Benton's Communications-related Headlines For Wednesday August 31, 2005

For upcoming media policy events, see http://www.benton.org/calendar.htm

TODAY'S STORIES
The FCC's Cable Crackdown
Wi-Fi With Its Own Zip Code
Vendors Seek Changes in New List of E-Rate Eligible Services
Most Kids Play Video Games Daily; Web Ads Gaining Importance

QUICKLY-- Broadcast Networks Buy Into Search Key Words; U.K. seeks to ban
violent online porn

TODAY'S STORIES

THE FCC'S CABLE CRACKDOWN
FCC Chairman Kevin Martin has been quietly meeting with religious activists
and industry leaders to organize a push for new indecency standards for
broadcast, cable and satellite television. At the same time, Chairman
Martin's allies in the Senate have been considering new laws that could
increase broadcast indecency fines, break up cable TV offerings to allow
parents to cut off racy channels, and -- most controversially -- give the
FCC the power to fine basic cable programs, like MTV's "Real World" and
Comedy Central's "Daily Show," for crude and lewd content. Television
industry executives fear a possible assault -- on their bottom line [all
puns intended]. "Everybody should be frightened by the notion that this
process could be hijacked by a very few people," says Jim Dyke, a
Republican who now leads TV Watch, a group founded by Viacom (CBS, MTV,
Comedy Central), General Electric (NBC, Bravo) and News Corp. (Fox) to
argue against new regulation. "They are trying to make decisions about what
our children can see." In the coming weeks, observers expect Chairman
Martin to act upon between 30 and 50 outstanding indecency complaints, the
first step in clearing a backlog of hundreds of allegedly inappropriate
broadcasts on television and radio. He has promised to remake the indecency
process, speeding FCC responses and establishing a clearer precedent of
what constitutes indecent programming.
[SOURCE: Salon, AUTHOR: Michael Scherer]
http://www.salon.com/news/feature/2005/08/30/fcc_indecency/index_np.html
(subscribership or watching an ad required)

WI-FI WITH ITS OWN ZIP CODE
As towns across the country launch wireless broadband networks to bring
affordable Web access to their residents, companies from tiny RedMoon to
heavyweights such as Hewlett-Packard are jockeying to become their
partners. Their motivation: Getting in on the ground floor of a potentially
fast-growing business while creating an alternative to the Bells and cable
outfits that control most of the country's broadband pipes. The muni
wireless business is still in its infancy. But with 300 cities launching or
soon to launch Wi-Fi networks, the market could yield roughly $200 million
in revenues a year, according to market tracker Yankee Research. The rush
to build muni wireless zones has got the Bell and cable companies plenty
worried. They have mounted lobbying campaigns in 14 states to bar local
jurisdictions from creating their own networks, but have failed in all but
one. In Congress, the issue will likely get ironed out as part of an
impending overhaul of the 1996 telecom law. To fend off the Bell and cable
lobbies, many cities are opting for outsiders to own their Wi-Fi network.
The new competition already may be having an effect: Verizon Communication
just dropped its DSL pricing to $14.95 a month. Cities, meantime, see these
networks as a necessity of the Information Age. "Just as with the roads of
old, if broadband bypasses you, you become a ghost town," says Dianah L.
Neff, Philadelphia's chief information officer. As more and more burgs rush
to get connected, Techdom senses a potentially lucrative business in the
making.
[SOURCE: BusinessWeek, AUTHOR: Catherine Yang & Ben Elgin]
http://www.businessweek.com/magazine/content/05_36/b3949053_mz011.htm

VENDORS SEEK CHANGES IN NEW LIST OF E-RATE ELIGIBLE SERVICES
The Federal Communications Commission is reviewing the Universal Service
Administrative Company's list of E-rate eligible equipment and services.
Equipment vendors such as Cisco and Citrix Systems told the Commission that
the eligibility rules in general tend to discourage less-costly equipment
configurations. Cisco asked the FCC to "adopt a balanced approach to
eligibility determinations that takes into consideration the goals of the
application and available technologies, and weighs this against the costs
of various configurations." Cisco said such individualized determinations
"may add a layer of complexity to the eligibility determination process"
but "the savings to E-rate beneficiaries and the provision of funding to
additional applicants more than justifies this approach." Several entities
expressed concern about a proposal to require school districts to file
separate funding applications for bundled telecom and Internet access
services. The State E-rate Coordinators' Alliance (SECA) said dual filings
would be "onerous and administratively burdensome."
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)

STUDY: MOST KIDS PLAY VIDEO GAMES DAILY; WEB ADS GAINING IMPORTANCE
According to a recent study from Netherlands-based marketing agency
JuniorSeniorResearch, video games have become a central part of the lives
of today's children. The study polled 4,000 kids up to the age of
15-years-old (both boys and girls) and discovered that 61 percent play
video games on a daily basis. Although much of the industry concentrates
its marketing on the coveted 18 to 35 male demographic, this study also
shed some light on some advertising trends for the younger crowd. Among
children, advertising doesn't appear to be as important as word of mouth.
The study found that 32 percent of children learned about new games through
their friends. Younger children tended to get more information from friends
and family members than from advertising. But practically every child (92
percent) has seen an ad for a game, with television being the predominant
format at 63 percent. The Internet, however, is seen as a growing medium
for advertising to children. More than 15 percent of children said they
view video game ads on the Internet, while only 11 percent said they see
them in print media.
[SOURCE: BusinessWeek]
http://www.businessweek.com/innovate/content/aug2005/id20050829_928076.htm

QUICKLY

BROADCAST NETWORKS BUY INTO SEARCH KEY WORDS
Facing fragmented audiences and a plethora of media choices, marketing
chiefs at the broadcast networks need to find ever more inventive ways to
entice viewers, and this season they're turning to key words -- that is,
online search terms. For instance, for Prison Break a sponsored link on
Google.com leads Web surfers to a promotional site about the fall series.
The site is supported by advertising. Search terms can be bought for 2
cents and up (depending on how fierce the bidding is) per click and can be
bid on by anyone, even a broadcaster's competitors.
[SOURCE: AdAge, AUTHOR: Claire Atkinson]
http://adage.com/news.cms?newsId=45920

UK SEEKS TO BAN VIOLENT ONLINE PORN
The U.K. government is seeking to outlaw the possession of violent
pornography obtained over the Internet. The Home Office on Tuesday
announced a proposal to ban "extreme pornography" and discussed what
changes in the law are necessary to prevent people downloading images of
sexual abuse.
[SOURCE: C-Net|News.com, AUTHOR: Dan Ilett]
http://news.com.com/U.K.+seeks+to+ban+violent+online+porn/2100-1028_3-58...
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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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