For upcoming media policy events, see http://www.benton.org/calendar.htm
AT THE FCC
FCC May Set Rules Allowing Bells Exclusive Access Over DSL Lines
Public Knowledge Asks FCC to Maintain Open Networks in DSL Order
Raising the FCC=92s 30% Limit on Cable TV Market Shares is Bad Policy
NCTA: Cable Regs Apply to IP Video
Auction of Low Power Television Construction Permits
LEGISLATION
CLECs, Municipalities and Cable Unhappy with Ensign Bill
National Video Disenfranchisement
Calculating Calamity
NTCA Lauds Senators for Kicking-Off Telecom Rewrite Debate
USTelecom Praises Senators for Putting Universal Service Reform on the Tab=
le
BellSouth Says Reform Of Universal Service Needed To Rescue Fund From=20
'Life Support'
KIDS
The Internet at School
Not Mr. Rogers=92 Neighborhood Anymore
QUICKLY -- Charter, Comcast Expand Simulcasting -- May Avoid Must-Carry;=20
Russia Bars ABC; Notes From The Telus Picket Line; Broadband Penetration=20
Surge by 2010; Looser Regulation For Smaller Cable TV Operators; Drug=20
Companies To Submit TV Ads to FDA
AT THE FCC
FCC MAY SET RULES ALLOWING BELLS EXCLUSIVE ACCESS OVER DSL LINES
The Federal Communications Commission will hold an open meeting tomorrow=20
and could change the rules regulating phone companies' Internet services=20
then making it more difficult for independent Internet providers to offer=
=20
high-speed service but offering an incentive for the Bells to build out=20
broadband networks. The change, which likely would take effect this fall,=
=20
would allow phone companies to kick competitors such as EarthLink Inc. and=
=20
America Online, a division of Time Warner Inc., off their DSL systems. If=
=20
independent Internet providers can't reach terms with phone or cable=20
companies, they could be forced to either focus on providing dial-up=20
Internet service or emerging technologies such as high-speed wireless=20
Internet. The commission must resolve several issues, including concerns=20
about how the change might impact the Universal Service Fund, which=20
subsidizes phone and Internet services in rural areas. DSL customers pay a=
=20
USF fee, unlike cable Internet users. FCC commissioners are also finishing=
=20
up a review of Sprint's $35 billion acquisition of Nextel Communications=20
and a vote could come as soon as today. Communications Daily reports that=
=20
Sprint has agreed to conditions to win FCC approval: 1) Four years after=20
the effective date of the merger order, the merged company would offer=20
service in the 2.5 GHz band to at
least 15 million Americans; 2) within six years, the merged company will=20
offer service in the 2.5 GHz band to at least 30 million Americans; and 3)=
=20
Sprint will spin off a new company that will provide local telephone=20
service to its current 8 million local customers. Last month commission=20
staff recommended approving the acquisition. The Justice Department also=20
must approve the deal.
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz( at )wsj.com]
http://online.wsj.com/article/0,,SB112302782272403253,00.html?mod=3Dtoda...
us_page_one
(requires subscription)
* FCC Vote on Sprint-Nextel Merger Expected This Week
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)
PUBLIC KNOWLEDGE ASKS FCC TO MAINTAIN OPEN NETWORKS IN DSL ORDER
The Federal Communications Commission is working to follow up the Brand X=
=20
U.S. Supreme Court decision with an order that would substantially=20
deregulate DSL services. The item is now on circulation on the eighth=20
floor, and it is possible that it could be added to the agenda for this=20
week=92s meeting. The following statement should be attributed to Mike=20
Godwin, legal director for Public Knowledge: =93As the Commission considers=
=20
how to deregulate DSL services, we hope the Commissioners will bear in mind=
=20
the benefits to consumers of having open networks in terms of fostering=20
competition and innovation. Public Knowledge, of course, has its own set of=
=20
open broadband principles, including the principle that networks should be=
=20
open to the attachment of any equipment the user chooses, as long as it=20
does not harm the technical operation of the broadband network. We also=20
support the principle that communications networks should be open and=20
accessible to consumers, application developers, and information service=20
providers and to other networks, without restrictions or degradation,=20
except to the extent required for law-enforcement or for network-management=
=20
purposes. These are principles are in line with those of other=20
policymakers. Sen. John Ensign=92s recently introduced telecommunications=
=20
legislation, for example, also would guarantee consumer access to content=
=20
over broadband facilities. Similarly, Senate Antitrust Subcommittee=20
Chairman Mike DeWine and ranking member Sen. Herb Kohl also outlined in a=
=20
July 29 letter to the Justice Department and to the FCC a number of=20
pro-consumer, open-network policies to be considered in the context of the=
=20
SBC purchase of AT&T, and the Verizon purchase of MCI. The conditions=20
should be considered here as well. The Commission=92s actions will shape th=
e=20
broadband future for years to come. Thus, its deregulatory efforts should=
=20
be implemented in ways that favor the competition inherent in open and=20
accessible networks.=94
[SOURCE: Public Knowledge]
http://www.publicknowledge.org/pressroom/releases/pressrelease.2005-08-0...
850230458
RAISING THE FCC'S 30% LIMIT ON CABLE TV MARKET SHARES IS BAD POLICY
The Federal Communications Commission needs to hold firmly to its 30% limit=
=20
on market shares in the national cable TV market. That 30 % cap is based on=
=20
sound economic analysis and is the best protection against the harms that=
=20
more mergers or corporate tactics could impose if their market share is=20
increased into the 30 to 40% range or even higher. Those economic and=20
social harms would be large. In fact, monopoly power has already been=20
raising prices and profits to monopoly levels for three decades. And the=20
higher market shares that would result from raising the cap would have no=
=20
valid economic justifications. If the FCC can't reduce the market power, it=
=20
should at least try to prevent the concentration of more of it.
[SOURCE: Economic Policy Institute, AUTHOR: William G. Shepherd]
http://epi.org/workingpapers/wp272.pdf
NCTA: CABLE REGS APPLY TO IP VIDEO
Phone companies have no plans to offer video services that qualify for=20
exemptions from cable laws and regulations developed over decades by=20
Congress and regulators, the National Cable & Telecommunications=20
Association said in a long legal analysis filed with the Federal=20
Communications Commission late last week. NCTA said IP-video services are=
=20
effectively indistinguishable from what cable operators can and do provide;=
=20
thus, since cable operators need franchises for video, so do the Baby Bells.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA631740.html?display=3DBreaking+News
(requires subscription)
AUCTION OF LOW POWER TELEVISION CONSTRUCTION PERMITS
The Media Bureau and the Wireless Telecommunications Bureau of the Federal=
=20
Communications Commission provided an opportunity during a remedial period=
=20
(starting on June 24, 2005 and ending on July 8, 2005) for seventy-four=20
(74) applicants to provide new and corrected information to their=20
short-form applications (FCC Forms 175) to participate in the upcoming=20
auction of 113 construction permits for certain low power television=20
(LPTV), television translator and Class A television broadcast stations=20
(Auction No. 81) scheduled to begin on Wednesday, September 14,=20
2005. Applications accepted for filing will become qualified bidders upon=
=20
receipt of the required upfront payment due before 6:00 p.m. Eastern Time=
=20
(ET) on August 12, 2005. Applications found to be incomplete or deficient=
=20
will receive overnight correspondence indicating what information is=20
required to make the applications acceptable for filing. These applicants=
=20
may become qualified bidders only if they: (1) make the required upfront=20
payments before 6:00 p.m. ET on Friday, August 12, 2005; and (2) resubmit=
=20
their applications before 6:00 p.m. ET on Friday, August 12, 2005, having=
=20
corrected the deficiencies indicated.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2229A1.doc
LEGISLATION
CLECs, MUNICIPALITIES AND CABLE UNHAPPY WITH ENSIGN BILL
Competitive local phone companies (CLECs), cities and cable operators are=
=20
lining up against Sen Ensign's telecommunications reform legislation=20
introduced last month. Cable is concerned about the Ensign bill=92s=20
provisions on video franchising because they don't require buildout=20
obligations for new entrants and because the bill exempts video service=20
providers from providing leased or common carrier type access to their=20
video service and facilities. Municipalities also dislike the video=20
franchising provisions because they strip power from local governments.=20
CLECs are disappointed with the bill=92s lack of regulation on access to=20
phone networks, which it says could cripple emerging technologies such as=
=20
VoIP. The bill seems to be too controversial as written and its chances of=
=20
passage are dimmed by prospects of Senate Commerce Committee Chairman Ted=
=20
Stevens (R-Alaska) introducing his own bill in the Fall. Said Paul=20
Gallant, analyst with Stanford Washington Research Group, =93I think it=20
[Ensign bill] lays down a marker for industry sectors and other members of=
=20
Congress to react to, but I am skeptical that anything that broad could be=
=20
enacted this year or next.=94 Any telecom bill also has to address universa=
l=20
service fund (USF) reform, a feature not included in the Ensign bill but=20
which Sen Stevens has declared a priority, he said. =93Bills that fail in o=
ne=20
Congress can become the drivers of broader legislation in another, as when=
=20
various initiatives that had been bubbling for years came together and=20
eventually produced the =9196 Telecom Act,=94 said telecom analyst Blair Le=
vin.=20
He noted that the House is still working on its telecom update effort, so=
=20
the =93debate is just beginning, in our opinion.=94 That update effort, led=
by=20
House Commerce Committee Chairman Joe. Barton (R-TX), is expected to=20
address video franchising, VoIP and E-911 issues.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)
NATIONAL VIDEO DISENFRANCHISEMENT
The Alliance for Community Media has started a campaign to protect the=20
interests of the operators of the more than 5,000 public, educational and=
=20
government (PEG) access channels in the country. Targeting Senate bills=20
1349 and 1504 and House bill 3146, ACM and PEG operators said in letters to=
=20
members of Congress that the bills are =93anticompetitive and technically=
=20
flawed and unworkable in the real world.=94 ACM criticized legislation=20
introduced by Sen Ensign bill because franchise fees are eliminated in the=
=20
bill and even collection of real costs of maintaining rights-of-way is=20
limited to 5% of gross revenue. That means that no fees will be available=
=20
to support PEG programming. In addition, funding will be eliminated for=20
public networks, including public safety communications, it added. The=20
=93simplest=94 solution for telecom entry into the video business is to=20
=93mirror=94 existing cable franchises in each locality, ACM said. It said =
the=20
bills could be fixed by: 1) Maintaining financial support for operating and=
=20
capital costs of PEG access; 2) Municipal use of channels should maintain=
=20
system proportionality with 2004 levels or 30 MHz; 3) Non-monetary payments=
=20
in franchise agreements, including public networks and other community=20
media infrastructure must be protected; and 4) Franchise fees, if limited=
=20
to 5%, must stand alone and not be tied to unrelated costs of the municipal=
ity.
[SOURCE: Communications Daily]
(Not available online)
For more info see http://www.alliancecm.org/
CALCULATING CALAMITY
[Commentary] Sen Ensign said in his floor statement that we should consider=
=20
the amount of GDP growth that will be generated in the next five years if=
=20
we update our telecommunications laws. He said that growth will be $634=20
billion dollars. Ensign then cited the 212,000 new jobs that would be=20
created by decimating telecom regulation. Those 212,000 new jobs at the=20
$634 billion dollar figure comes to roughly $3 million for each and every=
=20
one of those jobs. $600,000 per year for each of those jobs would seem to=
=20
guarantee they'll be mostly management positions. Those figures come=20
directly out of the United States Chamber of Commerce report released last=
=20
October and widely vamped throughout the country at seminars, conferences=
=20
and sympathetic web sites. Which goes to show if you say something often=20
enough it eventually becomes true and it=92s even more true when you can ge=
t=20
a Senator to say it on Capitol Hill. Meanwhile Houston stands to lose=20
around $30 million a year in franchise fees. St. Louis could lose $20=20
million. Aurora will lose about $1.2 million. Tumwater will lose about=20
$147,000 and Cedar Hill will be out $118,000. So the 212,000 new jobs that=
=20
will be created could easily be offset by cities and counties having to lay=
=20
off people in order to make up for the lost franchise fees. It would only=
=20
take an average of eleven people per city and county being laid off to=20
destroy Ensign=92s grand plans of job growth through corporate subsidy.=20
Losing eleven staff in Tumwater might seem like a lot but you=92re going to=
=20
have to really swing the axe in places like Houston to make up that $30=20
million shortfall.
[SOURCE: Riedel Communications, AUTHOR: Bunnie Riedel]
http://www.riedelcommunications.blogspot.com/
NCTA LAUDS SENATORS FOR KICKING-OFF TELECOM REWRITE DEBATE
In response to the introduction of legislation (S. 1583) by Sens. Gordon=20
Smith (R-Ore.), Byron Dorgan (D-N.D.), and Mark Pryor (D- Ark.): =93NTCA=20
supports Senators Smith, Dorgan and Pryor and their efforts to bring=20
universal service to the forefront of the Communications Act rewrite=20
debate. This is an enormous step forward in the critical process of=20
updating our nation=92s telecommunications laws to reflect today=92s indust=
ry=20
realities. NTCA applauds the senators for recognizing the need to effect=20
changes to the cost-recovery mechanism of universal service. Such changes=
=20
will ensure continued investment in our nation=92s communications=20
infrastructure that benefits all users, regardless of where they live in=20
America. The senators have acknowledged the need for policies that=20
preserve and encourage the robust network upon which advanced services such=
=20
as voice over Internet protocol and IP video rely. We applaud their=20
dedication to the worthy goal of ensuring all Americans continue to have=20
access to advanced, affordable communications services, including=20
broadband, and the opportunities provided therein. NTCA commends the=20
senators for their continued strong leadership on rural issues, their=20
forward-looking vision, and their unfaltering commitment to universal=20
access to communications services. We particularly welcome the=20
introduction of this legislation at the time when the other side of the=20
telecom rewrite debate has emerged in the form of deregulation legislation=
=20
introduced by Senators John Ensign (R-NV) and John McCain (R-AZ). We look=
=20
forward to evaluating the Ensign/McCain bill and working with these=20
senators and the entire Congress to ensure the enactment of legislation=20
that will benefit rural America and the nation as a whole.=94
[SOURCE: National Telecommunications Cooperative Association]
http://www.ntca.org/ka/ka-3.cfm?content_item_id=3D3554&folder_id=3D522
USTELECOM PRAISES SENATORS FOR PUTTING UNIVERSAL SERVICE REFORM ON TABLE
We applaud Senators Smith, Dorgan and Pryor for their leadership in=20
drafting the first attempt at comprehensive universal service reform=20
legislation in the 109th Congress. This bill offers realistic direction=20
for addressing inter-carrier compensation and broadening and stabilizing=20
the contribution base for Universal Service. USTelecom is deeply committed=
=20
to the long-term sustainability of universal service as well as access to=
=20
broadband for all Americans, particularly in rural areas. We will continue=
=20
to work with the senators and their colleagues to address these critical=20
issues as part of comprehensive telecom reform.
[SOURCE: United States Telecom Association]
http://www.ustelecom.org/news_releases.php?urh=3Dhome.news.nr2005_0801
BELLSOUTH SAYS REFORM OF UNIVERSAL SERVICE NEEDED TO RESCUE FUND FROM 'LIFE=
=20
SUPPORT'
"The changes in the technologies of communication have put the universal=20
service fund on life support. This legislation recognizes the problems that=
=20
need to be addressed and offers well-reasoned solutions. These solutions=20
may not be everyone's cup of tea, but the legislation is a very fine start.=
=20
Universal Service reform will need to be included in comprehensive=20
telecommunications legislation. This bill represents an enormous step=20
forward."
[SOURCE: BellSouth Press Release]
KIDS
THE INTERNET AT SCHOOL
The Internet is an important element in the overall educational experience=
=20
of many teenagers. Schools are a common location where online teens access=
=20
the web, although very few online teenagers rely exclusively on their=20
school for that web access. Further, there is widespread agreement among=20
teens and their parents that the Internet can be a useful tool for school.=
=20
However, 37% of teens say they believe that =93too many=94 of their peers a=
re=20
using the Internet to cheat. And there is some disagreement among teens and=
=20
their parents about whether children must be web-literate by the time they=
=20
begin school. Additionally, large numbers of teens and adults have used the=
=20
web to search for information about colleges and universities. The most=20
recent Pew Internet Project survey finds that 87% of all youth between the=
=20
ages of 12 and 17 use the Internet. That translates into about 21 million=
=20
people. Of those 21 million online teens, 78% (or about 16 million=20
students) say they use the Internet at school. Put another way, this means=
=20
that 68% of all teenagers have used the Internet at school.
[SOURCE: Pew Internet & American Life Project, AUTHOR: Lee Rainie & Paul=20
Hitlin]
http://www.pewinternet.org/PPF/r/163/report_display.asp
NOT MR ROGERS' NEIGHBORHOOD ANYMORE
With well-regarded programs like Nickelodeon=92s Blues' Clues and Dora the=
=20
Explorer=97not to mention Internet offerings and video games=97siphoning aw=
ay=20
PBS=92s core young audience, some producers are worried about the long-term=
=20
prospects of each of PBS=92s 27 kid-focused programs. Nickelodeon now=20
broadcasts over 112 hours a week of original preschool programs, compared=
=20
with approximately 38 hours for PBS. Nickelodeon's original shows for=20
children comprise the 10-most-watched shows among children 2 to 5 in 2005,=
=20
according to the network. Several public broadcasting experts, including=20
Alyce Myatt=97until recently a manager of PBS children=92s programming=97ar=
e=20
concerned that PBS administrators aren't focusing enough on the educational=
=20
and creative elements needed to strengthen the network's offerings for=20
children. "I don't know why they aren't getting it right," she says. "But=
=20
they are certainly missing the mark, which has led them to a dilemma." Such=
=20
concerns have arisen against a backdrop of Congressional debates on whether=
=20
or not to restore full PBS program funding.
[SOURCE: Connect4Kids, AUTHOR: Robert Capriccioso]
http://www.connectforkids.org/node/3296
QUICKLY
CHARTER, COMCAST EXPAND SIMULCASTING -- MAY AVOID MUST-CARRY
Comcast and Charter are expanding simulcasting of programs in digital and=
=20
analog, in a move that some analysts say may help cable operators head off=
=20
a must-carry legislative battle. Congressional committees may take up=20
must-carry in a so-called mop-up bill after passing broader DTV=20
legislation, Hill sources have said. Cable operators may be able to head=20
off mandates by starting simulcasting now, analysts suggest. =93It=92s a wa=
y=20
for them to avoid the issue before it becomes an issue,=94 said Jefferies &=
=20
Co. analyst Robert Routh. =93It would be very difficult for anybody to pres=
s=20
them to do more than what they=92re already doing,=94 Routh said. =93It=92s=
a=20
preemptive move by Comcast that makes a tremendous amount of sense,=94 he=
=20
said, adding that =93Charter of all the operators can't afford to really be=
=20
involved in any regulatory battles=94 because of financial and management=
=20
issues.
[SOURCE: Communications Daily, AUTHOR: Jonathan Make]
(Not available online)
RUSSIA BARS ABC, CITING INTERVIEW WITH CHECHEN REBEL
Russia announced Tuesday that it was barring journalists from ABC News from=
=20
working there, effectively expelling a foreign news organization for the=20
first time since the collapse of the Soviet Union. The decision underscored=
=20
not only Russia's sensitivity to foreign perceptions of the war in=20
Chechnya, but also a seething and evidently growing antipathy toward the=20
United States and other countries viewed as hostile to Russia. Journalist=
=20
advocacy groups reacted with surprise and dismay. Lucie Morillon, the=20
representative in Washington for Reporters Without Borders, called the=20
decision appalling. "We see this as a blow for freedom of press and the=20
presentation of news in Russia," she said. "It is a warning to other=20
foreign news organizations. It's like telling them, 'If you don't cover the=
=20
Chechen conflict the way they want, you won't be able to work in Russia.' "
[SOURCE: New York Times, AUTHOR: ]
http://www.nytimes.com/2005/08/03/international/europe/03russia.html
(requires registration)
NOTES FROM THE TELUS PICKET LINE
An acrimonious and long-running labor dispute between Canada=92s Number Two=
=20
telco and ISP Telus and its 13,500 unionized employees over the weekend=20
degenerated even further as the some union members charged Telus with=20
blocking access to a pair of pro-union Web sites. Telus says it=92s not=20
blocking just two =96 it=92s blocking three and preparing to block even mor=
e=20
because it says the sites are being used to plot a massive=20
denial-of-voice-service attack against its operations. The sites had also=
=20
posted confidential company documents, the carrier charges. It says it=92s=
=20
called Canadian law-enforcement authorities to investigate possible=20
criminal activity involved in planning the denial of service.
[SOURCE: Telecomweb]
http://www.telecomweb.com/broadband/feature.htm
STUDY: BROADBAND PENETRATION TO SURGE BY 2010
Last year, 29 percent of North American households connected to the Net via=
=20
broadband. This number will be 62 percent by 2010, Forrester Research=20
predicts. Factors such as lower prices, enhanced home support and better=20
communication of benefits will fuel broadband growth. By 2010, 53 percent=
=20
U.S. households will own a laptop, while 37 percent will use a digital=20
video recorder to control their television watching. With more gadgets and=
=20
PCs in the home, networking will also grow to 46.5 million households by=20
2010. At present, 8.8 percent of households have a home network.
[SOURCE: C|Net/News.com]
http://news.com.com/Study+Broadband+penetration+to+surge+by+2010/2100-10...
3-5815756.html?tag=3Dnefd.top
LEGISLATOR SEEKS LOOSER REGULATION FOR SMALLER CABLE TV OPERATORS
The American Cable Association -- primarily small suburban and rural cable=
=20
operators -- face a number of challenges including 1) a potential Dec. 31,=
=20
2008, deadline to make the transition from analog to digital TV service and=
=20
2) negotiating more favorable deals with wealthier, more powerful=20
broadcasting interests.
[SOURCE: Technology Daily, AUTHOR: Sarah Z. Sleeper]
http://www.njtelecomupdate.com/lenya/telco/live/tb-TLYP1123013575866.html
DRUG COMPANIES TO SUBMIT TV ADS TO FDA
Drug manufacturers have adopted a new voluntary code for direct-to-consumer=
=20
ad guidelines, including submitting TV ads to the FDA before they run,=20
better balancing risk and benefit info in those ads, banning "reminder" ads=
=20
that don't include educational information, and targeting ED ads to=20
appropriate age groups.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA631583?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)
* Drug Firms Take a Dose of Responsibility for Ads
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/02/AR200508...
1960.html
* Drug Firms Seek Ad Remedy
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/02/AR200508...
1817.html
* Drug ad guidelines hold a few surprises
http://www.usatoday.com/printedition/money/20050803/drug_guidelines03.ar...
tm
* Drug Makers Set Voluntary Curbs on TV, Other Ads
http://www.latimes.com/news/printedition/asection/la-na-drugads3aug03,1,...
764.story?coll=3Dla-news-a_section
--------------------------------------------------------------
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.
--------------------------------------------------------------