Communications-related Headlines for May 22, 2000

CABLE
Appeals Court Upholds Constitutionality Of Rules Limiting Cable-TV
Ownership (WSJ)

PRIVACY
Fate Unclear for F.T.C.'s Privacy Push (NYT)

MEDIA & SOCIETY
TV Networks Adding Some Color for Fall (WP)
Paramount Swims Against Tide by Putting Schlessinger on TV (NYT)

INTELLECTUAL PROPERTY
Report Proposes Update of Copyright Act (NYT)

TELECOM ACT
Examining The Telecommunications Act (NTIA)

JOBS
Web Path Opens Rich Possibilities 5-week Course Helps
Minorities Escape Poverty (WP)

MERGERS
Vodafone AirTouch May Sell Some Mannesmann Holdings (NYT)

SPECTRUM
Federal Radar Spectrum Requirements Report (NTIA)

CABLE

APPEALS COURT UPHOLDS CONSTITUTIONALITY OF RULES LIMITING CABLE-TV OWNERSHIP
Issue: Cable
A U.S. Court of Appeals has upheld the constitutionality of rules limiting
nationwide ownership of cable-television systems. The decision comes in
response to challenges by Time Warner Inc. to the 1992 Cable Act and the
rules subsequently set by the Federal Communications Commission. The FCC's
rules prevent any one company from serving more than 30% of the nation's
cable subscribers. While the court hasn't yet ruled on whether the FCC's
rules are appropriate, the decision upholds the cable act's ability to limit
ownership to protect program diversity and competition. Andrew Schwartzman
of the Media Access Project, a Washington public-interest law firm that
joined the FCC in defending the law, believes that AT&T is already slightly
over the 30 percent limit, even before the approval of its merger with
MediaOne Group, which would catapult it reach to 42 percent . Judge Douglas
H. Ginsburg rejected arguments that ownership limits violated Time Warner's
free-speech rights. Congress "drew reasonable inferences, based on
substantial evidence, that increases in the concentration of cable operators
threatened diversity and competition in the cable industry," he wrote.
[SOURCE: Wall Street Journal (B8), AUTHOR: Mark Wigfield]
(http://interactive.wsj.com/articles/SB958764649215483733.htm)
See Also:
US APPEALS COURT DECISION UPHOLDS STATUTE ON CABLE TV OWNERSHIP LIMITS
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/2000/stwek038.html)
(http://www.fcc.gov/Speeches/Tristani/Statements/2000/stgt027.html)
COURT RULING ON CABLE OWNERSHIP A "HUGE VICTORY" FOR CONSUMERS
[SOURCE: Consumers Union]
(http://www.consumersunion.org/telecom/courtdc500.htm)

PRIVACY

FATE UNCLEAR FOR F.T.C.'S PRIVACY PUSH
Issue: Privacy
On Friday, the Federal Trade Commission voted to change course and ask
Congress for new powers to control the ways Internet companies collect and
use information about consumers. But the nation's consumer protection agency
is expected to face skepticism from the Republican Congress: "A year ago,
when the performance of Web sites was rated less favorably than they are
currently being rated, the commission voted against legislation," said Rep.
Billy Tauzin (R-LA), chairman of the House Commerce Subcommittee that
oversees Internet privacy. "Today, with the finding that Web sites have
improved dramatically their privacy policies, they are now recommending
legislation," he said. "It seems to be a contradiction that needs to be
understood." Although the Internet privacy issue in Congress does not split
along party lines, Rep. Ed Markey, D-Mass., who supports strong privacy
regulation, predicted on Friday that Republicans would block the consumer
protections. Rep. Tom Davis (R-VA), co-chairman of the House Internet
caucus, responded with the implication that the administration was behind
the FTC move. "This is an election year, and I think sometimes the direction
they get from up high is to stir this up a little bit."
[SOURCE: New York Times (C1), AUTHOR: Jeri Clausing (jeri( at )nytimes.com)]
(http://www.nytimes.com/library/tech/00/05/biztech/articles/22priv.html)
See Also:
INTERNET PRIVACY HEARING SET FOR MAY 25
Senator John McCain (R-AZ), Chairman of the Committee on Commerce, Science,
and Transportation, today announced a hearing on Internet privacy. Members
will hear testimony on a Federal Trade Commission (FTC) survey of Internet
privacy policies to be released early next week. The Full Committee hearing
is scheduled for Thursday, May 25 at 9:30 a.m. in room 253 of the Russell
Senate Office Building. Senator McCain will preside. Following is the
tentative witness list (not necessarily in order of appearance):
Panel I
Honorable Robert Pitofsky, Chairman, FTC
Honorable Sheila F. Anthony, Commissioner, FTC
Honorable Mozelle W. Thompson, Commissioner, FTC
Honorable Orson Swindle, Commissioner, FTC
Honorable Thomas B. Leary, Commissioner, FTC
Panel II
Ms. Jill Lesser, Vice President of Domestic Public Policy, America Online
Ms. Christine Varney, Senior Partner, Hogan & Hartson, representing
Online Privacy Alliance
Mr. Jason Catlett, President, Junkbusters Corporation
Ms. Deirdre Mulligan, Staff Counsel, Center for Democracy and Technology
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-167.htm)
See additional info at the Electronic Privacy Information Center
(http://www.epic.org/)

MEDIA & SOCIETY

TV NETWORKS ADDING SOME COLOR FOR FALL
Issue: Television/Diversity
Perhaps the biggest news surrounding the recent unveiling of the major
networks fall prime-time lineups is that three African American men and one
Hispanic man will star in new series. While TV screens will hardly be awash
in color come autumn, there will be four more characters of color than last
year, when the broadcasters unveiled 26 new shows for fall 1999 with not a
single black, Latino or Asian actor or actress in any lead role. The NAACP,
which spearheaded protests by a coalition of minority organizations last
summer, declined to comment on the new fall lineup. But a representative for
a Hispanic coalition was furious. "Is one Latino actor going to make an
entire 12 percent of the [U.S.] population happy? I think not," said Alex
Nogales, president of the National Hispanic Media Coalition in Los Angeles.
"If this is all it is, we are sorely disappointed. We're not doing this
exercise of signing memoranda of understanding with the networks so that
when it comes to Latinos we have a repetition of last year's numbers."
[SOURCE: Washington Post (A1) May 21, AUTHOR: ]
(http://washingtonpost.com/wp-dyn/articles/A41646-2000May20.html)

PARAMOUNT SWIMS AGAINST TIDE BY PUTTING SCHLESSINGER ON TV
Issue: Media & Society
A number of successful TV shows have homosexual characters and Fox has a new
show featuring a gay character set for next fall. In this environment, some
are asking why Paramount is thinking about introducing a syndicated talk
show with Dr. Laura Schlessinger who has shared stern anti-homosexual
declarations with her radio audience. "Offending gay people is not
acceptable the way it may have been even five years ago," said Paul Poux,
principal at the Poux Company in New York, an agency specializing in
marketing to gay consumers. "Advertisers are becoming more aware of all
their customers," he added, "so maybe standards for talking about gay people
are being brought into line with those for other groups." Procter & Gamble,
the nation's 2nd-largest advertiser, announced that it will not advertise on
Schlessinger's show; many advertisers "would not go below the standards" of
a marketing giant like P.& G., said Gene DeWitt, chairman and chief
executive at Optimedia International U.S. Asked whether Paramount executives
would suspend production of the show at this point, Mr. DeWitt replied, "Not
if they can still make money." "Morality may have moved as far West as
Cincinnati," he added, referring to the headquarters of Procter & Gamble,
"but it hasn't made it to the Coast yet."
[SOURCE: New York Times (C17), AUTHOR: Stuart Elliot]
(http://www.nytimes.com/yr/mo/day/news/financial/schlessinger-tv.html)

INTELLECTUAL PROPERTY

REPORT PROPOSES UPDATE OF COPYRIGHT ACT
Issue: Intellectual Property
The Progressive Policy Institute, which is affiliated with the Democratic
Leadership Council, is recommending that a law meant to protect intellectual
property on the Internet needs to be updated. A policy brief, "Napster and
Online Piracy: The Need to Revisit the Digital Millennium Copyright Act,"
will released on Monday in preparation for the House Small Business
Committee hearing scheduled for Wednesday to examine Internet music
technologies. The report proposes outlawing technologies like the
controversial Napster software, which enables Internet users to trade music
files with little regard to copyrights. The report recommends that the
digital copyright law be amended "to hold Napster, its users, and similar
services accountable for copyright violations while maintaining protections
from liability for service providers that are innocent bystanders to digital
piracy." The civil libertarian community, on the other hand, opposes any
such limits on access to works that belong in the public domain. "To say you
are going to take a whole new category of software and strangle it in its
infancy because one of its first uses resulted in piracy -- that's a bad
idea," said John Gilmore, president of the Electronic Frontier Foundation,
an online liberties group based in San Francisco.
[SOURCE: New York Times (C6), AUTHOR: Jeri Clausing (jeri( at )nytimes.com)]
(http://www.nytimes.com/library/tech/00/05/biztech/articles/22naps.html)

TELECOM ACT

EXAMINING THE TELECOMMUNICATIONS ACT
Issue: Competition
Remarks by Assistant Secretary Rohde at the Dialogue on Diversity:
The recent activity on Capitol Hill to gut the Telecommunications Act of
1996 by excluding data and other advanced services from competition seems to
be a change of mind for many legislators. The Administration does not
believe that we need to change course at this time. In fact, we believe that
the results are evident that competition is working and now is the time to
stay the course and continue to promote competition.
Many appear to be mistaken about a fundamental principle of the
Telecommunications Act that sequence matters. The Act is indeed about
de-regulation, ultimately. However, consumers will not benefit through
deregulation of monopoly service. That is why the Act is structured as it
is: the first step is to establish a pro-competitive environment. Only after
effective competition has been established can de-regulation follow. Those
who speak about the need to de-regulate and cite the Act as the defense fail
to appreciate that competition is a necessary requirement. Only a
pro-competitive environment is going to create opportunities for new
entrants - including women and minority businesses. There is no more dynamic
aspect of our economy than the area of telecommunications and information
services. Keep in mind that this industry has leaders such as Meg Whitman,
President of e-bay, and Candice Carpenter, founder of i-Village and others
have benefited from the pro-competitive model that we should not jeopardize.

[SOURCE: NTIA]
(http://www.ntia.doc.gov/new.html)

JOBS

WEB PATH OPENS RICH POSSIBILITIES 5-WEEK COURSE HELPS MINORITIES ESCAPE
POVERTY
Issue: Jobs/Digital Divide
A five-week crash course on Web design, offered by San Francisco OpNet more
than helped Tracy Johnson, 25, move herself and her daughters from a San
Francisco homeless shelter to a an apartment east of the city. The course is
part of the offerings of Bay Area program which also offers low-income
candidates job counseling and placement. Of 130 people who have been through
the course, half have found full-time employment at area technology outfits
and many others have part-time work. "We want these people to be the face of
what is possible," says OpNet strategic planning director Kelly Brown, who
is exploring ways to take the program national. OpNet's formula has caught
the eye of no less than Vice President Gore, has said OpNet is "absolutely
critical to closing the digital divide." Said one alum: "Before OpNet, I
just assumed you had to go to college to get this kind of job. Now, I am
productive and I am loyal, and I know that if one company doesn't want me,
another one will."
[SOURCE: USA Today (6D), AUTHOR: Marco R. della Cava]
(http://www.usatoday.com/usatonline/20000522/2283823s.htm)

SPECTRUM

FEDERAL RADAR SPECTRUM REQUIREMENTS REPORT
Issue: Spectrum
From Press Release: The Commerce Department's National Telecommunications
and Information Administration (NTIA) released a report that identified
spectrum necessary to support radar spectrum requirements for various
Federal agencies. The report entitled, Federal Radar Spectrum Requirements,
discusses present and future U.S. radar spectrum requirements needed to
support continued and evolving radar requirements in the United States. The
report revisits the NTIA's March 1995 NTIA Requirements Study which
indicated the spectrum allocated for the radionavigation, radiolocation, and
meteorological radars was considered to be adequate to the year 2004.
Specifically, the report noted the long leadtimes (usually 15 years) for
radar development and the requirement for the user to amortize the radar
investment in the out years to accomplished the radar's intended mission
support.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/osmhome/reports/ntia00-40/)

MERGERS

VODAFONE AIRTOUCH MAY SELL SOME MANNESMANN HOLDINGS (NYT)
Issue: Mergers
Vodafone AirTouch P.L.C., the world's largest wireless telephone operator,
is considering selling the fixed-line assets it acquired when it bought
Mannesmann. It is also considering selling Orange P.L.C., Britain's
third-largest cellular operator, to raise more than $60 billion, said
sources close to the company. Vodafone had initially planned to spin off
Orange, which it must get rid of in about a month to satisfy regulators as
part of its acquisition of Mannesman, and sell shares to the public, but it
recently reversed course, holding talks with several suitors about a
possible sale.
[SOURCE: New York Times (C10), AUTHOR: Andrew Ross Sorkin]
(http://www.nytimes.com/yr/mo/day/news/financial/vodofone-mannesmann.html)

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The Benton Foundation's Communications Policy Program (CPP)
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Service is posted Monday through Friday. The Headlines are highlights
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