Communications-related Headlines for 2/2/04

The Benton Foundation's Communications-Related Headlines relaunches this
week with a new focus and new editor. Headlines will be focusing on stories
policymakers, funders and advocates can use to articulate a public interest
vision for the Digital Age. This vision includes equitable access to
information and the tools of communications, a diversity of voices in civic
debate and cultural expression, opportunities for lifelong learning, and
community-produced and community-responsive content.

The new editor is actually our old editor, Kevin Taglang. A former senior
telecommunications policy analyst at the foundation, Kevin originally
launched Headlines in 1996. He's back to lend a wry sense of humor to our
coverage and to translate each day's stories into an ongoing discussion of
what's at stake and what's possible as we decide the future of the nation's
communications media. Since 2001, Kevin has been an independent
telecommunications policy researcher and writer. He invites your comments
and questions at (ktaglang( at )etpost.net).

BROADCASTING
FCC Based Media Ownership Rules on Faulty Information
Three Priorities to Strengthen Public Television
San Antonio Localism Hearing a Huge Success

TELEPHONY
Tauzin Requests FCC Response On Access Charge Rules Questions
Telephone Subscribership Report

INTERNET/IT
Speech By Gates Lends Visibility To E-Mail Stamp In War on Spam
New Economy: How Does IT Help Productivity?

SPECTRUM
NTIA Call for Comments in Two Spectrum Proceedings

UPCOMING EVENTS
The Current State of Competition in the Communications Marketplace
(2/4)...Future of VoIP (2/6)...
Policy Watch: Making the Right Choices about the Future of Communications
(2/11)

BROADCASTING

FCC BASED MEDIA OWNERSHIP RULES ON FAULTY INFORMATION
Late last week Consumers Union and the Consumer Federation of America (CFA)
released a new national survey of where people turn for local news which
revealed that newspapers are more than twice as important a source than the
Federal Communications Commission determined when it relaxed its media
ownership rules. The groups say the findings dramatically illustrate the
FCC's irrational basis for allowing more media mergers in local markets.
Consumers Union and CFA have intervened in the legal challenge to the FCC's
rules, claiming the FCC has no rational basis for allowing mergers between
local TV stations and newspapers in 90% of local markets. The Third Circuit
Court of Appeals will hear the case Feb. 11 in Philadelphia.
See full survey results at
(http://www.consumersunion.org/pdf/0129%20local%20media%20survey%20report...)
[SOURCE: Consumers Union, Press Release]
(http://www.consumersunion.org/pub/core_telecom_and_utilities/000785.html)
For more on the court battle over the FCC's new rules, see the Media Access
Project at (http://www.mediaaccess.org/)

THREE PRIORITIES TO STRENGTHEN PUBLIC TELEVISION
Last week, the Corporation for Public Broadcasting (CPB) Board of Directors
said it will focus its work over the next year on strengthening public
television's local services, financial viability and programming.
Concerning the many local needs of stations and the scarce resources, the
CPB leadership had been tasked with developing a comprehensive plan to
return Future Fund dollars to local and state television stations. Analysis
conducted last year suggested that public television revenues would remain
flat or even fall. To address this problem, CPB launched the Public
Television Major Giving Initiative. In the coming year, station executives
will be trained in developing and implementing major giving campaigns at
their own stations. Concerning programming, CPB has launched an audience
research project to identify what audiences value in public television.
This work will help guide decisions throughout the system about what
programming should be funded and aired. Additionally, CPB will continue to
support racial, ethnic and cultural diversity, as well as intellectual,
philosophical and ideological diversity in program content.
[SOURCE: CPB Press Release]
(http://www.cpb.org/programs/pr.php?prn=346)

SAN ANTONIO LOCALISM HEARING A HUGE SUCCESS
On January 28, activists from across Texas and around the country gathered
in San Antonio to tell the FCC that they didn't think the public interest
was being protected. Their message was heard loud and clear by everyone at
the hearing, including all 5 FCC Commissioners and representatives of major
broadcasters. Free Press provides full coverage of the hearing and links to
coverage by the press.
[SOURCE: Free Press]
(http://mediareform.net/townmeetings/)

TELEPHONY

TAUZIN REQUESTS FCC RESPONSE ON ACCESS CHARGE RULES QUESTIONS
House Energy and Commerce Committee Chairman Billy Tauzin (R-LA) called on
the Federal Communications Commission last week to explain whether the
agency's access charge rules apply to long-distance calls carried over the
Internet. Over one year age, AT&T petitioned the FCC asking for an
exemption. Rep Tauzin writes, "I would simply like to know whether the
traffic described in AT&T's petition is subject to access charges today
under the Commission's existing rules. Silence is not acceptable." Rep
Tauzin requested a reply by Thursday, February 5.
For text of the letter, see
(http://energycommerce.house.gov/108/letters/01292004_1197.htm)
[SOURCE: House of Representatives]
(http://energycommerce.house.gov/108/News/01292004_1198.htm)
In a related story, the Wall Street Journal is reporting that the FBI has
asked the FCC to delay any rulings on VoIP until wiretapping regimes are
upgraded.

TELEPHONE SUBSCRIBERSHIP REPORT
On Friday, the FCC released its latest report on telephone subscribership
levels in the United States, showing that approximately
95.2% of all households had telephone service. The report presents
subscribership statistics based on the Current Population Survey (CPS)
conducted by the Census Bureau in July 2003. The report also shows
subscribership levels by state, income level, race, age, household size,
and employment status. The report shows some nagging gaps in telephone
subscribership:
1) The telephone penetration rate was 80.4% for households with annual
incomes below $5,000, while the rate for households with incomes over
$75,000 was 99.3%. 2) Households headed by whites had a penetration rate of
96.0%, while those headed by blacks
had a rate of 90.5% and those headed by Hispanics had a rate of 91.4%. 3)
By age, penetration rates ranged from 86.9% for households headed by a
person under 25 to 97.4% for households headed by a person between 65 and 69.
This report is updated three times a year. For additional information
contact Alexander Belinfante at (202) 418-0944.
[SOURCE: FCC]
(www.fcc.gov/wcb/iatd/stats.html)

INTERNET/IT

SPEECH BY GATES LENDS VISIBILITY TO E-MAIL STAMP IN WAR ON SPAM
"The fundamental problem with spam," says Yahoo's Brad Garlinghouse, "is
there is not enough friction sending e-mail." How can friction be created?
Microsoft's Bill gates and others are suggesting e-mail postage stamps as
the solution. "Sending large volumes of e-mail involve costs that are paid
for by the ISPs and eventually by consumers," says Earthlink's Linda Black.
"Should there be some sort of financial responsibility borne by the
originators of these large volume programs? I think there should be." Black
adds that e-mail between private individuals should remain free. But what
if you're running a list of, say, 6,000 or so wonderful subscribers to a
free news summary service? Postage may begin low -- as low as a penny per
e-mail recipient -- but what if that fee increases quickly? And where would
all that money generated go? Goodmail is the company developing a system
for digital postage. It proposes that high-volume mailers pay a penny per
message at first with the money going to the recipient's ISP.
[SOURCE: New York Times, AUTHOR: Saul Hansell]
(http://www.nytimes.com/)
(requires registration)

NEW ECONOMY: HOW DOES IT HELP PRODUCTIVITY?
What better way to follow up a spam story than to talk about productivity?
The Information Work Productivity Council, an industry group, is sponsoring
a gathering in New York this week to discuss the latest research on
information technology and productivity. The latest research focuses not on
technology, but on "organizational capital," a companies work practices and
routines, its stored knowledge (both in computers and brains), and even its
culture and values. Companies that perform best, research finds, use
teams, decentralize work that requires local knowledge and interpersonal
skills, and they centralize and computerize work that is easily
quantifiable. Investments in technology alone, it is no big surprise, bring
little benefit. It is all about learning how to use it.
Information workers now make up 70% of the American labor force (100
million workers).
[SOURCE: New York Times, AUTHOR: Steve Lohr]
(http://www.nytimes.com/)
(requires registration)

SPECTRUM

NTIA CALL FOR COMMENTS IN TWO SPECTRUM PROCEEDINGS
Last Friday, the National Telecommunications and Information Administration
(NTIA) invited interested parties to file comments on an expansion of the
3650-3700 MHz band to unlicensed devices for wireless broadband
applications such as WiFi while protecting federal operations in those
bands from interference or other adverse effects. Comments are due on or
before February 27, 2004. See
(http://www.ntia.doc.gov/ntiahome//frnotices/2004/RWBPTFinal.htm).
Also last week, NTIA asked for public participation in the President's
Spectrum Initiative. NTIA invited comments on spectrum policy reform from
all interested parties in a Federal Register Notice to be published today,
February 2. The Administration announced its commitment to develop and
implement a modernized United States spectrum policy. Pursuant to this
commitment, the Secretary of Commerce is conducting a comprehensive review
to develop recommendations for improving the United States' spectrum
management policies regarding the organization, processes, and procedures
affecting Federal government, State, local and private sector spectrum use.
For more information see
(http://www.ntia.doc.gov/ntiahome/frnotices/2004/SpectrumInitiativeNOI_01...)
[SOURCE: NTIA]
(http://www.ntia.doc.gov/new.html)

UPCOMING EVENTS

* The Current State of Competition in the Communications Marketplace
February 4, 2004 1:15 PM
2322 Rayburn House Office Building, Washington, DC
A hearing of the House Subcommittee on Telecommunications and the Internet
that is expected to focus on Internet telephone service (VoIP).
For more information see
(http://energycommerce.house.gov/108/Hearings/02042004hearing1164/hearing...)

* Future of VoIP Friday, February 6 noon Washington's J.W. Marriott Hotel
Policy lunch sponsored by The Progress & Freedom Foundation
Vonage Chairman and CEO Jeffrey Citron, will be the featured speaker on the
promise of Voice over Internet Protocol (VoIP) technology, and what
Internet voice means for consumers and the communications marketplace.
For more info see (http://www.pff.org/news/news/2004/012904vonageevent.html)

* Policy Watch: Making the Right Choices about the Future of Communications
Wednesday, February 11, 2004, 12:00pm-1:00pm
Sponsored by New America Foundation, Washington, DC
January 2004 is the 20th Anniversary of the Divestiture Order in January
1984 that broke up AT&T into many competing companies. The question today
is what the future of communications will look like -- and whether the
nation which was well served by breaking up a huge monopoly twenty years
ago is still facing serious competition problems in the
telecommunications/IT policy arena.
The New America Foundation asked AT&T's CEO, David W. Dorman, to reflect on
this anniversary; to comment on the state of competition in telecom today;
to give us insight into the hot, emerging VOIP debate; and to share with us
his view on why policy choices being made today will have an enormous
impact on the next two decades of communications innovations and customer
service.
For more info see (http://www.newamerica.net/index.cfm?pg=event&EveID=337)
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