Benton's Communications-related Headlines For Tuesday June 13, 2006

A Senate Commerce Committee hearing on the Communications, Consumers'
Choice, and Broadband Deployment Act of 2006 begins today at 10am.
See
http://commerce.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&...

NEWS FROM CONGRESS
Deal on Net Neutrality in US Senate Elusive: Aides
Neutrality to Change in Stevens Bill
House Bill includes USF Measure, ignores Net Neutrality
This is why Wi-Fi

MULTICASTING
Rehr: FCC Should Make Must-Carry Call
Cable Nets Unite To Fight Multicast Carriage
Barton, Upton Hear It From Religious Broadcasters
AT&T Concerned About Multicasting Mandates
HDTV--the clincher in war between cable and phone?

INTERNET
Surge in Internet Use, Energy Costs Has Big Tech Firms Seeking Power
Mr. Pulver Has Just Two Words: Internet Video

QUICKLY -- Technologists assail federal Net-tapping rules; Judge
defers decision on US wiretap suit; RIAA chief says illegal
song-sharing 'contained'; CT IPTV-Franchise Ruling Under Fire; Cable
Revenues Approach $30 Billion; E-newspapers just around the corner;
Newspapers fight back against online classifieds; Tomorrow -- if not
next year -- arrives in Wrigley dugouts, bullpens

NEWS FROM CONGRESS

DEAL ON NET NEUTRALITY IN US SENATE ELUSIVE: AIDES
[SOURCE: Reuters]
The Senate Commerce Committee so far has been unable to reach a
compromise on Internet network neutrality, a week before the panel is
supposed to vote on it as part of a broader communications reform
bill, Senate aides said on Monday. Committee Chairman Ted Stevens
(R-Alaska) proposed on May 1 studying the issue. The top Democrat on
the panel, Sen. Daniel Inouye of Hawaii, and others have pressed for
more extensive protections. One possible compromise on Net neutrality
could be adopting language approved last week by the House of
Representatives bill, according to one committee aide. It gave the
Federal Communications Commission the authority to enforce principles
the agency adopted last year. Those principles called on broadband
providers to provide consumers unfettered access to Internet content
and permit them to use whatever legal applications and services that
are available.
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID...
* Latest Senate Draft Bill Leaves 'Net Neutrality' Issue Unsettled
http://www.njtelecomupdate.com/lenya/telco/live/tb-SPQD1150139988712.html
* New Senate Telecom Bill Stays the Course on 'Net Neutrality'
http://www.washingtonpost.com/wp-dyn/content/article/2006/06/12/AR200606...
(requires registration)
* Senate Commerce Adjusts Franchise-Plus Bill
http://www.broadcastingcable.com/article/CA6343136?display=Breaking+News
* Witnesses Set for Senate Hearing
Witnesses at today's Senate Commerce Committee hearing will include:
Motion Picture Association of America Chairman Dan Glickman; Dave
McCurdy, president of the Electronic Industries Association; Ben
Scott, policy director of Free Press; Kyle McSlarrow, president of
the National Cable & Telecommunications Association; Walter
McCormick, president of U.S. Telecom; Steve Largent, president of the
Wireless Association; and Robert Foosaner, senior VP, Nextel.
http://www.broadcastingcable.com/article/CA6343147?display=Breaking+News

NEUTRALITY TO CHANGE IN STEVENS BILL
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
A Senate telecommunications bill sponsored by Commerce Committee
chairman Ted Stevens (R-Alaska) will likely undergo changes to
accommodate concerns about potential discriminatory conduct by cable,
phone and other broadband-access providers, a Senate Commerce
Committee source said Monday. "I think it's highly likely that it's
going to change," said the Senate source, asking not to be identified
by name. Sen Stevens is under pressure from Sen. Daniel Inouye
(Hawaii), the Commerce panel's top Democrat, to strengthen provisions
related to network neutrality, which relates to the ability of
broadband-access providers to use their market power to injure
Web-based rivals by engaging in an assortment of activities,
including blocking competitive services or demanding fees in exchange
for priority delivery of their voice, video and software
applications. The Senate source said it was "premature" to discuss
areas where Stevens and Inouye might be able to close the policy gulf
between them. But if Stevens yields, he'll likely go along with
net-neutrality rules with a consumer-protection orientation rather
than with rules designed to referee commercial disputes, the Senate
source added. A net-neutrality compromise is not expected to be
unveiled until later this week at the earliest.
http://www.multichannel.com/article/CA6343190.html?display=Breaking+News
* Bill Would Require Stations to Air Digital Transition Spots
All commercial TV stations would be required to air two 30-second
spots every day to promote the Feb. 17, 2009, deadline for the
transition to digital television over the three months leading up to
the switch, under a provision buried in a 151-page Senate bill
released Monday. The DTV provision, part of a bill aimed at making it
easier for phone companies to roll out pay TV services, would also
clear the way for the Federal Communications Commission to dictate
when the spots must be aired.
http://www.tvweek.com/news.cms?newsId=10161
(requires free registration)

HOUSE BILL INCLUDES USF MEASURE, IGNORES NET NEUTRALITY
[SOURCE: RCR Wireless News, AUTHOR: Heather Forsgren Weaver ]
The House of Representatives overwhelmingly passed a telecom-reform
measure late Thursday that includes a plan to make Voice over
Internet Protocol providers pay into the universal-service fund. But
the House rejected a strict network-neutrality provision. Rep. Edward
Markey (D-MA) tried three times to amend the Communications
Opportunity, Promotion and Enhancement Act of 2006 and each time was
outmaneuvered by the telephone and cable companies. During the House
floor vote, it was an amendment by Rep. Lamar Smith (R-TX) that did
Rep Markey in. Rep Smith, a member of the House Judiciary Committee,
was allowed to offer an amendment explicitly saying that nothing in
the bill precluded lawsuits based on antitrust laws even though a
stricter network-neutrality amendment by Rep. F. James Sensenbrenner
(R-WI), chairman of the House Judiciary Committee, was not allowed.
The Smith amendment was an attempt to allow members to say they voted
for network neutrality even though the amendment did nothing on the
issue, charged Rep. Zoe Lofgren (D-CA). The ploy apparently worked.
The Smith amendment passed by a vote of 353-68. On universal service,
the third time was a charm for Rep. Bart Stupak (D-MI) who gained
enough support for an amendment that allows the Federal
Communications Commission to impose universal service and
intercarrier-compensation obligations on Voice over Internet Protocol
providers. By including a universal-service provision, the House has
a bargaining chip with the Senate, which is expected to include
strong universal-service language in its bill.
http://www.rcrnews.com/news.cms?newsId=26570

THIS IS WHY WI-FI
[SOURCE: Pittsburgh Tribune-Review , AUTHOR: Editorial Staff]
[Commentary] Politicians are on the verge of controlling Internet access.
Municipalities worldwide are creating wireless Internet services that
promise universal accessibility. Wireless fidelity (Wi-Fi) virtually
guarantees to be fast, free and far-flung with construction costs
paid for by government-approved providers. But government's main
motivation is self-interest, according to business consultant Craig
Settles, author of "Fighting the Good Fight for Municipal Wireless:
Applying lessons from Philadelphia's WiFi story." Wi-Fi can eliminate
paper work while improving worker productivity. Wi-Fi hype is like
cable TV's nascent "Blue Sky" period in the late 1960s when its
potential seemed limitless. Well before fat franchise fees paid to
local governments for the respective monopolies ensured that captive
audiences of subscribers would get miserable cable service if they
got any at all. Politicians having de facto control of Internet
access -- to tax Wi-Fi users, prioritize service or hire political
hacks for customer service -- make "Blue Sky" pale in comparison.
http://www.pittsburghlive.com/x/pittsburghtrib/opinion/archive/s_457376....
See also --
* Only 6 Million US Homes Will Have Access to Municipal Broadband
[SOURCE: Strategy Analytics press release]
June 12, 2006--Public broadband networks planned by major cities and
smaller municipalities could provide access to as many as six million
homes within five years, predicts a new report from technology
research and consulting firm Strategy Analytics. Despite heated
rhetoric for and against, municipal broadband will play only a small
role in the rapidly growing US broadband market, with incumbent
telecom and cable operators still attracting the vast majority of
consumers. This report, "Municipal Broadband in the US: How Real a
Threat to Incumbent Operators?" projects that by 2010 about five
percent of all US households, some six million homes, will be able to
access broadband networks operated by cities, towns and other
municipalities. But with prices for commercial broadband services
continuing to decline, only a small number of households will be
likely to rely on low-cost or free public networks as their primary
source of Internet access.
http://home.businesswire.com/portal/site/charlotte/index.jsp?epi-content...
* Faster Wi-Fi Hits Hurdles
[SOURCE: Wall Street Journal, AUTHOR: Don Clark at don.clark( at )wsj.com]
Today's wireless networks struggle with some jobs, such as sending
high-definition video signals from a personal computer to a
television set. Companies have been racing for years to fix the
problem. But they can't agree on whether the race is over. Computer
equipment makers this spring introduced devices incorporating a
faster version of Wi-Fi, the wireless technology commonplace in
laptop computers. But chips in those devices were based on
interpretations of an unfinished set of technology specifications.
Among the results: The new devices often can't communicate with one
another at their intended top speeds. The Wi-Fi Alliance, an industry
organization that tries to ensure products work together, is
withholding its endorsement of any of the new products until a formal
standard is approved -- a milestone not expected until next year.
http://online.wsj.com/article/SB115015087219878208.html?mod=todays_us_ma...
(requires subscription)

MULTICASTING

REHR: FCC SHOULD MAKE MUST-CARRY CALL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Saying he was both "disturbed" and "confused" by House Commerce
Committee Chairman Joe Barton's letter to FCC Chairman Kevin Martin
last week opposing digital multicast must-carry, National Association
of Broadcasters President David Rehr wrote Barton and FCC
Commissioners Monday to try and "correct the record." Rep Barton,
along with House Telecommunications Subcommittee Chairman Fred Upton,
had asked Chairman Martin not to reverse an earlier decision
confining DTV must-carry to a single channel, saying he would be
straying into Congress' territory and that the commission was right
the first two times when it found that what Congress meant in its DTV
must-carry mandate was one channel, not the several channels
broadcasters can fit in their DTV spectrum. Rehr argued that there is
no statutory barrier to "full" digital must-carry, pointing out that
the FCC itself has said that the analog must-carry regime does not
directly translate to digital and that Congress "did not expressly
compel a particular result." He also said that independent
programmers will not suffer from full carriage because broadcasters
will need new shows to fill their new channels. Rehr asked Rep Barton
to let the FCC make the call, "as the expert agency...in the best
position to resolve the issue in a manner that will serve the public interest."
http://www.broadcastingcable.com/article/CA6343175?display=Breaking+News
* See the NAB letter at:
http://www.nab.org/images/xertimages/corpcomm/pressrel/060806_DKR_Barton...

CABLE NETS UNITE TO FIGHT MULTICAST CARRIAGE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a letter to FCC Chairman Kevin Martin Monday, over 100 cable
channels argue that a "vast expansion of broadcasters' must-carry
rights would undermine our ability to compete in the marketplace,
causing irreparable harm to programming diversity and to consumers,
and violating fundamental First Amendment protections." Cable
networks are concerned that multiple must-carry would eat up spectrum
otherwise available to advanced services and smaller, niche cable
networks, the latter of which might get bumped to make room for the
government mandated carriage.
http://www.broadcastingcable.com/article/CA6343156?display=Breaking+News

BARTON, UPTON HEAR IT FROM RELIGIOUS BROADCASTERS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Religious broadcasters, allied as the Religious Voices in
Broadcasting, have written House Commerce Chairman Joe Barton (R-TX)
and Telecommunications Subcommittee Chairman Fred Upton (R-MI) asking
them to rethink their opposition to a move by FCC Chairman Kevin
Martin to grant broadcasters digital multicast must-carry. Saying
"not one religious broadcaster has been able to secure carriage of
any multistream channels," the broadcasters also asked for a meeting
with them "in the near future" about what they said was their single
biggest legislative issue Saying it is "rare" for them to ask for
support on a technical issue, the broadcasters took the legislators
to task for not giving religious broadcasters' views "the
consideration that we feel they deserve." The religious station
owners argue that requiring cable to carry all of a station's digital
channels, rather than a single duplicate of their primary analog
channel -- as the FCC earlier concluded was its mandate from Congress
-- is "the single most important factor in making the digital
transition a success."
http://www.broadcastingcable.com/article/CA6343090?display=Breaking+News

AT&T CONCERNED ABOUT MULTICASTING MANDATES
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
AT&T is concerned that a requirement to carry multiple
digital-broadcast signals in formats selected by TV stations would
impose financial and technological burdens on its
Internet-protocol-television service despite its abundant channel
capacity. "It is AT&T's belief that decisions affecting carriage of
programming offered by local commercial broadcast stations should be
subject to commercial discussions between content owners and video
providers," the company said in a June 9 Federal Communications
Commission filing, adding that such discussions were taking place.
The AT&T letter came as FCC chairman Kevin Martin is attempting to
win support for rules that would permit each TV station to demand
cable carriage of multiple programming services, up from just one
service per stations under current rules. The agency could adopt the
rules -- strongly opposed by the cable industry -- at its June 21
public meeting. For AT&T, FCC adoption of the rules would be a
nonevent because the company repeated in the FCC letter its view that
IPTV service is not a cable service within the meaning of federal
law. Chairman Martin's new must-carry rules at a minimum would apply
to cable operators offering cable service. The tables could turn on
AT&T because House and Senate bills designed to ease or eliminate
local cable franchises would likely bring IPTV within the ambit of
would-be FCC multicast must-carry rules -- an outcome not mentioned
by AT&T in its letter to the commission.
http://www.multichannel.com/article/CA6343168.html?display=Breaking+News

HDTV -- THE CLINCHER IN WAR BETWEEN CABLE AND PHONE?
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
High-definition television could tip the balance between phone
companies and cable operators as they compete for TV dollars. After
years of hype, HDTV, with its enhanced picture quality and superior
sound, is finally becoming a reality. Consumers are starting to buy
new HDTV sets in droves. Providing those people with more than one
channel of HDTV programming could become a key selling point for the
phone and cable providers battling to sign up TV subscribers.
"There's been a lot of talk about integrating all kinds of
interactive features into TV," said Rick Thompson, a senior analyst
at Heavy Reading, an industry analyst group based in New York City.
"But in the short term, the biggest differentiator will be who has
the best content package, and part of that will be how much HDTV you
have." Phone and cable companies realize the importance of HDTV. But
some providers may be in a better position than others to handle the
increased demand for HDTV channels, which will eat up loads of
bandwidth. "People today aren't choosing their TV service provider
because of their HDTV offering," said Leichtman Research Group. "But
they probably wouldn't go with a new provider who doesn't at least
match or offer more than what they are already getting."
http://news.com.com/HDTV-the+clincher+in+war+between+cable+and+phone/210...

INTERNET

SURGE IN INTERNET USE, ENERGY COSTS HAS BIG TECH FIRMS SEEKING POWER
[SOURCE: Wall Street Journal, AUTHOR: Kevin J. Delaney
kevin.delaney( at )wsj.com and Rebecca Smith]
With both Internet services and power costs soaring, big technology
companies are scouring the nation to secure enough of the cheap
electricity that is vital to their growth. The search is being led by
companies including Microsoft Corp., Yahoo Inc. and
IAC/InterActiveCorp. Big Internet firms have been adding thousands of
computer servers to data centers to handle heavy customer use of
their services, including ambitious new offerings such as online
video. But that is feeding a thirst for more power. One large data
center can consume enough juice to power a small city of 30,000 to
40,000 people -- and also requires a fat Internet linkup to stay
connected to the outside world. The power-guzzling centers are such
big energy users that shaving as little as a penny per kilowatt-hour
from electricity rates can knock off millions of dollars in annual
expenses. Some Internet executives say electricity has become a
closely watched expense and can even be a factor when they consider
rolling out new services. While always a concern, the cost of power
has become more important amid a recent run-up in energy prices and
increased use at data centers. To satisfy their power needs, Internet
companies are exploring options ranging from building facilities in
former defense bunkers -- which already have rugged grid connections
-- to plunking themselves down near hydroelectric plants to get a
slice of the inexpensive power. Anticipating demand a decade from
now, some executives even are mulling whether proximity to
nuclear-power plants could be a plus.
http://online.wsj.com/article/SB115016534015978590.html?mod=todays_us_pa...
(requires subscription)

MR PULVER HAS JUST TWO WORDS: INTERNET VIDEO
[SOURCE: Wall Street Journal, AUTHOR: Amol Sharma at amol.sharma( at )wsj.com]
Jeff Pulver, the self-described futurist and entrepreneur who started
the company that was Vonage's predecessor, left Vonage before the
company started to sizzle. Now, he is on to the next big thing:
Internet video. And he is trying to ensure he doesn't get left out
again. Mr. Pulver is creating his own Internet TV show, which he is
modeling on Rocketboom, a popular Internet video-blog that broadcasts
a three-minute news show daily. He is considering launching a broader
Internet TV subsidiary and is weighing whether to invest in several
emerging Internet video companies, though he won't name them. Someday
he wants to start an Internet reality TV show. "The same DNA that
disrupted the telecom industry is well on its way to totally
revolutionizing the way the TV, film, and broadcast industry is going
to be," Mr. Pulver says, adding that he's now looking for "the Vonage
of Internet video." The revolution this time, he says, isn't coming
from small upstarts, as was the case with Internet calling, but
primarily from established media and tech giants. He points to a
variety of developments, ranging from Google Inc.'s video service,
which provides easy online access to content from a range of
providers, to Walt Disney Co.'s decision to offer Internet downloads
of some of its most popular shows.
http://online.wsj.com/article/SB115015879072178440.html?mod=todays_us_ma...
(requires subscription)

QUICKLY

TECHNOLOGISTS ASSAIL FEDERAL NET-TAPPING RULES
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache and Declan McCullagh]
Federal regulations saying that police must be able to tap into
Internet phone conversations with ease are coming under renewed
attack from academics, engineers and one of the Net's founding
fathers. A 21-page study to be released today says it's impossible
for the government to expect all products that use voice over
Internet protocol, or VoIP, to comply with the Federal Communications
Commission's September 2005 requirement mandating wiretapping
backdoors for government surveillance. That requirement is backed by
the Bush administration. The study, organized by the Information
Technology Association of America, says that because VoIP relies on a
fundamentally different network architecture from that of traditional
phone lines, such a mandate would pose "enormous costs" to the
industry and could even introduce significant security risks. The
nine contributors included Vint Cerf, Google's chief Internet
evangelist and one of the Net's founding fathers; Steven Bellovin and
Matt Blaze, both prominent computer security professors who
specialize in security; Clinton Brooks, a former National Security
Agency official; and engineers from Sun Microsystems and Intel.
http://news.com.com/Technologists+assail+federal+Net-tapping+rules/2100-...

JUDGE DEFERS DECISION ON US WIRETAP SUIT
[SOURCE: Reuters, AUTHOR: Jui Chakravorty]
A federal judge on Monday deferred making an immediate decision on a
request that the Bush administration's domestic eavesdropping program
be halted as a violation of law. The American Civil Liberties Union,
which filed the lawsuit in January, asked U.S. District Judge Anna
Diggs Taylor to stop the White House from intercepting international
phone calls and e-mails without a warrant in its fight against
terrorism, saying it violates Americans' free speech and privacy
rights. But the government responded that the program is key to
helping protect U.S. security. Judge Taylor deferred any ruling.
Another hearing is scheduled for July 10.
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&story...

RIAA CHIEF SAYS ILLEGAL SONG-SHARING 'CONTAINED'
[SOURCE: USAToday, AUTHOR: Jefferson Graham]
Nearly a year after the Supreme Court issued a landmark ruling
against online music file-sharing services, the CEO of the Recording
Industry Association of America says unauthorized song swapping has
been "contained." "The problem has not been eliminated," says
association CEO Mitch Bainwol. "But we believe digital downloads have
emerged into a growing, thriving business, and file-trading is flat."
That's an optimistic view from an industry that saw its numbers slide
to near oblivion after the launch of the original Napster in 1999. CD
sales fell as much as 30%, and the RIAA pressed Congress and the
courts for relief against what it said was rampant piracy.
http://www.usatoday.com/printedition/money/20060613/1b_riaa13.art.htm

CONNECTICUT IPTV-FRANCHISE RULING UNDER FIRE
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
In an unprecedented partnership, the New England Cable &
Telecommunications Association, Connecticut Attorney General Richard
Blumenthal and the state's Office of Consumer Counsel will file with
the Connecticut Department of Public Utility Control Tuesday to stay
a commissioner's finding that Internet-protocol television is not
subject to cable franchising.
http://www.multichannel.com/article/CA6343176.html?display=Breaking+News

CABLE REVENUES APPROACH $30 BILLION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Major cable network revenues were up 12.7% in 2005 to $29.9 billion,
with revenues rising by 13.1% to $33.8 billion in 2006. Both are
below the 13.6% growth in 2004, however.
http://www.broadcastingcable.com/article/CA6343182?display=Breaking+News

E-NEWSPAPERS JUST AROUND THE CORNER. REALLY
[SOURCE: Reuters, AUTHOR: Kenneth Li]
The newspapers of the future -- cheap digital screens that can be
rolled up and stuffed into a back pocket -- have been just around the
corner for the last three decades. But as early as this year, the
future may finally arrive. Some of the world's top newspapers
publishers are planning to introduce a form of electronic newspaper
that will allow users to download entire editions from the Web on to
reflective digital screens said to be easier on the eyes than
light-emitting laptop or cellphone displays. Flexible versions of
these readers may be available as early as 2007. The handheld readers
couldn't come a moment too soon for the newspaper industry, which has
struggled to maintain its readership and advertising from online rivals.
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&story...

NEWSPAPERS FIGHT BACK AGAINST ONLINE CLASSIFIEDS
[SOURCE: Reuters, AUTHOR: Lisa Baertlein]
For the past decade, newspapers have seen their help-wanted
advertising under siege from online rivals. Now, as the Internet
begins to eat into automotive and real estate classifieds as well,
newspapers are fighting back. Classified advertising accounts for
more than a third of revenue at newspapers, which until recently
didn't want to accept that advertisers are increasing their spending
on the Web, which is better suited to connecting individuals and
delivering up-to-the-minute information."Now they totally get it and
they're scrambling to make sure they're not left out of the
equation," said Peter Zollman, founding principal of Classified
Intelligence, a research and consulting firm. Favored attack
strategies include banding together, buying or forming partnerships
with upstart Web sites and building new sites to serve local needs.
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID...

WRIGLEY DUGOUTS, BULLPENS GO WIRELESS
[SOURCE: Associated Press, AUTHOR: Dave Carpenter]
We're still waiting for "Next Year" on Chicago's Northside, but the
Next Big Thing has already arrived -- wireless connections between
the dugouts and bullpens. Starting Tuesday, when Chicago Cubs manager
Dusty Baker needs to communicate with his bullpen during games --
which can be very frequently this season -- he'll call on a wireless
handset designed by Motorola rather than reach for the corded phone
on the dugout's back wall. Besides providing faster access to the
bullpen, McDonough said, the new system provides the league with new
revenue opportunities from fees that Motorola and other phone
companies will pay to have teams use their branded phones. Fans
needn't get ideas about learning the phone numbers so they can give
their input. The push-to-talk phones operate on a private channel and
can communicate only with partner handsets.
http://www.mercurynews.com/mld/mercurynews/business/technology/14802651.htm
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Happy Birthday, Dylan!
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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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