Monday August 18, 2008 (FCC Mtg Friday)

AUG 22 FCC MEETING AGENDA
[SOURCE: Federal Communications Commission]
If there's anything that people in DC love, its Friday meetings in August. Kevin Martin, he's such a crowd pleaser. The Federal Communications Commission will hold an Open Meeting on Friday, August 22, 2008, scheduled to commence at 10:00 a.m. in Room TW-C305, at 445 12th Street, S.W., Washington, D.C. The Commission will consider: 1) roaming obligations of Commercial Mobile Radio Service Providers, 2) implementation of the New and Emerging Technologies 911 Improvement Act of 2008, 3) new digital TV must carry rules. Sunscreen is optional.
http://benton.org/node/16159
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BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY AUGUST 18, 2008
** Participate in Discussion on FCC Policy on Net Neutrality. See http://benton.org/node/16053 for more info. **

GOVERNMENT & COMMUNICATIONS
   Some Russian PCs used to cyberattack Georgia
   In Areas Under Russian Control, Limits for Western Media

ELECTIONS & MEDIA
   Companies Win, Consumers Lose in McCain's Tech Plan
   Plank of Democratic Platform Turns Spotlight on Media Ownership, Privacy, Net Neutrality
   Television Starts to Court the Young Voter
   The battle to master new media becomes ever more intense
   Harry & Louise Return, This Time Advocating for Healthcare Legislation
   Convention Coverage on a Budget
   Like Politics? Broadcast Your View for Only $6

JOURNALISM
   Key News Audiences Now Blend Online and Traditional Sources

MEDIA OWNERSHIP
   Ban media cross-ownership
   Sirius XM Chief Says Merger Debt Is 'Ugly'
   Why is Cox Moving Those Papers Now? And Will They Sell?
   Disney Denies speculation that it may sell 10 ABC-owned TV stations

INTERNET/BROADBAND
   Fairness Doctrine Panic hits FCC, spreads through blogosphere
   The Promise of Municipal Broadband
   The Birth of the Internet
   NBC builds online audience even as TV ratings soar

BROADCASTING/CABLE
   FCC to Decide in Battle for TV Spectrum
   Cable Shuns NAB's 'Quiet Period' Plan
   Most aware of deadline for digital TV signal

QUICKLY -- Qwest appeals FCC ruling; Free digital texts begin to challenge costly college textbooks in California

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GOVERNMENT & COMMUNICATIONS

SOME RUSSIAN PCs USED TO CYBERATTACK GEORGIA
[SOURCE: USAToday, AUTHOR: Byron Acohido]
Thousands of Russian supporters are volunteering their PCs to be used in cyberattacks against websites supporting the rival state of Georgia. This new style of cyberwarfare — in which ordinary citizens instantly enlist their PCs to help bedevil the enemy — has caused little damage of substance, security experts say. But it affirms the untapped potential for using the Internet to cause mass confusion for political gain. "This type of attack will form at least a part of all geopolitical conflicts from now on," predicts Steve Santorelli, director of investigations at research firm Team Cymru.
http://benton.org/node/16183
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IN AREAS UNDER RUSSIAN CONTROL, LIMITS FOR WESTERN MEDIA
[SOURCE: New York Times, AUTHOR: Sabrina Tavernise, Matt Siegel]
Russian authorities have given Western journalists little or no access to villages that have been looted and burned in Russian-controlled areas of South Ossetia and northern Georgia, making a full public accounting of the aftermath of the violence here all but impossible. Foreign journalists in the Russian-controlled part of the conflict zone are driven in trucks, buses and armored personnel carriers from Vladikavkaz, in Russia, to Tskhinvali, the capital of South Ossetia, but are not allowed to stop and get out in any of the villages along the way. The Russians say the limitations are to keep foreign reporters safe. Ossetians, they say, are angry with the West because they see it as having sided with Georgia in the conflict, and Russian officials argue it is not safe to go without an escort. The issue is not just theoretical. Russia has claimed that Georgia committed genocide in Tskhinvali. The Georgians, for their part, have accused the Russians and Ossetians of a calculated campaign of cleansing. None of those claims can be independently checked, because the Russian government is not allowing foreign journalists into the areas.
http://benton.org/node/16182
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ELECTIONS & MEDIA

COMPANIES WIN, CONSUMERS LOSE IN MCCAIN'S TECH PLAN
[SOURCE: Huffington Post, AUTHOR: Art Brodsky]
[Commentary] John McCain's Internet is a strange and wondrous world, not like the Internet most people experience. It's a place not for innovation and creativity, but one to be controlled by the telephone and cable companies. McCain's view of the Internet is an Internet is largely infiltrated by pirates and filled with dangers that require government protections and enforcement. His policy is filled with contradictions and inconsistencies. That's not surprising, considering that he took a variety of policy positions on the crucial question whether his friends in the telecom business should have been given immunity for spying on Americans. At different times, he supported and questioned it, then skipped the crucial vote entirely. He was not alone in doing this, but it takes on added significance when combined with this policy plan. As we expected, it's the product of a team of advisors that gives lip service to consumers, but when the rubber meets the road, it's the corporations that get most of the goodies. Somewhat like the McCain campaign more generally, it also contains some internal contradictions that muddy the waters that make this look like the product of a group that was trying very hard to make some attempts to appear consumer-friendly, when it's mostly corporate-friendly.
http://benton.org/node/16173
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PLANK OF DEMOCRATIC PLATFORM TURNS SPOTLIGHT ON MEDIA OWNERSHIP, PRIVACY, NET NEUTRALITY
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
The Democratic Party's decision to include media ownership, TV programming and heightened privacy protections in its platform could increase the probability those issues will show up on the congressional and regulatory radar screen next year, some political observers and media association executives say. Whether it will lead to any new support for action or reflects a likelihood that was already pretty certain was less clear. "Is the era of deregulation over for broadcasters? The answer is yes," said Dennis Wharton, executive VP of media relations for the National Association of Broadcasters. "However, it was already pretty clear that the environment will change whether Barack Obama or John McCain becomes president." The ownership and programming language was part of the final draft of the platform released last week and due to be voted on by delegates to the Democratic National Convention.
http://benton.org/node/16181
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TELEVISION STARTS TO COURT THE YOUNG VOTER
[SOURCE: New York Times, AUTHOR: Brian Stelter]
Television networks are assigning reporters to a new beat this election year: people who don't watch the evening news. Young people are catnip for advertisers, but they mostly shun TV, and especially news broadcasts. A biannual news consumption study released Monday by the Pew Research Center found that only a third of news consumers younger than 25 watch TV news on an average day. That's still twice as many as the 15 percent who read a newspaper on an average day. With polls showing a surge in primary-season ballots cast by voters under 30, media outlets are out to convert the newly energized voters into viewers.
http://benton.org/node/16180
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THE BATTLE TO MASTER NEW MEDIA BECOMES EVER MORE INTENSE
[SOURCE: Economist The, AUTHOR: ]
Last year, seven of the 16 major presidential contenders kicked off their campaigns online. Andrew Rasiej, a former Howard Dean adviser and founder of Personal Democracy Forum, a website and annual conference that explores the relationship between politics and technology, thinks the Internet will change not only campaigns, but also democracy itself. Sen Barack Obama (D-IL) has 1.3 million supporters on Facebook; Sen John McCain (R-AZ) has only about 200,000. Sen Obama is using Twitter, a social-networking and micro-blogging service featuring instant messaging. By signing up to Sen Obama's twitters, the campaign at once signs up to yours. This, says Mr Rasiej, proves that Sen Obama "understands the DNA of the Internet". Sen McCain frankly admits he doesn't. But this may not matter, says Patrick Ruffini, who worked on George Bush's 2004 run and is co-founder of The Next Right, an online hub for center-right activism. "What matters a lot are the tactics he employs." The Republicans are beginning to raise their game to compete with Sen Obama's skill.
http://benton.org/node/16172
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HARRY & LOUISE RETURN, THIS TIME ADVOCATING FOR HEALTHCARE LEGISLATION
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
Fourteen years after health insurance providers created Harry and Louise to question why the government should be getting involved in healthcare, in spots aimed at defeating First Lady Hillary Clinton's effort to remake healthcare, the couple is being re-enlisted for a new set of healthcare-related ads. This time a 30-second ad to run on cable and Sunday talk shows during the Democratic and Republican conventions come from health groups and hospitals. It takes a far less confrontational tone in suggesting that maybe it is time for Congress to look at healthcare. The groups backing the ad include the American Cancer Society Cancer Action Network, the American Hospital Association, the Catholic Health Association, Families USA and the National Federation of Independent Business.
http://benton.org/node/16171
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CONVENTION COVERAGE ON A BUDGET
[SOURCE: Broadcasting&Cable, AUTHOR: Michael Malone]
Stations in Denver and Minneapolis are coming up with innovative ways to cover the political conventions on what are often limited budgets. Executives said it's both a banner time and a tough one to cover an event of this magnitude: On one hand, never before has there been such an array of media platforms on which to engage the audience. On the other, the sorry state of the broadcasting economy means stations are forced to create all that content with light staffs.
http://benton.org/node/16170
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LIKE POLITICS? BROADCAST YOUR VIEW FOR ONLY $6
[SOURCE: New York Times, AUTHOR: Noam Cohen]
A look at Saysme.tv which offers a service over the Internet that streamlines the submission process for homemade television advertising and offers cheap slices of cable-TV time -- perhaps as little as $6 for a 25-second spot. The hope is to get commissions from the legions of small-time commentators, political bloggers and local advertisers, who may have as strong opinions as T. Boone Pickens on renewable energy, but do not have his millions to bombard the public with them. Instead, the dream goes, there would be millions of individual commentators placing ads a few at time, market by market, either by uploading their own ads YouTube style or choosing from those already hosted at the site.
http://benton.org/node/16179
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JOURNALISM

KEY NEWS AUDIENCES NOW BLEND ONLINE AND TRADITIONAL SOURCES
[SOURCE: Pew Research Center for the People & the Press, AUTHOR: ]
The 2008 biennial news consumption survey finds four distinct segments in today's news audience: Integrators, who comprise 23% of the public; the less populous Net-Newsers (13%); Traditionalists - the oldest (median age: 52) and largest news segment (46% of the public); and the Disengaged (14%) who stand out for their low levels of interest in the news and news consumption. For more than a decade, the audiences for most traditional news sources have steadily declined, as the number of people getting news online has surged. However, today it is not a choice between traditional sources and the Internet for the core elements of today's news audiences. A sizable minority of Americans find themselves at the intersection of these two long-standing trends in news consumption. Integrators, who get the news from both traditional sources and the Internet, are a more engaged, sophisticated and demographically sought-after audience segment than those who mostly rely on traditional news sources. Integrators share some characteristics with a smaller, younger, more Internet savvy audience segment - Net-Newsers - who principally turn to the web for news, and largely eschew traditional sources. The results suggest that viewers of the "fake news" programs "The Daily Show"and "The Colbert Report" are more knowledgeable about current events (as judged by three test questions) than watchers of "real" cable news shows hosted by Lou Dobbs, Bill O'Reilly and Larry King, among others -- as well as average consumers of NBC, ABC, Fox News, CNN, C-SPAN and daily newspapers. When Americans were asked in a 2007 poll by the Pew Research Center for the People and the Press to name the journalist they most admired, Jon Stewart, the fake news anchor, came in at No. 4, tied with the real news anchors Brian Williams and Tom Brokaw of NBC, Dan Rather of CBS and Anderson Cooper of CNN. And a study this year from the center's Project for Excellence in Journalism concluded that " 'The Daily Show' is clearly impacting American dialogue" and "getting people to think critically about the public square."
http://benton.org/node/16169
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MEDIA OWNERSHIP

BAN MEDIA CROSS-OWNERSHIP
[SOURCE: Seattle Times, AUTHOR: Editorial staff]
[Commentary] The House of Representatives has a chance to do what it would not in 2003: take a stand against media consolidation, which is one of the greatest threats to democracy. The Senate worked in the public's interest when it passed a "resolution of disapproval" of media consolidation in May. The House has been content to sit on its companion piece, which would kill a new Federal Communications Commission rule that essentially lifts the media cross-ownership ban. The Senate, which passed a similar blocking resolution the last time the FCC tried to scrap the ban, acted quickly and decisively. It is past time the House did the same.
http://benton.org/node/16168
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SIRIUS XM CHIEF SAYS MERGER DEBT IS 'UGLY'
[SOURCE: Bloomberg, AUTHOR: Todd Shields]
Sirius XM Radio struck an "ugly" debt deal to close the merger of the only two U.S. satellite radio operators, chief executive Mel Karmazin said. A bond sale the evening of July 28 allowed Karmazin, previously the chief executive of Sirius, to complete the $2.76 billion all-stock purchase of Washington-based XM Satellite Radio Holdings. Together, XM and Sirius have more than 18 million subscribers and constitute the second-biggest U.S. radio operator by sales, after broadcaster Clear Channel Communications. Karmazin, concerned that traditional radio operators might persuade a judge to block the merger he had pursued for more than a year, sought to conclude the deal within hours of getting regulatory approval. To do so, he needed to accept unfavorable terms on refinancing.
http://benton.org/node/16167
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WHY IS COX MOVING THOSE PAPERS NOW? AND WILL THEY SELL?
[SOURCE: Editor&Publisher, AUTHOR: Jennifer Saba]
Another major newspaper chain, Cox, has decided to put up for sale several of its properties -- including papers in Texas, Colorado, and North Carolina -- even as other dailies around the country continue to languish on the auction block. The question is: Why?
http://benton.org/node/16161
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DISNEY DENIES SPECULATION IT MAY SELL 10 ABC-OWNER TV STATIONS
[SOURCE: Broadcasting&Cable, AUTHOR: Robert Marich]
"The 10 O&Os [owned-and-operated stations] are the last bastion of distribution-oriented assets Disney has left, for which they receive no credit in their stock price," said an investment research note from Caris & Co. "Should we be correct and management invite a transaction, Disney could eventually become the only traditional, large-cap media name that is virtually 100% asset-weighted toward pure content." But Disney said there is no truth to the speculation that it might sell its 10 ABC-owned TV stations and instead invest in content, such as Pixar Animation Studios and kids' online virtual world Club Penguin. Caris estimates Disney could raise $4.8 billion for its broadcast-TV stations in New York, Los Angeles, Chicago and seven other big cities. There is no precedent for a major broadcast network operating without a foundation of O&O TV stations as an anchor in major cities, but there is no regulatory obstacle. The Caris report said Disney would simply require buyers of its O&O stations to maintain ABC network affiliation.
http://benton.org/node/16166
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INTERNET/BROADBAND

FAIRNESS DOCTRINE PANIC HITS FCC, SPREADS THROUGH BLOGOSPHERE
[SOURCE: ars technica, AUTHOR: Matthew Lasar]
[Commentary] That naughty Federal Communications Commissioner Robert McDowell has got all the bloggers upset this week, thanks to his impromptu comments about the future of broadcast media regulation. McDowell told the Business and Media Institute on Wednesday that if the upcoming Presidential election "goes one way, we could see a re-imposition of the Fairness Doctrine." "The stupidest thing I've heard this week," wrote Rob Topolski of Free Press. "The Fairness Doctrine, if applied on the Internet, would violate Network Neutrality principles!" he declared. "The network has never cared about the political positions of the senders of packets, and it would violate the neutral behavior of the network if it had to start caring."
http://benton.org/node/16177
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THE PROMISE OF MUNICIPAL BROADBAND
[SOURCE: Progressive The, AUTHOR: Craig Aaron]
[Commentary] It is far too early to start the funeral arrangements for municipal broadband. Much of the media are confusing the collapse of one company -- or one model of broadband deployment -- with the failure of the entire idea of municipalities providing high-speed Internet services. Many projects -- especially in small towns and mid-sized cities -- are thriving. City-owned wireless systems are up and running, serving local residents and businesses or local police and emergency workers. Places like Sallisaw, Oklahoma, and Kutztown, Pennsylvania, are building their own fiber-optic networks that offer high-speed Internet and cable TV. In total, more than 400 cities and towns already have launched, or are developing, municipal broadband systems. Spending on municipal networks increased last year and is expected to keep rising. MuniWireless.com projects that annual spending on equipment and services will exceed $900 million by 2010. Municipal broadband is caught up in a classic "hype cycle" -- a term coined by the Gartner Research Group to chart technology trends. It works like this: First, new technology triggers a wave of excitement that builds to a "peak of inflated expectations." For municipal broadband this was 2005's heady days of "free Internet for everyone everywhere." After the peak, there's a rapid slide toward what Gartner calls "the trough of disillusionment" -- a.k.a. rock bottom or, in this case, the headline in the March 22 edition of The New York Times: "Hopes for Wireless Cities Are Fading."
http://benton.org/node/16165
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NSF AND THE BIRTH OF THE INTERNET
[SOURCE: National Science Foundation]
The birth of the Internet is the subject of this multimedia report created by the National Science Foundation.
http://benton.org/node/16164
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NBC BUILDS ONLINE AUDIENCE EVEN AS TV RATINGS SOAR
[SOURCE: Reuters, AUTHOR: Paul Thomasch]
For NBC Universal, balancing TV and online coverage of the Beijing Olympic Games has been tricky. After paying $900 million for broadcast rights to this year's Summer Games, NBC Universal executives are determined to protect the television business by drawing viewers to NBC and cable networks like USA. At the same time, they are also resolved to build an online audience through the NBCOlympics.com website, with the aim of drawing in more Internet advertising revenue for future events based on the success of this one. It's a delicate balancing act: Concentrate too much on TV broadcasting, and risk missing the boat on the next generation of Olympic fans online. Or put too much content on the Web, and there's a chance some viewers will ignore coverage on TV, where advertisers have paid NBC top dollar for commercial time.
http://benton.org/node/16163
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BROADCASTING/CABLE

FCC TO DECIDE IN BATTLE FOR TV SPECTRUM
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz]
After eight months of testing, a plan to employ unused TV channels to provide cheap, high-speed wireless Internet networks still faces determined opposition and an uncertain future. In September, the Federal Communications Commission is expected to report its findings on tests of prototype "smart radios" that can pinpoint which local broadcast channels are being used and then avoid them. Shortly after that, its five commissioners are expected to take up the issue of whether those TV airwaves can be shared, with an eye to setting rules for their use by year end. These "white spaces" are swaths of broadcast spectrum that will be left open after TV stations switch to digital broadcasting in February. This spectrum is valuable because signals can travel great lengths on it, and because it allows them to penetrate buildings, unlike airwaves used by some wireless phones and devices.
http://benton.org/node/16178
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CABLE SHUNS NAB'S 'QUIET PERIOD' PLAN
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
The cable industry thinks broadcasters' so-called quiet period is a lot of noise, mainly because it wouldn't give cable systems the right to restore carriage of TV stations that were withholding their signals as February arrived. All full-power TV stations are to convert to digital transmission on Feb 17, 2009. Meanwhile, thousands of carriage contracts between cable operators and TV stations are due to expire on Dec. 31, 2008, raising concerns that carriage disputes that ran past Feb 3 would not come to a halt under NAB's quiet period Feb. 4, 2009 to March 4, 2009. For that reason alone, both the National Cable & Telecommunications Association and the American Cable Association want the quiet period to start on or before Jan. 1. "Any voluntary quiet period that does not begin before the agreements actually expire — or which is too brief to preclude potentially confusing messages about broadcast carriage during the time of the actual DTV transition — represents the illusion of a commitment and does not serve the consumer," said National Cable & Telecommunications Association president Kyle McSlarrow.
http://benton.org/node/16162
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MOST AWARE OF DEADLINE FOR DIGITAL TV SIGNAL
[SOURCE: San Francisco Chronicle, AUTHOR: Ryan Kim]
With six months to go before television broadcasting makes its long-awaited switch from analog to digital, the emphasis is shifting from simple awareness to action. Broadcasters, government leaders and community groups are finding that most over-the-air TV viewers - about 34 million people - are aware that their set will go dark on Feb. 17 unless they make the switch to digital. The challenge now is getting the holdouts to take a step to ensure they don't get left with a blank TV screen. The last holdouts are more likely to be low-income, non-English speaking, minority or disabled viewers.
http://benton.org/node/16176
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QUICKLY

QWEST APPEALS FCC RULING
[SOURCE: Phoenix Business Journal, AUTHOR: Patrick O'Grady]
Local telecommunications providers may be facing a protracted battle in Qwest's fight to deregulate the fees it charges them to use its lines and equipment. Forbearance would have meant Qwest no longer was required to charge wholesale rates to competitors, as re­quired by the Telecommunications Act of 1996. Providers in Phoenix, Minneapolis/St. Paul, Seattle and Denver lobbied the Federal Communications Commission to deny Qwest's petition, and it did. Denver-based Qwest filed a notice in U.S. District Court to appeal the FCC decision, though company officials still are reviewing what actions they will take regarding the case, said spokesman Jeff Mirasola.
http://benton.org/node/16175
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FREE DIGITAL TEXTS BEGIN TO CHALLENGE COLLEGE TEXTBOOKS IN CALIFORNIA
[SOURCE: Los Angeles Times, AUTHOR: Gale Holland]
Public colleges and universities in California this past year backed several initiatives to promote online course materials, and publishers and entrepreneurs are stepping up release of electronic textbooks, which typically sell at reduced prices.
http://benton.org/node/16174
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