Today's FCC meeting will NOT happen today -- tune in tomorrow instead. See
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260401A1.doc for the
brief announcement on the schedule change. Why the change? See "FCC May Let
Phone Companies Off DSL Hook" below.
For upcoming media policy events, see http://www.benton.org/calendar.htm
TELECOM
FCC May Let Phone Companies Off DSL Hook
Feds Approve Sprint-Nextel Merger
'Scuse me, I have to Answer my LeapPhone
Calling All Luddites
OWNERSHIP
Detroit Newspapers Change Ownership
Senate Panel To Examine Cable Competition
Some Predict Bad News for Big Media
Russian TV takes Soviet-era turn
Gray TV To Stand Alone
QUICKLY -- City Officials Blast Ensign Bill; ABC Back in NAB; CBS Training
Program Taps Two; Cautious Response To Internet Governance Proposals;
Unprecedented Wiretapping Scheme for In-Flight Communications; DISCUS
Releases Ad Self-Reg Report; AOL unit settles with FTC; Senators Target
Hezbollah TV; LPFM Comment Period Extended; Job Opening: UNITY;
MORE COVERAGE OF SPRINT-NEXTEL
TELECOM
FCC MAY LET PHONE COMPANIES OFF DSL HOOK
Members of the Federal Communications Commission worked yesterday to try to
reach an agreement to free telephone companies from having to lease access
to their high-speed lines to independent Internet service providers.
Sources close to the talks said the commission postponed today's open
meeting until Friday to try to complete negotiations. Such an agreement
would effectively extend to telephone companies the right won by cable
companies under the Supreme Court's "Brand X" decision in June to bar rival
Internet providers from their networks. Among the issues on the table are
whether to continue the old rules of guaranteed access and regulated prices
for some period, giving ISPs such as EarthLink and America Online time to
adjust. Others include guaranteeing "net neutrality" so that the regional
phone companies could not bar access to any Web sites; ensuring law
enforcement's ability to wiretap Internet phone services; preserving
consumer privacy protections; and maintaining protections for people with
disabilities. Critics argue that ending the companies' "common carrier"
obligations to lease their lines at regulated rates will allow them to
raise prices they charge Earthlink and AOL and, in the worst case, to
refuse to lease lines at all. "Brand X stands for the proposition that a
cable monopoly can decide who can use its network at what price and on what
terms. To extend that principle to telephone networks would be compounding
an enormous policy mistake," said Gene Kimmelman, public policy director of
Consumers Union, the publisher of Consumer Reports magazine. "This form of
gatekeeper control either on cable or on telephone is synonymous with
inflated prices," he added. "We are going to see a mass exodus from the
market. It's going to be a two-player-dominated system."
[SOURCE: Washington Post, AUTHOR: Arshad Mohammed]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/03/AR200508...
(requires registration)
* Phone companies' DSL may be deregulated
http://www.usatoday.com/printedition/money/20050804/2b_fcc_04.art.htm
* FCC Eyes Long-Awaited DSL Item
http://www.njtelecomupdate.com/lenya/telco/live/tb-MGTD1123100782152.html
FEDS APPROVE SPRINT-NEXTEL MERGER
The Federal Communications Commission and the Department of Justice's
Antitrust Division on Wednesday approved the $35 billion merger of U.S.
cell phone operators Sprint and Nextel Communications. While reducing the
number of major U.S. operators from five to four, both agencies concluded
the merger will not diminish competition. "Carrier conduct will remain
sufficiently competitive to ensure that market performance will not be
impaired, and, given the expected benefits, the public interest will be
enhanced on balance," the FCC said in a statement. Consumer advocates
expressed concerns that mergers would negatively impact consumers because
there is less competition, and therefore less reason for carriers to
control their prices. That opinion was backed up earlier this year when
executives from landline phone operators SBC Communications and Verizon
Communications, which are also merging with competitors, could not rule out
eventual price hikes following a series of proposed telecom mergers during
testimony before a Energy and Commerce Committee. SBC plans to acquire AT&T
for $16 billion; Verizon is buying MCI for $6.7 billion.
* Text of FCC order
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260394A5.doc
Statements from FCC Commissioners --
* Martin: "This action will ensure that consumers continue to receive the
benefits of wireless competition, such as reduced prices and increased
coverage. In addition, consumers can expect improved service quality and
more advanced services."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260394A1.doc
* Copps: "In less than a year mergers have reduced the number of national
wireless competitors by one third. Only last year consumers could choose
between six national carriers. There are now only four. While I am
sensitive to the arguments that six national competitors could not have
been forever sustained in the wireless market, I am also concerned about
what this substantial reduction in the number of competitors may mean for
wireless consumers. The FCC will have to take a hard look at whether we
have gone about as far as we can go. I believe we should have conditioned
approval of this merger on Sprint Nextel either meeting its 911 deadline,
or having a waiver or consent decree in place. We should have insisted
that Sprint Nextel immediately get itself on a path to full public safety
compliance. I am disappointed that we do not do more today to ensure
compliance with our public safety deadline."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260394A3.doc
* Adelstein: "I am very pleased that the companies have committed to
specific milestones in the deployment of services in the 2.5 GHz
band....providing a specific schedule of implementation milestones that
will ensure wireless broadband services will be deployed to at least 30
million Americans across a number of markets, both large and small. And,
just as important, they put their money where their mouth is by agreeing to
be subject to enforcement action in the event Sprint Nextel fails to meet
these commitments for reasons of circumstances within the company's
control. I also appreciate the company's efforts to address my concerns
about the financial health of the spin-off of the incumbent local telephone
operations. In a recent filing, the Chief Executive Officers of both
Sprint and Nextel indicated that the new local telephone company "will
receive an equitable debt and asset allocation at the time of its proposed
spin-off so that the company will be a financially secure, Fortune 500
company." This positive step will protect Sprint's wireline employees and
ensure millions of primarily rural wireline customers continue to see a
high level of service and investment in advanced services."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260394A4.doc
** See links to additional coverage at the end of this email. **
'SCUSE ME, I HAVE TO ANSWER MY LEAPPHONE
In the latest entry into what is quickly becoming a crowded market,
wireless company Enfora LP and educational toy maker LeapFrog Enterprises
are about to unveil a cellphone especially designed for kids. The new
phone, called TicTalk and aimed at kids ages 6 and up, joins a growing
lineup of competitors that includes Mattel, Hasbro, Firefly Mobile and Walt
Disney. The under-13 'tween segment may be among the last available
territories for cellphone companies to mine. An estimated 80% of adults age
18-65 already carry cellphones, according to market researcher Yankee
Group. And family plans, whereby several phones for various family members
are linked to one shared plan, are a popular option for teens. Family-plan
subscriptions for kids age 13-17 rose 38% to 6 million from 4.4 million
from 2004 to 2005, according to Yankee Group. Manufacturers say their
research indicates that cellphones are among the top items children are
clamoring for. The race to capture the 'tween set has popped up this year,
amid a longstanding debate about the propriety of giving kids their own
device. Some parents like the security of having their children always
reachable by cellphone, no matter where they go. But others hesitate for
fear of running up triple-digit phone bills -- and worries over whom
children may be talking to when they're unsupervised. Many
child-development experts say the research on children and cellphones is
scant but as with any new technology, boundaries and rules have to be set.
[SOURCE: Wall Street Journal, AUTHOR: Kim-Mai Cutler kim-mai.cutler( at )wsj.com]
http://online.wsj.com/article/0,,SB112311926397704641,00.html?mod=todays...
(requires subscription)
* Kiddie phones have parental controls
http://www.usatoday.com/printedition/money/20050804/b_baig04.art.htm
* Cellphones? Over There, Right Next to the Slurpees
When 7-Eleven started its own mobile phone service last year, stocking
handsets on the shelves near the beef jerky and burritos, it became one of
dozens of companies, many with no experience in the phone business, making
a new sideline of selling mobile communications. The emergence of these
companies, and the segmentation of the mass market, reflects the ease of
repackaging telecommunications services in the digital age.
http://www.nytimes.com/2005/08/04/technology/04cell.html?hp&ex=112321440...
(requires registration)
* 1 Landline + 1 Cellphone = 1 Handset
New device helps you make best use of your landline-cellphone combination
at home.
http://tech2.nytimes.com/2005/08/04/technology/circuits/04pogue.html
(requires registration)
CALLING ALL LUDDITES
[Commentary] The world is moving to an Internet-based platform for
commerce, education, innovation and entertainment. Wealth and productivity
will go to those countries or companies that get more of their innovators,
educators, students, workers and suppliers connected to this platform via
computers, phones and PDA's. A new generation of politicians is waking up
to this issue. For instance, Andrew Rasiej is running in New York City's
Democratic primary for public advocate on a platform calling for wireless
(Wi-Fi) and cellphone Internet access from every home, business and school
in the city. If, God forbid, a London-like attack happens in a New York
subway, don't trying calling 911. Your phone won't work down there. No
wireless infrastructure. In U.S. politics, the party that most quickly
absorbs the latest technology often dominates. FDR dominated radio and the
fireside chat; JFK, televised debates; Republicans, direct mail and then
talk radio, and now Karl Rove's networked voter databases. The
technological model coming next -- which Howard Dean accidentally uncovered
but never fully developed -- will revolve around the power of networks and
blogging. The public official or candidate will no longer just be the one
who talks to the many or tries to listen to the many. Rather, he or she
will be a hub of connectivity for the many to work with the many - creating
networks of public advocates to identify and solve problems and get behind
politicians who get it. "One elected official by himself can't solve the
problems of eight million people," Mr. Rasiej argued, "but eight million
people networked together can solve one city's problems. They can spot and
offer solutions better and faster than any bureaucrat. ... The party that
stakes out this new frontier will be the majority party in the 21st
century. And the Democrats better understand something - their base right
now is the most disconnected from the network."
[SOURCE: New York Times 8/3, AUTHOR: Thomas Friedman]
http://www.nytimes.com/2005/08/03/opinion/03friedman.html
(requires registration)
OWNERSHIP
DETROIT NEWSPAPERS CHANGE OWNERSHIP
Time to revise your media ownership map. In a huge shake-up of the Detroit
newspaper market, Gannett has agreed to sell the Detroit News to closely
held MediaNews Group, and to acquire the larger-circulation Detroit Free
Press from Knight Ridder. At the same time, Gannett swapped assets with
Knight Ridder, giving it the Idaho Statesman in Boise and the Olympian and
the Bellingham Herald in Washington state. Gannett, in exchange, got the
Tallahassee Democrat, in Florida.
The move gives Gannett the more successful of the two newspapers in the
Detroit metropolitan area and removes Knight Ridder from a troubled (labor
and declining circulation) market. With the purchase of the Free Press,
Gannett is raising its bet on Detroit's long-term viability as a newspaper
market. In November it bought HomeTown Communications Network, a community
publishing company that includes the Daily Press & Argus in nearby
Livingston County and nondaily groups in other suburban areas near Detroit.
MediaNews, owned by William Dean Singleton, will receive the weaker Detroit
News. The terms of the new partnership will give the News some competitive
advantages, including the right to publish in the morning and the exclusive
right to publish a paper on Saturdays. Until now, the paper has published
in the afternoon and the two papers have published combined editions on
Saturdays and Sundays. As part of a joint operating agreement formed in
1989, called Detroit Newspaper Agency, the Detroit News and the Detroit
Free Press have shared production and advertising expenses and split
profits 50-50. Editorial operations remained separate. The old partnership
will be replaced by a new one called Detroit Newspaper Partnership LP. The
terms will give Gannett a larger share of the profit.
[SOURCE: Wall Street Journal, AUTHOR: Joe Hagan joe.hagan( at )wsj.com and Janet
Adamy janet.adamy( at )wsj.com ]
http://online.wsj.com/article/0,,SB112310244544704214,00.html?mod=todays...
(requires subscription)
* 2 Huge Publishing Chains Swap Newspapers
http://www.nytimes.com/2005/08/04/business/media/04paper.html
(requires registration)
* Gannett Buys Top Detroit Newspaper
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/03/AR200508...
* Gannett to acquire Detroit's 'Free Press,'sell 'News'
http://www.usatoday.com/printedition/money/20050804/detroit04.art.htm
SENATE PANEL TO EXAMINE CABLE COMPETITION
Consolidation and competition in the cable industry will be scrutinized at
a hearing this fall before the Senate Judiciary Antitrust Subcommittee,
with executives from Time Warner and a major telephone company among likely
witnesses, sources said. The hearing, to be held amidst the backdrop of
legislative efforts to revamp the nation's telecommunications law, will
tackle a range of issues. The panel plans to take on rising cable rates,
obstacles faced by independent channels, and competitors' access to cable
programming of dominant firms. Members specifically will examine the
so-called terrestrial loophole, an arcane law that enables cable operators
delivering content through wires to withhold it from satellite competitors.
The hearing also will explore the pending acquisition by Time Warner Cable
and Comcast of Adelphia Communications.
[SOURCE: Technology Daily, AUTHOR: David Hatch]
http://www.njtelecomupdate.com/lenya/telco/live/tb-DQFU1123100483924.html
SOME PREDICT BAD NEWS FOR BIG MEDIA
The U.S. box office is sagging. DVD sales gains are slowing. Advertising
revenue at broadcast television networks is slipping as ratings drop. And
the growing popularity of digital video recorders has advertising and
television executives worried. The variety of concerns along with questions
of how much growth potential remains for the industry are reflected in
drooping stock prices this year for media giants including Time Warner,
Viacom, Walt Disney Co. and News Corp.
[SOURCE: Newsday, AUTHOR: Harry Berkowitz]
http://www.newsday.com/business/printedition/ny-bzmedi034368639aug03,0,5...
RUSSIAN TV TAKES SOVIET-ERA TURN
Zvezda (star), a newly-launched state-run TV network in Russia, is one of
several government-funded initiatives ostensibly aimed at correcting what
the Kremlin perceives is a dearth of national pride and identification with
the state -- especially among Russia's rudderless youth. "Until now, there
is not a single TV channel oriented on the ideas of the Fatherland where
priority is given to all things Russian," producer Ivan Kononov says. "You
may call it propaganda, but we need to stop this tendency to beat ourselves
up, stop selling out our country." Zvezda, which kicked off in March and
currently reaches about 50 million Russian households, so far spends most
of its 24-hour cycle showing Soviet films, plus a few military
documentaries and interviews with notable Russians. Kononov says
programming will soon expand to include talk shows and open forums for
young people to discuss their "burning questions," particularly the
widespread aversion to military service. Last month the Kremlin signed off
on an ambitious five-year program, involving 22 government ministries, to
buck up Russia's image at home and abroad as well as unspecified, but
potentially ominous, efforts to "resist attempts to discredit and devalue
patriotic ideas in the media, literature, and the arts." Critics say the
Kremlin's patriotism project is little more than an expensive PR offensive
to paper over Russia's very real problems, particularly the state of the
military. Zvezda, funded mainly by the Defense Ministry, is an attempt to
stem the tide of draft evasion - only 11 percent of eligible young men were
conscripted last year - by presenting a rosy view of Army life, they say.
"This is just a bureaucratic approach that smells of Soviet methods," says
Vitaly Shlykov, a former Soviet official. "They have failed in all attempts
to actually reform the Army, so now they've decided to teach patriotism
instead."
[SOURCE: The Christian Science Monitor, AUTHOR: Fred Weir]
http://www.csmonitor.com/2005/0804/p06s01-woeu.html
GRAY TV TO STAND ALONE
Gray Television, which owns 31 TV stations including the largest contingent
of CBS affiliates at 16, will become a stand-alone broadcaster when it
spins off its newspaper and wireless businesses to shareholders, forming a
new company, Triple Crown Media.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA631953?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
QUICKLY
CITY OFFICIALS BLAST ENSIGN BILL
Last week, Sen. John Ensign (R-NV) unveiled sweeping legislation (S. 1504)
that would block cities from forcing phone companies to obtain video
franchises -- a regulatory process that cable companies have followed in
thousands of communities. Although phone companies would not face buildout
requirements, they would need to contribute up to 5% of video revenue as
compensation to use local rights of way. But local regulators are
denouncing the bill for eliminating their authority to supervise companies
that want to dig up streets to lay wires that will offer the consumers the
latest in voice, video and data services.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA631845.html?display=Breaking+News
(requires subscription)
DISNEY/ABC AGREES TO REJOIN NAB
After a two-year hiatus, Disney/ABC today announced its intention to rejoin
the National Association of Broadcasters, the industry trade group that
represents free, over-the-air broadcasters on Capitol Hill and at the FCC.
Preston Padden, Executive VP/worldwide government relations, for The Walt
Disney Company will immediately get a seat on the NAB board.
[SOURCE: National Association of Broadcasters]
http://www.nab.org/newsroom/pressrel/Releases/080305_ABCRelease.htm
* Mouse Back in NAB House
ABC was left of "Big Four" networks to leave NAB over broadcast station
ownership dispute. The central issue in the dispute was the division
between the "Big Four" nets and their affiliates over whether or not to
raise the 35% ownership cap on a group owner's national audience reach. The
NAB had been lobbying against raising the cap, with stations arguing that
allowing the networks to own more stations would give them undue leverage
in affiliate contract negotiations. The networks countered that they need
to bulk up to survive, pointing out that some of the non-network groups
contain many more stations, simply not in as large markets. The issue came
to a boil for ABC in June 2003, when the NAB TV board voted to endorse
congressional attempts to restore the 35% cap, which the FCC raised to 45%
in a controversial vote.
http://www.broadcastingcable.com/article/CA632183?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
CBS TRAINING PROGRAM TAPS TWO
CBS named the first two participants in a training program for journalists
of color. James Black will report for WBNS Columbus, Ohio, and Alturo
Rhymes will work for CBS Newspath, the network's affiliate news service in
New York. The program was started to train producers and correspondents for
jobs at CBS News, CBS affiliates, O&O stations. The journalists, who are
required to have at least two years of newsroom experience before the
program, spend two years in CBS affiliate newsrooms or at CBS Newspath. The
program's goal is to eventually place them at CBS News.
[SOURCE: Broadcasting&Cable, AUTHOR: Joel Meyer]
http://www.broadcastingcable.com/article/CA632015?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
CDT URGES CAUTIOUS RESPONSE TO INTERNET GOVERNANCE PROPOSALS
Putting more power over Internet "governance" in the hands of
multi-governmental bureaucracies could undercut the openness and
accessibility of the Internet, the Center for Democracy & Technology said
in public comments. Responding to several new Internet governance models
proposed in a report commissioned by the United Nations, CDT urged the
preservation of the largely non-governmental framework currently in place
for overseeing key elements of the Internet's infrastructure. CDT filed its
initial comments to the State Department and will submit a revised version
of the document to the UN's World Summit on the Information Society (WSIS)
Secretariat later this month.
CDT Comments on WGIG Internet Governance Report:
http://www.cdt.org/dns/icann/20050801wgig-wsis.pdf
All Comments to State Department:
http://www.state.gov/e/eb/cip/wsis2005/c15408.htm
CDT AND EFF OPPOSE UNPRECEDENTED WIRETAPPING SCHEME FOR IN-FLIGHT
COMMUNICATIONS
The Center for Democracy & Technology and the Electronic Frontier
Foundation are opposing a new Justice Department scheme to require that
information about aircraft passengers' cell phone and Internet
communications be constantly recorded. CDT and EFF, which filed comments
with the Federal Communications Commission, don't oppose law enforcers'
ability to intercept such communications, but are deeply concerned that the
proposal raises constitutional concerns and could impose burdensome design
mandates on emerging technology.
CDT-EFF Comments filed with the FCC:
http://www.cdt.org/digi_tele/20050803cdt-eff.pdf
DISCUS RELEASES AD SELF-REG REPORT
The Distilled Spirits Council (DISCUS) Thursday released its second
semi-annual report on the actions of its Code Review Board, saying all of
the member companies cited for code violation had taken actions to modify
their advertisements. According to the DISCUS report, the board, a
self-regulatory body that reviews complaints about distilled spirits ads,
recommended remedial action in 16 of 17 complaints, with 14 of the 16
advertisers agreeing to modify their campaigns, including all five DISCUS
members and 9 of 11 nonmembers.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA632205?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
ADVERTISING.COM SETTLES FTC ADWARE CHARGES
An America Online Inc. subsidiary will no longer bundle its anti-spyware
program with software that tracks consumers' online habits and force-feeds
them pop-up ads, the Federal Trade Commission said on Wednesday.
Advertising.com Inc. also agreed to regular check by the FTC in order to
settle a deceptive-advertising suit filed by the consumer-protection
agency. Advertising.com, also known as Teknosurf.com, promoted its SpyBlast
program as a way to protect users' computers from "hackers," the FTC
charged. But those who downloaded the product also installed a separate
program that monitored their online behavior and served them pop-up ads.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&story...
SENATORS TARGET HEZBOLLAH TV
A group of 51 senators is writing President Bush asking him to put the
Hezbollah-backed al-Manar Television on the U.S. Treasury's list of
Specially Designated Global Terrorism Organizations, which would allow the
government to go after its funding and partners. "Viewed via satellite
throughout the Muslim world, al-Manar promotes suicide attacks against
American and Israeli targets and encourages Iraqi insurgents to attack U.S.
troops," the bipartisan group of senators wrote in the letter.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA631843?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
CREATION OF LOW POWER RADIO SERVICE
The FCC has extended by two weeks the comment and reply comment deadlines
in its low power FM proceeding (MM Docket No. 99-25) to August 22, 2005 and
September 6, 2005, respectively
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2253A1.doc
JOB OPENING: UNITY
UNITY is currently seeking applicants for the position of director of
communications and policy issues that will oversee the planning and the
execution of the communications strategies to meet the needs of the
organization's goals and objectives.
For further information about this position, please go to
http://unityjournalists.org/Training/ProfessionalOpps/policydir_opp.html
To apply, send a letter of interest, resume and three writing samples to
Anna Lopez at executive( at )unityjournalists.org.
Deadline: August 8, 2005.
MORE COVERAGE OF SPRINT-NEXTEL
FCC Approves Sprint/Nextel Merger Agreement
http://online.wsj.com/article/0,,SB112310162781604205,00.html?mod=todays...
Gov't Approves Sprint-Nextel Deal
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/03/AR200508...
Sprint, Nextel $70 billion merger gets FCC's approval
http://www.usatoday.com/printedition/money/20050804/2b_nextel_04.art.htm
--------------------------------------------------------------
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.
--------------------------------------------------------------