The USTelecom Association is hosting a webcast today -- "Municipal
Broadband: The Shape of the Debate." For this and other upcoming media
policy events, see http://www.benton.org/calendar.htm
OWNERSHIP
Intelsat Makes a Move To Shed Legacy
Too Many Players Still Shadow Satellite Industry
Sprint Nextel Is Close to Buying Two Affiliates
PK Response to CDT Paper on Broadcast Flag
TELEVISION/RADIO
CT Advocate Expresses Telco-TV Worries
Much is at stake for democracy in transition to digital TV
WGA Unimpressed By CBS Package
New on TV: The Multiple-Channel Screen
Broadcast Station Totals
Nielsen Reports Startling People Meter Findings
Nielsen Revises National TV Households Count
MAP Files On Behalf of LPFM Community and Supporters
NAB Filing Addresses Heated LPFM and Translator Issues
QUICKLY -- Privacy Group Urges FCC to Guard Phone Data; Data Mining; Media
Monopolies Are a Myth; Principles for Broadband and IP Services;
Irreplaceable Exuberance;
OWNERSHIP
INTELSAT MAKES A MOVE TO SHED LEGACY
If Intelsat completes the $3.2 billion deal announced yesterday to acquire
PanAmSat Holding Corp., the combined company would have an estimated 50%
share of the U.S. satellite-services market, a diversified customer base
and $8 billion in long-term contracts. It also would be well positioned to
benefit from high-definition television programming and government
services. But in acquiring PanAmSat, the leading video-over-satellite
company in North and Latin America in terms of the number of television
channels offered, closely held Intelsat is likely to draw scrutiny from
U.S. regulators and countermoves by rivals on both sides of the Atlantic.
Some industry analysts predict that U.S. antitrust enforcers will require
Intelsat to divest itself of certain satellites over the U.S. that it
acquired from Loral Space & Communications Ltd. Intelsat officials said
regulatory reviews are likely to take six to 12 months but expressed
confidence the deal eventually would get a green light. In response to
potential antitrust objections, Intelsat and PanAmSat executives stressed
that ground-based technologies, such as high-speed fiber connections, pose
the greatest challenge to the satellite industry. "Our competition is
really coming from terrestrial operators, and more so every day," said
Joseph Wright, PanAmSat's chief executive, who is expected to be chairman
of the combined company. The company would retain the Intelsat name and
have headquarters in Washington.
[SOURCE: Wall Street Journal, AUTHOR: Andy Pasztor andy.pasztor( at )wsj.com]
http://online.wsj.com/article/0,,SB112536473965026326,00.html?mod=todays...
(requires subscription)
TOO MANY PLAYERS STILL SHADOW SATELLITE INDUSTRY
[Commentary] Intelsat's announcement that it is buying PanAmSat may mark a
new wave of consolidation in the industry. "There are still about three
dozen satellite providers operating worldwide, which means there are too
many players in a market that is no longer growing fast enough to sustain
them all," Belson writes. Transcontinental and transoceanic fiber networks
can often provide service for far less than satellite operators. To combat
these low-cost providers, satellite companies need the size and scale to
drive prices lower. They also need to focus on their unique ability to
offer high-speed data connections, video programming and phone service to
developing countries where markets are just opening and where fiber
networks are scarce. To do that, they need a constellation of satellites
that blanket not just wealthy markets in North America, Europe and parts of
Asia, but also Africa, the Middle East and South America. If Intelsat's
purchase of PanAmSat is approved, the new company would become the industry
leader with 53 satellites, surpassing SES Global of Luxembourg, which has
35 satellites. The only other company with more than 10 satellites is
Eutelsat, the European operator, which has 23 satellites. The remaining
companies are far smaller, which makes the likelihood of another large deal
doubtful. Yet many smaller companies could help one of the big operators
expand into new regions. Loral Space and Communications, which has four
satellites across the globe, is likely to be involved in future mergers and
acquisitions.
[SOURCE: New York Times, AUTHOR: Ken Belson]
http://www.nytimes.com/2005/08/30/business/30place.html
(requires registration)
SPRINT NEXTEL IS CLOSE TO BUYING TWO AFFILIATES
Apparently, Sprint Nextel, the nation's third-largest wireless company by
number of customers, is close to buying two of its small wireless
affiliates for a combined price of about $700 million. Sprint Nextel has 11
affiliated companies that have deals to use the Sprint or Nextel brand
names and airwaves to sell wireless-phone service in smaller cities and
towns scattered around the nation. The company has said it was in
discussions to resolve issues with affiliates stemming from the merger of
Sprint and Nextel. People familiar with the situation expected Sprint
Nextel to buy a few of the smaller affiliates. Sprint Nextel acquired
another affiliate, U.S. Unwired Inc., for $1.3 billion.
[SOURCE: Wall Street Journal, AUTHOR: Shawn Young shawn.young( at )wsj.com and
Almar Latour almar.latour( at )wsj.com]
http://online.wsj.com/article/0,,SB112536750758426368,00.html?mod=todays...
(requires subscription)
PK RESPONSE TO CDT PAPER ON BROADCAST FLAG
Yesterday, Headlines reported on the policy recommendations of the Center
for Democracy and Technology on the broadcast flag. Today, a response from
Public Knowledge. "Center for Democracy and Technology's short paper on
the question of broadcast-flag authorization legislation correctly
characterizes the flag scheme as 'no minor, technical step.' Instead, the
flag regime is example of incredibly broad industrial policy that would put
the FCC in the role of gatekeeper for countless consumer technologies
(including countless technologies that have little directly to do with
communications, the FCC's nominal bailiwick). If CDT and others are correct
to believe that digital TV is more susceptible to large-scale piracy (there
is no evidence to believe so, and the available evidence suggests that
analog TV is more easily subject to piracy), then the proper approach is to
authorize broadcasters to implement schemes that don't require massive
federal oversight of the construction of consumer-electronics and
information-technology equipment. It's important to remember that the
broadcast flag itself doesn't protect anything. It's just a marker. So any
scheme based on the broadcast flag has to require the federal government to
supervise the design and construction of all technologies that might
conceivably receive TV content. In the digital world, that means just about
every device one can conceive of, from computers to cell phones. CDT's
paper is on the right track when it says that authorization of the FCC to
implement the broadcast-flag scheme 'should be carefully and expressly
defined.' The problem here is that any carefully and expressly defined
power to implement the broadcast flag won't reach far enough to solve the
problem it attempts to solve. A better approach is to scrap the broadcast
flag scheme altogether and go back to the drawing board, if protecting TV
content is a problem that needs to be solved. Sure, the movie studios
pitched the broadcast-flag scheme as a solution for TV piracy, but their
advocacy doesn't mean it's the right scheme, and there's plenty of
evidence, largely present in the FCC filings, that it's the wrong one."
[SOURCE: Public Knowldge]
http://www.publicknowledge.org/pressroom/releases/pressrelease.2005-08-2...
TELEVISION/RADIO
CONNECTICUT ADVOCATE EXPRESSES TELCO-TV WORRIES
Connecticut consumer counsel Mary Healey has advised the state's Department
of Utility Control that telephone company-provided video services should be
regulated to ensure that state residents are not "provided inferior
services." Traditional cable operators are required to provide community
benefits, prevented from redlining on an economic basis and must provide
local community-access programming, Healey noted in a statement. She
expressed concerns over statements officials from SBC Communications Inc.
made before Congress earlier this year, indicating the telephone company
intends to "roll out video services in high-value areas to the exclusion
of economically unattractive potential customers."
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA6252406.html?display=Breaking+News
(requires subscription)
MUCH IS AT STAKE FOR DEMOCRACY IN TRANSITION TO DIGITAL TV
When Congress returns to Washington next month from its summer break, it is
poised to make decisions on communications policy that will affect every
American family and community for years to come. Unfortunately, for a
number of reasons, many people are in the dark about these policy
decisions, and their future impact. The context for the congressional
activity is the transition from analog to digital TV. Congress is trying to
complete the transition from analog to digital TV, which delivers
movie-quality pictures and sounds, and makes it possible for one TV station
to broadcast more efficiently, sending five or more streams of programming
in the broadcast space where only one program could be aired today. That
changeover opens the door to important public policy questions, such as how
the public interest will best be served as more channels become available.
Will Congress ensure that the public gets to use the public resource of the
publicly owned airwaves? And will Congress require that broadcasters, set
to benefit substantially from a new way of broadcasting TV signals, start
paying more than lip service to their obligation to serve the public
interest? Common Cause believes the transition from analog to digital TV
should mean that the public gets more: better quality TV pictures, and more
programming that serves our needs for information on our local
communities. It should also mean that the public airwaves could be used to
make access to the Internet more available at low cost to rural, low-income
and minority households, and to small businesses. This new technology
could better inform and empower all Americans, and give the opportunity to
prosper in this new information age to all of us, regardless of our race,
ethnic backgrounds, income level, or the remoteness of where we live.
[SOURCE: Common Cause]
http://www.commoncause.org/site/apps/nl/content2.asp?c=dkLNK1MQIwG&b=810...{69F059D1-F715-4F5D-A12B-650A3EE1F850}¬oc=1
WGA UNIMPRESSED BY CBS PACKAGE
The Writers Guild of America East says it is "incredibly disappointed" with
CBS' latest offer in ongoing contract negotiations, which ended Aug. 26
with no resolution in sight. The two sides' last agreement expired April 1
(no foolin') and they've been talk, talk, talking since March 15. WGA
negotiator Ann Toback said the union was concerned that CBS would not
assure the guild that if CBS changed from broadcasting to some other
delivery mechanism for its programming -- say broadband or cable -- its
union contracts would still apply. They said that if they stop transmitting
broadcasts over the air, we lose our contract, Toback said.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6252423?display=Breaking+News...
(free access for Benton's Headlines subscribers)
NEW ON TV: THE MULTIPLE-CHANNEL SCREEN
The multiple-channel screen, known in the television industry as a
"mosaic," is about to show up on millions of TVs throughout the country.
It's another sign that satellite and cable systems are beginning to embrace
interactive television after years of hype about the concept. DirecTV's
"SuperFan" can watch 8 football games at once. Dish Network satellite
service has added the mosaic feature to its "Dish Home" channel. Viewers
who tune to Dish Home, where they have access to a wide range of
interactive features like games and shopping, will see what's happening on
six channels, currently all tuned to news stations. For more on interactive
TV, hopes of luring back young audiences and maybe even making some money,
see the URL below.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com]
http://online.wsj.com/article/0,,SB112536033078726213,00.html?mod=todays...
(requires subscription)
BROADCAST STATION TOTALS
The Commission has announced the following totals for broadcast stations
licensed as of June 30, 2005... Total broadcast stations: 26,895. Total
full power radio stations: 13,557 (4,759 AM, 6,213 FM and 2,585 FM
Educational). 498 Low Power FM radio stations. 1,747 full power TV stations
(779 UHF commercial, 589 VHF commercial, 379 educational). 2,098 low power
TV stations.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260747A1.doc
NIELSEN REPORTS STARTLING PEOPLE-METER FINDINGS (Americans, in large
numbers, watch TV!)
Nielsen Media Research is reporting that its controversial
local-people-meter (LPM) system has found startling changes in TV
viewership over the last year among 18- to 34-year-olds. The company said
data from the six local markets with LPMs show dramatic increases in the
number of viewers 18-34 in July 2005 vs. July 2004. The increase occurred
in all the markets and in most day parts. The meters track viewership of
local broadcast and cable stations. In Washington, the 18-34 viewership
increase was 83%; Philadelphia, 56%; San Francisco, 55%; New York, 24%;
Chicago, 21%; and Los Angeles, 10%. A Nielsen spokesman attributed the
changes to the meters' ability to track overall local viewership more
accurately. [Are these the same people Nielsen told us weren't watching TV
this time last year?]
[SOURCE: AdAge, AUTHOR: Ira Teinowitz]
http://adage.com/news.cms?newsId=45913
NIELSEN REVISES NATIONAL TV HOUSEHOLDS COUNT
Measurement firm Nielsen Media Research is revising upward the total number
of TV households in the U.S. Nielsen now estimates that there are 110.2
million TV households in the U.S., up from 109.6 million in the 2004-05
season -- a 0.5% change. According to a company statement, Nielsen also
expanded its count for certain minority groups, reflecting changes in the
nation's own demographic makeup. The most stunning increase is in the
number of Asian TV homes, rising by 3.2% to 4.22 million. Hispanic TV homes
are up 2.9% to 11.23 million and African-American homes are up by 0.8% to
13.2 million.
[SOURCE: AdAge, AUTHOR: Claire Atkinson and Ira Teinowitz]
http://adage.com/news.cms?newsId=45915
MAP FILES ON BEHALF OF LPFM COMMUNITY AND SUPPORTERS
The Media Access Project (MAP) filed comments with the FCC last week for
the LPFM Community and supporters proposing changes to FCC rules. These
changes would help put more LPFM stations on the air and protect them from
encroachment by full power stations. MAP argues that the Commission has a
duty, not only to protect the LPFM service, but to create new opportunities
for the LPFM service. The best method the Commission has for protecting and
creating opportunities for the LPFM service is to adopt a more
sophisticated methodology for interference avoidance.
[SOURCE: Media Access Project]
http://www.mediaaccess.org/LPFMComments.pdf
NAB FILING ADDRESSES HEATED LPFM AND TRANSLATOR ISSUES
The Federal Communications Commission is considering changing rules that
could allow for more low power radio stations to be created around the
country. The National Association of Broadcasters doesn't think that's a
good idea. The NAB's 38-page filing reiterates the association's position
that reducing interference between LPFM's and full power FM's "could deny
thousands of listeners the benefits of FM station upgrades or new FM
service, including digital radio." "The Commission cannot, as a matter of
law, and should not, as a matter of policy, alter its rules to limit the
LPFM interference protections to co- and first adjacent full power FM
stations," NAB said. Instead, the NAB says, the FCC should focus on
"constructive measures" to help LPFM stations that are displaced by a full
power FM's expansion or upgrade of its own signal contour. Among those
measures might be granting the displaced LPFM "priority and expedited
processing over other LPFM applications without the need for opening an
application window." The NAB says the FCC has done something similar with
the low power television service. The broadcast lobbyist says that only one
LPFM has actually been displaced so far.
[SOURCE: Billboard Magazine, AUTHOR: Tony Sanders]
http://billboardradiomonitor.com/radiomonitor/news/business/leg_reg/arti...
* Text of NAB comments:
http://www.nab.org/newsroom/pressrel/filings/LPFM82205.pdf
QUICKLY
PRIVACY GROUP URGES FCC TO GUARD PHONE DATA
In a petition scheduled to be filed today, the Electronic Privacy
Information Center (http://www.epic.org/) urges the Federal Communications
Commission to create tougher rules for how and when landline and wireless
carriers release customer information. The group argues that the active
marketplace for telephone records demonstrates that security practices at
telecommunications companies are lax. Dozens of Web sites operated by data
brokers and private investigators offer to sell detailed calling records
for as little as $110 for the most recent billing cycle. The data are often
collected by impersonating customers or paying off insiders, according to
the petition. Buyers of the information include attorneys trying to find
witnesses or suspects, debt collectors and spurned or suspicious lovers.
But EPIC West Coast Director Chris Jay Hoofnagle said stalkers or those
engaged in industrial espionage could just as easily be the buyers.
[SOURCE: Washington Post, AUTHOR: Jonathan Krim]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/29/AR200508...
(requires registration)
Data Mining: Agencies Have Taken Key Steps to Protect Privacy in Selected
Efforts, but Significant Compliance Issues Remain (GAO-05-866)
[SOURCE: General Accountability Office]
http://www.gao.gov/cgi-bin/getrpt?GAO-05-866
Highlights - http://www.gao.gov/highlights/d05866high.pdf
MEDIA MONOPOLIES ARE A MYTH
With so many major news outlets spreading propaganda, why shouldn't
Headlines? Adam Thierer and Daniel English write that if the stock market
is any indication, the argument that just a few large media conglomerates
control the market for what we see, hear and read, is completely without
merit. Thierer and English evaluate the market performance of five large
media outlets and deduce that declining stock value -- market caps down 52%
over the last four years -- is a clear indication that the corporations
could not possibly be acting as monopolies. [Yeah, yeah... if you worship
at the alter of the marketplace...]
[SOURCE: Progress and Freedom Foundation]
http://www.pff.org/news/news/2005/082605mediamonopoly.html
PRINCIPLES FOR BROADBAND AND IP SERVICES
In a white paper released last week, the US Internet Industry Association
(USIIA) announced a set of self-regulatory principles for broadband and
Internet Protocol-based services. The principles come in the wake of recent
Supreme Court and Federal Communications Commission decisions that have
significantly changed the telecommunications regulatory environment.
[SOURCE: US Internet Industry Association]
http://www.usiia.org/news/0503principles.doc
Text of paper at:
http://www.usiia.org/pubs/principles.doc
IRREPLACEABLE EXUBERANCE
[Commentary] The growth of the Internet has paralleled that of most
industries based on revolutionary technology. Canals, railroads,
telegraphs, telephones, cars, radios, personal computers -- all progressed
(or are progressing) through four phases of development: boom, bust, mature
growth and decay. During the boom phase, the success of a few visionary
companies like Netscape inspires frantic experimentation and speculation,
as entrepreneurs and investors try to cash in on the trend. Early entrants
usually enjoy temporary success, but the number of competitors soon comes
to exceed the initial opportunity, leading to a collapse. After the
shakeout, a handful of survivors enjoy an extended period of growth and
profitability. Finally, another technology shift leads to an era of
decline, and giants often find themselves reduced to the stature of today's
buggy-whip makers -- or worse. Sometimes, industry life cycles last a
century or more (circuit-switched telephones); sometimes, only a few
decades (Polaroid). But the repetition of the pattern -- as well as its
resemblance to biological evolution -- suggests that the boom-and-bust
phases should be viewed as far more than repeated examples of human folly.
Rather, they should be seen as natural, inevitable bursts of
trial-and-error adaptation, the mechanisms through which industries are formed.
[SOURCE: New York Times, AUTHOR: Henry Blodget]
http://www.nytimes.com/2005/08/30/opinion/30blodget.html
(requires registration)
--------------------------------------------------------------
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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