BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY JULY 23, 2008
INTERNET/BROADBAND
House Hearing Takes Up Issues in Telecommunications Competition
Comcast Not On Notice? They Were Told Point Blank!
AT&T To Create Tiered Internet Access For Subscribers
Possible shutdown of Navajo Internet pushed back
ADVERTISING/DIGITAL CONTENT
DPI: The good, the bad, the stuff no one talks about
Embarq responds to lawmaker concerns about ad tracking
So when do we get over with it and declare Google a monopoly?
Internet Groups Progressing On Code Of Conduct
News Corp. COO: 'Scarcity' key to online advertising
MEDIA OWNERSHIP
FCC Still Haggles Over XM-Sirius
Trib buries news in redesign test
Tribune slashes Allentown Morning Call news staff
Public-Interest Groups: Deny MPAA HD DVR Waiver
TiVo: FCC should take baby steps on SOC
Could peace be near for YouTube and Hollywood?
ELECTION 2008
Kennard, Kneuer Agree Parents Need Better Content Control Tools
Kennard Favors Transition-Team DTV Watcher; Kneuer says Unnecessary
Right Click
McCain camp says media 'in love' with Obama
Is the Media "In Love" with John McCain?
TELECOM
Phone Giants Fight to Keep Subscribers
QUICKLY -- Tech Lobbying 101: Experts Cover The Basics; AT&T on verge of offering TV service in Chicago; Court affirms Child Online Protection Act unconstitutional; Comcast to Sign Child-Porn-Blocking Agreement with NY; New York state passes video game labeling law; Google talks acquisition with Digg; ;Call the Cable Guy. Again.
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HOUSE HEARING TAKES UP ISSUES IN TELECOMMUNICATIONS COMPETITION
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
On Tuesday, the House Subcommittee on Telecommunications and the Internet held a hearing to examine telecommunications competition issues that have impacted national broadband deployment over the last decade. Though the United States was first in the world in broadband deployment in 2000, the country has been sliding down international broadband rankings ever since. Rep Ed Markey (D-MA) chaired the meeting noting, "Several pressing competition issues, including pole attachment rates, interconnection issues, number porting timeframes, copper wire retirement, and forbearance legislation, are before the Subcommittee today. And each of these issues, if resolved correctly, can help promote greater broadband deployment, speeds, and consumer choice." The meeting was also a formal legislative hearing on the Protecting Consumers through Proper Forbearance Procedures Act (HR 3914), a bill offered by House Commerce Chairman John Dingell (D-MI) and Chairman Markey addressing forbearance issues. The bill was designed to make it more difficult for telephone carriers to obtain deregulation from the Federal Communications Commission by ensuring that the carriers' petitions for deregulation are not automatically approved after 15 months simply because the FCC failed to deny them through inaction or a tie vote deadlock. Cathy Avgiris, Comcast's senior vice president and general manager for voice services, endorsed HR 3914. Jonathan Banks, senior vice president of law for the US Telecom Association, a trade group that includes AT&T and Verizon, endorsed the current law, saying it required the FCC to respond to changes in the market.
http://benton.org/node/15433
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COMCAST NOT ON NOTICE? THEY WERE TOLD POINT BLANK!
[SOURCE: Tales from the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] Comcast has invested a lot of time in arguing that they lacked notice that the Federal Communications Commission would enforce the principles of its Internet policy statement via a complaint against them. "How could we possibly have known?" Comcast has asked, winning sympathetic nods from a variety of folks. "Policy statements aren't enforceable! How can you possibly punish us for something we didn't know we might be held accountable for, all our public statements to the contrary?" Well, let us suppose that Comcast was told two years ago today that the FCC would entertain complaints if Comcast blocked or degraded traffic. Would that make a difference? If the FCC had said directly to Comcast: "If in the future evidence arises that any company is willfully blocking or degrading Internet content, affected parties may file a complaint with the Commission." I would think we could all agree that this constituted "notice," yes? Perhaps not notice of whether or not the behavior at issue constituted blocking or degrading — that is, after all, what the Commission determines in a complaint. But certainly if the FCC had told Comcast directly, to its face, no ifs and or buts, the above quoted line, I would hope we could all agree that Comcast had received reasonable notice that parties could bring complaints to the Commission, asking the Commission to determine whether the parties had behaved in an inappropriate manner. Because — Surprise! — exactly two years ago today, that is exactly what the FCC told Comcast.
http://benton.org/node/15432
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AT&T TO CREATE TIERED INTERNET ACCESS FOR SUBSCRIBERS
[SOURCE: Dow Jones, AUTHOR: Fawn Johnson]
AT&T will bring out a new tiered mechanism for giving Internet access to subscribers at different network speeds. AT&T customers currently buy Internet access at various speeds that the company delivers through its dedicated phone lines. But AT&T Senior Federal Regulatory Vice President Robert Quinn said it is difficult to guarantee subscribers' requested speeds for the whole Internet because AT&T can't control the nondedicated, shared part of the network. The new service will change AT&T's current practice of guaranteeing subscribers Internet speeds "up to" their subscribed amount. "When AT&T provides broadband service by speed, it will do so in discrete, non-overlapping tiers," Quinn said in written testimony. "We will strive to provide service within the speed tier purchased by the customer and, if we find that we are not providing service within the ordered speed tier, AT&T will take action either to bring the customer's service within the ordered tier or give the customer an option to move to a different tier."
http://benton.org/node/15431
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POSSIBLE SHUTDOWN OF NAVAJO INTERNET PUSHED BACK
[SOURCE: Associated Press, AUTHOR: ]
The Navajo Nation has temporarily averted having its Internet services shut down, a tribal official said. SES Americom, which provides bandwidth for the services, had threatened to halt service by noon Tuesday if the company was not paid for services rendered. However, the company informed Navajo officials Monday night that it had decided not to shut down services until August 1. "It is good news," said Deswood Tome, a spokesman for the Navajo Nation's Washington office. "It gives us some more room to work with USAC (the Universal Service Administration Company) to get their ruling on this and to get some time so that public safety services aren't shut down." An Internet shutdown would affect the tribe's public safety network, which police and other emergency responders must be able to access from remote places across the reservation. The problem is that Utah-based OnSat Network Communications, which buys the bandwidth from SES, has been unable to pay SES because the federal government has been withholding about $2.1 million in reimbursement funds. A majority of the tribe's 110 chapter houses lost Internet service in April after the decision by the USAC to withhold the funds over concerns about a tribal audit of OnSat.
http://benton.org/node/15430
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DPI: THE GOOD, THE BAD, THE STUFF NO ONE TALKS ABOUT
[SOURCE: TelephonyOnline, AUTHOR: Carol Wilson]
TelephonyOnline is running a three-part series on "deep packet inspection" (DPI). Few technologies get their own Congressional hearings, but deep packet inspection is proving to be no ordinary technology. And even if the July 17th House Telecommunications Subcommittee hearing on DPI included the occasional accidental reference to "deep pocket inspection" from elected officials, it was clear that DPI is squarely in the political crosshairs as a potentially dangerous tool for ISPs. The primary concern raised in Washington is user privacy, foreshadowing the possibility of unprecedented federal rules over how this technology can be used by ISPs. At the same time, however, vendors are still piling into the DPI arena, promising more and better ways for service providers to manage traffic, use their network resources more efficiently, protect latency-sensitive voice and video signals, and even develop new services that promise new revenues.
http://benton.org/node/15429
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EMBARQ RESPONDS TO LAWMAKER CONCERNS ABOUT AD TRACKING
[SOURCE: The Industry Standard, AUTHOR: Grant Gross]
Embarq, an Internet service provider based in Kansas, has suspended its test of a targeted advertising service that tracks subscribers' Web habits as a way to deliver relevant ads. In a letter to Members of Congress, Embarq said it has no plans to deploy a controversial behavioral ad service from NebuAd. The test complied with Federal Trade Commission guidelines on the collection of personal data, Zesiger added. "It appears that industry standards in this area are evolving rapidly toward a more robust form of notice and choice," he said. "Embarq ... not only welcomes, but fully intends to apply any such evolved standards."
http://benton.org/node/15426
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SO WHEN DO WE GET OVER WITH IT AND DECLARE GOOGLE A MONOPOLY?
[SOURCE: C-Net|News.com, AUTHOR: Charles Cooper]
[Commentary] Just how far ahead of everyone is Google? Consider the following, courtesy of Efficient Frontier Insights: Google now enjoys more than a 77 percent share of the search ad market. That's just the headline number. Take a closer look and you see what a marvelous franchise Google enjoys. For every new dollar spent on search in Q2 2008 versus Q2 2007, $1.10 went to Google. Yahoo lost $0.09, and Microsoft lost $0.01. In other words, advertisers are putting all of their new search dollars into Google, and pulling money out of Yahoo Search and Microsoft Live Search.
http://benton.org/node/15427
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INTEREST GROUPS PROGRESSING ON CODE OF CONDUCT
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
Senate Majority Whip Richard Durbin (D-IL) and Sen. Tom Coburn (R-OK) Monday asked three prominent Internet companies for an update on a voluntary code of conduct being written by the industry, academics and human rights groups to regulate businesses' activities in countries that restrict Internet use and content. Colin Maclay, managing director of the Berkman Center for Internet & Society, which is helping stakeholders reach a consensus, said "it's beyond unrealistic to think that the deadline [of September] could move up" because the behind-the-scenes work represents significant commitments by a multitude of Internet players. Even if companies, including European partners that went unaddressed, did speed things up, non-corporate entities would not be able to (nor have any incentive to do so), he said.
http://benton.org/node/15428
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NEWS CORP COO: 'SCARCITY' KEY TO ONLINE ADVERTISING
[SOURCE: C-Net|News.com, AUTHOR: Stefanie Olsen]
For Internet publishers to make the big money from online advertising, they need to manufacture a little scarcity, much like the television business. That's the current thinking of News Corp. Chief Operating Officer Peter Chernin, who said at a conference that there's just too much inventory on the Internet for advertising to sell for high rates. "We have to create category scarcity. That category these days is video," Chernin said. More specifically, he said, premium online video will deliver the high ad rates. That's why News Corp. has invested heavily over the last year in MySpace TV, one of the top video sites in the United States, as well as Hulu.com, a destination for television programming and feature films, Chernin said. News Corp. is also working on about 10 Web-only shows to premiere online. Also, next up for video will be MySpace Music, he said.
http://benton.org/node/15440
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FCC STILL HAGGLES OVER XM-SIRIUS
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz]
Creating monopolies is tedious work. Three votes have now been cast in the Federal Communications Commission's review of the XM Satellite Radio and Sirius Satellite Radio merger, but the deal is still no closer to being done. FCC commissioner Michael Copps voted against the deal Monday night. It's the first vote against the deal. Two other commissioners Chairman Kevin Martin and Robert McDowell have voted in favor of the merger. The decision now increases pressure on another FCC commissioner Deborah Taylor Tate who is the only member of the five-person board who hasn't spoken publicly about how she feels about the deal or what she might want to approve it.
http://benton.org/node/15425
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TRIB BURIES NEWS IN REDESIGN TEST
[SOURCE: Crain's Chicago Business, AUTHOR: Ann Saphir]
The new face of the Chicago Tribune is taking shape, as staffers at the newspaper put the finishing touches on a prototype set for a test run in the next few weeks. A version under consideration devotes the paper's front section to consumer-oriented and entertainment features. Local, national, international and business news is consolidated in the second section. Weather leads the third section, which also includes comics and classifieds, while the sports section is converted to a tabloid format. Newly appointed Editor Gerould Kern has spent the past six years at Tribune focusing on cost-cutting.
http://benton.org/node/15424
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TRIBUNE SLASHES PA PAPER NEWS STAFF
[SOURCE: Crain's Chicago Business, AUTHOR: Ann Saphir]
The Allentown Morning Call became the latest Tribune Co. paper to fire a large swath of journalists as profits plummet amid the current economic malaise. About 24% of the Pennsylvania newsroom, or 35 to 40 positions, will be eliminated. The layoffs bring the total of planned newsroom cuts at Tribune papers to at least 400. Randy Michaels, Tribune's chief operating officer since May, visited the Morning Call in January and told a roomful of journalists to loud applause that "the first thing we want to do is stop cutting editorial." But profits soon began to fall faster than expected. Tribune papers are being squeezed as the housing slump erodes real estate and other advertising and the Internet becomes the medium of choice for classified ads. Added to those pressures is the $8 billion in new debt that the company shouldered in a leveraged buyout last December engineered by Sam Zell.
http://benton.org/node/15423
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PUBLIC INTEREST GROUPS: DENY MPAA DVR WAIVER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Back on June 6, the Motion Picture Association of America filed a formal request with the Federal Communications Commission for a waiver of rules governing the "selectable output controls" of set-top boxes so that they can selectively prevent the digital copying of HD versions of films they want to distribute via multichannel-video providers before their DVD releases. Now Public Knowledge and six other public-interest groups have asked the FCC to deny the studios' request, saying the waiver has little to do with the DTV transition and, in any event, would be costly to consumers and, if anything, hurt the transition.
http://benton.org/node/15419
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TIVO: FCC SHOULD TAKE BABY STEPS ON SOC
[SOURCE: ContentAgenda, AUTHOR: Paul Sweeting]
[Commentary] Digital video recorder inventor TiVo endorses MPAA'S' request for a waiver of rules restricting the use of selectable output controls (SOC) on set-top boxes, although it wants the agency to impose conditions on the waiver. The biggest condition it wants imposed is to make the waiver provisional, lasting no longer than two years, giving the FCC the chance to revisit the issue after the specific business models and content offerings being proposed by the MPAA have become clear. Other conditions TiVo would like to see: 1) The FCC should make clear that a waiver would not permit the disabling of any CableLabs-approved protected digital outputs on set-top boxes, "as would be possible under the requested blanket waiver." 2) Certification of future outputs should be non-discriminatory and subject to FCC review. 3) Consumers should be given "clear and conspicuous warning" before purchasing one of the new VOD offerings that the service may not be available on all audio/video outputs.
http://benton.org/node/15418
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COULD PEACE BE NEAR FOR YOUTUBE AND HOLLYWOOD?
[SOURCE: C-Net|News.com, AUTHOR: Greg Sandovbal]
Google's YouTube is quickly shedding its reputation in Hollywood as a clearinghouse for pirated content and could soon be home to clips from popular movies and TV shows--all legally obtained. Insiders say the search company has adopted a more accommodating approach toward Hollywood, and that's finally starting to pay off. Last week, Lionsgate struck a content agreement with YouTube in a deal that calls for unprecedented cooperation between a major film studio and the Web's largest video-sharing site. That agreement is likely only the beginning. Other big media companies are in talks with Google about similar deals, say sources with three different entertainment companies. They detailed the ways Google has become more flexible in talks about sharing revenue and helping protect films and TV shows against piracy.
http://benton.org/node/15441
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KENNARD HOPES JACKSON FINE DECISION SPURS BROADER DEBATE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Former Federal Communications Commission chairman and current Barack Obama supporter William Kennard said Tuesday that he hoped the Third Circuit Court of Appeals' decision to throw out the FCC fine against CBS stations' broadcast of the Janet Jackson Super Bowl halftime show would spur a broader debate about the need to put content-control technologies in the hands of parents. He added that this was in contrast to the Bush administration's focus on ramping up enforcement against broadcasters. Former National Telecommunications and Information Administration head and current John McCain supporter John Kneuer replied that the FCC's indecency standards needed rethinking saying that the current FCC indecency-enforcement regime was inadequate because it did not deal with the reality of content available elsewhere, including the Internet, cable and satellite. But he clarified to reporters later that he was not suggesting expanding the enforcement regime to those other platforms. He said that by suggesting that the current regime was lacking, the "more" that he was looking for was more focus on technology tools.
http://benton.org/node/15422
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KENNARD FAVORS TRANSITION TEAM DTV WATCHER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Former Federal Communications Commission chairman and current Barack Obama supporter William Kennard said Tuesday that he would recommend that someone on the Obama transition team be named to monitor the progress of the digital-TV transition. Full-power TV stations must pull the plug on analog signals Feb. 17, 2009, only three weeks after a new president is sworn in. "It is going to be a very challenging transition," Kennard said. "And the areas that are going to be most problematic are low-income people, elderly people and minorities, who are most at risk of losing their TV service altogether. Someone needs to be focused on this." Asked if he would recommend that someone be the designated DTV-transition watcher for the campaign, Kennard said, "Absolutely. Someone needs to be doing that. When you think you are going to have a new president-elect, then an inauguration in early February, who is going to be minding the store during that time? Former National Telecommunications and Information Administration head and current John McCain supporter John Kneuer he did not have conversations with the campaign about naming a DTV-transition minder, but, speaking as the former head of the NTIA, the transition will be "largely done" by the time the new president comes in. He added that given the "billions of dollars in advertising and consumer education from the private sector," by the time the new president comes in, "everything that is called for in the transition statute will be accomplished."
http://benton.org/node/15421
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RIGHT CLICK
[SOURCE: Washington Post, AUTHOR: Jose Antonio Vargas]
A look at Cyrus Krohn, the Republican National Committee's eCampaign director. Or, in the words of his boss, RNC Chairman Mike Duncan, "He's helping bring our party to the 21st century." On the Twittering, Facebooking, widgety frontier of politics, one of the webbiest sites this campaign season was born just a few days ago: a 24/7 online town hall, where voters, via text or video, can help craft their party's platform. GOPPlatform2008.com was built by a team headed by Krohn, a veteran of Microsoft and Yahoo who's proving to be one of the GOP's most important Internet gurus. At the new site, users can send their thoughts on the party's platform and suggestions for issues that the GOP should tackle. Anyone can participate, Republican or not. Though a staff screens vulgar and distasteful submissions, it's still the riskiest thing the RNC has ever done online.
http://benton.org/node/15443
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MCCAIN CAMP SAYS MEDIA 'IN LOVE' WITH OBAMA
[SOURCE: The Hill, AUTHOR: Sam Youngman]
Barack and the media sitting in a tree.... Sen John McCain's (R-AZ) campaign sent out an e-mail to supporters accusing the media of being "in love" with Democratic rival Barack Obama. The e-mail contains a link to two videos that feature a compilation of high-profile media personalities like MSNBC's Chris Matthews raving about Sen. Obama (D-IL). The McCain campaign has struggled to generate the same media attention Obama has garnered while traveling overseas.
http://benton.org/node/15420
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IS THE MEDIA "IN LOVE" WITH JOHN MCCAIN
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
With Katie Couric, Charlie Gibson and Brian Williams traveling overseas to interview Sen Barack Obama (D-IL) this week, a debate has erupted over the imbalance in media attention. But there is a counter-narrative, which has taken root on the left, that Sen John McCain (R-AZ) is the one being treated with journalistic kid gloves. In this view, Obama's every utterance is scrutinized, while McCain, who enjoyed warm relations with reporters during his 2000 White House campaign, pays little price for blunders. A penchant for mangling the facts is not easily laughed off -- at least if it becomes a theme of media coverage. Larry Sabato, director of the University of Virginia's Center for Politics, says a critique pushed by bloggers may resonate because of concerns about McCain's age.
http://benton.org/node/15442
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PHONE GIANTS FIGHT TO KEEP SUBSCRIBERS
[SOURCE: New York Times, AUTHOR: Laura Holson]
With millions of people snapping up the iPhone, AT&T, the exclusive carrier for the popular phone, should be quite pleased with the stream of revenue it can expect from customers. But AT&T, the biggest telecommunications company in the United States, has a problem: analysts say consumers are dropping traditional landlines faster than expected. The company, which still gets 32 percent of its revenue from its landline business, reports its second-quarter financial results today and is expected to talk about how its traditional phone service is contracting. AT&T is not the only company facing a changing environment in the communications business. All of the major telecommunications companies — AT&T, Verizon and Sprint Nextel — are figuring out how to make more money from customers as they spend more time sending text messages or browsing the Web on their wireless phones, rather than talking. At the same time, as the American cellphone market gets saturated — nearly 85 percent of American consumers already own a mobile phone — phone companies are finding that growth is slowing. With more options, mobile phone buyers are also becoming more selective about the calling plans and the type of phones they want, making the market even more competitive.
http://benton.org/node/15444
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TECH LOBBYING 101: EXPERTS COVER THE BASICS
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
A handful of prominent technology experts got together Tuesday morning to provide congressional staffers with some insight into their industry's varied policy interests and legislative priorities. Speakers noted that the sector is often puzzling to legislators and regulators because it is complex and fast-moving and because IT is so diversified. Stakeholders rarely speak with one voice, they said. Examples discussed at the Association for Competitive Technology event included network neutrality, privacy and tech standards.
http://benton.org/node/15417
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AT&T ON VERGE OF OFFERING TV SERVICE IN CHICAGO
[SOURCE: Crain's Chicago Business, AUTHOR: Greg Hinz]
AT&T has taken its first formal step to begin TV service in the city of Chicago. Utilizing provisions of a new state law, the telecom giant's Illinois unit last week quietly filed notice with the city that it may begin offering Internet-based high-definition television service in portions of Chicago in as soon as 10 days.
http://benton.org/node/15416
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COURT AFFIRMS CHILD ONLINE PROTECTION ACT UNCONSTITUTIONAL
[SOURCE: Associated Press, AUTHOR: Joelle Tessler]
The 3rd U.S. Circuit Court of Appeals in Philadelphia agreed with a lower court ruling that struck down as unconstitutional a 1998 law intended to protect children from sexual material and other objectionable content on the Internet. The decision is the latest twist in a decade-long legal battle over the Child Online Protection Act.
http://benton.org/node/15439
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COMCAST TO SIGN CHILD-PORN-BLOCKING AGREEMENT WITH NY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Comcast told New York State Attorney General Andrew Cuomo it will sign an agreement with the state to voluntarily block child-pornography newsgroups and Web sites. That came after Cuomo sent a letter threatening Comcast, the country's largest cable operator, with legal action related to an ongoing investigation of child porn on the Internet.
http://benton.org/node/15438
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NEW YORK STATE PASSES VIDEO GAME LABELING LAW
[SOURCE: Reuters, AUTHOR: Edith Honan]
Video games sold in New York state must clearly label ratings for violent content under a law signed on Tuesday, which rights groups criticized as likely unconstitutional. The new law says that is it compulsory for games that are already rated to be labeled and also requires that new video game consoles are installed with parent-controlled lockout features by 2010.
http://benton.org/node/15437
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GOOGLE TALKS ACQUISITION WITH DIGG
[SOURCE: C-Net|News.com, AUTHOR: Steven Musil]
Apparently, social news site Digg.com, a perpetual target of acquisition rumors, is in "final negotiations" to sell itself to Google for $200 million.
http://benton.org/node/15436
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CALL THE CABLE GUY. AGAIN.
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Comcast, the nation's largest cable operator, has enjoyed explosive growth in recent years but that growth has come at a price for customers, public interest groups say.
http://benton.org/node/15435
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