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Digital TV and the Future of Media in Iowa are on the agenda. See this=20
week's upcoming media policy events at http://www.benton.org/?q=3Devent

EMERGENCY COMMUNICATIONS
Broadcasters Brainstorm On Emergency Practices
In Katrina's Wake, Need for a New GUARD
Let's Finally Plan Ahead
FCC Chief Calls for Better 911

GOVERNMENT/COMMUNICATIONS
Armstrong Williams Payments Illegal, Says GAO

BROADCASTING
FCC to Ease License Snarl: Martin to Extend Stations' Indecency Liability
NCTA Claims Progress in Multicast Must-Carry Fight
TV Grudge Match Reignites
Reps Back Broadcast Flag
Making a Buck by Selling a 'Dollar'

JOURNALISM
And That's the Way Cronkite Still Is
Stewart Skewers Consumer Magazine Industry
Our History of Media Protection

INTERNET/TELECOM
Google Proposes free Wi-Fi for San Francisco
Google's Wireless Plan Underscores Threat to Telecom
FCC Finds =91Effective Competition=92 in CMRS Marketplace
OH Consumer Advocate calls for Residential Customer Benefits in
Verizon-MCI Merger
European Telecom Deals Heat Up

QUICKLY -- UN ready to run Internet; New 'Phishing' Law in CA; Online games=
=20
spawn own economy, society; In DVD Format Split, Paramount Goes 2 Ways;=20
"Box-Top" License Agreements; Googling Copyrights/Yahoo to Scan Books; Hey,=
=20
kid, get off the couch; Television coming to cell phones; Murdoch sells=20
Times Educational Supplement

EMERGENCY COMMUNICATIONS

BROADCASTERS BRAINSTORM ON EMERGENCY PRACTICES
While the FCC and Congress have been looking toward the future of a=20
digital, pan-media emergency communications system, broadcasters will be=20
brainstorming in Oklahoma City on how to do the best with the tools they=20
presently have. The Media Security and Reliability Council was formed by=20
then FCC Chairman Michael Powell after 9/11, when a number of New York=20
stations were laid low by the terrorist attack. Its members include=20
broadcast and cable executives, association executives, and others. Its=20
goal: "To prepare a comprehensive national strategy for securing and=20
sustaining Broadcast and MVPD [cable, satellite, telco, microwave]=20
facilities throughout the United States during terrorist attacks, natural=
=20
disasters and all other threats or attacks nationwide." The expected work=
=20
product: Emergency preparedness plans for all 210 broadcast markets on the=
=20
best way to get the information out and how to keep the facilities up and=
=20
running. Broadcasters have been encouraged to be proactive and to contact=
=20
their local fire and safety officials to set up a plan. The FCC already has=
=20
to sign off on state emergency communications plans, and there are a=20
handful of regional ones as well.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6262150?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* For more on the Media Security and Reliability Council, see:
http://www.mediasecurity.org/
* Hard News the Hard Way
For Rita, planning and improvisation helped.
http://www.broadcastingcable.com/article/CA6261996.html?display=3DNews&r...
rral=3DSUPP
(free access for Benton's Headlines subscribers)

IN KATRINA'S WAKE, NEED FOR A NEW GUARD
[Commentary] After 9/11, it became clear that inadequate communications=20
systems hampered rescue efforts and may have contributed to loss of life.=
=20
Four years later, little has changed. As Congress wrangles over spectrum=20
rights, a unique private-public project has been making notable strides in=
=20
harnessing bandwidth already available nationwide. The GUARD (Geospatially=
=20
Aware Urban Approaches for Responding to Disasters) program is developing=
=20
the Emergency Broadcasting System spectrum for distributing emergency=20
alerts and command and control information to the public, first- responders=
=20
and homeland-security personnel. GUARD makes use of the robust 2.5 GHz band=
=20
licensed to public broadcasters coast-to-coast. In conjunction with=20
federal, state and local government, Thirteen/WNET and Rosettex Technology=
=20
& Ventures Group have adapted this spectrum to the needs of a post-9/11 wor=
ld.
[SOURCE: Broadcasting&Cable, AUTHOR: William F. Baker, WNET New York]
http://www.broadcastingcable.com/article/CA6262177?display=3DOpinion&ref...
al=3DSUPP
(free access for Benton's Headlines subscribers)

LET'S FINALLY PLAN AHEAD
[Commentary] Since it was revamped in the mid 1990s, the federal government=
=20
has not used the national emergency alert system (EAS). Clearly, there is=
=20
something wrong here. The tragedy of Hurricane Katrina must spur the=20
government to make use of the vastly improved technologies that have=20
developed over all the years of EAS inactivity. The keys are to incorporate=
=20
satellites, cellphones and the Internet into what has been a broadcast-only=
=20
system. That apparently will take a boatload of money: $15 billion.=20
Broadcasters must be given priority for emergency fuel supplies for=20
generators. There were loud cries last week for moving up the date when=20
broadcasters must return analog spectrum so some of that spectrum could be=
=20
assigned to first-responders. But the task of coming up with an=20
interoperable system will take years. Broadcasters have agreed to the 2009=
=20
date and should hold to it. There will be time in the interim to devise the=
=20
new system, and money from the 2009 auction will help pay for some of it.=
=20
What really needs to happen is for this nation to devise a better emergency=
=20
communications system and then, for a change, actually use it.
[SOURCE: Broadcasting&Cable, AUTHOR: Editorial Staff]
http://www.broadcastingcable.com/article/CA6262178.html?display=3DOpinio...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

FCC CHIEF CALLS FOR BETTER 911
An interview with FCC Chairman Kevin Martin on emergency communications.=20
Perhaps surprisingly, emergency alert system mandates only cover analog,=20
not digital TV broadcasters. A year ago, the FCC asked how EAS rules should=
=20
apply to digital TV, but it has not yet issued new rules.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6262247?display=3DNews&referral=
=3DSUPP
(free access for Benton's Headlines subscribers)

GOVERNMENT/COMMUNICATIONS

ARMSTRONG WILLIAMS PAYMENTS ILLEGAL, SAYS GAO
The Government Accountability Office says Bush administration payments to=
=20
broadcast commentator Armstrong Williams to promote its "No Child Left=20
Behind" policy were illegal, according to Rep. George Miller (D-CA),=20
ranking member of the Education and Workforce Committee and one of the=20
leading critics of the Department of Education's PR contract with Williams.=
=20
In a report requested by Sens. Frank Lautenberg (D-N.J.) and Ted Kennedy=20
(D-Mass.), the GAO found that the payments--around $250,000--violated=20
prohibitions on funding "covert propaganda." The DOE's own investigation=20
found no illegality in the awarding of the contracts, though it found=20
problems with oversight that the department pledged to address, leaving it=
=20
to GAO to rule on the legality of the practices cited. GAO also found a=20
Ketchum Communications media analysis of public attitudes toward the Bush=
=20
administration and Republicans illegal, said Rep Miller Friday.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6262206?display=3DBreaking+News=
=20
&referral=3DSUPP
(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...
t_id=3D1001219925
* Commentator says he may return fees
http://www.usatoday.com/printedition/news/20051003/a_gaowilliams03.art.htm

BROADCASTING

FCC TO EASE LICENSE SNARL: MARTIN TO EXTEND STATIONS' INDECENCY LIABILITY
Last week, FCC Chairman Kevin Martin said the agency is moving to ease a=20
huge backlog of TV license renewals caused by unresolved complaints about=
=20
coarse broadcasts -- if station owners agree to extended liability from=20
indecency or other complaints. Such deals would give Chairman Martin, a=20
longtime critic of coarse broadcasts, continued leverage over network=20
programming while still allowing station sales that would be precluded by a=
=20
stalled license renewal. Chairman Martin has yet to issue any indecency=20
sanctions in a tenure that has passed the six-month mark. At least 309 of=
=20
the nation=92s 1,368 commercial TV stations are operating with expired=20
licenses, according to the FCC. Industry and agency sources say the FCC has=
=20
routinely refused to grant license renewals so long as indecency complaints=
=20
are unresolved. Some licenses are stalled by other disputes, so it is not=
=20
possible to attribute all past-due renewals to indecency complaints.=20
Unresolved complaints include those levied by the Parents Television=20
Council against CBS, ABC, NBC and Fox -- meaning affiliates of those nets=
=20
could face difficulties renewing their licenses. Recently, the PTC has=20
complained that ABC allowed the airing of the F-word on July 2 during the=
=20
Live 8 broadcast and that Fox aired themes of sodomy and sadomasochistic=20
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=3D100...
9917

NCTA CLAIMS PROGRESS IN MULTICAST MUST-CARRY BATTLE
Speaking to the National Association for Multi-Ethnicity in Communications,=
=20
National Cable and Telecommunications Association President Kyle McSlarrow=
=20
said the cable lobby is making progress in its fight to oppose=20
broadcasters' push for "multicast must carry" (under which local cable=20
operators would be forced to cover all of digital TV broadcasters signals,=
=20
not just a primary one). But he wouldn't say whether cable operators will=
=20
reach a compromise with broadcasters on congressional legislation that=20
would give broadcasters carriage of a primary stream and two additional=20
digital channels after the digital transition. "I have heard everything=20
under the sun, but I haven't heard an official proposal," he said. He also=
=20
appeared unsure when Congress will take up the issue. It could be next week=
=20
or Oct. 19, when the Senate Commerce Committee is expected to mark up a DTV=
=20
bill that includes a hard digital transition date, renewal of spectrum=20
authority and a subsidy provision. The bill will be part of the budget=20
reconciliation package that must be delivered to the Senate Budget=20
Committee. Senate Commerce Committee Chairman Ted Stevens (R-Alaska) has=
=20
said he plans a 2nd DTV bill that would deal with other provisions,=20
including multicast mustcarry, but no timing is set for that bill. The=20
House Commerce Committee Chairman Joe Barton (R-TX) opposes including a=20
multicast provision in a DTV bill. McSlarrow said cable operators are=20
making an argument based on diversity: "If the broadcasters are going to=20
get a claim on the cable pipe broader than we think they have a right to,"=
=20
it will hinder diversity of viewpoints. "The one place we know in the TV=20
industry that has provided the source of diversity that we now take for=20
granted is the cable industry. It hasn't been the broadcasters."
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)
See also:
* McSlarrow: Multicast an Uphill Fight
http://www.multichannel.com/article/CA6262208.html?display=3DBreaking+News

TV GRUDGE MATCH REIGNITES
Over the weekend, broadcasters were due to notify cable systems what they=
=20
want in exchange for the right to carry the signals of local TV stations.=
=20
It is part of battle that is known in TV circles as retransmission consent.=
=20
Retransmission consent is a powerful tool for companies owning both=20
broadcast stations and cable networks. Some broadcasters want to force=20
cable systems to pay cash to retransmit their local stations' signals as=20
they've won in agreements with satellite TV operators and telephone=20
companies getting into the video delivery business. Many broadcasters=20
stagger the terms of the cable deals, so the three-year cycle doesn't apply=
=20
to all 2,600 TV stations or 8,000 cable systems. And many stations lack the=
=20
leverage to make demands. Stations with weak signals or weak programming=20
will opt for =93must-carry=94 status. That forces cable operators to carry =
the=20
signals, but the cable operator isn't compelled to compensate any further=
=20
(for example, providing prime channel position). The National Cable &=20
Telecommunications Association (NCTA) estimates that 50% of stations opt=20
for must-carry status. Most station groups and large operators will=20
continue to do as they have done in the 12 years since=20
retransmission-consent rules were enacted: without cash. Most broadcasters=
=20
will be seeking full carriage of new =93multicasting=94 channels, starting =
in=20
space created by their switch to digital broadcasting. They'll want better=
=20
terms and license fees for cable networks they own all or part of. Big=20
operators are willing to disguise payments as advertising or cable-network=
=20
fees, but they stubbornly resist straight cash-for-carriage deals.
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins]
http://www.broadcastingcable.com/article/CA6262011.html?display=3DNews&r...
rral=3DSUPP
(free access for Benton's Headlines subscribers)

REPS BACK BROADCAST FLAG
Twenty representatives, including many members of the House=20
Telecommunications Subcommittee, have written Subcommittee Chairmen Fred=20
Upton (R-MI) and Ed Markey (D-MA) backing reinstatement of the broadcast=20
flag. They argue that the flag is necessary to spur the transition to=20
digital and to preserve free TV by making it competitive with other media.=
=20
"The timely preservation of free, over-the-air television is essential to a=
=20
smooth and timely transition to digital television, and the implementation=
=20
of the broadcast flag plays a vital role in this undertaking," the=20
lawmakers wrote. Public Knowledge responded Friday: =93We agree with the=20
letter in its view of the importance of local broadcasting as a provider of=
=20
local news, events and information to consumers. However, we see no link=
=20
between the continued provision of that valuable service and the broadcast=
=20
flag. There is no evidence even to suggest that any programming would be=
=20
withheld without a broadcast flag regime."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6262180?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

MAKING A BUCK BY SELLING A 'DOLLAR'
In Portland, Maine, skydiving lessons and weekend getaways at the Embassy=
=20
Suites are selling fast on UPN affiliate WPME and sister WB outlet WPXT.=20
Both stations peddle goods and services from area merchants on a locally=20
produced home-shopping program, The Dollar Saver Show. That =93show=94 is=
=20
actually a bunch of disguised TV commercials strung together into a=20
half-hour. Here's how the Dollar idea works: Viewers snap up goods and=20
services, from cleaning services and hotel stays to restaurant=20
certificates, all discounted by 30%. Merchants barter the goods, getting in=
=20
return commercial exposure and foot traffic because buyers have to visit=20
the merchant to pick their purchases up -- and perhaps buy more. (Wow, what=
=20
a great way to promote localism in broadcasting.)
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
http://www.broadcastingcable.com/article/CA6261997.html?display=3DNews&r...
rral=3DSUPP
(free access for Benton's Headlines subscribers)

JOURNALISM

AND THAT'S THE WAY CRONKITE STILL IS
Walter Cronkite, who retired from the anchor chair in 1981, has had a=20
quarter-century to watch broadcast news from the sidelines, and he doesn't=
=20
think the current generation of TV journalists is doing a bad job.=20
Corporate broadcast owners, though, are another story, says Cronkite. He=20
believes they are paying more attention to Wall Street than to the health=
=20
of the democracy at a time when the nation's dedication to education has=20
wavered. "We [as a nation] are not educated well enough to perform the=20
necessary act of intelligently selecting our leaders," Cronkite, 88, said=
=20
during a day of speeches and interviews Tuesday at USC's Annenberg School=
=20
for Communication, where he helped present the biannual Walter Cronkite=20
Award for Excellence in Television Political Journalism. Cronkite issued a=
=20
call-to-arms for fellow journalists =97 primarily broadcast -- to pressure=
=20
"our employers, those who are more concerned with profits than they are=20
with performance," to replace the current roundups of celebrity profiles=20
and personal health and finance pieces with "the news of the day." "If we=
=20
fail at that," Cronkite said, "our democracy, our republic, I think, is in=
=20
serious danger."
[SOURCE: Los Angeles Times, AUTHOR: Scott Martelle]
http://www.calendarlive.com/printedition/calendar/cl-et-cronkite30sep30,...
080840.story
(requires registration)
* Jennings left $50M to family
http://www.nydailynews.com/news/gossip/story/351045p-299418c.html

STEWART SKEWERS CONSUMER MAGAZINE INDUSTRY
Speaking last week to a magazine/advertising industry event, Comedy=20
Central's Jon Stewart said, "The way news is driven today is not through=20
print. I don't consider print media as relevant.=94 When a fellow panel=20
member argued that television news consistently siphons what first appears=
=20
in print, as evidenced by its coverage of the 2004 presidential campaign,=
=20
Stewart said: =93I didn't say you weren't important; I said you=92re at the=
=20
children=92s table.=94 Stewart used his infamous appearance on CNN=92s Cro=
ssfire=20
to illustrate the immediacy of television. =93I wouldn't have walked into a=
=20
newspaper or magazine (office) and gotten angry, because they=92re not the=
=20
ones driving the discourse.=94 Stewart=92s stock has risen along with his s=
how=20
on the strength of his pointed, satire-based coverage of politics,=20
prompting magazines such as Esquire, Newsweek and Wired to profile Stewart=
=20
on their covers, and Daily Show clips have become some of the most=20
widely-watched and circulated on the Internet.
[SOURCE: Folio Magazine, AUTHOR: Dylan Stableford]
http://www.foliomag.com/index.php?id=3D396&backPID=3D392&tt_news=3D1210
See also:
* Los Angeles Paper Bets on Softer News, Shorter Stories
http://online.wsj.com/article/SB112830208746958155.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* Study shows newspapers reach many
http://www.usatoday.com/printedition/money/20051003/newspaper.art.htm
* NAA's New 'NADbase' Exposes True Reach of Newspapers
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1001220210

OUR HISTORY OF MEDIA PROTECTION
[Commentary] A determined prosecutor demands that prominent journalists=20
testify about their confidential sources to a grand jury. The courts side=
=20
with the prosecutor, reasoning that journalists have no more rights than=20
ordinary citizens to withhold information from criminal investigators. A=20
journalist goes to jail and is released after a relatively short time.=20
Commentators debate whether a First Amendment crisis is looming, while=20
legislators consider passing a law to protect journalists from forced=20
disclosure of their confidential sources. Sound familiar? It should, but=20
not just because it describes the case of New York Times reporter Judith=20
Miller. Strikingly, since the beginning of modern American journalism this=
=20
scenario has repeated itself in each generation almost on cue, about every=
=20
35 years. And if history does repeat itself, journalists can take some=20
comfort in knowing that every time this crisis has erupted, the jailing of=
=20
journalists has been the catalyst for changes in the law that protected a=
=20
subsequent generation of reporters. Time and again Americans have made=20
clear that confidential newsgathering is an important part of a free press=
=20
and that journalists who protect sources should not be treated as=20
scofflaws. That is why every time a movement has started among a new=20
generation of prosecutors and judges to force disclosure of sources, other=
=20
democratic institutions have responded in kind. If the Supreme Court will=
=20
not intervene, as it did not in this case, Congress should recognize that=
=20
generations have already spoken on this issue and pass a federal shield law.
[SOURCE: Washington Post, AUTHOR: Nathan Siegel]
http://www.washingtonpost.com/wp-dyn/content/article/2005/10/02/AR200510...
1237.html
(requires registration)

INTERNET/TELECOM

GOOGLE PROPOSES FREE WI-FI FOR SAN FRANCISCO
Marking its biggest step into the wireless communications market to date,=
=20
Google Inc. said on Friday it has proposed to provide free wireless=20
Internet services across the city of San Francisco. The Web search company=
=20
said it has responded to a request for information by the City of San=20
Francisco to test local Internet services via Wi-Fi, the short-range=20
wireless technology built into most new laptop computers. Offering free=20
wireless communications could thrust Google into competition with=20
entrenched local suppliers of broadband Internet access, SBC Communications=
=20
and local cable operator Comcast. If it is chosen for the project, Google=
=20
is working with a variety of partners to help it set up and manage the=20
wireless service.
[SOURCE: Reuters, AUTHOR: Eric Auchard]
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-10-01T062407Z_01_KRA110453_RTRUKOC_0_US-GOOGLE-WIFI.xml
* Google offers S.F. Wi-Fi -- for free
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/c/a/2005/10/01/MNGG9F1...
1.DTL
* Google in San Francisco: 'Wireless overlord'?
http://beta.news.com.com/Google+in+San+Francisco+Wireless+overlord/2100-...
9_3-5886968.html?tag=3Dnefd.top

GOOGLE'S WIRELESS PLAN UNDERSCORES THREAT TO TELECOM
With eBay's purchase of Skype and Google's free WiFi service in San=20
Francisco, Internet companies are making an aggressive and unprecedented=20
push into services traditionally offered by phone and cable companies --=20
threatening to upend the business of transmitting voice and data. Troubling=
=20
for telecoms, Google would bring to the industry an entirely different=20
business model. Google generates nearly all its revenue, which totaled $3.2=
=20
billion last year, from the small advertisements it shows alongside search=
=20
results and other Web content. By offering consumers free service, Google=
=20
could pressure traditional providers to slash fees for Internet access, a=
=20
growing source of telecom revenue -- when they don't have Google's=20
advertising revenue to make up the difference, and have large, extensive=20
networks for transmitting voice and data to maintain. Google's proposal to=
=20
use wireless fidelity, or Wi-Fi, technology would cost far less than a=20
traditional network. It also would give Google a direct pipeline into=20
consumers' homes -- long the big edge for telephone and cable companies.=20
Ironically, most of the newer, bigger Internet entrants see telecom=20
services almost as an afterthought, not a key product. Companies like=20
Google, Yahoo Inc., Microsoft and eBay consider free voice just an add-on=
=20
service they can provide consumers to win their business loyalty and make=
=20
their main businesses more attractive. For example, eBay customers could=20
buy and sell more if they can talk to each other. EBay and Google have even=
=20
said explicitly they are not seeking to compete with telecoms. But whether=
=20
it's deliberate or not, some industry executives and analysts think their=
=20
plans potentially could steamroll the telecom model.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com,=
=20
Kevin J. Delaney kevin.delaney( at )wsj.com and Peter Grant peter.grant( at )wsj.com]
http://online.wsj.com/article/SB112812593526357432.html?mod=3Dtodays_us_...
e_one
(requires subscription)

FCC FINDS 'EFFECTIVE COMPETITION' IN CMRS MARKETPLACE
Be afraid of the big, bad wolf no more. The FCC has decided there's=20
effective competition in the Commercial Mobile Radio Service market. In a=
=20
report to Congress, the FCC said that 97% of the total U.S. population=20
lives in counties with at least 3 mobile service operators, the same as a=
=20
year earlier, and up from 88% in 2000, the first year for which statistics=
=20
were kept. It said 93% lives in counties with at least 4 operators and 87%=
=20
with 5 or more; both figures are roughly the same as in the previous year.=
=20
The report will probably come under some scrutiny; in the year since the=20
last report, Cingular has merged with AT&T Wireless, Sprint with Nextel and=
=20
Alltel with Western Wireless. The FCC said the most telling signs of=20
competitive pressure is carriers' innovative pricing plans and new service=
=20
offerings. Consumer behavior is another competition indicator, the FCC=20
said. Churn rates averaged at 1.5%-3% per month in 2004, a slight decline=
=20
from the previous year. Introduction of local number portability in Nov.=20
2003 =93put added pressure on carriers to improve service quality=94 to kee=
p=20
customers. The FCC also said the number of mobile telephone subscribers in=
=20
the U.S. in 2004 grew to 184.7 million from 160.6 million, increasing=20
penetration to about 62%. The average monthly minutes of use per subscriber=
=20
rose to more than 580 in the 2nd half of 2004 from 507 in 2003 and 427 in=
=20
2002, it said. Revenue per minute fell 12% during 2004 and the cellular=20
consumer price index (CPI) declined 1%, while the CPI rose 2.7% overall,=20
the FCC said. It said the volume of text messaging traffic grew to 4.7=20
billion messages per month in Dec. 2004, more than double the 2 billion a=
=20
year earlier.
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)
* FCC Press Release:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261444A1.doc
* Full report:=20
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

OHIO CONSUMER ADVOCATE CALLS FOR RESIDENTIAL CUSTOMER BENEFITS TO=20
VERIZON-MCI MERGER
Two large telephone companies with many Ohio customers propose to merge=20
without demonstrating any benefits for residential consumers as required by=
=20
state law, the Office of the Ohio Consumers' Counsel (OCC) said last week.=
=20
The OCC, along with other consumer groups, filed a brief at the Public=20
Utilities Commission of Ohio (PUCO) and recommend that the proposed=20
Verizon-MCI merger be rejected unless customer benefits are included as=20
conditions. The conditions cover pricing, consumer protections, access to=
=20
broadband, community voicemail systems, and competitive local telephone=20
service. Prior to merging, Verizon and MCI are required to gain approval=20
from regulators in several states and at the Federal Communications=20
Commission (FCC). Regulators in many states, including Ohio, and at the FCC=
=20
have the power to impose conditions in order to grant merger approval.
[SOURCE: Office of the Ohio Consumers' Counsel press release]
http://www.pickocc.org/news/2005/09302005.shtml

EUROPEAN TELECOM DEALS HEAT UP
In what could lead to the biggest shake-up of the European=20
telecommunications industry since local carriers fell into a slump five=20
years ago, Telefonica SA of Spain has approached KPN NV about acquiring the=
=20
Dutch telecommunications operator for about $24 billion. Europe is poised=
=20
for a broad telecommunications consolidation. Big acquisitions would piece=
=20
together various businesses across the region, joining companies that offer=
=20
traditional landline and cellphone services as well as Internet and=20
cable-TV access. Some of Europe's biggest telecom concerns have sought=20
major deals in neighboring countries in recent months for the first time in=
=20
years. The receptiveness to acquisitions is a shift after the industry all=
=20
but abandoned consolidation after a global shakeout several years ago.=20
After the Internet bubble burst, telecom companies struggled, discovering=
=20
they had overexpanded by building far too much capacity for Internet and=20
data traffic that never panned out. Deals make sense now because new=20
technology and increasing competition have turned the fixed-line market=20
into a low-margin business. Telephone services over the Internet, for=20
example, have made formerly lucrative voice calls a commodity. At the same=
=20
time, increasing competition from new entrants in previously protected=20
markets has driven prices down further.
[SOURCE: Wall Street Journal, AUTHOR: Jason Singer jason.singer( at )wsj.com and=
=20
Keith Johnson keith.johnson( at )wsj.com]
http://online.wsj.com/article/SB112828722122757850.html?mod=3Dtodays_us_...
e_one
(requires subscription)
* Merger Mania Heats Up in Europe, While U.S. Buyers Stay Busy
http://online.wsj.com/article/SB112783577833453339.html?mod=3Dtodays_us_...
ck_market_quarterly_review
(requires subscription)

QUICKLY

UN TELECOM AGENCY SAYS WOULD BE READY TO RUN INTERNET
The United Nations' International Telecommunications Union (ITU) is ready=
=20
to take over governance of the Internet from the United States., ITU head=
=20
Yoshio Utsumi said on Friday. The United States has clashed with the=20
European Union and much of the rest of the world over the future of the=20
Internet. It currently manages the global information system through a=20
partnership with California-based company ICANN.
[SOURCE: Reuters, AUTHOR: Robert Evans]
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-09-30T173007Z_01_WRI062957_RTRUKOC_0_US-INTERNET.xml&archived=3DFal=
se

NEW 'PHISHING' LAW IN CA
California Gov. Arnold Schwarzenegger signed a bill on Friday making=20
Internet "phishing" identity theft scams punishable by law. The bill,=20
advanced by state Sen. Kevin Murray, is the first of its kind in the United=
=20
States and makes "phishing" -- getting people to divulge personal=20
information via e-mail by representing oneself as a business without the=20
approval or authority of the business -- a civil violation.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-10-01T002628Z_01_KRA101575_RTRUKOC_0_US-CALIFORNIA-PHISHING.xml

ONLINE GAMES SPAWN OWN ECONOMY, SOCIETY
Multiplayer online role-playing games now draw more than 20 million players=
=20
globally. Alongside the multiplayer universe is a marketplace for the=20
virtual characters and other assets created online. Some big name corporate=
=20
players have started to get into the business of virtual asset trading,=20
which is so hot that some industry experts say it may be overheated. Still,=
=20
virtual asset trading has a long way to go before it rival's eBay's=20
multibillion-dollar revenue. And some sellers -- who spent hours gearing up=
=20
his characters to high levels with items including "the staff of=20
dominance," a "kroll blade" and an "epic kodo" mount -- find that the=20
process has been more a labor of love than a fast road to wealth.
[SOURCE: Reuters, AUTHOR: Lisa Baertlein]
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-09-30T210416Z_01_KRA075821_RTRUKOC_0_US-COLUMN-PLUGGEDIN.xml

IN DVD FORMAT SPLIT, PARAMOUNT GOES 2 WAYS
Recognizing that a split over the format of the next generation of digital=
=20
video discs is deepening, Paramount Pictures said yesterday that it will=20
make DVD movies in the Blu-ray format as well as in the HD DVD standard.=20
Paramount is the first major studio to say publicly that it will produce=20
DVD's in each of the two formats, which both promise high-definition=20
pictures, enhanced audio and five or more times the storage space on a=20
disc. Until now, the big Hollywood studios have supported one format or the=
=20
other. The studios, retailers and others had hoped to avoid a showdown=20
between the competing formats because it is costly to make and sell two=20
sets of discs. The plans to produce two types of machines and movies for=20
both formats suggests that there may not be a clear resolution to the=20
battle anytime soon
[SOURCE: New York Times, AUTHOR: Ken Belson]
http://www.nytimes.com/2005/10/03/business/media/03disc.html
(requires registration)

BY TEARING OPEN THAT CARD BOX, ARE YOU ALSO SIGNING ON THE DOTTED LINE?
A recent decision in the Ninth Circuit Court of Appeals reinforced the=20
right of companies, in this case Lexmark International, the printer maker,=
=20
to legally limit what customers can do with a patented product, given that=
=20
the company spells out conditions and restrictions on a package label known=
=20
as a box-top license.
[SOURCE: New York Times, AUTHOR: J.D. Biersdorfer]
http://www.nytimes.com/2005/10/03/business/03inkjet.html?pagewanted=3Dall
(requires registration)

GOOGLING COPYRIGHTS
[Commentary] Weighing the advantages or disadvantages of inclusion in=20
Google Print is ultimately a matter for the copyright holders themselves;=
=20
neither Google nor its fans should presume to tell them what's best for=20
their own property. Placing the burden on authors to opt out turns=20
copyright on its head, as Paul Aiken, the executive director of the Authors=
=20
Guild, has argued. Getting permission from all the rights-holders for such=
=20
an ambitious undertaking would undoubtedly be time-consuming and=20
bothersome, but no one said that storing and making money off someone=20
else's copyrighted material was or should be easy.
[SOURCE: Wall Street Journal, AUTHOR: Editorial Staff]
http://online.wsj.com/article/SB112829171745857927.html?mod=3Dtodays_us_...
nion
(requires subscription)
See also:
* Yahoo, Partners Plan Web Database
Yahoo and a handful of educational and business partners plan to begin=20
scanning books and collecting other multimedia content in a move to create=
=20
a massive online database that sidesteps some of the controversy generated=
=20
by rival Google Inc.'s efforts in that area. The consortium, which is=20
calling itself the Open Content Alliance, will begin by scanning and making=
=20
available free online the contents of books that are out of copyright or=20
licensed under a looser copyright known as Creative Commons, the guidelines=
=20
of which are set by the nonprofit organization of the same name. The Open=
=20
Content Alliance says it is discussing with publishers and other content=20
owners how it might make some traditional copyrighted content available,=20
including possibly for a fee.
http://online.wsj.com/article/SB112830433729858188.html?mod=3Dtodays_us_...
ketplace
* In Challenge to Google, Yahoo Will Scan Books
http://www.nytimes.com/2005/10/03/business/03yahoo.html

TELEVISION DOING ITS PART TO BOOT KIDS OFF THE COUCH
New attempts to battle childhood obesity are once again coming from an=20
institution many cite as a major cause: television.
[SOURCE: USAToday, AUTHOR:Kate Holloway]
http://www.usatoday.com/printedition/life/20051003/d_kidfitnesstv03.art.htm

TELEVISION COMING TO CELL PHONES
Television is coming to U.S. cell phones, and when it does, the programs=20
are sure to be short, flashy and laser-targeted at young adults.
[SOURCE: San Jose Mercury News, AUTHOR: Jessie Seyfer]
http://www.mercurynews.com/mld/mercurynews/business/technology/12791574.htm
* Tight squeeze for mobile TV
http://beta.news.com.com/Tight+squeeze+for+mobile+TV/2100-1039_3-5886537...
ml?tag=3Dnefd.lede

MURDOCH SELLS TIMES EDUCATIONAL SUPPLEMENT
News International, owner of the Times and The Sun, confirmed on Monday=20
that it had made its first disposal since Rupert Murdoch=92s News Corp bega=
n=20
building up the UK newspaper group 36 years ago. It is selling TSL=20
educational publications - publisher of the Times Educational Supplement --=
=20
$415 million to Exponent, a private equity group. The sale also includes=20
Nursery World and other newspapers, magazines, web sites and exhibitions=20
aimed at teachers and education professionals. The Times Literary=20
Supplement will not be part of the sale, News Corp said.
[SOURCE: Financial Times, AUTHOR: Peter John]
http://news.ft.com/cms/s/2287c1ea-33ef-11da-adae-00000e2511c8.html
(requires subscription)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=
=20
Friday, this service provides updates on important industry developments,=
=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------