Benton's Communications-related Headlines For Friday August 12, 2005

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

REGULATION
Communications Companies Rankle Customers
Forget Deregulation
Brand X Decision Raises Broader Questions

PAY TV
Seeking Cable Ownership Limits
DTV Consortium Led By Emmis Lies Dormant

TELECOM
Consumer Advocates want study of Declining Telephone Penetration
Cellphone Lines Draw Scrutiny

JOURNALISM
Antiwar Activists Decry Media's Role in Promoting Pentagon Event
The New Ernie Pyles
U.K. Media Law Keeps News On Bomb Suspects Out of Press
Cable Can't Get Beyond the Pale

PEOPLE
Michael Powell's Golden Revolving Door
Debra Tica Sanchez Vice President of Government Relations, APTS

QUICKLY -- Bozell Gives MTV L; Nielsen Study to Gauge Placements; Marketers
Wrestle with Hard-to-Control Web Content; Advocating for Increased Federal
Funding for Communications Research

REGULATION

COMMUNICATIONS COMPANIES RANKLE CUSTOMERS
Even as technology races to new heights in the communications industry, the
mundane matter of customer service keeps dragging consumers back to earth.
Such companies now rate near or at the bottom in some customer satisfaction
surveys, even as the government moves to loosen oversight and deregulate
the industry. a series of mergers and regulatory decisions in the industry
could worsen problems by concentrating power in the hands of fewer, bigger
companies, consumer advocates say. Two recent decisions -- one last week by
the Federal Communications Commission and another by the Supreme Court in
June -- could reduce competition because phone and cable companies will no
longer be required to lease their lines to rival Internet service
providers. "They're not really afraid of losing your business. You have
nowhere else to go," Gene Kimmelman, director of Consumers Union, said of
the industry's big players. "Mergers are definitely going to make it worse,
reducing the competitive threat even more."
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/11/AR200508...
(requires registration)

FORGET DEREGULATION
Media Life asked media planners and buyers "What's your opinion of media
deregulation?" Three-quarters of respondents agree with the statement:
"It's absurd. I don't want one huge conglomerate to own everything. It's
not fair to the little guys and it really hurts me as a buyer/planner." But
media people also worry that further consolidation will have the effect of
hurting the quality of the entertainment product in which they play their
clients' ads. The question: "What does media deregulation mean for the
quality of entertainment? Will it suffer?" Eighty percent think so,
agreeing with the statement: "Yes. With less competition, of course there
will be fewer innovations and less critical thinking. You can already see
it on TV and radio." Just 20 percent disagree. Many readers think the
entire deregulation issue has become tainted by politics. We asked readers:
"If you could give new FCC chairman Kevin Martin one piece of advice as he
wades into deregulation, what would it be?" "Leave politics at home.
Remember the original intention of the FCC and that the airwaves belong to
the people," advises one respondent. "Stop catering to the big corporations
and think about what's right for the American public--which is his job,
after all," writes another. And if Martin should choose to move ahead with
deregulation, he should put some real thought into how it ought to be done.
Obviously, past efforts failed, and readers believe it was because they
seemed arbitrary, based on numbers rather than solid reasoning. One reader
advises Martin: "Research the answer to the question: If this passes, what
will the consequences be to the country economically in 10 years?"
[SOURCE: Media Life, AUTHOR: Toni Fitzgerald]
http://www.medialifemagazine.com/News2005/aug05/aug8/4_thurs/news4thursd...

BRAND X DECISION RAISES BROADER QUESTIONS
The Supreme Court's Brand X decision has broader implications than simply
affirming the FCC's classification of broadband, states Randolph May,
Senior Fellow at the Progress & Freedom Foundation. In addition to
classifying broadband Internet service as an information service, the
decision also strongly reaffirms a seminal Supreme Court ruling from over
20 years ago. In the process, the Court enhanced the authority of federal
agencies by clarifying that an agency interpretation of an ambiguous
statute trumps even a prior judicial interpretation of the same statute.
[SOURCE: Progress & Freedom Foundation]
http://www.pff.org/news/news/2005/081105maynlj.html

PAY TV

SEEKING CABLE OWNERSHIP LIMITS
Media activists say they want cable ownership caps to ensure consumers have
access to a wider array of programming. A Free Press campaign against cable
ownership consolidation has generated some 19,000 e-mails to the FCC, and
the group predicts more. In an Aug. 8 joint filing with the Consumer
Federation of America and Consumers Union, Free Press demanded a horizontal
ownership limit of 20-30% of all cable customers. "There's a lot of
traction on the issue, and I think you will see more," said a Free Press
spokesman. "People are finally really taking notice."
[SOURCE: Communications Daily, AUTHOR: Jonathan Make]
(Not available online)

DTV CONSORTIUM LED BY EMMIS LIES DORMANT
A consortium of TV stations led by Emmis Communications, aimed at using
extra DTV channels to compete with cable, lies dormant. "We got frustrated
and it was too hard for us to take the lead. But we still think it needs to
be done," Emmis Chairman. Jeff Smulyan told us. The plan, unveiled at NAB
convention in Las Vegas in 2004, was to add a 2nd revenue stream by selling
programming to the public on broadcasters' excess digital channels.
Subscribers would buy a set top box for less than $100 and pay TV stations
about $25 monthly for local signals and at least 30 cable channels. Many
broadcasters supported the concept, including Clear Channel, Citadel,
Meredith and Nexstar. Roughly 40 companies signed on to the initiative, but
the problem was getting the industry in "concert", Smulyan said. "No one
could agree on the terms and the networks and stations weren't on the same
page," he said. Complicating matters is Emmis' plan to sell its 16 TV stations.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

TELECOM

CONSUMER ADVOCATES CALL FOR STUDY OF DECLINE IN THE NUMBER OF HOUSEHOLDS
WITH TELEPHONE SERVICE
The National Association of State Utility Consumer Advocates (NASUCA) is
calling on the FCC to shed light on statistics that show that 8.7 million
households are without telephone service, the largest number of homes since
1983. NASUCA is concerned about any disturbing trends that could be behind
the numbers, which show a decline in households with telephone service from
March 2003 (95.5 percent of homes) to March 2005 (92.4 percent of homes).
The concerns are based on NASUCA's examination of the FCC's "Subscribership
Report," which is published three times per year. The FCC reports consider
subscribers of both traditional home telephone and wireless service.
Therefore, the declining numbers could reflect fewer consumers having any
ability to make and receive calls in their homes. NASUCA noted that an
explanation of the declines could be statistical in nature but could also
indicate that a significant problem exists with consumers' access to basic
local telephone service.
[SOURCE: National Association of State Utility Consumer Advocates]
http://www.nasuca.org/newsroom/nasuca%20telephone%20subscribership%20dro...

CELLPHONE LINES DRAW SCRUTINY
The use of cellphones to detonate bombs in Iraq is prompting debate about
the merits of shutting down entire wireless networks to head off terrorist
attacks. While authorities in the U.S. apparently have yet to ask a
wireless carrier to shut down its entire network, government officials,
trying to head off possible cellphone-enabled attacks in New York, last
month turned off equipment that permits cellular service in four tunnels in
Manhattan after four bombs went off in London. Two regional government
agencies -- the Port Authority of New York and New Jersey, which controls
communications in the Holland and Lincoln Tunnels, and the Metropolitan
Transportation Authority, which controls the Brooklyn Battery Tunnel and
the Queens Midtown Tunnel -- authorized the shutdown. The service shutdown
triggered a clash between the needs of law enforcement and those of
consumers. The Cellular Telecommunications and Internet Association, a
Washington group that represents cellphone companies, says carriers are
working with government officials to determine a national standard for
requesting network shutdowns. Cellular carriers have no way to determine
the authenticity of a request to turn off their networks and are hoping for
a standardized process. Some civil libertarians and technology experts are
outraged at the notion of the government cutting off communication to
prevent a perceived threat. Cellphones transmit vital information in times
of emergencies, they say. "This is as idiotic as it gets," said Bruce
Schneier, author of the book, "Beyond Fear: Thinking Sensibly About
Security in an Uncertain World." "Have people forgotten how cellphones
saved lives on 9/11? Not just the fourth plane, but people talking to
people in the Twin Towers." Shutdowns are an example of what Mr. Schneier,
a computer-security expert, calls "movie plot security," which involves
imagining a scenario rather than focusing on broad threats. And it is
futile if a terrorist uses another kind of common detonator such as a
kitchen timer. Afterall, he says, calling a cellphone is one of many ways
to set off a bomb. "Communication," Mr. Schneier says, "benefits the
defenders far more than it benefits the attackers."
[SOURCE: Wall Street Journal, AUTHOR: Dionne Searcey dionne.searcey( at )wsj.com]
http://online.wsj.com/article/0,,SB112380930561111579,00.html?mod=todays...
(requires subscription)

JOURNALISM

ANTIWAR ACTIVISTS DECRY MEDIA'S ROLE IN PROMOTING PENTAGON EVENT
Organizers of next month's planned antiwar demonstrations yesterday
criticized media organizations, including The Washington Post, for
co-sponsoring with the Department of Defense an event to remember the
victims of the Sept. 11 attacks and to support the troops in Iraq. The
Defense Department-sponsored Freedom Walk will proceed from the Pentagon to
the Mall near the Reflecting Pool on the morning of Sept. 11. Country music
star Clint Black is donating his time to perform a concert after the walk
that will be broadcast to troops overseas. DC media outlets The Washington
Post, WTOP radio, WJLA-TV and NewsChannel 8 are donating public service
announcements in advance of the event. Non-media co-sponsors include
Lockheed Martin, Subway and the Washington Convention and Tourism Corp. On
Sept. 24, nearly two weeks after the walk, critics of the war will gather
in Washington for three days of demonstrations, including a concert, a
march and other events. Yesterday, some of those critics said media support
for the Pentagon event undercuts their credibility in covering the
controversial war as well as reporting on antiwar efforts. "No common
person will see this as not taking sides in this war," said Adam Eidinger,
a promoter of the antiwar concert being called Operation Ceasefire. "This
is clearly support for the war because it's being organized by the U.S.
military." "With The Washington Post and other media outlets supporting
this, they are in effect putting their opinions behind the Bush
administration," said Caneisha Mills, a national organizer with the antiwar
group International ANSWER and a student at Howard University.
Representatives of the media organizations drew a distinction between
supporting the troops and supporting the war policy. They also said the
sponsorships emanated from the corporate sides of their companies, not the
newsroom.
[SOURCE: Washington Post, AUTHOR: David Montgomery]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/11/AR200508...
(requires registration)

THE NEW ERNIE PYLES
Since the 1850s, when a London Times reporter was sent to chronicle the
Crimean War, journalists have generally provided the most immediate
first-hand depictions of major conflicts. But in Iraq, service members
themselves are delivering real-time dispatches -- in their own words --
often to an audience of thousands through postings to their blogs. At least
200 active-duty soldiers currently keep blogs. Only about a dozen blogs
were in existence two years ago when the U.S. invaded Iraq, according to
"The Mudville Gazette" ( http://www.mudvillegazette.com ), a clearinghouse
of information on military blogging administered by an Army veteran who
goes by the screen name Greyhawk. Written in the casual, sometimes profane
language of the barracks, the entries give readers an unfiltered
perspective on combat largely unavailable elsewhere. But they are also
drawing new scrutiny and regulation from commanders concerned they could
compromise security.
[SOURCE: Washington Post, AUTHOR: Jonathan Finer]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/11/AR200508...
(requires registration)
* Who was Ernie Pyle? See http://en.wikipedia.org/wiki/Ernie_Pyle

UK MEDIA LAW KEEPS NEWS ON BOMB SUSPECTS OUT OF PRESS
Stories about the men suspected of trying to blow up the London subway and
a bus on July 21 filled Britain's daily newspapers and television networks
for more than two weeks. Dramatic photos showed two suspects surrendering
with their hands in the air to armed police. But earlier this week, the
coverage all but disappeared. As soon as the suspects appeared in court on
Monday, charged with conspiracy to murder and other crimes, the news media
are prohibited by British law from reporting information that might prevent
their fair trials. That means until their trials begin in a year or more,
virtually nothing about them can appear in London's 12 daily newspapers and
other media beyond such basic facts as their names, ages and the charges
against them. The legal restrictions are designed to ensure potential
jurors don't read, watch or hear any reports that might influence their
view of a case. Defense lawyers and the government say such measures are
especially important because Britain's newspapers are notoriously intrusive
and aggressive but often inaccurate and sensationalistic. The media rules,
however, are posing increasing problems. The proliferation of the Internet
and other alternative media is limiting the British government's ability to
restrict information since Britons can read online coverage by foreign
newspapers and independent bloggers. In theory, foreign news media are
subject to the same restrictions on print editions that are sold on British
newsstands and on their Web sites, which can be read in the U.K. But no
foreign news outlet has ever been prosecuted under the law.
[SOURCE: Wall Street Journal, AUTHOR: Mary Jacoby mary.jacoby( at )wsj.com]
http://online.wsj.com/article/0,,SB112379603783011253,00.html?mod=todays...
(requires subscription)

CABLE CAN'T GET BEYOND THE PALE
[Commentary] The pathological cable news obsession with young, attractive
white women who unfortunately vanish continues unabated. Yes, the nation is
still transfixed by Damsels in Distress -- only now it's gotten worse: The
media are suddenly obsessed with their own obsession. Does the whole
Damsels thing result from a lack of diversity in television newsrooms?
Maybe in part, but I don't think that can be the only answer. Television
newsrooms are generally more diverse than newspaper staffs, so if lack of
diversity were the only reason, you'd expect newspapers to be leading the
Damsels charge. But newspapers aren't opening ad hoc bureaus in Aruba;
cable networks are. That leaves one other possibility: Cable television
executives, producers and anchors have decided that viewers will stay glued
to the set to hear endlessly about young, photogenic, missing women -- but
only if they're white.
[SOURCE: Washington Post, AUTHOR: Eugene Robinson]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/11/AR200508...
(requires registration)

PEOPLE

MICHAEL K. POWELL'S GOLDEN REVOLVING DOOR
[Commentary] The announcement that Michael K. Powell has become a "Senior
Advisor" at Providence Equity Partners is evidence once again that the
"revolving door" between the FCC and the very industries it oversees should
be slammed shut. Powell joins his fellow former chairs Richard Wiley, Mark
Fowler, Dennis Patrick, Reed Hundt, and William Kennard, all of whom went
from the FCC to work in the media and telecommunications industries. With
lucrative industry employment ahead of them, FCC chairs (and most
commissioners) have a built-in conflict of interest. They simply can't
take the independent positions necessary to fulfill their responsibilities
to the public -- and to the public interest. In the "free-market" economy
of Washington DC and Wall Street, being a political "quick change" artist
and then going to work for an industry one once oversaw is considered a
mark of success. But the practice does a disservice to the public,
including workers, investors, and competitors. Chairs and Commissioners
should pledge that they will work in the nonprofit sector for a reasonable
period after the serve in office. Otherwise, there will always be the
concern that pro-Big Media philosophies are simply part of resumes for a
highly-paid post-FCC gigs.
[SOURCE: Center for Digital Democracy]
http://www.democraticmedia.org/news/washingtonwatch/FCCrevolvingdoor.html
* Former FCC Chairman To Join Investment Firm
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/11/AR200508...
(requires registration)
* Michael Powell goes to Providence Equity
http://www.usatoday.com/printedition/money/20050812/powell12.art.htm

DEBRA TICA SANCHEZ VICE PRESIDENT OF GOVERNMENT RELATIONS, APTS
The Association of Public Television Stations (APTS) announced Thursday the
promotion of Debra Tica Sanchez to the position of vice president of
government relations. Ms. Sanchez joined the government relations staff at
APTS in July of 2001. Early in her tenure she served dual roles as a
grassroots organizer focused on station advocacy and as a part-time Hill
lobbyist. In the latter capacity, she engineered the creation of a digital
funding program for rural stations that has netted tens of millions of
dollars in digital conversion grants for stations across the country.
Later, Ms. Sanchez's lobbying portfolio expanded to education issues, where
she served as the chief lobbyist for the Ready To Learn and Ready To Teach
programs, as well as appropriations issues. In December of 2004, she was
named director of government relations. Prior to joining APTS, Ms. Sanchez
held stints in Northern Virginia's high tech sector and spent several years
as a special education teacher in Arlington, Virginia and Highland,
Indiana. She was graduated from Indiana University in Bloomington, Indiana
with a Bachelor of Science degree in Special Education.
[SOURCE: Association of Public Television Stations]
http://www.apts.org/news/sanchez_promo.cfm

QUICKLY

BOZELL GIVES MTV L
Brent Bozell's Parents Television Council says MTV hasn't been putting an L
(language) warning on original shows containing plenty of L (partially
bleeped and unbleeped profanities). The group released a six-month study
(January-June 2005) of 136 episodes of shows including lots of Real World,
Making the Band, award shows and specials. PTC says the expletives flew at
the rate of "one every three minutes with no language warnings to parents,"
adding "[This] shows that the cable industry's $250 million dollar campaign
to promote reliance on the V-chip and ratings system is a complete sham."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA634284?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

NIELSEN STUDY TO GAUGE PLACEMENTS
Nielsen Media Research and Nielsen Entertainment are conducting a research
study that will assess the factors that affect the effectiveness of product
placements. The study will analyze the relationship viewers have with a
specific program, as well as their familiarity with the brand and product
category featured as related to the effectiveness of the placements. The
study's initial participants will include CBS, UPN, The Weather Channel,
Discovery Communications Inc., Magna Global, MediaCom, OMD, PHD, Sprint and
Zenith Optimedia.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA634272.html?display=Breaking+News
(requires subscription)
* Nielsen Drills Down Into Plugs
http://www.broadcastingcable.com/article/CA634188?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

MARKETERS WRESTLE WITH HARD-TO-CONTROL WEB CONTENT
Is it safe to advertise in places on the Internet that are essentially run
by consumers and cannot be controlled? How can they protect themselves and
their good names when blog and chat-room users are liable to say and post
anything? It's not just pornography or off-color language that worries
them. What if consumers got angry about something involving a marketer's
brand, and their remarks got linked to across the Internet? Maybe
advertising in such open spaces is not worth the risk.
[SOURCE: AdAge, AUTHOR: Kris Oser]
http://adage.com/news.cms?newsId=45778

TIA LAUNCHES DIVISION TO ADVOCATE INCREASED FEDERAL FUNDING FOR
COMMUNICATIONS RESEARCH
The Board of Directors of the Telecommunications Industry Association
(TIA), a U.S. trade group for the global information and communications
technology industry, has established a sixth division, whose sole focus is
increasing federal funding for communications technology research. In 2004,
the association convened a Chief Technology Officer (CTO) Council to
advocate increased federal funding for communications-related basic
research in the face of sustained reductions in industry research spending
and an intensely competitive global environment. Participation in the CTO
Council has grown to nearly 30 TIA member company CTOs and senior research
executives, and the council has produced a white paper and recommendations
for addressing this issue. TIA's efforts were applauded by U.S.
Representative Chip Pickering (R-Miss.), vice chair of the House Committee
on Energy and Commerce.
[SOURCE: Telecommunications Industry Association]
http://www.tiaonline.org/media/press_releases/index.cfm?parelease=05-54
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Hey, Happy Friday! Have a great weekend. We'll see you Monday.
...and we are outta here.
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Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
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