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The Government Accountability Office says Bush administration payments to broadcast commentator Armstrong Williams to promote its "No Child Left Behind" policy were illegal, according to Rep. George Miller (D-CA), ranking member of the Education and Workforce Committee and one of the leading critics of the Department of Education's PR contract with Williams. In a report requested by Sens. Frank Lautenberg (D-N.J.) and Ted Kennedy (D-Mass.), the GAO found that the payments--around $250,000--violated prohibitions on funding "covert propaganda." The DOE's own investigation found no illegality in the awarding of the contracts, though it found problems with oversight that the department pledged to address, leaving it to GAO to rule on the legality of the practices cited. GAO also found a Ketchum Communications media analysis of public attitudes toward the Bush administration and Republicans illegal, said Rep Miller Friday.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6262206?display=Breaking+News &referral=SUPP
(free access for Benton's Headlines subscribers)

* GAO: Bush Team Broke Law With 'Covert Propaganda'
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...

* Commentator says he may return fees
http://www.usatoday.com/printedition/news/20051003/a_gaowilliams03.art.htm


http://www.broadcastingcable.com/article/CA6262206?display=Breaking%20News&refer…
Coverage Type 

Last week, FCC Chairman Kevin Martin said the agency is moving to ease a huge backlog of TV license renewals caused by unresolved complaints about coarse broadcasts -- if station owners agree to extended liability from indecency or other complaints. Such deals would give Chairman Martin, a longtime critic of coarse broadcasts, continued leverage over network programming while still allowing station sales that would be precluded by a stalled license renewal. Chairman Martin has yet to issue any indecency sanctions in a tenure that has passed the six-month mark. At least 309 of the nation’s 1,368 commercial TV stations are operating with expired licenses, according to the FCC. Industry and agency sources say the FCC has routinely refused to grant license renewals so long as indecency complaints are unresolved. Some licenses are stalled by other disputes, so it is not possible to attribute all past-due renewals to indecency complaints. Unresolved complaints include those levied by the Parents Television Council against CBS, ABC, NBC and Fox -- meaning affiliates of those nets could face difficulties renewing their licenses. Recently, the PTC has complained that ABC allowed the airing of the F-word on July 2 during the Live 8 broadcast and that Fox aired themes of sodomy and sadomasochistic fetishes in a showing of The Inside on June 15.
[SOURCE: MediaWeek, AUTHOR: Todd Shields]


http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=1001219917
Coverage Type 

Speaking to the National Association for Multi-Ethnicity in Communications, National Cable and Telecommunications Association President Kyle McSlarrow said the cable lobby is making progress in its fight to oppose broadcasters' push for "multicast must carry" (under which local cable operators would be forced to cover all of digital TV broadcasters signals, not just a primary one). But he wouldn't say whether cable operators will reach a compromise with broadcasters on congressional legislation that would give broadcasters carriage of a primary stream and two additional digital channels after the digital transition. "I have heard everything under the sun, but I haven't heard an official proposal," he said. He also appeared unsure when Congress will take up the issue. It could be next week or Oct. 19, when the Senate Commerce Committee is expected to mark up a DTV bill that includes a hard digital transition date, renewal of spectrum authority and a subsidy provision. The bill will be part of the budget reconciliation package that must be delivered to the Senate Budget Committee. Senate Commerce Committee Chairman Ted Stevens (R-Alaska) has said he plans a 2nd DTV bill that would deal with other provisions, including multicast mustcarry, but no timing is set for that bill. The House Commerce Committee Chairman Joe Barton (R-TX) opposes including a multicast provision in a DTV bill. McSlarrow said cable operators are making an argument based on diversity: "If the broadcasters are going to get a claim on the cable pipe broader than we think they have a right to," it will hinder diversity of viewpoints. "The one place we know in the TV industry that has provided the source of diversity that we now take for granted is the cable industry. It hasn't been the broadcasters."
(Not available online)
See also:
* McSlarrow: Multicast an Uphill Fight
http://www.multichannel.com/article/CA6262208.html?display=Breaking+News


NCTA Claims Progress in Multicast Must-Carry Fight
Coverage Type 

Over the weekend, broadcasters were due to notify cable systems what they want in exchange for the right to carry the signals of local TV stations. It is part of battle that is known in TV circles as retransmission consent. Retransmission consent is a powerful tool for companies owning both broadcast stations and cable networks. Some broadcasters want to force cable systems to pay cash to retransmit their local stations' signals as they've won in agreements with satellite TV operators and telephone companies getting into the video delivery business. Many broadcasters stagger the terms of the cable deals, so the three-year cycle doesn't apply to all 2,600 TV stations or 8,000 cable systems. And many stations lack the leverage to make demands. Stations with weak signals or weak programming will opt for “must-carry” status. That forces cable operators to carry the signals, but the cable operator isn't compelled to compensate any further (for example, providing prime channel position). The National Cable & Telecommunications Association (NCTA) estimates that 50% of stations opt for must-carry status. Most station groups and large operators will continue to do as they have done in the 12 years since retransmission-consent rules were enacted: without cash. Most broadcasters will be seeking full carriage of new “multicasting” channels, starting in space created by their switch to digital broadcasting. They'll want better terms and license fees for cable networks they own all or part of. Big operators are willing to disguise payments as advertising or cable-network fees, but they stubbornly resist straight cash-for-carriage deals.
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins]
(free access for Benton's Headlines subscribers)


http://www.broadcastingcable.com/article/CA6262011.html?display=News&referral=SU…
Author 
Coverage Type 

Twenty representatives, including many members of the House Telecommunications Subcommittee, have written Subcommittee Chairmen Fred Upton (R-MI) and Ed Markey (D-MA) backing reinstatement of the broadcast flag. They argue that the flag is necessary to spur the transition to digital and to preserve free TV by making it competitive with other media. "The timely preservation of free, over-the-air television is essential to a smooth and timely transition to digital television, and the implementation of the broadcast flag plays a vital role in this undertaking," the lawmakers wrote. Public Knowledge responded Friday: “We agree with the letter in its view of the importance of local broadcasting as a provider of local news, events and information to consumers. However, we see no link between the continued provision of that valuable service and the broadcast flag. There is no evidence even to suggest that any programming would be withheld without a broadcast flag regime."
(free access for Benton's Headlines subscribers)


Reps Back Broadcast Flag
Coverage Type 

In Portland, Maine, skydiving lessons and weekend getaways at the Embassy Suites are selling fast on UPN affiliate WPME and sister WB outlet WPXT. Both stations peddle goods and services from area merchants on a locally produced home-shopping program, The Dollar Saver Show. That “show” is actually a bunch of disguised TV commercials strung together into a half-hour. Here's how the Dollar idea works: Viewers snap up goods and services, from cleaning services and hotel stays to restaurant certificates, all discounted by 30%. Merchants barter the goods, getting in return commercial exposure and foot traffic because buyers have to visit the merchant to pick their purchases up -- and perhaps buy more. (Wow, what a great way to promote localism in broadcasting.)
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
(free access for Benton's Headlines subscribers)


http://www.broadcastingcable.com/article/CA6261997.html?display=News&referral=SU…
Author 
Coverage Type 

Walter Cronkite, who retired from the anchor chair in 1981, has had a quarter-century to watch broadcast news from the sidelines, and he doesn't think the current generation of TV journalists is doing a bad job. Corporate broadcast owners, though, are another story, says Cronkite. He believes they are paying more attention to Wall Street than to the health of the democracy at a time when the nation's dedication to education has wavered. "We [as a nation] are not educated well enough to perform the necessary act of intelligently selecting our leaders," Cronkite, 88, said during a day of speeches and interviews Tuesday at USC's Annenberg School for Communication, where he helped present the biannual Walter Cronkite Award for Excellence in Television Political Journalism. Cronkite issued a call-to-arms for fellow journalists — primarily broadcast -- to pressure "our employers, those who are more concerned with profits than they are with performance," to replace the current roundups of celebrity profiles and personal health and finance pieces with "the news of the day." "If we fail at that," Cronkite said, "our democracy, our republic, I think, is in serious danger."
(requires registration)


And That's the Way Cronkite Still Is
Coverage Type 

Marking its biggest step into the wireless communications market to date, Google Inc. said on Friday it has proposed to provide free wireless Internet services across the city of San Francisco. The Web search company said it has responded to a request for information by the City of San Francisco to test local Internet services via Wi-Fi, the short-range wireless technology built into most new laptop computers. Offering free wireless communications could thrust Google into competition with entrenched local suppliers of broadband Internet access, SBC Communications and local cable operator Comcast. If it is chosen for the project, Google is working with a variety of partners to help it set up and manage the wireless service.
[SOURCE: Reuters, AUTHOR: Eric Auchard]

* Google offers S.F. Wi-Fi -- for free
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2005/10/01/MNGG9F16K...

* Google in San Francisco: 'Wireless overlord'?
http://beta.news.com.com/Google+in+San+Francisco+Wireless+overlord/2100-...


http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID=2005-10…
Coverage Type 

Be afraid of the big, bad wolf no more. The FCC has decided there's effective competition in the Commercial Mobile Radio Service market. In a report to Congress, the FCC said that 97% of the total U.S. population lives in counties with at least 3 mobile service operators, the same as a year earlier, and up from 88% in 2000, the first year for which statistics were kept. It said 93% lives in counties with at least 4 operators and 87% with 5 or more; both figures are roughly the same as in the previous year. The report will probably come under some scrutiny; in the year since the last report, Cingular has merged with AT&T Wireless, Sprint with Nextel and Alltel with Western Wireless. The FCC said the most telling signs of competitive pressure is carriers' innovative pricing plans and new service offerings. Consumer behavior is another competition indicator, the FCC said. Churn rates averaged at 1.5%-3% per month in 2004, a slight decline from the previous year. Introduction of local number portability in Nov. 2003 “put added pressure on carriers to improve service quality” to keep customers. The FCC also said the number of mobile telephone subscribers in the U.S. in 2004 grew to 184.7 million from 160.6 million, increasing penetration to about 62%. The average monthly minutes of use per subscriber rose to more than 580 in the 2nd half of 2004 from 507 in 2003 and 427 in 2002, it said. Revenue per minute fell 12% during 2004 and the cellular consumer price index (CPI) declined 1%, while the CPI rose 2.7% overall, the FCC said. It said the volume of text messaging traffic grew to 4.7 billion messages per month in Dec. 2004, more than double the 2 billion a year earlier.
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

* FCC Press Release: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261444A1.doc

* Full report: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-173A1.doc

* Statement from Commissioner Copps:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-173A2.doc


FCC Finds ‘Effective Competition’ in CMRS Marketplace
Coverage Type 

Two large telephone companies with many Ohio customers propose to merge without demonstrating any benefits for residential consumers as required by state law, the Office of the Ohio Consumers' Counsel (OCC) said last week. The OCC, along with other consumer groups, filed a brief at the Public Utilities Commission of Ohio (PUCO) and recommend that the proposed Verizon-MCI merger be rejected unless customer benefits are included as conditions. The conditions cover pricing, consumer protections, access to broadband, community voicemail systems, and competitive local telephone service. Prior to merging, Verizon and MCI are required to gain approval from regulators in several states and at the Federal Communications Commission (FCC). Regulators in many states, including Ohio, and at the FCC have the power to impose conditions in order to grant merger approval.
[SOURCE: Office of the Ohio Consumers' Counsel press release]


OH Consumer Advocate calls for Residential Customer Benefits in Verizon-MCI Merger