Oct 17, 2008 (Rivals' Visions Differ on Unleashing Innovation)

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BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY OCTOBER 17, 2008

ELECTIONS & MEDIA
   Rivals' Visions Differ on Unleashing Innovation
   Nielsen: Obama-McCain Round Three Scores 38.3 HH Rating
   Political Ads Lead Voters to Internet
   Lobbyist Vicki Iseman Responds to NYTimes Story about McCain

BROADCASTING/CABLE
   FCC to Sponsor NASCAR Car #38
   FCC Spending $1 Million On DTV Ads With AARP
   Bay Area Stations Conducting Soft Analog Shut Off Test
   Hillary Clinton Backs NPRM On Low-Power Must Carry
   NFL Network Looking To Avoid Punt To FCC ALJ
   FCC Slaps Time Warner Cable, Cox On Switched Video
   7 Reasons Why Broadcast Nets Need New Biz Models

WIRELESS
   White space backers see new devices in a year
   NAB Claims Discrepancies in FCC Report
   Will The FCC Create An ICANN for White Spaces?
   AT&T to push wireless beyond mobile phones

GOVERNMENT & COMMUNICATIONS
   China media freedoms in limbo as Olympic rules end

QUICKLY -- Could Recession Help Big Media?; Bandwidth jumps on college campuses; Digital Natives May Force Rethinking on Copyright, Privacy and Broadband

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ELECTIONS & MEDIA

RIVALS' VISIONS DIFFER ON UNLEASHING INNOVATION
[SOURCE: New York Times, AUTHOR: William Broad, Cornelia Dean]
Both presidential candidates, in their careers and in their campaigns, have made detailed arguments for how the nation should deal with technology rivals, sharpen its competitive edge and improve what experts call its "ecology of innovation." Yet their visions are strikingly different. They diverge mainly on the appropriate role for the federal government in education, in spending on research, and in building, maintaining and regulating the complex infrastructure on which innovation depends. The visions both face tough questions on their viability amid the nation's deepening financial crisis. Sen John McCain (R-AZ) seeks to encourage innovation by cutting corporate taxes and ending what he calls "burdensome regulations" that he says inhibit corporate investment. But Sen McCain has also repeatedly gone up against business if he sees a conflict with national security, for instance, in seeking to limit sensitive exports. In Sen Barack Obama's (D-IL) view, the United States must compete far more effectively against an array of international rivals who are growing more technically adept. Sen Obama looks to the federal government to finance science, math and engineering education and the kind of basic research that can produce valuable industrial spinoffs.
http://benton.org/node/17935
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NIELSEN: OBAMA-MCCAIN ROUND THREE SCORES 38.3 HH RATING
[SOURCE: MediaWeek, AUTHOR: Katy Bachman]
The third and final presidential debate between contenders Senators John McCain (R-AZ) and Barack Obama (D-IL) had an overall household rating of 38.3 in Nielsen's 56 local meter markets. The total audience was 56,523,000 people (40,037,000 households) across 10 TV networks plus tape delayed on Telemundo. The audience for the Oct 15 debate was lower than the second debate (at 42.1) but higher than the first (at 34.7) on a Friday night in September. This time, the debate had some competition from the championship baseball game between the Los Angeles Dodgers and the Philadelphia Phillies, which aired on FOX. Baltimore had the largest TV audience with a 49.3 ratings, followed by Washington, D.C. (48.4). The Sacramento-Stockton-Modesto (CA) market had the lowest debate audience with 28.1
http://benton.org/node/17933
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POLITICAL ADS LEADS VOTERS TO INTERNET
[SOURCE: Multichannel News, AUTHOR: Larry Barrett]
A survey conducted last month by the Cabletelevision Advertising Bureau (CAB) found that while 80% of voters said they first learned about political candidates on television, most used the ads only as a starting point for launching their own candidate assessment online.
http://benton.org/node/17932
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LOBBYIST SPEAKS: RUMOR OF MCCAIN AFFAIR FALSE, DAMAGING
[SOURCE: National Journal, AUTHOR: Edward Pound]
Back in February, the New York Times published an article about the relationship between Sen John McCain (R-AZ) and telecommunications lobbyist Vicki Iseman. Now, after more than seven months of silence, Iseman has decided to speak out and aggressively defend herself, saying she "never acted unethically in my dealings with the senator." McCain's campaign manager, Rick Davis, was Iseman's principal contact at the McCain campaign. The two have known each other since 1999 when she raised funds for McCain's unsuccessful bid for the Republican presidential nomination. Iseman made no effort to hide her dealings with Davis and revealed that she consulted him after The New York Times began poking into her background last year. Describing her role with the Senate Commerce Committee, chaired by Senator mccain, and McCain's first run for the White House, Iseman says she supported McCain's bid and raised money for him. She thinks that she attended three fundraisers for him during that campaign. There is no question that she could get clients in to see McCain and the committee staff, she says, but she maintains that she had no "special" access to the senator.
http://benton.org/node/17931
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BROADCASTING/CABLE

FCC TO SPONSOR NASCAR CAR #38
[SOURCE: Federal Communications Commission]
The Federal Communications Commission will sponsor the NASCAR No. 38 entry with driver David Gilliland for a total of three races in the remaining NASCAR Sprint Cup Series as part of its digital television outreach. The FCC DTV sponsorship will debut at Martinsville Speedway on October 19th followed by the races at the Phoenix International Raceway on November 9 and Homestead-Miami Speedway on November 16. Apparently the FCC will spend $350,000 for the sponsorship.
http://benton.org/node/17930
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FCC SPENDING $1 MILLION ON DTV ADS WITH AARP
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission will purchase $1 million in advertisements in AARP publications. According to FCC sources, that $1 million gets the government a full-page in AARP's November and December bulletins, as well as a full page in its Winter magazine, Spanish and English-language editions, which come out in January. Seniors are one of the key target populations in terms of percentage of analog-only TV viewing and assistance in setting up DTV-to-analog converter boxes or adjusting antennas. The AARP magazine boasts the world's largest circulation at 24 million. The Spanish-language version reaches an additional 800,000.
http://benton.org/node/17929
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BAY AREA STATIONS CONDUCTING SOFT ANALOG SHUT OFF TEST
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Bay Area (CA) television broadcasters will conduct a soft analog shut-off test Oct 21, involving 18 stations from Santa Rosa to Monterey. The test will consist of signal tones followed by a graphic that will say "ready" for viewers who can receive a digital signal -- digital TVs, converter boxes or cable--and a "not ready" for viewers of an analog over-the-air signal. Viewers will be directed to the www.dtv.gov Web site for more information. San Francisco has about 200,000 over-the-air only households -- compared to 1,000 to 20,000 in Wilmington. It also has hilly terrain that could prove a reception challenge for some viewers.
http://benton.org/node/17928
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HILLARY CLINTON BACKS NPRM ON LOW-POWER MUST CARRY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Sen Hillary Clinton (D-NY) has sent a letter to Federal Communications Commission Chairman Kevin Martin supporting a proposal to grant some low-power stations must-carry status on cable. She urged all the Commissioners to give "due consideration" to the item, which actually wound up being pulled from the agenda after the other four Commissioners wanted carriage to be part of an inquiry rather than a proposed rule. But she went beyond that to express her support for a notice of proposed rulemaking (NPRM) on carriage. Sen Clinton cited portions of Martin's proposed NPRM that would have 1) "gather[ed] views of the public" on migrating Class A low power stations to full power status, "thereby affording such stations to [sic] must-carry rights on cable television systems and that would have 2) permitted additional low-powers to become Class A's.
http://benton.org/node/17927
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NFL NETWORK LOOKING TO AVOID PUNT TO FCC ALJ
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
NFL Commissioner Roger Goodell says he is hopeful that the league can restart negotiations with Comcast over carriage of the NFL Network before its carriage complaint goes before an FCC administrative law judge.
http://benton.org/node/17922
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FCC SLAPS TIME WARNER CABLE, COX ON SWITCHED VIDEO
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
The Federal Communications Commission proposed to fine Time Warner Cable and Cox Communications for moving some channels from their broadcast lineups to switched digital video groups—rendering that programming inaccessible to non-operator-supplied devices like TiVo recorders. In notices issued Wednesday, the agency's Enforcement Bureau said Time Warner Cable Oceanic's Oahu and Kauai systems and Cox's Fairfax County, Va., system last fall "apparently willfully violated" federal rules requiring providers to make all video programming available to third-party consumer electronics that use CableCards. The bureau proposed to fine Time Warner Cable $40,000 and Cox $20,000 for the violations and to require both MSOs to issue refunds to any affected customers.
http://benton.org/node/17921
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7 REASONS WHY BROADCAST NETS NEED NEW BIZ MODELS
[SOURCE: MediaPost, AUTHOR: Diane Mermigas]
There are seven categorical reasons why the broadcast television networks, and eventually their cable counterparts, will not survive with traditional business models. Formidable trends that are vexing industry executives and nipping at their revenues and earnings could collectively have an explosive impact in 2009. The changes afoot are more obvious than the economic outcome of content and advertising rapidly shifting from print, television and other static media to online and digital interactive platforms. New value ultimately lies in a continuous connection between consumers and producers of goods and services, between niche social communities and the providers of information, data and communications. Unlocking that value requires the creation and skillful execution of new business models and structures that could eventually be more lucrative for all concerned. The process begins with the owners of CBS, Fox, NBC and ABC identifying and acknowledging these irreversible change agents.
http://benton.org/node/17919
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WIRELESS

WHITE SPACE BACKERS SEE NEW DEVICES IN A YEAR
[SOURCE: Reuters, AUTHOR: Kim Dixon]
Opening unused US television channels to wireless devices, an idea endorsed by the Federal Communications Commission this week, could spark development of faster devices with features such as high-definition video within a year. Philips, Motorola, Google, and Microsoft are among the companies that want the unused spectrum for a new generation of wireless devices. Other applications include what some experts call "Wi-Fi on steroids" -- faster, able to go farther, and more effective wireless networking in the home, including high definition video.However, cable operators, broadcasters and wireless phone companies oppose such unlicensed use, arguing that it would create interference and other technical problems.
http://benton.org/node/17926
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NAB CLAIMS DISCREPANCIES IN FCC REPORT
[SOURCE: tvnewsday, AUTHOR: ]
The National Association of Broadcasters is questioning whether support for "white space" devices is contradicted by key findings in a report from the FCC's Office of Engineering and Technology (OET). Specifically, NAB pointed to what it called "the stark contrast" between the Executive Summary's upbeat endorsement of unlicensed devices that preceded a more pessimistic 149-page report released on Wednesday. Overall, NAB said, the optimistic tone of the Executive Summary of the FCC's OET evaluation "does not match the actual test results documented in the report, which clearly show that spectrum sensing is not a reliable technique." The NAB called on the FCC to seek public comment on the report before moving forward.
http://benton.org/node/17925
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WILL THE FCC CREATE AN ICANN FOR WHITE SPACES?
[SOURCE: Tales from the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] Feld is generally pleased with the announcement by FCC Chair Kevin Martin that the exhaustive study of possible white spaces devices by the Office of Engineering and Technology (OET) proves that the FCC can go to the next step and authorize both fixed and mobile unlicensed devices. But he's wondering who will control the database that will work to supplement sensing as a way to protect over-the-air broadcasting and operation of (legal?) wireless microphones. If the FCC administers this database, and makes it freely available online, then things will work fine.
http://benton.org/node/17924
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AT&T'S LURIE TO PUSH WIRELESS BEYOND MOBILE PHONES
[SOURCE: Reuters, AUTHOR: Sinead Carew]
AT&T is working on introducing wireless links in devices other than mobile phones. The biggest US mobile service will promote the inclusion of cellular links in everything from computers and digital cameras to car-navigation and entertainment systems.
http://benton.org/node/17923
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GOVERNMENT & COMMUNICATIONS

CHINA MEDIA FREEDOMS IN LIMBO AS OLYMPIC RULES END
[SOURCE: Reuters, AUTHOR: Emma Graham-Harrison]
China was silent on media freedom on Friday, the expiry date of special Olympic regulations that had officially allowed foreign journalists to report freely in most of the country for nearly two years. Local governments across China, which once had to approve any visit by overseas correspondents to their regions, said they would still follow the temporary rules in the short term. As part of Beijing's bid to host the August Games, it promised to allow complete media freedom and although the state's grip over domestic media did not ease it did relax controls on foreign correspondents. There were problems with access to restive Tibet and some controversial sites were blocked at the start of the Games, but the regulations made it easier to report on many things, from windfarms to dissidents. Rights groups and the Foreign Correspondents Club of China, while welcoming the greater openness, have repeatedly expressed concern about ongoing harassment of reporters and those they interview, especially on sensitive topics like protests.
http://benton.org/node/17934
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QUICKLY -- Could Recession Help Big Media?; Bandwidth jumps on college campuses; Digital Natives May Force Rethinking on Copyright, Privacy and Broadband

COULD RECESSION HELP BIG MEDIA?
[SOURCE: Forbes, AUTHOR: James Erik Abels]
Today's ugly media truth: Online advertising rates are falling. But so far it's hard to say how a recession will impact digital media. On one hand, the rate of online display ad spending has been slowing down. Though it reached $11.5 billion in the first half of this year, reports the Internet Advertising Bureau, the 15.2% growth rate that got the industry there was a lot slower than the rate seen in the first half of 2007, which was 27%. On the other hand, the slowing market may actually help, boosting traditional media's control over the digital media ecosystem by giving it an opportunity to buy smaller upstarts or watch them get crushed. Think about it this way: The digital businesses that may be hit hardest by a downturn aren't really media businesses at all. Instead, outfits like Facebook, Meebo, and Twitter provide fun tools and communications technologies for people who, when aggregated in one spot, may be worth a lot of ad dollars -- if they can actually grab them.
http://benton.org/node/17920
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BANDWIDTH JUMPS ON COLLEGE CAMPUSES
[SOURCE: eSchool News, AUTHOR: Dennis Carter]
Bandwidth and Internet connection speeds on most US college campuses increased significantly from 2006 to 2007, but the largest universities still have huge advantages in accessing high-performance networks. The Core Data Service Fiscal Year 2007 Report, conducted by the higher-education IT advocacy group EDUCAUSE, shows bandwidth gains at community colleges, four-year colleges, and universities with master's and doctoral programs. Total bandwidth at the 994 colleges and universities surveyed by EDUCAUSE has "increased significantly" since the 2006 survey was conducted, according to the report. Doctoral institutions saw the biggest gains, showing 60 percent more bandwidth. Bandwidth at bachelor's institutions was up 51 percent, and master's institutions increased by 32 percent. Two-year colleges had the smallest gains, with a 28-percent increase in bandwidth since 2006.
http://benton.org/node/17918
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DIGITAL NATIVES MAY FORCE RETHINKING ON COPYRIGHT, PRIVACY AND BROADBAND
[SOURCE: BroadbandCensus.com, AUTHOR: Drew Bennett]
Digital natives are not a generation, like the baby boomers; they're a population. This is because when you were born (after 1980) is only a piece of the equation that qualifies you to be a digital native. Equally important is your access to and effective use of digital technology. For the last five or so years, popular media has been interested in digital natives: whether the media had such a specific, quirky term for these folks is another story.
http://benton.org/node/17917
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