Hey, don't be sneaking off on vacation yet... we've got a week+ of Congress
left, the agenda for the August FCC meeting to be released Thursday, and
the FCC will be discussing Increasing Telecommunications Services in Indian
Country, too. For upcoming media policy events, see
http://www.benton.org/calendar.htm
LEGISLATION
NAB Supports Ratings Oversight Bill
Verizon-Backed Bill in Texas Has 30 More Days
Video News Release Bill Set for Markup
Senators Want Telecom Fund To Include Broadband Access
Inflight Turbulence for the Net
Congress to take up VoIP 911 rules in September
Internet Challenges Regulatory Jurisdictions
CABLE/SATELLITE
Groups Ask FCC to Block Adelphia Sale
XM Could Localize Mobile Multimedia with New
WCS Spectrum; NAB Not Pleased
QUICKLY -- TWU sets up picket lines; Media Companies Can't Rely on DVD
Sales; DVR, VOD Households Double; New Radio Ratings Method Might Boost Ad
Sales; AT&T-Backed Report Gauges Effects Of Telecom Taxes; 103 Million
Chinese Use Internet
RECENT FCC ORDERS RELEASED
LEGISLATION
NAB SUPPORTS RATINGS OVERSIGHT BILL
The NAB has come out in support of a bill that would increase government
oversight of TV ratings. "As a matter of principle, NAB generally prefers
voluntary inter-industry cooperation to additional government involvement
as a solution to these issues," NAB President Eddie Fritts wrote Senator
Conrad Burns (R-MT). "But, as a matter of practise, we drop all pretense of
principle at the drop of a dollar bill," whispered a bitter Headlines
writer. Fritts actually completed his thought writing, "However, in the
absence of voluntary resolution, we wish to voice our support for S. 1272."
The bill would require Nielsen or any other TV ratings system to get
accreditation by the Media Ratings Council (MRC) for its system or any
changes to its system. The bill would also mandate accuracy in "all the
aspects of audience viewing behavior that it is intended, or is
represented, to convey, using accurate statistical methods and social
sciences data," a mandate that would appear somewhat problematic in its
enforcement, though clients could sue for inaccuracy. The MRC would also be
required to report annually to the Federal Trade Commission, the FCC and
Congress.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA628302?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Comcast Spotlight Opposes MRC Bill
Comcast Spotlight, the ad-sales arm of Comcast, has joined in the
opposition to S. 1272. "While there has been a persistent effort by certain
broadcasting companies -- and organizations they have funded -- to portray
this debate as affecting the public interest, the simple fact is that those
companies are trying to hold back technological progress because it
threatens their bottom line," writes Comcast Spotlight president Charles
Thurston.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA628347.html?display=Breaking+News
(requires subscription)
VERIZON-BACKED BILL HAS 30 MORE DAYS
Let's go to double-overtime in Texas! The special session of the Texas
legislature -- which is considering a statewide franchise bill supported by
Verizon Communications -- timed out Wednesday at midnight, but not before
Gov. Rick Perry called another 30-day special session to allow the
government to complete its business. Now the question remains whether the
legislature can resolve its most difficult issues -- education and
property-tax reform -- so it can move onto other issues before it,
including the bill that will authorize broadband over power lines, in
addition to easing the transition of telephone companies into cable.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA628349.html?display=Breaking+News
(requires subscription)
* Telecom Debate Restarts In Texas
http://www.njtelecomupdate.com/lenya/telco/live/tb-JHRG1121979089364.html
VIDEO NEWS RELEASE BILL SET UP FOR MARKUP
Senate Commerce Committee Chairman Ted Stevens (R-Alaska) agreed to mark up
a bill mandating disclaimers on government.-produced video news releases
(VNRs) during a reportedly combative markup session of an Federal Trade
Commission reauthorization bill, Senate sources said. Sen. John Kerry
(D-MA), backing the VNR bill with Sen. Lautenberg (D-NJ), said he's been
trying to move it forward for two months but couldn't get Stevens'
commitment to a hearing. issues. Sen Kerry's bill would require VNRs
prepared by the government to contain clearly labeled disclaimers alerting
viewers to the source. It also would put the FCC in charge of designing the
disclaimers and drafting the language.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)
SENATORS WANT TELECOM FUND TO INCLUDE BROADBAND ACCESS
Sens. Gordon Smith (R-OR) and Byron Dorgan (D-ND) are in the early stages
of drafting legislation that would expand the program designed to provide
ubiquitous telephone coverage to include high-speed Internet access. The
bill would make money in the Universal Service Fund available so
telecommunications providers could build out broadband facilities. Rep. Lee
Terry (R-NE) is also working on a USF bill that would extend funding to
broadband.
[SOURCE: Technology Daily , AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-CBBU1121978900437.html
INFLIGHT TURBULENCE FOR THE NET
[Commentary] The FBI, along with the Departments of Justice and Homeland
Security, wants to be able to read or block online communications to and
from airplanes. They have applied to the Federal Communications Commission
for this authority and would use it only after obtaining a court order for
each case. But why make the request of the FCC? Congress is considering
renewal of the Patriot Act. Certainly compromising Internet privacy rights
inflight, and the potential for the same technology to find a landing pad
on overall Internet use on the ground, should be debated and decided by
legislators accountable to the citizens rather than by administrators
appointed by the President. Public confidence in the security of airplanes
is likely to trump private electronic communications every time. It would
be best if the decision of privacy rights were part of a democratic process
rather than a bureaucratic ruling.
[SOURCE: The Christian Science Monitor, AUTHOR: Editorial Staff]
http://www.csmonitor.com/2005/0722/p08s03-comv.html
CONGRESS TO TAKE UP VOIP 911 RULES IN SEPTEMBER
Congress expects to begin hearings on its proposed 911 service requirements
for Internet telephone service (VoIP) providers in September. On June 29,
new FCC rules on emergency services over VoIP went into place, but Congress
will consider legislation introduced in May in both houses. Congress under
the proposed legislation would give the FCC the power to set requirements
for VoIP providers, though "only to the extent that the Commission
determines such regulations are technologically and operationally
feasible," according to the text of the bill. The bill would also require
that IP-enabled services receive "nondiscriminatory" access to the
emergency services infrastructure, while holding VoIP providers responsible
for designing functional systems to grant that access and for notifying
their customers before the access becomes available. It would protect VoIP
providers from getting sued, as it does for wireless and wireline
companies, once the 911 access is in place. Jim Kohlenberger, executive
director of the Voice On the Net Coalition, a VoIP advocacy organization,
said that meeting the FCC's 120-day requirements is a "very big challenge."
But the proposed legislation "is providing some progress," he added, by
giving the liability relief and facilitating access to the 911 networks.
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
http://news.com.com/Congress+to+take+up+VoIP+911+rules+in+September/2100...
INTERNET CHALLENGES REGULATORY JURISDICTIONS
The awkwardly constructed Telecom Act of 1996 has led to unnecessary
tension among federal, state and local regulators, but the digital
revolution has paved the way for a new framework. So concludes the
Federal-State Framework Working Group of The Progress & Freedom
Foundation's Digital Age Communications Act (DACA). In a working draft
paper and model legislation, the Working Group proposes a new charter for
federal, state and local cooperation that seeks to maximize the expertise
and advantages of each regulatory level while recognizing the inherent
interstate, and international, nature of the Internet. The paper is being
released for public feedback, and will be presented next week at the
National Association of Regulatory Utilities Commissioners (NARUC) summer
meeting.
[SOURCE: Progress and Freedom Foundation Press Release]
http://www.pff.org/news/news/2005/072105fed-state-paper.html
CABLE/SATELLITE
GROUPS ASK FCC TO BLOCK ADELPHIA SALE
Public interest groups, rival satellite companies and cable programmers
Thursday filed papers asking federal regulators to block or impose
conditions on the acquisition of Adelphia Communications by the nation's
two largest cable TV providers. Some critics said the deal would give the
two buyers, Time Warner and Comcast, monopolistic powers that could deprive
competitors of programming. Others objected to how the sale would make Time
Warner the dominant pay-television provider in Los Angeles, the nation's
second-largest market. Despite their complaints, however, analysts say the
Federal Communications Commission is unlikely to block the $17.6- billion
deal, which was struck in April pending approval of regulators and the U.S.
Bankruptcy Court. Adelphia filed for bankruptcy protection three years ago
amid an accounting scandal.
[SOURCE: Los Angeles Times, AUTHOR:Sallie Hofmeister]
http://www.latimes.com/business/printedition/la-fi-adelphia22jul22,1,413...
(requires registration)
* DirecTV Tackles Adelphia Merger
DirecTV wants guaranteed access to regional sports networks before the
federal government approves the takeover of Adelphia Communications by
Comcast and Time Warner.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA628523.html?display=Breaking+News
(requires subscription)
XM COULD LOCALIZE MOBILE MULTIMEDIA WITH NEW WCS SPECTRUM; NAB NOT PLEASED
XM's acquisition of WCS Wireless last week for $200 million in a stock
transaction added new bandwidth to old arguments between satellite radio
and the NAB. XM wants to use its new spectrum to get in on what other major
communications companies like Cingular, Verizon, Sprint and Qualcomm are
pursuing -- mobile media, including video clips, local weather, music,
sports and other data services. With the WCS Wireless purchase, XM gained
10 MHz of spectrum covering over 1/2 the U.S. population that could be used
to do that. The move had analysts speculating on how XM could use the
spectrum to "localize" its content with audio tailored for specific
markets, noting that broadcasters are likely to fight the idea. In a July
15 letter to Congress, the NAB argued satellite radio is trying to get
around the terms of its national-only licenses. XM's WCS Wireless
acquisition "is part of a long standing pattern of deception by the
satellite radio industry," said the NAB: "When the FCC licensed satellite
radio, it intended a national radio service that would supplement, not
detract from, the important services of free, local radio. [The WCS
Wireless] announcement is further proof that the satellite industry has no
intention of abiding by the terms of their licensure."
[SOURCE: Communications Daily, AUTHOR: Adrianne Kroepsch]
(Not available online)
Press Release on XM/WCS Wireless Deal:
http://www.xmradio.com/newsroom/screen/pr_2005_07_13.html
Text of NAB letter:
http://www.nab.org/newsroom/pressrel/statements/071405_XM_WCS_House_Lett...
QUICKLY
TWU SETS UP PICKET LINES TO PROTECT MEMBERS
The Telecommunications Workers Union announced early Thursday that it is
setting up picket lines across Alberta and British Columbia effective 6:00
a.m., local time. This is 18 hours in advance of the Friday deadline when
Telus intends to impose its contract on employees.
[SOURCE: Telecommunications Workers Union Press Release]
http://www.twu-canada.ca/cgi-bin/news/fullnews.cgi?newsid1121929200,1775,
MEDIA COMPANIES CAN'T RELY ON DVD SALES
DVD players are one of the most popular consumer devices in history,
reaching more than 70% of television households in just eight years. And
DVD-owning households were buying as many as 20 DVDs a year as recently as
2004, according to the Motion Picture Association of America. But as new,
typically lower-income, households buy DVD players, they are likely to
purchase fewer DVDs. According to Fox Home Entertainment, recent adopters
are buying only seven titles a year. Now the question is how quickly the
sales will degenerate. The industry believes it can counter the domestic
slowdown by tapping the less mature international market and pushing sales
of a new generation of disc designed for high-definition TV. However, right
now the studios are wasting time squabbling over two rival high-definition
formats.
[SOURCE: Wall Street Journal, AUTHOR: Julia Angwin julia.angwin( at )wsj.com and
Merissa Marr merissa.marr( at )wsj.com]
http://online.wsj.com/article/0,,SB112199755082193001,00.html?mod=todays...
(requires subscription)
STUDY: DVR, VOD HOUSEHOLDS DOUBLE
The numbers of U.S. households with digital-video recorders and access to
video-on-demand have both doubled in the past year, according to a report
released Thursday by Leichtman Research Group. About 8% of U.S. households
have DVRs, while 23% of cable subscribers said they have accessed VOD
content from local operators, LRG said.
[SOURCE: Multichannel News, AUTHOR: Steve Donohue]
http://www.multichannel.com/article/CA628351.html?display=Breaking+News
(requires subscription)
* DVRs On the Rise
http://www.broadcastingcable.com/article/CA628453?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
NEW RADIO RATINGS METHOD MIGHT BOOST AD SALES
A new way to electronically track listening trends in radio could spur
advertisers to spend an additional $400 million a year, according to data
released on Wednesday, but industry analysts said more needs to be done to
boost the sluggish medium. The new study, conducted by Forrester Research
and commissioned by the Radio Advertising Bureau, explored how Arbitron's
Portable People Meter electronic ratings service, now being tested in
Houston, would affect the $20 billion radio industry as it struggles
against increased competition from satellite radio, iPods and other devices.
[SOURCE: Reuters, AUTHOR: Sue Zeidler]
http://today.reuters.com/news/newsArticle.aspx?type=industryNews&storyID...
AT&T-BACKED REPORT GAUGES EFFECTS OF TELECOM TAXES
A new report by Ernst & Young and commissioned by AT&T finds that the
telecommunications industry is taxed at a higher rate than other types of
businesses. In fiscal 2004, the telecom industry paid $16.5 billion in
state and local taxes. Thirty-two percent of the taxes came from gross
receipts and excise taxes, while 28 percent came from property taxes. Such
taxation has negative consequences for consumers, the report contended. The
gross-receipt levels and property taxes have resulted in an effective tax
rate of 11.8 percent on telecom, the report said. That effective tax rate
represents the estimated state and local taxes paid by each industry,
divided by the U.S. value added for each industry. Value added represents
economic activity and incomes attributable to all of the labor and capital
used in the industry. The utility industry was the only one to rank above
telecom, with an 18 percent effective tax rate.
[SOURCE: Technology Daily, AUTHOR: Fresia Rodriguez Cadavid]
http://www.njtelecomupdate.com/lenya/telco/live/tb-UONV1121979451937.html
CHINA INTERNET USERS GROW 18% TO HIT 103 MILLION
The number of Web users in China, the world's second largest Internet
market, grew by 9 million people in the first half of this year to hit 103
million, the China Daily said on Friday. The growth represented an increase
of 18.4 percent over the same period last year.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID...
RECENT FCC ORDERS RELEASED (for your summer reading enjoyment)
* FCC Launches Review of Closed Captioning Rules
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-142A1.doc
* ALLTEL Corporation Acquisition of Western Wireless Corporation
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-138A1.doc
* New Rules Adopted to Improve Video Relay Service
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-140A1.doc
* Two-line Captioned Telephone Service is Eligible for Compensation from
the Interstate TRS Fund
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-141A1.doc
* ASL-Spanish Translation Video Relay Service Eligible for Compensation
from Interstate TRS Fund
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-139A1.doc
--------------------------------------------------------------
...and we are outta here. Have a great, safe, summer weekend. See ya Monday
(assuming Eddie Fritts doesn't call for my resignation).
--------------------------------------------------------------
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.
--------------------------------------------------------------