Benton's Communications-related Headlines For Wednesday December 5, 2007

(Happy Birthday, Isaiah!)

From the action in the Senate yesterday (see below), the media
ownership debate moves to the House today. For a witness list see
http://energycommerce.house.gov/cmte_mtgs/110-ti-hrg.120507.Witness.List...
See the hearing scheduled to start 9:30am (Eastern) at
http://energycommerce.edgeboss.net/wmedia-live/energycommerce/11991/100_...

OWNERSHIP
Senate Commerce Committee Passes Bill to Block FCC's Dec. 18 Vote
Media Ownership Puts Martin on Hill Hot Seat
NAA's Sturm to Back Martin at Hearing
Restrained Fight Expected On Cable Cap
U.S. approves AT&T buy of ad technology firm Ingenio
EchoStar shares off on speculation of spectrum bid

TELECOM/BROADBAND
FCC Denies Verizon Forbearance Requests
Martin Focused On Boosting Competition
Officials Point To Broadband Challenges
CDT urges changes to wiretapping legislation

SPECTRUM
Spectrum Bidders Get Set

QUICKLY -- FCC Publishes List of Items on Circulation; PSAs Could be
Sparse in '08

OWNERSHIP

SENATE COMMERCE COMMITTEE PASSES BILL BACK TO BLOCK FCC'S DEC 18 VOTE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Senate Commerce Committee Tuesday unanimously passed a bill to
block a Federal Communications Commission vote Dec. 18 on loosening
its ban on newspaper-broadcast cross-ownership. During brief
discussion of the bill, sponsor Sen. Byron Dorgan (D-ND) referred to
a document from the chief counsel of the FCC "dug out with a FOIA
request" by a group in Georgetown. "This document is an attempt to
share some thoughts and ideas I have about how the FCC can approach
relaxing newspaper broadcast crossownership," he said. "In this
section I will discuss some studies that might provide valuable input
to support relaxation." Sen Dorgan said that the document showed that
"they started the whole thing by saying 'all right, we're going to
try to figure out how we can do this rather than trying to figure out
'is this a good thing to do' " The bill now goes before the full Senate.
http://www.broadcastingcable.com/article/CA6509559.html?desc=topstory
* Commerce Committee Chairman Daniel K. Inouye (D-Hawaii):
"Transparency in the FCC's media ownership proceedings is not only
fair, it is right. This bill encourages the FCC to provide a forum
for meaningful discussion and brings us a step closer to balanced
media ownership rules."
http://commerce.senate.gov/public/index.cfm?FuseAction=PressReleases.Det...
* Senate Bill Would Delay FCC Media Vote
http://www.multichannel.com/article/CA6509587.html?rssid=196
* Senate Panel Seeks to Delay FCC Media-Consolidation Plan
http://online.wsj.com/article/SB119683065388014280.html?mod=todays_us_pa...
* Senate panel OKs bill to delay FCC ownership plan
Tribune waivers trigger if the FCC approves the rule change before
Jan. 1, giving Tribune relief as public interest groups are expected
to sue in court to block their implementation. But a delay in the FCC
vote would not hurt Tribune. The company also could itself trigger
the temporary waivers by challenging the FCC's denial of its request
for permanent waivers. Tribune may do that in the coming days to
settle its regulatory situation for the deal's lenders instead of
waiting for a Dec. 18 vote that could be delayed.
http://www.latimes.com/business/printedition/la-fi-ownership5dec05,1,737...
* Monkeywrench? U.S. Senate Panel Opposes FCC Plan to Give Tribune,
Others, Waivers
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
* Minority concerns fuel push to delay FCC consolidation vote
Andrew Schwartzman, one of twelve panelists scheduled to testify
before the subcommittee today, said that loosening current rules
would hurt minority media ownership. As president and CEO of Media
Access Project, a media advocacy group based in Washington, D.C.,
Schwartzman said the new rules are vaguely packaged and the public is
unaware of the significance of the changes. "These rules appear more
benign than what they really are," Schwartzman said. "The FCC has
portrayed it as a modest change when in fact it is a very major change."
http://www.statesman.com/business/content/business/stories/other/12/05/1...
* Obama: FCC Must Slow Down
Sen. Barack Obama (D-IL): The Federal Communications Commission must
not be allowed to "move forward with regulatory changes through leaks
to the press and closed-door meetings.... The more the rules let
media outlets fall into the hands of big media conglomerates, the
less likely our leaders are to be responsive to the public's needs
and, in particular, the needs of minority communities. The FCC needs
to meet its obligations to diverse communities and ensure that
broadcasters are doing right by the communities they operate in
before it considers loosening any media-ownership regulations."
http://www.broadcastingcable.com/article/CA6509575.html?rssid=193
* Consumer Groups Applaud Media Ownership Act
"Chairman Martin's policymaking-by-press release has run into a brick
wall of bipartisan opposition in Congress," said Ben Scott, policy
director of Free Press. "This important legislation promises to
redirect the FCC's moral compass toward the long-ignored issues of
media diversity and localism. The Senate has joined the American
public in demanding that the FCC protect the public interest and
shelve its plans for handouts to corporate media companies."
http://www.freepress.net/press/release.php?id=310

MEDIA OWNERSHIP PUTS MARTIN ON HILL HOT SEAT
[SOURCE: tvnewsday, AUTHOR: Kim McAvoy]
All eyes are on Federal Communications Commission Chairman Kevin
Martin this morning as he testifies before the House Commerce
Committee. Today's oversight hearing -- and another planned next week
in the Senate -- are aimed at slowing down Martin's plan to lift the
newspaper-broadcast crossownership rule. The consensus among FCC
insiders is the chairman won't back down. Despite "a lot of pressure
and a lot of heat," Martin "wants to get this done," says a source
close to the chairman. But Martin is just one vote on the five-member
commissioner. He is counting on his two fellow commissioners, Deborah
Taylor Tate and Robert McDowell, to deliver their vote and produce a
majority. Democratic Commissioners Michael Copps and Jonathan
Adelstein are adamantly opposed to loosening ownership rules. And
there is growing conjecture that Tate and McDowell's support might
fade, especially under heavy congressional fire. "Neither of them has
seemed like the strongest of reeds in the face of strong political
winds," says one broadcast industry observer. Commissioner Tate is
considered more likely to bend because her initial FCC term expired
last June and she needs Senate confirmation to keep her job. "Tate
obviously has more concerns because she'd like to have another term,"
says one FCC insider. Any Senator can place a hold on an FCC
nomination, and there are plenty who think that the FCC has no
business tampering with the newspaper-broadcast crossownership rules.
While Tate and McDowell will be under considerable pressure to
abandon Martin, they will be getting little outside pressure to stand by him.
http://www.tvnewsday.com/articles/2007/12/04/daily.13/

NAA'S STURM TO BACK MARTIN AT HEARING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Newspaper Association of America President John Sturm will have Kevin
Martin's back when the Federal Communications Commission Chairman
makes his case for loosening newspaper-broadcast cross-ownership
rules. According to a summary of Sturm's testimony, he will argue
that, if anything, the Martin proposal does not go far enough, and
that even simply relaxing the ban, as Martin has proposed, is
"egregiously overdue." Sturm said removing the restrictions would
help local communities by allowing broadcasters to increase news, and
it would not detract from diversity. Opponents of lifting the ban
argued that their studies showed just the opposite.
http://www.broadcastingcable.com/article/CA6509535.html?rssid=193

RESTRAINED FIGHT EXPECTED ON CABLE CAP
[SOURCE: Technology Daily, AUTHOR: David Hatch]
The cable industry will mount a less extensive lobbying campaign to
derail an effort by FCC Chairman Kevin Martin to cap the subscriber
reach of systems than it did to rebuff his failed attempt at broader
re-regulation. Chairman Martin is proposing allowing individual cable
operators to serve no more than 30 percent of pay-television
households. In 2001, the U.S. Circuit Court of Appeals for the
District of Columbia overturned the 30 percent threshold after
deciding there was not enough evidence to justify it. Kyle McSlarrow,
president and chief executive officer of National Cable and
Telecommunications Association, told reporters this spring that if
the cap returns, it would face new legal challenges. Another reason
for NCTA's measured response is that a cap only halts the growth of
video subscribers through mergers and acquisitions. Even at 27
percent, Comcast could add 3 million video customers by purchasing
small systems before hitting the benchmark. Also, the proposal would
not bar Comcast or other operators from surpassing the 30-percent
level by attracting new customers to existing services, nor would it
prevent cable systems from acquiring non-video companies, such as
cellular providers. The association has not considered the cap to be
among its top policy priorities.
http://www.njtelecomupdate.com/2007/12/tame_fight_expected_on_cable_c.html

US APPROVES AT&T BUY OF AD TECHNOLOGY FIRM INGENIO
[SOURCE: Reuters]
The Federal Trade Commission has approved AT&T's purchase of the
advertising technology firm Ingenio. The company's technology, called
"pay per call," allows companies to post online advertisements and
pay fees depending on how many phone calls they receive. AT&T bought
Ingenio to boost its directories business and compete more directly
with Google.
http://www.reuters.com/article/technologyNews/idUSN0452568920071204

ECHOSTAR SHARES OFF ON SPECULATION OF SPECTRUM BID
[SOURCE: Reuters, AUTHOR: Yinka Adegoke and Ritsuko Ando]
EchoStar's stock prices dropped as speculation mounted that the
satellite television operator had entered the U.S. government auction
for wireless spectrum. Analysts said if market speculation were
correct, it would rule out any chance of phone company AT&T holding
merger discussions with EchoStar, as U.S. regulatory rules prevent
any two bidding parties from holding merger talks. The deadline for
filing applications formally declaring an intention to bid was on
Monday, but bidders can remain anonymous until the FCC reveals names
later this month. Industry watchers believe that EchoStar could be
interested in using the wireless spectrum as a way to deliver voice
and data services to complement its video service, helping it to
compete more effectively with cable companies' own "triple-play" offers.
http://www.reuters.com/article/technology-media-telco-SP/idUSN0450828620...

TELECOM/BROADBAND

FCC DENIES VERIZON FORBEARANCE REQUESTS
[SOURCE: Federal Communications Commission]
On Tuesday, the Federal Communications Commission ruled that the
current evidence of competition does not satisfy the section 10
forbearance standard with respect to any of the forbearance Verizon
requests. Accordingly, the Commission denied the requested relief in
all six markets: , New York, Philadelphia, Pittsburgh, Providence and
Virginia Beach.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-278708A1.doc
* Verizon Is Denied a Rate Request
http://www.nytimes.com/2007/12/05/business/05fcc.html?ref=todayspaper
* Rep Ed Markey (D-MA): "The unanimous rejection of Verizon's
regulatory petition by the Federal Communications Commission is a
victory for consumers and competitors. I have vigorously argued
against granting this petition because it would have led to a
dramatic reduction in innovation and a hike in the prices consumers
pay for both traditional telecommunications and broadband services."
http://markey.house.gov/index.php?option=com_content&task=view&id=3210&I...

MARTIN FOCUSED ON BOOSTING COMPETITION
[SOURCE: Technology Daily, AUTHOR: Michael Martinez]
In a speech at a Phoenix Center symposium, FCC Chairman Kevin Martin
said his short-term goals for the agency are focused on adjusting
rules so that companies investing in innovative communications
infrastructure can compete more effectively. He said that because
changes in the marketplace are occurring so rapidly, it is best to
rely on competition rather than regulation to foster growth. Chairman
Martin called for a significant reform of the universal service fund,
which subsidizes telecommunications services in rural and
underdeveloped areas. He said the program needs to be retooled to
help those areas receive 21st century services and to subsidize
traditional services.
http://www.njtelecomupdate.com/2007/12/martin_stresses_communications.html

OFFICIALS POINT TO BROADBAND CHALLENGES
[SOURCE: Technology Daily, AUTHOR: Andrew Noyes]
Assistant Attorney General Thomas Barnett, the head of the Justice
Department's Antitrust Division, painted a rosy picture of the U.S.
voice, video and high-speed Internet markets at an agency symposium
on the ever-changing industries -- but he acknowledged challenges
that must be addressed. Cross-platform competition, such as telephone
companies offering video and cable companies offering phone service,
has "clearly benefited consumers" by giving them more choices and
lower prices, Barnett said. But that innovation came at a price.
According to Standard & Poor's, wireless carriers invested more than
$23 billion in build-outs in 2006; a pair of companies offering
fiber-optic services reported spending $25 billion during the same
period; and the cable industry invested more than $12 billion.
Barnett's office is concerned with impediments that could stymie
competition and slow further expansion. Some barriers are
technological, some are economic, and others are regulatory, he said.
http://www.njtelecomupdate.com/2007/12/officials_point_to_broadband_c.html

CDT URGES CHANGES TO WIRETAPPING LEGISLATION
[SOURCE: InfoWorld, AUTHOR: Grant Gross]
The Center for Democracy and Technology (CDT) has urged the U.S.
Congress to make changes to a bill that would extend a controversial
wiretapping program. CDT, a group that focuses on online civil
liberties, called for the U.S. Senate to pass a substitute to the
Foreign Intelligence Surveillance Act (FISA) Amendments Act, likely
to be debated on the Senate floor later this week. The legislation,
as approved by the Senate Intelligence Committee, would reauthorize
warrantless wiretapping of some U.S. residents' telephone and
electronic communications in the name of protecting the U.S. against
terrorists. One of the most controversial provisions would give
telecom carriers immunity from civil lawsuit judgements for assisting
the government wiretapping efforts, but CDT officials said Tuesday
that there are other important debates raised by the legislation,
including the role of the U.S. FISA court in overseeing the
wiretapping program. The Senate Intelligence Committee version of the
bill, which was put together with help from President George Bush's
administration, offers "no meaningful protection" to U.S. residents
and limits the involvement of the FISA court in approving
wiretapping, CDT said. Several civil liberties groups have called the
wiretapping program illegal because it spies on U.S. residents
communicating with oversees suspects without court approval.
http://www.infoworld.com/cgi-bin/redirect?source=rss&url=http://www.info...
* Debate Looming in Senate on Surveillance Bills
http://www.cdt.org/

SPECTRUM

SPECTRUM BIDDERS GET SET
[SOURCE: Wall Street Journal, AUTHOR: Corey Boles
corey.boles( at )dowjones.com and Roger Cheng]
Google, AT&T and Verizon Wireless are among the bidders expected to
take part in a major auction of government airwaves next month. The
Federal Communications Commission intends to sell off some 62
megahertz of some of the most powerful spectrum ever to be made
available to the commercial wireless industry. The sale results from
television broadcasters moving from the current analog signal to a
new digital format, which requires substantially less spectrum use.
Monday was the deadline for bidders to formally notify the FCC of
their intent to participate in the auction of communications
spectrum. The auction is set to begin on Jan. 16. Cable provider Cox
Communications Inc. and Leap Wireless International Inc. have also
disclosed plans to bid in the auction. In addition, Frontline
Wireless, an entrepreneurial group backed by several well-known and
politically connected individuals, said it would participate. Sprint
Nextel Corp., the third-largest U.S. wireless carrier by subscribers,
said it won't take part in the airwaves sale. The two largest cable
companies, Comcast Corp. and Time Warner Cable Inc., said they
wouldn't bid in the auction. Echostar Communications Corp., the
smaller of the two satellite-television companies, will bid in the
auction, although it won't do so in conjunction with rival DirecTV
Group Inc., as it did in last year's auction
http://online.wsj.com/article/SB119678638739413250.html?mod=todays_us_ma...
(requires subscription)
* Wireless firm to bid for airwaves
Leap Wireless, which sells pay-as-you-go mobile-phone service to
customers who lack the credit to qualify for contracts, said Tuesday
that it planned to bid in a U.S. government auction of airwaves in
January to expand its network.
http://www.latimes.com/business/printedition/la-fi-spectrum5dec05,1,7052...
(requires registration)

QUICKLY

FCC PUBLISHES LIST OF ITEMS ON CIRCULATION
[SOURCE: Federal Communications Commission]
It is amazing what a little oversight can do... on December 4, the
Federal Communications Commission announced it would publish on its
public website a list of FCC Items on Circulation. On Friday,
November 30, FCC Chairman Kevin Martin informed Congress of his
intent to take steps to ensure equal access to information,
particularly in regard to the disclosure of information about
proposed rules that are scheduled to be considered by the Commission.
This correspondence, sent to Congress in response to an October 2007
report from the Government Accountability Office, is intended to make
the FCC's rulemaking process as fair and transparent
as possible. Find the current list at http://www.fcc.gov/circulation/
http://www.fcc.gov/circulation-nr120407.pdf

PSAs COULD BE SPARSE IN '08
[SOURCE: tvnewsday]
The Ad Council may have problems placing public service announcements
(PSAs) in 2008. It's an even numbered year, which means that
inventory at many TV stations will be extremely tight as they try to
capitalize on the political campaigning and the summer Olympics.
Plus, the Ad Council will have to compete with the pledges of the
National Association of broadcasters and National Cable and
Telecommunications Association to set side hundreds of millions of
dollars in TV time for PSA campaigns to inform viewers about the DTV
transition and the February 2009 deadline for analog broadcasting.
See Q&A with Ad Council President Peggy Conlon.
http://www.tvnewsday.com/articles/2007/12/04/daily.5/
--------------------------------------------------------------
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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