For upcoming media policy events, see http://www.benton.org/calendar.htm
BROADCASTING
Sony Settles Payola Investigation
Nielsen Objects to Bill that would Require Oversight of
Local TV ratings
TELECOM
NARUC Moves VoIP E-911, Lifeline Resolutions
Fee Structure For USF Sparks Debate
BPL Advocates Working To Plug Into Hill
Tech Firms Warm To Local Networks
Texas Telco Bill Worries Advocates
FCC establishes Net telephony E911 task force
OPPOSITION TO ADELPHIA-COMCAST-TIME WARNER DEAL
Links to opposition from Media Access Project, the Center
for Digital Democracy, and the Communications Workers of America
POLICYMAKERS
Potential FCC Nominees
Kennedy Discusses Telecom Rewrite
Ex-AT&T exec Eric Stark Joins NTIA
QUICKLY -- Republican Attacks on PBS Program Bias Gets Results; Phone Fees
Called Into Question; Calif. AG Backs SBC-AT&T Deal; Teletruth Questions
FCC's Data on Broadband; Big Broadband Bill of Rights; Violations of
Universal Service Fund; Illinois video game law challenged in court
BROADCASTING
SONY SETTLES PAYOLA INVESTIGATION
Attorney General Eliot Spitzer announced Monday an agreement to halt
pervasive "pay-for-play" in the music industry. Under the agreement, Sony
BMG Music Entertainment, one of the world's leading record companies and
owner of a number of major record labels, has agreed to stop making
payments and providing expensive gifts to radio stations and their
employees in return for "airplay" for the company's songs. Such payoffs
violate state and federal law. "Our investigation shows that, contrary to
listener expectations that songs are selected for airplay based on artistic
merit and popularity, air time is often determined by undisclosed payoffs
to radio stations and their employees," Spitzer said. "This agreement is a
model for breaking the pervasive influence of bribes in the
industry." After receiving tips from industry insiders, Spitzer's office
conducted a year-long investigation and determined that Sony BMG and its
record labels had offered a series of inducements to radio stations and
their employees to obtain airplay for the recordings by the company's
artists. The inducements for airplay, also known as "payola," took several
forms: 1) Outright bribes to radio programmers, including expensive
vacation packages, electronics and other valuable items; 2) Contest
giveaways for stations' listening audiences; 3) Payments to radio stations
to cover operational expenses; 4) Retention of middlemen, known as
independent promoters, as conduits for illegal payments to radio stations;
and Payments for "spin programs," airplay under the guise of advertising.
[SOURCE: New York State Attorney General Eliot Spitzer Press Release]
http://www.oag.state.ny.us/press/2005/jul/jul25a_05.html
* Radio Payoffs Are Described As Sony Settles
http://www.nytimes.com/2005/07/26/business/26music.html
* Sony Settles Radio Payola Probe
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/25/AR200507...
* Commissioner Adelstein Calls for FCC Investigation Based on Spitzer
Payola Settlement
"We've seen a lot of smoke around payola for a while, but now we know it's
coming from a real fire. It's time to dump a bucket of cold water on it.
It's unfair to listeners if they hear songs on the radio because someone
was paid off, not because it's good music. We need an immediate
investigation to determine whether these practices violate federal payola
laws. I've asked Mr. Spitzer to share all of the evidence that he has
uncovered with the FCC."
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260158A1.doc
* Radio Concentration Bill Could Resurface
Senator Russ Feingold (D-WI) used the news of a settlement between Sony and
the state of New York to suggest it was time to re-address, on a national
level, the issues of payola "combined with increasing concentration and
vertical integration in the radio industry." That would likely mean a
renewed push for legislation. "I have introduced legislation in the past to
promote competition in the radio and concert industries," he said, "and,
while this settlement is a step in the right direction, it provides even
more evidence that it is time for Congress to address these issues at a
national level."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA629255?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Sony Settles Over Payola; FCC Could Investigate
http://www.broadcastingcable.com/article/CA629069?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
NIELSEN OBJECTS TO BILL THAT WOULD REQUIRE OVERSIGHT OF LOCAL TV RATINGS
Nielsen Media Research is blasting proposed legislation that it says would
extend government oversight of TV ratings and could force it to shut down
its rating service in markets across the USA. But broadcasters say Nielsen
is overstating the impact of the bill, which would place the company under
fresh scrutiny in the wake of charges that its new ratings system
undercounts minorities. A Senate Commerce Committee hearing Wednesday will
spotlight the controversy and examine the bill, introduced this month by
Sen. Conrad Burns (R-MT), a former broadcaster.
[SOURCE: USAToday, AUTHOR: Paul Davidson]
http://www.usatoday.com/printedition/money/20050726/2b_nielsen_26.art.htm
* Rainbow PUSHes Against Ratings Bill
In a letter to the co-chairmen of the Senate Commerce Committee,
representatives from Rainbow/PUSH, the National Council of Negro Women and
other groups oppose legislation that would increase Media Ratings Council
and government oversight of TV ratings, saying such a bill could "harm
audiences of color."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA629111?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Jackson-Led Group Opposes MRC Bill
http://www.multichannel.com/article/CA629112.html?display=Breaking+News
(requires subscription)
TELECOM
NARUC MOVES VOIP E-911, LIFELINE RESOLUTIONS
Meeting in Austin (TX), the National Association of Regulatory
Commissioners are considering a number of telecom-related resolutions. The
NARUC Consumer Affairs Committee passed a resolution commending FCC and
Congressional efforts to ensure that Internet telephone service (VoIP)
providers offer the same level of E-911 service as all other local telecom
providers. The resolution hailed the FCC for setting a Nov. 28 deadline for
VoIP E-911 implementation, and saluted the House introduction of
legislation to establish seamless national E-911 service. Another
resolution from the same committee supports more federal and state efforts
to up Lifeline and Link Up enrollment. Meanwhile, the telecom staff
subcommittee advanced four resolutions that will be taken up today by the
full Telecom Committee, including: 1) A call for establishment of a
federal-state joint conference on high-cost support reform that will get a
year to develop recommendations, 2) A call to Congress to ensure that any
Telecom Act replacement or rewrite includes a meaningful role for the
states in dispute resolution and protection of consumer interests, areas
where states have particular expertise, 3) A suggestion that the FCC
suspend, or allow waivers from, a Dec. 31 deadline by which wireless
carriers opting for handset-based means for E-911 compliance must achieve
95% penetration of E-911-compatible digital wireless telephones, and 4) A
call to the FCC and Justice Dept. for careful review of the two pending
mega-mergers (SBC-AT&T and Verizon-MCI) because of potential
anticompetitive effects, and consideration of conditions such as
divestiture of overlapping assets to remedy any actual anticompetitive effects.
[SOURCE: Communications Daily, AUTHOR: Herb Kirchhoff]
(Not available online)
FEE STRUCTURE FOR USF SPARKS DEBATE
An obscure debate about the types of fees that will be levied to raise
money for the Universal Service Fund has risen in importance as the
telecommunications industry anticipates a potential change from FCC
Chairman Kevin Martin. The debate is about whether contributions should be
made based on per-minute fees or on monthly charges for each telephone
number. Contributions into USF -- which is designed to ensure universal
telephone connectivity -- currently are based on a percentage of revenues
from long-distance and international phone calls. Instead of paying a 10.2
percent fee on their long-distance revenues, under the alternative approach
consumers likely would pay between $1 and $1.20 per month for each phone
number or connection. Ironically, the key constituency for the
numbers-based approach would be the long-distance carriers AT&T and MCI,
both of which are being acquired by Bell telecom companies.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-BVSY1122327520050.html
BPL ADVOCATES WORKING TO PLUG INTO HILL
In some ways, the broadband over power line industry may be in a position
similar to where the broader Internet sector was during the drafting of the
1996 Telecommunications Act: It is a nascent, but promising sector, with
little money to spend on lobbying, and is being overshadowed by the policy
fights of deep pocketed telecommunications, media and cable companies.
While House Energy and Commerce Committee aides are taking pains to make
sure no technology is excluded as they draft legislation to reform portions
of the 1996 Telecom Act, there are some in the broadband over power line
(BPL) sector that worry their development could be hindered if they don't
do more to communicate with Capitol Hill. BPL involves technology that
enables high-speed data services to be sent over existing power lines in
the signal range left unused by electric utilities.
[SOURCE: National Journal's Insider Update, AUTHOR: Bara Vaida]
http://www.njtelecomupdate.com/lenya/telco/live/tb-WKNU1115070261210.html
TECH FIRMS WARM TO LOCAL NETWORKS
While cities that run their own communications networks appear to have some
support from the technology community, those attempting to create parity
among dominant providers and newcomers to the video-services market are
finding fewer allies in their quest to preserve local franchising authority
and revenue streams. Last month, the National League of Cities sent a
letter to House and Senate leaders asking them to oppose legislation that
would eliminate the requirement that telecommunications companies obtain
local franchises before offering pay television. That option "would limit
the benefits of head-to-head video competition to a chosen few and would
cause chaos in our streets across the country," the letter said.
[SOURCE: Technology Daily, AUTHOR: Chloe Albanesius]
http://www.njtelecomupdate.com/lenya/telco/live/tb-TASE1122326845799.html
TEXAS TELCO BILL WORRIES ADVOCATES
Consumer advocates on Monday slammed pending Texas legislation as harmful
to customers and a giveaway to major telecommunications companies.
Legislation that would further deregulate the Texas telecom market "will be
a veritable treasure trove for telecom giants and ... it's very likely to
result in higher prices, more discrimination and less local control for the
majority of Texas families," Kenneth Wang of the Texas Public Interest
Research Group said. Wang expressed concern that a statewide system "does
not account for the distribution of elderly, low-income or immigrant
population that is unique to each town." Towns will "no longer have the
authority to ensure that these groups are not being taken advantage of by
exploiting these variations." "Rate deregulation works when competition is
strong enough to hold prices down and push service quality up," said Tim
Morstad, a policy analyst with Consumers Union's Southwest office. "There
is virtually no competition in Texas for the most affordable rate package."
[SOURCE: Technology Daily, AUTHOR: Chloe Albanesius]
http://www.njtelecomupdate.com/lenya/telco/live/tb-XXJU1122327964985.html
FCC ESTABLISHES NET TELEPHONY E911 TASK FORCE
The Federal Communications Commission announced Monday the creation of a
task force made up of federal and state officials that will help enforce
911 service requirements for Internet telephony providers. The task force
is expected to develop educational materials to ensure that consumers
understand their rights and the requirements of the FCC's VoIP E911 Order,
which was issued back in May. It will also come up with rules to help
providers expedite compliance, and it will compile data and share best
practice information.
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
http://news.com.com/FCC+establishes+Net+telephony+E911+task+force/2100-7...
* FCC Press Release
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260150A1.doc
OPPOSITION TO ADELPHIA-COMCAST-TIME WARNER DEAL
* MAP Files Two Petitions to Deny in Opposition to Cable Industry Mergers
"Anti-Redlining" Petition to Deny: Demands Comcast and Time Warner carry
programming that addresses minority needs, conditions guaranteeing
deployment of broadband services on a timely basis to all neighborhoods,
and increased employment of Hispanics in decision-making positions.
http://www.mediaaccess.org/NHMCFinal.pdf
"Citizen" Petition to Deny: Argues that concentration of power over media
and residential broadband endangers free speech, diverse viewpoints, and
the rights of subscribers generally.
http://www.mediaaccess.org/AdelphiaPetitionToDeny.pdf
* One Reason Why The FCC and FTC Should Reject the Takeover of Adelphia by
Comcast and Time Warner: the Interactive Television "Tipping Point"
http://www.democraticmedia.org/news/Adelphiastatement.html
* CWA, IBEW Oppose Bid for Adelphia Assets
http://www.cwa-union.org/news/WhatsNew.asp?ID=685
POLICYMAKERS
POTENTIAL FCC NOMINEES
National Journal's Insider Update is reporting who's rumored to be
nominated for two open FCC seats: 1) Mike Meece, deputy director of the
office of the public liaison at the White House, 2) Richard Russell,
associate director for technology at the White House Office of Science and
Technology Policy and 3) Howard Waltzman, the top telecommunications aide
to House Energy and Commerce Chairman Joe Barton (R-TX).
http://www.njtelecomupdate.com/lenya/telco/live/tb-WKNU1115070261210.html
(2nd item)
KENNEDY DISCUSSES TELECOM REWRITE
An interview with California Public Utility Commissioner Susan Kennedy. She
served as cabinet secretary in the administration of former California Gov.
Gray Davis. He appointed her to the state's six-member public utility
commission before he was recalled by the voters in favor of Arnold
Schwarzenegger. But the Republican governor and the former executive
director of the California Democratic Party have been aligned in opposition
to the California Public Utility Commission's May 2004 approval of the
"bill of rights" governing the practices of wireless carriers. With the
support of the cellular telecommunications industry, Kennedy ignited a
backlash to the rules, calling them overbearing. The commission rescinded
the rules in January.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-NKNL1121703230273.html
ERIC R. STARK JOINS NTIA
Eric R. Stark of San Mateo, California, has joined the U.S. Commerce
Department's National Telecommunications and Information Administration
(NTIA) as Associate Administrator for the Office of Policy Analysis and
Development. In this capacity he directs the department that conducts
research and analysis and prepares policy recommendations for Assistant
Secretary of Commerce for Communications and Information Michael D.
Gallagher. Stark began his career with AT&T in Los Angeles in 1990 in a
sales operations role and then moved up through the ranks holding several
positions of increasing responsibility in sales and sales management. In
2002, he was named global account director in AT&T's San Francisco office,
responsible for leading a worldwide sales team for one of AT&T's largest
accounts. Stark received his Bachelor of Arts degree in economics and
business from Westmont College in Santa Barbara, California in 1990 and a
Master of Business Administration degree from the University of Southern
California in 1996. He and his wife Sabrina were married in 1993 and have
two children.
[SOURCE: National Telecommunications and Information Administration]
http://www.ntia.doc.gov/ntiahome/press/2005/stark_07252005.htm
QUICKLY
REPUBLICAN ATTACKS ON PBS PROGRAMS BIAS GETS RESULTS
[Commentary] This latest storm over funding cuts and alleged "liberal bias"
on PBS repeats a long standing pattern. PBS has a long history of
capitulating to pressure from conservative Republican politicians egged on
by right wing advocacy groups.
[SOURCE: MediaChannel.org, AUTHOR: Dr. Jerry Starr, Citizens for
Independent Public]
http://mediachannel.org/blog/node/287
PHONE FEES CALLED INTO QUESTION
What's with all the fees on your phone bill?
[SOURCE: Washington Post, AUTHOR: Don Oldenburg]
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/25/AR200507...
(requires registration)
See also --
The Telecommunications Research and Action Center Web site at
http://www.trac.org offers a free weekly e-newsletter, TRACNotes, plus
telephone-rate and fee news and information on how to choose the best phone
service for your needs.
For information on the campaign to stop taxes on wireless phone service,
visit http://www.Mywireless.org
LOCKYER BACKS SBC-AT&T DEAL
California Atty. Gen. Bill Lockyer said SBC Communications Inc.'s proposed
$16-billion purchase of AT&T Corp. was unlikely to harm competition for
most products.
[SOURCE: Los Angeles Times, AUTHOR: Bloomberg News]
http://www.latimes.com/business/printedition/la-fi-sbc26jul26,1,7788732....
(requires registration)
TELETRUTH FILES AGAINST FCC'S DATA
Today, Teletruth will file a Data Quality Act Complaint against the FCC's
statistics, claiming that the FCC is politically driven to inflate the
number of broadband connections in the United States, as well as presenting
a distorted picture of broadband in the US. The Data Quality Act requires
agencies to present data that is "objective", "reliable" and "accurate",
not politically biased. TeleTruth is a national, independent, customer
alliance dedicated to fixing the problems in telecommunications -- from
customer overcharging and harm to competitors, to the customer issues
surrounding Broadband deployment and competition.
[SOURCE: TeleTruth]
http://www.newnetworks.com/TeletruthBroadbandDQAmartin.htm
BIG BROADBAND BILL OF RIGHTS
FirstMile.US released its Big Broadband Bill of Rights as part of its
overall strategy to help drive the demand for big broadband everywhere. "We
believe that this Bill of Rights will begin to set the stage for clear,
intelligent discussion about the links, the applications and the devices
that are needed to ensure that every member of the American public has
access to big broadband," said Susan Estrada, FirstMile.US president. "We
hope that individuals and community groups will use it to start talking
locally about how to get big broadband deployed in their
community." Individuals and organizations are invited to become "signers"
of the Bill of Rights and show their support for the principles it embodies.
[SOURCE: FirstMile Press Release]
http://www.firstmile.us/
VIOLATIONS OF UNIVERSAL SERVICE FUND
The Federal Communications Commission issued Notices of Apparent Liability
("NALs") against three telecommunications carriers for apparently violating
Universal Service Fund ("USF") and other regulatory program laws, including
those for the Telecommunications Relay Service ("TRS"), the North American
Numbering Plan Administration ("NANPA"), and regulatory fees.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260156A1.doc
ILLINOIS VIDEO GAME LAW CHALLENGED
A new Illinois law restricting the sale of violent video games to minors is
unconstitutional, software makers and resellers asserted in a lawsuit filed
on Monday. Their court documents follow traditional First Amendment themes,
arguing that video games are protected by the same constitutional
principles that shield books and newspapers from intrusive government
regulation.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Illinois+video+game+law+challenged+in+court/2100-104...
--------------------------------------------------------------
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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