicasts. The programming will not have to be spread=
=20
out among all the multicast channels, however. A station could satisfy the=
=20
requirement, for instance, by putting all the required shows on a kids'=
channel
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA446410?display=3DBreaking+News
(requires subscription)
FCC'S CRAMMED MENU
The FCC has received a variety of opinions on a la carte pricing options=20
for cable TV programming. Programmers say a la carte would reduce their=20
audiences, decrease income from advertising, increase licensing fees and=20
overall cable bills and therefore reducing demand for a wide range of=20
programming. Cable operators say a la carte would mean an overhaul of=20
billing and customer service as well as the need for more set-top boxes --=
=20
resulting in higher cable bills. Broadcasters seem to like a la carte -- as=
=20
long as it does not threaten must carry provisions for their signals. Some=
=20
have told the FCC that the pros and cons of a la carte were too theoretical=
=20
for the agency to form valid conclusion. The Broadband Service Providers =97=
=20
which represent cable overbuilders Knology Inc., Everest Connections, and=20
Gemini Networks =97 volunteered to conduct a multiyear a la carte experiment=
=20
to determine whose theory was correct.
[SOURCE: Multichannel News, AUTHOR:Ted Hearn]
http://www.multichannel.com/article/CA446640?display=3DPolicy
(requires subscription)
BRAND ME, BABY!
B&C's cover story this week is an article on product placement in TV shows.=
=20
"It's part of the commercial takeover of every nook and cranny of our lives=
=20
and culture," says Commercial Alert Executive Director Gary Ruskin. The=20
watchdog group filed complaints last year with the Federal Trade Commission=
=20
and the Federal Communications Commission, seeking clearer viewer=20
notification of brand embedding. Commercial Alert believes viewers should=20
see an on-screen alert when placements appear during programming. Having=20
successfully stopped search engines from letting advertisers pretend their=
=20
pitches were search results, Mr. Ruskin says, "We think we're on strong=20
legal ground." He expects a ruling by the end of the year. Placements are a=
=20
remedy to advertising clutter on TV and to viewers' use of TiVos to skip=20
commercials.
[SOURCE: Broadcasting&Cable, AUTHOR: Mark Lasswell]
http://www.broadcastingcable.com/article/CA446675?display=3DTop+of+the+W...
referral=3DSUPP
(requires subscription)
NBC UNIVERSAL AND PAXSON: AN ODD DANCE TO A DIVORCE
NBC invested $415 million to purchase a 32% stake in Paxson which owns 61=20
broadcast TV stations and part-time network PAX-TV. NBC once thought of=20
buying the rest of Paxson, but now wants out of the entire deal and is=20
looking to redeem its investment. NBC Universal sued Paxson last week over=
=20
a dispute about how to calculate dividends on preferred Paxson stock NBC=20
owns. But even as the two sides argue, they find themselves entwined with=20
each other more than ever, in everything from promotions to advertising=20
sales to program development.
SOURCE: New York Times, AUTHOR: ]
http://www.nytimes.com/2004/08/23/business/media/23pax.html
(requires registration)
RADIO
NAB FIGHTS RADIO-REG CHANGES
The National Association of Broadcasters is asking federal judges to=20
continue to block the tighter limits on local radio-station ownership that=
=20
the FCC approved last summer as part of its controversial and generally=20
deregulatory rewrite of ownership rules. The radio ownership rules change=20
was stayed by the Philadelphia court that ordered the FCC to rewrite its=20
ownership rules in June. NAB and other broadcasters have appealed the radio=
=20
portion of the ruling. Permitting the FCC to implement the change while the=
=20
rewrite is under way "risks creating needless chaos and disruption in the=20
industry," NAB wrote in a court filing.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA446667?display=3DBreaking+News
(requires subscription)
ADVERTISING: A RADIO CHALLENGE TO ARBITRON
Advertisers may spend more than $20 billion on radio this year which makes=
=20
some people very interested in knowing how many people are listening to=20
what on the radio. Navigauge will unveil a new radio ratings system today=20
that will measure radio audiences in cars, combining global positioning=20
technology and continuous tracking of the radio dial to challenge Arbitron,=
=20
the dominant radio ratings provider.Navigauge executives are betting that=20
shortcomings in Arbitron's system will provide an opportunity for them.=20
"For a long time, the radio industry itself has lamented the fact that it=20
gets a large percentage of consumers' media consumption but a=20
disproportionately small share of advertising revenue," said Tim Cobb,=20
chief executive at Navigauge. "That's based on the fact that they cannot=20
articulate to advertisers the value that they are delivering."
SOURCE: New York Times, AUTHOR: Nat Ives]
http://www.nytimes.com/2004/08/23/business/media/23adco.html
(requires registration)
INTERNET
STOPPING SPAM AT THE SOURCE
This month, the Internet Engineering Task Force (IETF) reviewed several=20
e-mail authentication proposals, agreeing to fast-track a submission from=20
Microsoft known as Sender ID. The group also reviewed submissions for=20
signature-based authentication from companies such as Cisco Systems and=20
Yahoo and recommended the authors combine and resubmit those proposals=20
together. A timeline has yet to be set for reviewing and approving these=20
proposals. But the attention on e-mail authentication standards is a=20
welcome sign of progress, according to antispam experts, who said the=20
technology promises what current antispam solutions can't yet offer--the=20
chance to drive up costs for spammers. The stakes in the antispam movement=
=20
have never been higher as "phishing" attacks aimed at stealing a person's=20
information for financial gain are on the rise. The volume of spam is also=
=20
increasing, and it's taking its toll on networks by eating up valuable=20
bandwidth, mail server processing capacity, and storage. Spam accounts for=
=20
more than 65 percent of all e-mail processed by mail servers.
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
http://news.com.com/Stopping+spam+at+the+source/2100-1032_3-5316964.html...
=3Dnefd.lede
SLD TEMPORARILY SUSPENDS ISSUANCE OF FUNDING COMMITMENT DECISION LETTERS
The Universal Service Administrative Company (USAC) has been directed by=20
the FCC to move to government accounting standards by October 1, 2004, and=
=20
this has raised potential budget authority issues that may impact USAC. As=
=20
a result, the Schools and Libraries Division (SLD) of USAC has not issued=20
Funding Commitment Decision Letters (FCDLs) for any Funding Year since=20
August 3, 2004, and will be temporarily suspending further issuance of such=
=20
letters. USAC is working with the FCC to resolve these issues and, once=20
that happens, SLD will resume issuing commitment letters. In the meantime,=
=20
SLD is continuing to review applications so that, when the matter is=20
resolved, it will be in a position to issue FCDLs. USAC expects the issue=20
to be resolved in the near future.
[SOURCE: Universal Service Administrative Company]
http://www.sl.universalservice.org/whatsnew/2004/082004.asp#081904
POLICYMAKERS
ON SHAKY GROUND
The FCC may soon have just four commissioners as the term of Jonathan=20
Adelstein is set to expire when the current Congress ends its session.=20
Senate Democratic leader Sen Tom Daschle (D-SD), an Adelstein mentor,=20
submitted Adelstein's name for renomination to President Bush in February,=
=20
but the White House hasn't commented publicly on its plans for the=20
commissioner. The White House has negotiated with Sen Daschle to package=20
Adelstein's nomination with several other high-level posts, including the=20
President's picks for the Federal Trade Commission. FCC Chairman Michael=20
Powell would like to adopt a plan to make TV stations go all-digital by=20
2009, establish public interest obligations for digital broadcasters and=20
finally settle TV stations' cable carriage rights in the digital world.=20
It's ironic that the departure of a frequent critic could hurt Chairman=20
Powell. But the Chairman has never been able to count on his two fellow=20
Republicans, particularly Kevin Martin, for the votes needed to push any=20
particular proceeding. The presence of an extra body, even a Democratic=20
one, gives Powell more opportunity to bargain for votes. "A four-member=20
commission is a formula for stalemate, even with a three-to-one Republican=
=20
majority," says Andrew Schwartzman, president of Media Access Project. "Any=
=20
one person is potentially the swing vote. It's so tempting to hold out your=
=20
vote in return for something you want."
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA446660?display=3DWashington
(requires subscription)
--------------------------------------------------------------
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.
--------------------------------------------------------------