Benton's Communications-related Headlines for 8/25/04

For upcoming media policy events, see http://www.benton.org/calendar.htm

TELECOM
Phone Companies Ask Court to Vacate FCC=92s Interim Competition Order
Phone Industry Faces Upheaval As Ways of Calling Change Fast
Verizon Blames Federal Rules for Broadband Holdup
FCC Chief Can Take a Bow for Work in Wireless Arena

QUICKLY
Nielsen Revises Ratings Point as TV Households Grow
Court: Comcast Can't Challenge PEG Requirements
The Unofficial Media Guide to the Republican National Convention
Public Knowledge Urges Support For Alternative Copyright Legislation
Internet File Sharing: The Evidence So Far and What It Means for the Future
Dozens Charged in Crackdown on Spam and Scams

TELECOM

PHONE COMPANIES ASK COURT TO VACATE FCC'S INTERIM COMPETITION ORDER
There seems to be no way to keep telephony regulation out of the courts.=20
Qwest, Verizon and USTA filed a petition at the U.S. Appeals Court (DC)=20
late Monday night, asking the court to =93invalidate=94 the FCC's interim=
phone=20
competition order released by the Commission on Friday. The FCC=92s interim=
=20
order freezes current rates for 6 months while the agency works on adopting=
=20
permanent rules to replace those overturned in March by the D.C. Circuit.=20
The petitioners are arguing that by adopting the interim rules, the=20
Commission basically gave itself a six month extension on rules the court=20
ruled out two months ago. ALTS General Counsel Jonathan Oxman said the FCC=
=20
action was taken in response to the Bells=92 voluntary commitments to=20
maintain the status quo for 6 months. Those commitments =93were so full of=
=20
holes that the FCC was forced to back them up with emergency administrative=
=20
action,=94 he said, =93now that the FCC has formalized those commitments,=
the=20
Bells have demonstrated conclusively what ALTS has been saying all along --=
=20
those commitments were merely a ruse.=94
[SOURCE: Communications Daily, AUTHOR: Edie Herman, Patrick Ross]
(Not available online)
Additional coverage:
* NYTimes: http://www.nytimes.com/2004/08/25/business/25phone.html
* WashPost:=
http://www.washingtonpost.com/wp-dyn/articles/A30040-2004Aug24.html
* LATimes:=20
http://www.latimes.com/business/printedition/la-fi-phones25aug25,1,11892...
tory?coll=3Dla-headlines-pe-business
* WSJournal:=20
http://online.wsj.com/article/0,,SB109336921686799771,00.html?mod=3Dtoda...
s_marketplace
Also see:
* ALTS Statement on Bell Company Mandamus Petition
http://206.161.82.210/NewsPress/082404press%20statement%20Bell%20mandamu...
f
* USTA Statement on Writ of Mandamus Petition
For nearly a decade, we have waited for the FCC to put lawful rules in=20
place for the telecom industry. Unfortunately, after four attempts, missed=
=20
deadlines, instability and delay, we are again forced to ask the court to=20
intervene to bring certainty and clarity to the industry. The Commission=20
must put lawful, permanent rules in place by the end of this year so that=20
all providers can move forward on a competitive basis.
http://www.usta.org/news_releases.php?urh=3Dhome.news.nr2004_0824

PHONE INDUSTRY FACES UPHEAVAL AS WAYS OF CALLING CHANGING FAST
"Our industry and our business is going to change more in the next five=20
years than it has during the last 20 combined," says Duane Ackerman, the=20
chairman and chief executive of BellSouth. Across the nation, the business=
=20
models that have worked for decades for the Baby Bells are showing signs of=
=20
unraveling. The cable industry's push into the phone business and a torrent=
=20
of innovations such as Internet calling and advanced wireless technology=20
are threatening the foundations of the nation's $300 billion telecom=20
industry. The Bells have lost some 28 million local phone lines since the=20
end of 2000 -- a drop of more than 18%. This is the first time since the=20
Great Depression that phone companies have seen their lines decline. The=20
Bells are now losing 4% of their residential lines a year. The phone=20
companies are furiously trying to cut costs to stay ahead of declines in=20
revenue. The Bells are trying to add new kinds of revenue by teaming up=20
with satellite television companies, offering packages of phone, broadband=
=20
and TV service. But their basic business still is selling a high-priced=20
commodity in a market that is now highly competitive.
[SOURCE: Wall Street Journal, AUTHOR: Ken Brown ken.brown( at )wsj.com and Almar=
=20
Latour almar.latour( at )wsj.com]
http://online.wsj.com/article/0,,SB109338806323400200,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

VERIZON BLAMES FEDERAL RULES FOR BROADBAND HOLDUP
Speaking at the Progress & Freedom Foundation Aspen Summit, Lawrence=20
Babbio, phone giant Verizon's vice chairman and president, said FCC rules=20
are preventing the company from rolling out a high-speed fiber network to=20
homes in its home region. At issue is the interaction between the 1996=20
Telecommunications Act and a dense series of FCC decisions. If Verizon=20
spends billions of dollars to run fiber to homes in the northeast United=20
States, it could be forced to make those fiber links available to rivals at=
=20
below its own cost--a money-losing prospect that is preventing the company=
=20
from offering the service. The FCC already has voted 3-2, with the pair of=
=20
Democrats objecting, to immunize fiber from many regulatory burdens levied=
=20
by one section of the Telecom Act. But because of a regulatory twist,=20
another section is giving Verizon headaches--and the FCC has not acted to=20
clear things up. "While the FCC did agree to not apply the unbundling=20
regulations to new fiber in a decision last summer under one section of the=
=20
communications act, perhaps the new fiber nevertheless would have to be=20
unbundled under a different section of the communications act," said=20
Randolph May, a senior fellow at the Progress & Freedom Foundation. "In=20
effect, one positive decision was partially negated by the lack of a clear=
=20
decision on the application of another section."
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Verizon+blames+federal+rules+for+broadband+holdup/21...
034_3-5322874.html?tag=3Dnefd.hed

FCC CHIEF CAN TAKE A BOW FOR WORK IN WIRELESS ARENA
[Commentary] Under Chairman Michael Powell, the FCC has been more an ally=20
than enemy for people who want to expand the use of wireless technologies=20
in a world still dominated by wired lines. It has pushed the use of the=20
unlicensed part of the airwaves -- that's where WiFi resides -- and is=20
encouraging more creativity in the licensed part of the airwaves. After=20
looking at some of Powell's successes and shortcomings, Gillmor concludes:=
=20
"Powell wants to see more [wireless] experiments, to help create conditions=
=20
where entrepreneurs can turn conventional wisdom on its head. His goal as a=
=20
regulator, he says, has been to unshackle their creativity -- 'and let them=
=20
run.'''
[SOURCE: San Jose Mercury News, AUTHOR:Dan Gillmor]
http://www.mercurynews.com/mld/mercurynews/business/technology/9489638.htm

QUICKLY

NIELSEN REVISES RATINGS POINT AS TV HOUSEHOLDS GROW
Nielsen Media Research announced Tuesday that the total number of=20
television households in the United States has grown to 109.6 million, an=20
increase of 1.2 million television households from the 2003-2004 season.
[SOURCE: TVWeek, AUTHOR: Christopher Lisotta]
http://www.tvweek.com/news.cms?newsId=3D6170

COURT: COMCAST CAN'T CHALLENGE PEG REQUIREMENTS
In a case is being closely watched by local regulators, U.S. District=20
Magistrate Judge Richard Seeborg dismissed a challenge to local PEG-access=
=20
(public, educational and government) requirements by Comcast against San=20
Jose (CA). Comcast claims the requirements are onerous, but the judge ruled=
=20
that the claim is speculative and that the company must wait for those=20
franchise demands to actually be formalized by a city before Comcast can=20
challenge them in court. Local officials around the country see the action=
=20
as a major salvo by Comcast to eliminate PEG and institutional-network=20
requirements from future renewals. Officials believe the cable company=20
wants to reclaim the channels for profitable advanced services while=20
relegating local programming to the video-on-demand queue.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA447491?display=3DBreaking+News
(requires subscription)

THE UNOFFICIAL MEDIA GUIDE TO THE REPUBLICAN NATIONAL CONVENTION
MediaChannel.org and Media for Democracy have released the "Unofficial=20
Media Guide" =AD a resource for journalists seeking a detour from the=
tightly=20
scripted rhetoric at Madison Square Garden next week. The Media Guide list=
=20
hundreds of sources and experts available to reporters seeking to cover=20
events occurring throughout New York's five boroughs. The guide includes:=20
New York experts, ready to talk on the record; coordinates for the protest=
=20
groups active citywide; the lowdown on political bloggers and alternative=20
news outlets; and the big media backstory.
Find link to the guide at the URL below.
[SOURCE: MediaChannel.org Press Release]
http://www.mediafordemocracy.us/mfd/rncguide.html

PUBLIC KNOWLEDGE URGES SUPPORT FOR ALTERNATIVE COPYRIGHT LEGISLATION
Gigi B. Sohn, president and co-founder of Public Knowledge, said she hopes=
=20
the Senate Judiciary Committee will give serious consideration to a=20
proposed alternative to the so-called =93Induce=94 legislation being=
considered=20
by the panel. =93We still doubt the need for new legislation, but the draft=
=20
legislation comes closest to giving the senators what they have said they=20
want -- a law targeting those who =91induce=92 infringement,=94 Sohn said.=
=93We=20
are pleased that so many other groups are with us on the need for an=20
alternative approach,=94 Sohn said. The draft language focuses more tightly=
=20
on those who engage in =93indiscriminate, mass infringing=94 than does the=
=20
existing legislation, S-2560. That bill, which was strongly criticized by=
=20
most of the witnesses at a July 22 hearing, is sufficiently vague and=20
overbroad that devices like the iPod might be judged to be illegal=20
=93inducement.=94 The new proposal: 1) would impose liability on those who=
=20
actively distribute in commerce a computer program or other tool that is=20
specifically designed to cause or enable infringement; provides appropriate=
=20
exemptions from for ISPs, investors, credit card companies and others if=20
their provision of routine services is used to facilitate infringement; 3)=
=20
allows for recovery of full costs, including reasonable attorney=92s fees,=
by=20
the prevailing party and otherwise discourages frivolous litigation; and 4)=
=20
codifies the Supreme Court=92s Betamax decision, confirming that a person or=
=20
company may--without fear of liability--manufacture or distribute a=20
hardware or software product that is capable of commercially significant=20
non-infringing uses.
[SOURCE: Public Knowledge Press Release]
(http://www.publicknowledge.org/)

INTERNET FILE SHARING: THE EVIDENCE SO FAR AND WHAT IT MEANS FOR THE FUTURE
Advocates of file sharing argue passionately that the practice has not=20
harmed album sales, and opponents argue with equal vehemence that it has.=20
This paper provides a brief discussion of these issues and explains why the=
=20
music industry's long-term viability is endangered by peer-to-peer file=20
sharing. The author concludes, "Making copyrighted material instantly=20
available to the world without the owner's permission is stealing. The=20
challenge for policymakers is to curtail this theft of intellectual=20
property without limiting legitimate activity or chilling technological=20
innovation through regulation."
[SOURCE: Heritage Foundation, AUTHOR: Norbert J. Michel]
http://www.heritage.org/Research/InternetandTechnology/bg1790.cfm

DOZENS CHARGED IN CRACKDOWN ON SPAM AND SCAMS
Federal and state law enforcement agencies have quietly arrested or charged=
=20
dozens of people with crimes related to junk e-mail, identity theft and=20
other online scams in recent weeks. Federal authorities have stepped up=20
their efforts to crack down on junk e-mail messages, or spam, since=20
Congress passed a law last December criminalizing fraudulent and deceptive=
=20
e-mail practices. The law subjects spammers to fines and jail terms of up=20
to five years.
[SOURCE: New York Times, AUTHOR: Saul Hansell]
http://www.nytimes.com/2004/08/25/technology/25spam.html
(requires registration)
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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.
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