Benton's Communications-related Headlines for April Fool's Day

"Broadcasters' Obligations to Their Communities: Is the Public Interest=20
Standard Still Relevant?", a symposium at Syracuse University's S.I.=20
Newhouse School of Public Communications, will be webcast live today. The=20
symposium begins at 1:00 p.m. EST. The URL for the webcast is=20
http://i2sports.com/events/396/

For additional upcoming media policy events, 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. Headlines are compiled by=20
Kevin Taglang (ktaglang( at )etpost.net) -- we welcome your comments.

FCC
Commissioners Unite in Asking for Competition in the Telecommunications=
Market
Hearing: FCC's FY2005 Budget Estimates

TELEVISION
Close Presidential Election Good News for Broadcasters
GOP Complaint Cites Pro-Democratic Groups
NAB Summit on Responsible Programming
Berlin No Model for US, NCTA Says

QUICK HITS
Judge: File Sharing Legal in Canada
Electronic Voting Alternative Offered
US Chamber of Commerce Will Study Telecommunications Sector
Could Microsoft Enter VoIP Market?
Gore and Hyatt to Buy Cable Channel, Launch Liberal, Youth-Targeted=20
Public-Affairs Channel
Your Economic Brain on TV

FCC

COMMISSIONERS UNITE IN ASKING FOR COMPETITION IN THE TELECOMMUNICATIONS=
MARKET
All five FCC commissioners signed a letter to telecommunications carriers=20
and trade associations urging them to begin a period of commercial=20
negotiations designed to restore certainty and preserve competition in the=
=20
telecommunications market. Ongoing litigation has unsettled the market. To=
=20
address this uncertainty, the commissioners asked all carriers to engage in=
=20
a period of good faith negotiations to arrive at commercially acceptable=20
arrangements for the availability of unbundled network elements. To provide=
=20
additional time for these negotiations, the FCC intends to petition the=20
D.C. Circuit for a 45-day extension of the stay of its decision vacating=20
its unbundling rules. The Commission will also request that the Solicitor=20
General seek a comparable extension of the deadline for filing a petition=20
for certiorari. The express, limited purpose of this request is to allow=20
these negotiations to take place and for the parties to reach commercial=20
agreements. The commissioners asked the carriers to indicate by Tuesday,=20
April 6 whether they will participate and will support a stay of the=20
court's mandate.
[SOURCE: FCC Press Statement]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245631A1.pdf
Additional remarks of Commissioner Copps
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245636A1.pdf
See Also
CompTel/ASCENT Urges Transparent Framework for Commercial Negotiations
http://www.comptelascent.org/news/recent-news/033104_framework.html
USTA Backs FCC Call for Industry Negotiations
http://www.usta.org/news_releases.php?urh=3Dhome.news.nr2004_033104
WSJ: FCC Urges Telecoms to Reach Settlement on Sharing Networks
http://online.wsj.com/article/0,,SB108077852222470955,00.html?mod=3Dtoda...
s_page_one
WP: FCC Pushes Phone Settlement
http://www.washingtonpost.com/wp-dyn/articles/A40884-2004Mar31.html

HEARING: FCC'S FY2005 BUDGET ESTIMATES
FCC Chairman Michael Powell faced a full gamut of questions related to the=
=20
Commission's budget for the next fiscal year. The House Subcommittee on=20
Commerce, Justice, State, and the Judiciary of the Committee on=20
Appropriations is headed by Chairman Frank R. Wolf (R-VA) and Jose E.=20
Serrano (D-NY). Rep Serrano peppered Chairman Powell with questions about=20
indecency enforcement accusing the Chairman of targeting Howard Stern=20
because the radio personality has been critical of the Bush Administration.=
=20
Rep Serrano also raised fears that FCC may chill free speech with fines.=20
Rep Wolf asked about the connection between increased media ownership and=20
indecent content. Chairman Powell countered that he believed more indecency=
=20
was occurring as a result of less media consolidation [at which point a=20
bolt of lightening interrupted the hearing]. Chairman Powell said family=20
friendly fare like I Love Lucy was thrived when there were just three TV=20
networks. With hundreds of channels to surf,
programmers are now trying hard to push the limits to retain viewers,=20
Chairman Powell said.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)
Summary of Chairman Powell's remarks:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245628A1.pdf
Full=20
testimony:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245628A2.pdf

TELEVISION

CLOSE PRESIDENTIAL ELECTION GOOD NEWS FOR BROADCASTERS
Hearst-Argyle, Gray TV and Sinclair are the broadcast ownership groups most=
=20
likely to benefit from what could be the longest general election=20
presidential campaign ever -- and the richest given the combined=20
fundraising of the major parties and Sec. 527 groups ($278 million in 2003=
=20
alone). Half of ad spending so far has been targeted to four key states --=
=20
Florida, Michigan, Ohio and Pennsylvania. Additional swing states where=20
spending will be heavy -- Ark., Ariz., Iowa, Me., Minn., Mo., Nev., N.H.,=20
N.M., Ore., Wash., Wis., and W. Va. Legg Mason analysts predict ad spending=
=20
this year will reach $1 billion. President Bush and Sen Kerry have opted=20
out of government spending limits during primary season and will each=20
receive $75 million to spend after the conventions -- much of this will=20
fall to broadcasters.
[SOURCE: Communications Daily, AUTHOR: Brigitte Greenberg]
(Not available online)

GOP COMPLAINT CITES PRO-DEMOCRATIC GROUPS
Political advertisements are becoming an issue onto themselves in the=20
Presidential race. President Bush's re-election campaign and the=20
Republican Party have filed charges with the Federal Election Commission=20
accusing Sen John Kerry's campaign and seven "independent" organizations of=
=20
conducting a criminal conspiracy to inject large amounts of "soft money"=20
into the 2004 election. The Post reports that the Bush campaign "has become=
=20
increasingly frustrated" that Sen Kerry and groups like Moveon.org have=20
been able to counter the unprecedented $41.8 million spent by Bush on=20
political ads most of which attack the senator. The filing at the FEC is=20
aimed at speeding up the agency's decision on whether or not the activities=
=20
of the Kerry campaign and allied groups violate campaign fiance laws.
[SOURCE: Washington Post, AUTHOR: Thomas B. Edsall]
http://www.washingtonpost.com/wp-dyn/articles/A40573-2004Mar31.html
(requires registration)
See Also:
NYT: Kerry and Democratic Groups Accused of Finance Violations
http://www.nytimes.com/2004/04/01/politics/campaign/01DONA.html

NAB SUMMIT ON RESPONSIBLE PROGRAMMING
In response to decency enforcement legislation making its way through=20
Congress, the National Association of Broadcasters held an all-industry=20
summit Wednesday. Even though the event was closed to journalists, there's=
=20
a good deal of coverage in the trade press. FCC Chairman Michael Powell=20
spoke at the gathering, encouraging broadcasters to adopt a voluntary code=
=20
of conduct that would help their self-police the airwaves and provide more=
=20
family friendly-viewing. NAB President Eddie Fritts told reporters that "a=
=20
variety options" are being considered by the group including reviving a=20
code, establishing set of best-practices and relying on individual company=
=20
codes and zero tolerance policies for performers that cross the line.
Sen. Sam Brownback (R-KS) also spoke and had plenty to say. he=20
congratulated broadcasters' attempts to inform the public about the V-chip,=
=20
but said that is not enough. "Rather than warn people the river is=20
polluted why not just take the pollution out," he said. Sen Brownback=20
predicted the Senate would vote on its indecency bill after Congress=20
returns from spring recess April 19. The bill is likely to include=20
provisions to block the FCC's new media ownership rules and may contain=20
indecency enforcement provisions for cable and satellite. Many people have=
=20
tried to link indecency to increased media ownership concentration. Sen=20
Brownback attempted to link it to the war on terrorism reading from a=20
letter from a Wyoming man: the Super Bowl half time program showcased "the=
=20
vilest, narrowest, most hedonistic aspects of our culture," and that by=20
doing so, CBS "hurt the war effort by giving such obvious moral ammunition=
=20
to the recruiters of Osama Bin Laden, Al Qaeda, and the Taliban." The=20
Senator also sent a letter to Viacom chief Mel Karmazin asking the=20
executive to justify why keeping Howard Stern on the air is consistent with=
=20
the public interest.
Many broadcasters blamed indecent content on broadcast networks and large=20
conglomerates--a complaint they used to make the case for strengthening TV=
=20
affiliates' right to reject network programming.
FCC Commissioner Michael Copps told the crowd that better policing is the=20
right thing to do, but won't make Washington back off. "The proof is in the=
=20
pudding," he told reporters. "Not 350 people attending a summit or putting=
=20
together a taskforce, but what is put on the airwaves and whether=20
broadcasters do anything to clean them up."
SOURCES:
B&C: Powell Wants Decency Code=20
http://www.broadcastingcable.com/article/CA407236?display=3DBreaking+News
Smut Self-Regulation Not Enough=20
http://www.broadcastingcable.com/article/CA407170?display=3DBreaking+News
Brownback: Halftime Helped Terrorists=20
http://www.broadcastingcable.com/article/CA407165?display=3DBreaking+News
Brownback: Stern Is Indecent=20
http://www.broadcastingcable.com/article/CA407176?display=3DBreaking+News
NAB: Info on Summit=20
http://www.nab.org/Meetings/ResponsibleProgrammingSummit/default.asp
FCC: Chairman Powell's Remarks=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245663A1.pdf
Remarks by Commissioner Copps=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245610A1.pdf

BERLIN NO MODEL FOR US, NCTA SAYS
The National Cable and Telecommunications Association told the FCC that the=
=20
conditions in Berlin that allowed for an abrupt switch to digital only=20
broadcasting may not exist anywhere else in Germany and certainly =93do not=
=20
exist in the United States.=94 Here are some of contributing factors: in=20
Germany, only 7% of households rely on
over-the-air broadcasting; German cable operators offer significantly fewer=
=20
program channels than U.S. counterparts and most programming in Germany is=
=20
provided by broadcasters; programmers pay for cable carriage and there=92s=
no=20
programming in Germany supported by subscriber fees; in Germany, =93must=20
carry=94 includes payment by broadcasters to cable on =93just and=
reasonable=94=20
terms, subject to negotiation; and the choice of analog or digital carriage=
=20
is at the cable operator=92s discretion.
[SOURCE: Communications Daily, AUTHOR: Paul Gluckman]
(Not available online)
See Also:
"Cable Delivers" On its Digital TV Promise
http://www.ncta.com/press/press.cfm?PRid=3D466&showArticles=3Dok

QUICK HITS

JUDGE: FILE SHARING LEGAL IN CANADA
The Canadian Recording Industry Association is already planning an appeal=20
of a ruling by a Canadian finding that online sharing of music files is=20
legal. Judge Konrad von Finckenstein wrote "The mere fact of placing a copy=
=20
on a shared directory in a computer where that copy can be accessed via a=20
P2P service does not amount to distribution. Before it constitutes=20
distribution, there must be a positive act by the owner of the shared=20
directory, such as sending out the copies or advertising that they are=20
available for copying."
[SOURCE: C-Net|News.com, AUTHOR: John Borland]
http://news.com.com/2100-1027_3-5182641.html?tag=3Dcd_lede
Also in LA Times=20
http://www.latimes.com/business/printedition/la-fi-piracy1apr01,1,104092...
ory?coll=3Dla-headlines-pe-business

ELECTRONIC VOTING ALTERNATIVE OFFERED
The Open Voting Consortium, a group of volunteer programmers and=20
professors, will demonstrate what they believe is a "technically sound,=20
accurate, secure, inexpensive, uniform and open" electronic voting system=20
today in California. The group is seeking funding for systematic research=20
into electronic voting issues, which so far has been in short supply.
[SOURCE: San Jose Mercury News, AUTHOR: Elise Ackerman]
http://www.mercurynews.com/mld/mercurynews/business/technology/8328014.htm

* The US Chamber of Commerce will do a study of the telecommunications=20
sector to =93identify areas where the government can and should establish a=
=20
regulatory structure that will withstand court challenges.=94 The goal is to=
=20
=93get to the bottom of why the telecom sector is struggling while the rest=
=20
of the economy is improving.=94 Experts will =93closely examine the=
regulatory=20
uncertainty that... has been created not only by the FCC and by the Telecom=
=20
Act of 1996, but by all the insertions by Congress" and regulation=20
reversals by the courts. The study will be led by Coleman Bazelon of the=20
Analysis Group, assisted by Thomas Hazlett, a fellow at the Manhattan=20
Institute and John Rutledge of Rutledge Capital Research, who will work on=
=20
the economic impact portion of the study.
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

COULD MICROSOFT ENTER VoIP MARKET?
Speaking at the Voice on the Net Conference this week, former FCC staffer=20
and current Legg Mason analyst Blair Levin said Microsoft may be slowly=20
ramping up of the next five years to bundle value-added applications like=20
VoIP into the Windows operating system in competition with telcos and cable=
=20
operators that provide the underlying transport and seek also to bundle in=
=20
the applications. If so, Microsoft could be a major competitor for phone=20
companies, but at the same time add to the company's already daunting=20
power. Microsoft announced 13 new manufacturing partners developing IP=20
phones and other VoIP devices, including LG Electronics and NEC Infrontia=20
Corp. The company also announced 6 system integrators have joined 6=20
previously announced.
=97including Casio, Hitachi and Samsung units.
[SOURCE: Communications Daily, AUTHOR: Louis Trager]
(Not available online)

* Former President Al Gore and partner Joel Hyatt (of legal services fame)=
=20
apparently will pay $70 million for digital-cable network Newsworld=20
International in hopes of developing a liberal, youth-targeted=20
public-affairs channel. [From Broadcasting&Cable]

* NYTimes reports another knock on TV today. Over half the people surveyed=
=20
in a recent study depend upon TV for their economic news, but those who=20
rely on television the most tend to be among the least informed. See=20
http://www.nytimes.com/2004/04/01/business/01scene.html
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