Benton's Communications-related Headlines For Tuesday August 16, 2005

For upcoming media policy events, see http://www.benton.org/calendar.htm=20
(OK, honestly, don't even bother checking... there's nothing going on 'til=
=20
after Labor Day.)

TELECOM
Burns USF Bill to Focus on Contributions and Fund Spending
Nuvio Challenges FCC Internet Phone Rules for 911
Sprint Nextel Prepares Local Phone Unit's Spinoff
Japan's Cellphone Giant Tries Expansion Into Credit Cards
In Case of Emergency, Put Your Cell on ICE
Kids' Cellphones: What Next?

MEDIA OWNERSHIP
Financier Proposes Spinoff for Time Warner
Copy-protection Gear Sneaks into Products
News Corp. in talks to buy Blinkx

QUICKLY -- Complaints, Complaints, Complaints; Decency Docent; Bush=20
Administration Objects to .xxx Domains; Blogging to be Free; 'Wash Post'=20
Cuts Ties to Pentagon Event After Protests; Back-to-School Generation Gap;=
=20
Online Tutoring Part of Growing Trend; Reality's Pen

TELECOM

BURNS USF BILL TO FOCUS ON CONTRIBUTIONS AND FUND SPENDING
Sen. Conrad Burns (R-Mont) is working with Sens. Jay Rockefeller (D-WV) and=
=20
Olympia Snowe (R-Maine) on a bill to revamp the universal service fund=20
(USF), expanding the contribution base and redistributing funding The bill=
=20
is expected to be introduced early in September. It=92s likely to differ fr=
om=20
a bill introduced by Sens Smith and Dorgan, which would apply USF=20
contributions to all 2-way voice services and establish a separate fund for=
=20
broadband deployment in rural areas. =93It will address the issue of=20
contribution methodology, and the issue of schools and libraries,=94 said a=
=20
Senate source, referring to the E-rate program. The E-rate program got a=20
year=92s reprieve under a bill passed last year exempting it from Anti-=20
Deficiency Act (ADA) requirements that funds to be in hand before=20
government agencies make funding commitments. The 12-month exemption ends=
=20
Dec. 31, 2005. In Feb., Sen Snowe introduced a bill to make the exemption=
=20
permanent. It was co-sponsored by Commerce Committee Chairman Ted Stevens,=
=20
Senate Commerce Committee Co-Chairman Inouye (D-Hawaii) and Sen=20
Rockefeller, but there has been no action on that bill. Sen Stevens is also=
=20
expected to introduce a universal service reform bill this year.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)

NUVIO CHALLENGES FCC INTERNET PHONE RULES FOR 911
Nuvio Corp, an Internet phone service provider, has challenged Federal=20
Communications Commission rules requiring the company to make full 911=20
emergency calling services available to customers by late November. In May,=
=20
the FCC ruled that Internet phone service providers must ensure 911 calls=
=20
go directly to emergency dispatchers and provide the location of callers by=
=20
November 29. Nuvio, which has roughly 10,000 customers, argued that=20
wireless carriers had years to develop systems for locating callers to 911=
=20
and that the short timeline for Internet calling services was unreasonable.=
=20
The company asked the U.S. Court of Appeals for the District of Columbia to=
=20
hear the case and rule by November 7 or it may have to begin notifying=20
customers about suspending service.
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-08-15T175020Z_01_KNE564215_RTRIDST_0_NET-TELECOMS-FCC-911-DC.XML
* Internet Phone Firm Seeks Court Relief From FCC's 911 Rule
http://online.wsj.com/article/0,,SB112415893934914092,00.html?mod=3Dtoda...
us_personal_journal

SPRINT NEXTEL PREPARES LOCAL PHONE UNIT'S SPINOFF
With its merger completed Friday, Sprint Nextel announced the long-planned=
=20
spinoff of its local telephone business would happen within nine to 12=20
months. The local telephone company will have about $7.25 billion in debt=
=20
once its spinoff is completed, a level Sprint Nextel said would be=20
consistent with other companies with investment-grade debt ratings.
[SOURCE: Washington Post, AUTHOR: Arshad Mohammed]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/15/AR200508...
1411.html
(requires registration)

JAPAN'S CELLPHONE GIANT TRIES EXPANSION INTO CREDIT CARDS
Within the next year or two NTT DoCoMo, the largest Japanese mobile-phone=
=20
company, plans to introduce phones with an embedded DoCoMo credit card.=20
The goal: to turn Japan into a credit-happy nation like America -- and to=
=20
build a lucrative new profit center for the company. DoCoMo's vision could=
=20
point the way for cellphone companies around the globe. The Tokyo company=
=20
has 49 million customers in Japan, more than half the market, and a market=
=20
capitalization of more than $80 billion. It led the industry in offering=20
commercially viable Internet and email service over cellphones, and also=20
pioneered downloadable ringtones. U.S. cellphone companies are counting on=
=20
data services such as email and Internet access to drive growth for the=20
next few years. But DoCoMo's experience suggests that strategy can only=20
work for so long. Given the Japanese company's record as a trendsetter, it=
=20
wouldn't be surprising if U.S. companies also end up trying to turn their=
=20
products into something more than communications devices.
[SOURCE: Wall Street Journal, AUTHOR: Ginny Parker Woods=20
ginny.parker( at )wsj.com]
http://online.wsj.com/article/0,,SB112413723322613635,00.html?mod=3Dtoda...
us_page_one
(requires subscription)

IN CASE OF EMERGENCY, PUT YOUR CELL ON ICE
A movement is underway to turn the ubiquitous cellphone into a source of=20
information for paramedics and other emergency personnel who respond to=20
accidents, crimes and disasters. A British paramedic came up with the idea=
=20
of asking cellphone users to add an entry into their cellular phone book=20
called ICE for =93in case of emergency.=94 Accompanying that acronym would =
be=20
the name and phone numbers of the person who should be called if something=
=20
has happened to the owner of the phone. The ICE campaign was launched in=20
Britain in April, but people really started paying attention after the=20
London terrorist bombings in July.
[SOURCE: USAToday, AUTHOR:]
http://www.usatoday.com/printedition/life/20050816/bl_bottomstrip16.art.htm

KIDS' CELLPHONES: WHAT NEXT?
[Commentary] New mobile phones are aimed at 8-to-12-year-olds, the "tween"=
=20
generation. Some child advocates worry kiddie phones are just one more=20
screen for children to stare into and become lost, instead of enjoying=20
face-to-face companionship. Parents have a tricky path to walk between=20
being responsible guardians and submitting to marketing ploys that play on=
=20
their fears. When, if ever, they provide children with cellphones, they=20
need to remember that no electronic tether can substitute for a=20
relationship of trust with their child.
[SOURCE: The Christian Science Monitor, AUTHOR: Editorial Staff]
http://www.csmonitor.com/2005/0816/p08s02-comv.html

MEDIA OWNERSHIP

FINANCIER PROPOSES SPINOFF FOR TIME WARNER
Billionaire financier Carl C. Icahn said yesterday that he plans to meet=20
with the chief executive of Time Warner to try to pressure the company to=
=20
spin off its cable-television assets, a move that Icahn believes will boost=
=20
the media company's stock. Time Warner's cable and high-speed Internet=20
operations make up less than a quarter of the company's total $42 billion=
=20
annual revenue. Without the cable operations, Time Warner's empire would=20
still include Warner Bros. Entertainment Inc., New Line Cinema, America=20
Online and a publishing operation. Icahn has a long history of bending=20
companies to his will, either through shareholder activism or by buying up=
=20
large stakes in companies. James C. Goss, a media analyst with investment=
=20
bank Barrington Research Associates Inc., noted that Icahn and his group=20
control about $2.2 billion worth of Time Warner shares -- a small fraction=
=20
of the company's $85.4 billion market value -- so it is unclear how much=20
influence Icahn can wield.
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/15/AR200508...
1481.html
(requires registration)
* Icahn calls on Time Warner to dump cable systems
http://www.usatoday.com/printedition/money/20050816/1b_icahn_16.art.htm

COPY-PROTECTION GEAR SNEAKS INTO PRODUCTS
Controversial copy-protection technology is quietly being added to e-books,=
=20
CDs, DVDs and other products. Companies have been trying to add copy=20
protection to digital music files, DVDs and other products for at least=20
five years. The Recording Industry Association of America says piracy is=20
one reason record sales tumbled 10% from 2000 to 2004. Yet early=20
anti-piracy efforts flopped. Some early CDs with copy protection =97 known =
in=20
the industry as digital rights management (DRM) =97 wouldn't always play=20
properly. Now the kinks are getting worked out. Critics say DRM prevents=20
legitimate uses, such as backing-up a DVD. =93There's basically no benefit=
=20
from the consumer's point of view,=94 says lawyer Fred von Lohmann of the=
=20
Electronic Frontier Foundation, an advocacy group. But tech analysts say=20
DRM is here to stay. Content makers want it, and consumer complaints are=20
waning as it becomes less cumbersome.
[SOURCE: USAToday, AUTHOR: Michelle Kessler]
http://www.usatoday.com/printedition/money/20050816/1b_drm_16.art.htm

NEWS CORP IN TALKS TO BUY BLINKX
Apparently, News Corp. is eyeing an acquisition of closely held Web search=
=20
provider Blinkx. Based in San Francisco, Blinkx is best known for providing=
=20
searches of video files on the Web. It competes with Internet search=20
leaders Google and Yahoo in that upstart category. Media companies have=20
been scooping up Internet names in a bid to profit from the online=20
advertising boom, fueled in part by the popularity of Web search ads from=
=20
Google and Yahoo.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-08-15T181417Z_01_KNE565659_RTRIDST_0_NET-BLINKX-NEWSCORP-DC.XML

QUICKLY

COMPLAINTS, COMPLAINTS, COMPLAINTS
The Commission has released its report on the inquiries and complaints=20
processed by the Consumer & Governmental Affairs Bureau (CGB) during the=20
first quarter of calendar year 2005. Wireless complaints recorded an=20
increase, rising from 4,369 in the 4th quarter Calendar Year 2004 to 7,330=
=20
in the 1st quarter calendar year 2005. There was a decline in the number=
=20
of Radio and Television Broadcasting complaints, which dropped from 317,833=
=20
in the 4th quarter 2004 to 157,650 in the 1st quarter 2005. A decline in=
=20
the number of complaints received in connection with e-mail or write-in=20
campaigns directed at specific radio or television broadcasts accounted for=
=20
the change. Cable and Satellite Services complaints recorded an increase,=
=20
rising from 132 in the 4th quarter 2004 to 718 in the 1st quarter 2005.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260528A1.doc

DECENCY DOCENT
Those concerned about indecency on the airwaves have a new ally in the=20
innermost halls of broadcast regulation. Penny Nance has been hired by the=
=20
FCC as an advisor on indecency issues. Nance is a former board member for=
=20
Concerned Women for America, a group dedicated to "helping=85to bring=20
Biblical principles into all levels of public policy." A talk with=20
Mediaweek reporter Todd Shields about the appointment and its implications.
[SOURCE: OntheMedia]
http://www.onthemedia.org/stream/ram.py?file=3Dotm/otm081205e.mp3

BUSH ADMINISTRATION OBJECTS TO .XXX DOMAINS
The Bush administration is objecting to the creation of a .xxx domain,=20
saying it has concerns about a virtual red-light district reserved=20
exclusively for Internet pornography. Michael Gallagher, assistant=20
secretary at the Commerce Department, has asked for a hold to be placed on=
=20
the contract to run the new top-level domain until the .xxx suffix can=20
receive further scrutiny. The domain was scheduled to receive final=20
approval today.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Bush+administration+objects+to+.xxx+domains/2100-102...
-5833764.html?tag=3Dnefd.top

BLOGGING TO BE FREE
[Commentary] In addition to bringing the word to other bloggers and to the=
=20
wired in general, the blogosphere has become one of the primary cues of=20
standard media. If something gets big in the blogosphere, it later will be=
=20
covered in the newspapers and TV. The electronic tricks of the human rights=
=20
trade provide amplification. Software like Adam Globus-Hoenich's=20
ActivePetition software allows our supporters to swamp an unlimited number=
=20
of recipients with personalized messages. Newspapers, even individual Web=
=20
sites, are relatively easy to shut down. But what can't be shut down is a=
=20
self-perpetuating system like the blogosphere. What our experience has=20
shown is not that a single organization, the Committee to Protect Bloggers,=
=20
is a threat to tyrants, but that blogging itself is. Blogging's culture of=
=20
sharing, quoting and linking has created a radical redundancy for powerful=
=20
ideas. Blogging is so decentralized that the complete suppression of=20
dissent is becoming increasingly impractical. Will that lead to a messianic=
=20
age of liberty and justice for all? I think that's unlikely. But there are=
=20
14 million other bloggers out there, and they've all got their opinions.
[SOURCE: C-Net|News.com, AUTHOR: Curt Hopkins, Committee to Protect Blogger=
s]
http://news.com.com/Blogging+to+be+free/2010-1071_3-5833728.html?tag=3Dn...
.ac

'WASH POST' CUTS TIES TO PENTAGON EVENT AFTER PROTESTS
The Washington Post announced that it will cease its co-sponsorship of the=
=20
Pentagon-organized Freedom Walk next month. The paper's involvement had=20
drawn heat from within and outside the paper, with a guild committee=20
calling for the link to end. The newspaper told the Department of Defense=
=20
that it was pulling back on its offer of free ads for the event--a march up=
=20
the mall ending with a concert by pro-war country singer Clint Black. "As=
=20
it appears that this event could become politicized, The Post has decided=
=20
to honor the Washington area victims of 9/11 by making a contribution=20
directly to the Pentagon Memorial Fund," said Eric Grant, a Post spokesman.=
=20
"It is The Post's practice to avoid activities that might lead readers to=
=20
question the objectivity of The Post's news coverage."
[SOURCE: Editor&Publisher]
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1001015384

GENERATION GAP EXISTS BETWEEN KIDS, PARENTS OVER BACK-TO-SCHOOL TECHNOLOGY
Back-to-school time means parents are eyeing new gear to make students more=
=20
productive -- computers, cell phones, handheld computers or graphing=20
calculators. Kids, however, have their own ideas; they are looking to use=
=20
technology to express themselves -- high on the wish list is a music=20
player/iPod.
[SOURCE: San Jose Mercury News]
http://www.rednova.com/news/technology/207407/generation_gap_exists_betw...
_kids_parents_over_backtoschool_technology/

ONLINE TUTORING PART OF GROWING TREND
Once a dot-com pipe dream, online education is now maturing into a viable=
=20
market. More than 2.6 million students in the United States were expected=
=20
to study online through courses and tutoring last fall, up from 1.9 million=
=20
in 2003, according to the Sloan Consortium, an online research group.=20
What's fueling the growth? An increase in the number of non-traditional=20
students who don't have a lot of time to look for on-campus resources, a=20
more competitive educational landscape in which colleges and schools are=20
trying harder to attract students with additional services and students'=20
greater familiarity with the Internet.
[SOURCE: Washington Post, AUTHOR: Mark Chediak]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/15/AR200508...
1265.html
(requires registration)

REALITY'S PEN
Reality shows offer a glimpse of real life, unmediated by script-writers or=
=20
story boards. Right? Wrong, says Daniel Petrie, Jr., president of the=20
Writers Guild of America, west. According to Petrie, reality show editors=
=20
serve the same function as traditional writers, piecing together story arcs=
=20
out of hundreds of hours of raw tape. And thus, they should be recognized=
=20
under the same union rules that govern traditional TV contracts.
[SOURCE: OntheMedia]
http://www.onthemedia.org/stream/ram.py?file=3Dotm/otm081205h.mp3
--------------------------------------------------------------
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.
--------------------------------------------------------------