Benton RSS Feed

Media, media, media. Tomorrow is Media Day with discussions at the We Media=
=20
conference, "Digital Television and the Consumer Challenge," and a town=20
meeting on the Future of Media in Iowa. For these and other upcoming media=
=20
policy events, see http://www.benton.org

GOVERNMENT & COMMUNICATIONS
Faux News Is Bad News

EMERGENCY COMMUNICATIONS
Upton Working On Interoperability Bill
Martin Stresses Firm Date For DTV Transition

BROADCASTING/TELEVISION
FCC Seeks Indecency 'Clarity'
No Payola 'Train Wreck,' Says Mays
TV Fans can Now Dress the Part
FAIR Calls for De-Funding CPB
NAB Board Pushing Unanimous Rehr Pick
Rural India Goes Digital

INTERNET/BROADBAND
SF Mayor sees Wireless Service as Basic Right
CDT Calls for 'Hands-Off' Approach to '.XXX' Internet Domain

TELECOM
Baby Bell Lawsuit Is Allowed to Proceed
USF Debate Shifts With New Proposals
Silence Aloft Is Under Threat
European Phone Industry Split on the Need to Bulk Up

DIGITAL CONTENT
Digital Music Sales More Than Triple
Microsoft Ends Licensing Talks With Music Labels Over Royalties
Lycos, Yahoo Pushing to Put Media Online

GOVERNMENT & COMMUNICATIONS

FAUX NEWS IS BAD NEWS
[Commentary] Federal auditors have blistered the Bush administration for=20
secretly concocting favorable news reports about itself by hiring actors to=
=20
pose as journalists and slipping $240,000 in taxpayer funds to a sell-out=
=20
conservative polemicist. The government till was also tapped to have=20
political spin doctors track whether the message of President Bush and the=
=20
Republican Party was being well treated in legitimate news reporting. In=20
its purchase of self-aggrandizing agitprop, the administration plainly=20
violated the law against spreading "covert propaganda" at public expense,=
=20
according to the report of the Government Accountability Office. More than=
=20
that, Bush officials forged a cheesy new low in Washington politicians'=20
endless bazaar of peddling public relations initiatives at taxpayers' expen=
se.
[SOURCE: New York Times, AUTHOR: Editorial Staff]
http://www.nytimes.com/2005/10/04/opinion/04tue3.html
(requires registration)

EMERGENCY COMMUNICATIONS

UPTON WORKING ON INTEROPERABILITY BILL
House Telecommunications and the Internet Subcommittee Chairman Fred Upton=
=20
(R-MI) is working with lawmakers in both parties to increase funding for=20
emergency communications that can work across jurisdictions. The aim is to=
=20
raise additional revenue for emergency communications from the upcoming=20
auction of analog television spectrum. The frequencies would be auctioned=
=20
as part of the nation's transition to digital broadcasting. Rep Upton=20
suggested that the funding increase would be addressed through an amendment=
=20
-- but did not specify to what legislation.
[SOURCE: Technology Daily, AUTHOR: David Hatch and Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-VIVB1128372196223.html

MARTIN STRESSES FIRM DATE FOR DTV TRANSITION
FCC Chairman Kevin Martin last week told technology company representatives=
=20
that the communications needs of public safety officials in the aftermath=
=20
of Hurricane Katrina had raised the importance of Congress setting a firm=
=20
date for the transition to digital television. Martin made the comments in=
=20
a private luncheon for him last Wednesday sponsored by the Information=20
Technology Industry Council, according to several individuals who attended=
=20
the meeting. "He thought the DTV transition had gained momentum as the most=
=20
critical wireless spectrum issue, and he recognized that public safety=20
needs would be at the forefront, even though the spectrum will be used for=
=20
other advance commercial purposes," ITI chief Rhett Dawson said.
[SOURCE: Technology Daily, AUTHOR: Randy Barrett]
http://www.njtelecomupdate.com/lenya/telco/live/tb-BAYO1128372446956.html

BROADCASTING/TELEVISION

FCC SEEKS INDECENCY 'CLARITY'
The FCC is still considering a host of indecency actions. Sources say they=
=20
are likely to be released as a package deal and handled at the commissioner=
=20
level rather than issued by the Enforcement Bureau. Enforcement Bureau=20
notices of apparent liability, or complaint denials, do not have to be=20
voted on by the commissioners. Apparently FCC Chairman Kevin Martin wants=
=20
to release the actions all at once and with the commissioners weighing in=
=20
so that there could be more clarity to FCC indecency enforcement going=20
forward. FCC indecency fines provide broadcasters with guidance on what=20
they can program. But without a clear statutory definition, that guidance=
=20
is the sum of past FCC decisions to fine or not to. One line of reasoning=
=20
goes that since those decisions effectively constrain content for the=20
nation's most powerful communications medium, arguably even more so when=20
companies are settling complaints with promises of self-regulation, the=20
commissioners should have to vote on them.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6262685?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* New FCC Chairman Preps His Indecent Proposal
http://www.variety.com/article/VR1117930043?categoryid=3D1622&cs=3D1&s=3...
p=3D0

NO PAYOLA 'TRAIN WRECK,' SAYS MAYS
Clear Channel President and CEO Mark Mays said Monday he did not see a=20
"train wreck" coming on the issue of payola. In addition, Mays says that=20
since, as a political reality, he doesn't see the government treating pay=
=20
and free radio equally in terms of indecency, free broadcasters should get=
=20
some other kind of competitive leveler, like the ability to own more=20
stations. (Clear Channel already owns 1,200-plus). Mays was speaking at a=
=20
Progress and Freedom Foundation panel session in Washington. At the same=20
event, Legg Mason analyst Blair Levin asked Mays whether he favored putting=
=20
indecency guidelines on all platforms, paid or free. He said yes, but=20
didn't think that was going to happen. And since pay was going to be=20
allowed to air uncensored Howard Stern, and free would not, he argued there=
=20
should be other ways to level the playing field. "I think that in the world=
=20
of politics, there is going to be a differentiation [on indecency]," he=20
said. "And so we need to have other mechanisms that allow us to compete=20
effectively." That other mechanism was the focus of his prepared remarks:=
=20
Loosening media ownership rules for broadcasters. Mays said he can only own=
=20
8 stations in a market, while XM can deliver 150. Either deregulate us or=
=20
regulate satellite radio more, said Mays, including public interest=20
obligations. Mays proposes owning 10 stations in markets with at least 60=
=20
radios, and 12 in markets with at least 75. But he said that even with 24=
=20
stations, compression would allow his satellite competition to have three=
=20
or four hundred.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6262502.html?display=3DBreaki...
News&referral=3DSUPP
(free access for Benton's Headlines subscribers)
* Clear Channel: Less Regulation for Us, But Consider More for Them
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
0714

TV FANS CAN NOW DRESS THE PART
American television has finally reached its full potential. Instead of=20
offering programming that lures viewers into seeing ads, the programs now=
=20
are the ads. Character-focused clothing lines are providing TV producers=20
and creators with increase revenue streams through licensing deals -- while=
=20
also expanding shows' presence in a way that appeals to a young, hip=20
demographic.
[SOURCE: USAToday, AUTHOR: Laura Petrecca]
http://www.usatoday.com/printedition/money/20051004/tvfashion.art.htm

FAIR CALLS FOR DE-FUNDING CPB
As Republican activist Cheryl Halpern takes the helm of the Corporation for=
=20
Public Broadcasting and Republicans in Congress call for CPB funding cuts=
=20
in the wake of Hurricane Katrina, public broadcasting's defenders look=20
ahead once again to a fight to "save PBS." But the broader issues remain=20
overlooked: Is public broadcasting delivering on its promise of offering a=
=20
true alternative to commercial broadcasting? Does the CPB really, as its=20
mission statement proclaims, "encourage the development of programming that=
=20
involves creative risks and that addresses the needs of unserved and=20
underserved audiences, particularly children and minorities"? In the=20
October issue of Extra!, FAIR declares that the honest answer to these=20
questions is no. It's time to stop trying to save the CPB from budget cuts=
=20
and corrupt leadership; we need to cut the purse strings and develop new,=
=20
independent funding mechanisms for public broadcasting. The CPB has become=
=20
a tool used by congressional conservatives to restrict programming within=
=20
narrow political limits. With each successive attack from the right, public=
=20
broadcasting becomes weakened, as programmers become more skittish and=20
public TV's habit of survival through capitulation becomes more ingrained.=
=20
"While a desire to protect the CPB from right-wing attackers is=20
understandable, it's ultimately doomed to failure," said Steve Rendall,=20
co-author with Peter Hart of FAIR's analysis, Time to Unplug the CPB. "We=
=20
need to stop fighting to save the CPB and start fighting to save the=20
principle of public broadcasting itself."
[SOURCE: Fairness and Accuracy in Reporting press release]
http://www.fair.org/index.php?page=3D2689
* See FAIR report, "Time to Unplug the CPB":
http://www.fair.org/index.php?page=3D2671
* Defund CPB, Says FAIR
http://www.broadcastingcable.com/article/CA6262520?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

NAB BOARD PUSHING UNANIMOUS REHR PICK
A source close to the vetting process for a successor to National=20
Association of Broadcasters President Eddie Fritts says that the board=20
Friday was still working on getting a unanimous vote for its candidate,=20
David Rehr, head of the National Beer Wholesalers Association, (NBWA) with=
=20
one member still not signed on. Eddie Fritts, whose contract extends until=
=20
April, remains atop the association he helped turn into a powerhouse. Rehr=
=20
is the kind of Republican, K-Street connected lobbyist that GOP leadership=
=20
had been pushing to fill association vacancies, suggesting that the party's=
=20
influence in the town was not reflected in the leadership of the lobbies=20
that needed to work with them. Apparently, Rehr also likes dogs and is=20
really good at math.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6262340?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

RURAL INDIA GOES DIGITAL
India is the world's third-largest television market with 108 million=20
TV-equipped households, a number that is growing by about nine million a=20
year. But that still leaves half of all Indian households without a=20
television set. Moreover, many existing TVs are old 14-inch (35-centimeter)=
=20
black-and-white models that can't receive some satellite channels via=20
cable, even if cable operators were willing to hook up remote areas for new=
=20
subscribers. So, many villages have been left with only India's famously=20
stodgy state-owned broadcaster, Doordarshan, where the programming emphasis=
=20
is on informing the rural masses about farming techniques and health=20
issues. Now a satellite-television boom in India is finally pushing=20
multichannel TV into its vast rural hinterland and opening a new commercial=
=20
battlefield in one of the world's biggest TV markets. Nearly three-quarters=
=20
of India's 1.1 billion people live in small villages, making it one of the=
=20
world's least-urbanized countries. While India's cable connections have=20
tripled over the past decade to 61 million, rural households have missed=20
out as cable companies see no profit in stringing kilometers of wire to=20
reach remote locations. Enter digital television. Relying on signals=20
transmitted from a satellite to a receiving dish and from there to a=20
set-top signal-decoding box, rather than through cables, digital TV can=20
transmit anywhere, delivering more channels and better picture quality.
[SOURCE: Wall Street Journal, AUTHOR: John Larkin john.larkin( at )wsj.com]
http://online.wsj.com/article/SB112829847867958098.html?mod=3Dtodays_us_...
e_one
(requires subscription)

INTERNET/BROADBAND

SF MAYOR SEES WIRELESS SERVICE AS BASIC RIGHT
San Francisco Mayor Gavin Newsom said on Monday he considered wireless=20
Internet access a fundamental right of all citizens. Mayor Newsom told a=20
news conference that he was bracing for a battle with telephone and cable=
=20
interests, along with state and U.S. regulators, whom he said were looking=
=20
to derail a campaign by cities to offer free or low-cost municipal Wi-Fi=20
services. Local officials are mulling plans to blanket every nook and=20
cranny of this hilly city of 750,000 residents with Wi-Fi access. Officials=
=20
said 24 proposals had been turned into the city to deliver wireless=20
Internet services, ranging from Web search company Google, Cingular, the=20
No. 1 U.S. wireless carrier, to Internet service provider EarthLink. Newsom=
=20
told reporters he hoped to streamline the final bidding process and choose=
=20
a contractor to build the city-wide wireless service in as little as five=
=20
to six months. But a series of public hearings and city approval processes,=
=20
as well as potential lawsuits by opponents, could drag the process out far=
=20
longer, he cautioned. Making wireless access affordable to the entire=20
population of San Francisco was a vital step to differentiating the city in=
=20
order to make it more economically competitive on a state, national and=20
global level, Newsom said. But the mayor also singled out the power of=20
Wi-Fi as an alternative network to provide emergency information to all=20
citizens in the event a natural disaster such as an earthquake were to=20
strike the city and knock out other communications.
[SOURCE: Reuters, AUTHOR: Eric Auchard]
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-10-04T060420Z_01_KWA382605_RTRUKOC_0_US-TELECOMS-WIRELESS-SANFRANCI=
SCO.xml&archived=3DFalse
* Google faces obstacles in SF Wi-Fi bid
http://beta.news.com.com/Google+faces+obstacles+in+S.F.+Wi-Fi+bid/2100-7...
_3-5887919.html?tag=3Dnefd.lede

CDT CALLS FOR 'HANDS-OFF' APPROACH TO .XXX INTERNET DOMAIN
The Center for Democracy and Technology is urging the U.S. Government to=20
remove itself from the decision-making process surrounding the creation of=
=20
a .xxx Internet domain. In a letter to Michael Gallagher, Assistant=20
Commerce Secretary and head of the National Telecommunications and=20
Information Administration (NTIA), CDT highlights concerns about NTIA's=20
recent letter to ICANN Chairman Vinton Cerf, recommending that he delay the=
=20
approval of a .xxx Internet domain intended for use by adult-content Web=20
sites. CDT is concerned that the move violates First Amendment protections=
=20
and could also upset the United States' delicate relationship with the=20
Internet's addressing system.
CDT Letter: .XXX Domain
http://www.cdt.org/dns/20050930xxxletter.pdf

TELECOM

BABY BELL LAWSUIT IS ALLOWED TO PROCEED
A federal appeals court Monday said an antitrust lawsuit against several of=
=20
the nation's largest telecommunication providers over whether they=20
conspired to exclude competitors from their geographic markets should be=20
allowed to go forward. In an opinion issued Monday, a three-judge panel of=
=20
the Second Circuit Court of Appeals overturned a prior lower court ruling=
=20
that dismissed the lawsuit against a group of Baby Bells, including Verizon=
=20
Communications, BellSouth, Qwest Communications and SBC Communications. The=
=20
lawsuit alleged the telecommunications companies, which control more than=
=20
90% of local telephone service in the U.S., conspired not to compete=20
against one another in their respective geographic markets for local=20
telephone and high-speed Internet services and to prevent competitors from=
=20
entering those markets. The complaint says the alleged conspiracy has=20
driven a number of competing local exchange carriers out of business,=20
restrained competition for local telephone and high-speed Internet services=
=20
and forced consumers to pay higher rates than they would have in a=20
competitive environment. (Where's Judge Green when you need him?)
[SOURCE: Wall Street Journal, AUTHOR: Chad Bray chad.bray( at )dowjones.com ]
http://online.wsj.com/article/SB112837111580558761.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

USF DEBATE SHIFTS WITH NEW PROPOSALS
The already-obscure politics of the Universal Service Fund have taken a new=
=20
turn as interested parties reply to the FCC's unexpected release of four=20
proposals related to the $6.5 billion fund for universal telephone service.=
=20
The four FCC proposals were offered by state USF commissioners and staff=20
from Iowa, Michigan, Oregon and West Virginia. Robert Rowe, a senior=20
partner of Balhoff & Rowe, a consultancy seeking economically efficient=20
ways to reform and sustain the USF, said the ideas "are all coming from=20
state joint board members obviously concerned about the growth in the fund=
=20
and about the narrow contribution base" currently limited to long-distance=
=20
calls. "They seem to be part of the general theme concerned about the lack=
=20
of discipline in the [current] regime, and they suggest the possibility of=
=20
going to an all-[inclusive] approach to USF, rather than separating out an=
=20
intrastate and interstate" revenue system, Rowe said. The proposals suggest=
=20
various ways that state utility commissions could be funded through federal=
=20
grants. They also would calculate costs at the state level. The proposals=
=20
come after recent legislative pushes to reform USF in ways both small and=
=20
large. On July 29, Oregon Republican Sen. Gordon Smith introduced, S. 1583,=
=20
to extend USF to fund high-speed Internet service. But a less-noticed=20
aspect the bill would extend USF fees to local, intrastate telephone calls,=
=20
not just its current base of interstate, long-distance calls. To do so=20
would essentially "federalize" the national and state funds into an even=20
larger money pool. Even more sweeping legislative proposals are in the=20
works by Sen. Conrad Burns, R-Mont., and by Reps. Rick Boucher, D-Va., and=
=20
Lee Terry, R-Neb., according to industry sources. Burns' bill would extend=
=20
the base for USF contributions beyond the fee imposed on interstate calls,=
=20
and it would tighten eligibility standards for carriers seeking to tap into=
=20
the fund.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-XVOE1128372982020.html
See more about efforts to modernize universal service at:
http://www.benton.org/?q=3Dtracking_legislation

SILENCE ALOFT IS UNDER THREAT
Federal regulators are reassessing the rules barring phones in the air even=
=20
as some international airlines are gradually introducing Internet access to=
=20
their planes. And two European carriers said recently that they would=20
become the first to proceed with cellphone service, in three-month trials=
=20
on flights within Europe next year. Of the thousands of comments the=20
federal government has received on the issue, many focused on the fear of=
=20
being stuck next to someone jabbering away. But a different concern has=20
emerged: the dread of hearing one's own voice on the cellphone. Some=20
business travelers, the bread-and-butter customers of airlines, say they=20
privately relish the digital downtime at 35,000 feet. Managers who are at=
=20
the constant beck and call of electronic devices while tethered to the=20
ground, say they have come to think of the airplane cabin as a place to=20
nap, think or even work - but in a focused way that precludes easy=20
interruption or multitasking. Forget the cone of silence. Many have come to=
=20
cherish the airplane as the long metal tube of silence. Once cellphones and=
=20
BlackBerries are allowed to breach that silence, the solution may not be so=
=20
simple as keeping the devices turned off, since business associates and=20
bosses will expect to be able to get in touch. Travelers say the no-phone=
=20
policy has saved them from their own compulsions.
[SOURCE: New York Times, AUTHOR: Matt Richtel]
http://www.nytimes.com/2005/10/04/business/04cell.html
(requires registration)
* To Surf Web While Aloft, Fly Foreign (for Now)
http://www.nytimes.com/2005/10/04/business/04boeing.html

EUROPEAN PHONE INDUSTRY SPLIT ON THE NEED TO BULK UP
Heated deal talk may be swirling around European telecommunications=20
companies, but the industry is still deeply divided about whether big=20
cross-border mergers make sense. In the wake of news that executives from=
=20
Telef=F3nica of Spain had made overtures to KPN of the Netherlands in recen=
t=20
weeks, some executives and bankers argued that big acquisitions were the=20
only way for telecommunications companies to cut costs and grow quickly.=20
The time, they said, is ripe for another round of consolidation because=20
companies are flush with cash and competition looms from new players and=20
technologies.
[SOURCE: New York Times, AUTHOR: Heather Timmons]
http://www.nytimes.com/2005/10/04/business/worldbusiness/04place.html?pa...
anted=3Dall
(requires registration)

DIGITAL CONTENT

DIGITAL MUSIC SALES MORE THAN TRIPLE
The market for downloaded digital forms of music has more than tripled in a=
=20
year, helping offset a continuing decline in CD sales and other physical=20
formats. Digital music sales totaled $790 million in the first half of this=
=20
year, equivalent to 6% of industry sales, compared with $220 million in the=
=20
same period a year earlier, the International Federation of the=20
Phonographic Industry estimated. Recorded music sales fell 1.9% to a retail=
=20
value of $13.2 billion in the first half this year from $13.4 billion in=20
the previous period. The digital boom, which now exceeds the value of the=
=20
global singles market, was largely driven by sales in the top five markets=
=20
-- the U.S., Britain, Japan, Germany and France, the IFPI said.
[SOURCE: Wall Street Journal, AUTHOR: Associated Press]
http://online.wsj.com/article/SB112834107711958392.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

MICROSOFT ENDS LICENSING TALKS WITH MUSIC LABELS OVER ROYALTIES
Microsoft has broken off licensing negotiations with the four global music=
=20
companies, raising questions about the software maker's plans to start a=20
subscription-based music service. The development highlights the continuing=
=20
fragility of the nascent digital-music business. According to the people=20
briefed on the discussions, the negotiations broke down Friday over what=20
Microsoft considered unduly high royalty rates sought by the labels -- a=20
group comprising EMI Group PLC, Warner Music Group Corp., Vivendi=20
Universal's Universal Music Group and Sony BMG, a joint venture of Sony=20
Corp. and Bertelsmann AG. Subscription services -- in which users=20
effectively rent music by paying a flat monthly fee for online access to an=
=20
unlimited number of songs -- have received less attention than Apple=20
Computer's iTunes Music Store, which sells songs individually for 99 cents.=
=20
But thanks to the recent debut of so-called "portable" subscription=20
services -- which allow users to download their rented music onto personal=
=20
music players -- many in the industry believe that, in the long term, such=
=20
services have greater potential to replace compact discs.
[SOURCE: Wall Street Journal, AUTHOR: Ethan Smith ethan.smith( at )wsj.com]
http://online.wsj.com/article/SB112838627476659097.html?mod=3Dtodays_us_...
e_one
(requires subscription)

LYCOS, YAHOO PUSHING TO PUT MEDIA ONLINE
Today Lycos, an early Internet search engine, plans to launch a technology=
=20
to allow its U.S. users to self-publish video content on its site.=20
Yesterday, Yahoo said it would spearhead the Open Content Alliance, a group=
=20
of companies and organizations hoping to negotiate rights to put billions=
=20
of works online. These efforts join a broader push by Internet companies to=
=20
channel the offline media world into an online one by sweeping up=20
everything from obscure scientific research papers to famous rock videos.=
=20
Driven by the growth of high-speed Internet subscribers, companies have=20
turned from offering basic services such as e-mail and search to trying to=
=20
create an ever more powerful database of knowledge and commerce, culling=20
media from everywhere. Although many such services are offered for free,=20
the companies hope to parlay the viewership into sources of revenue,=20
through advertising, promotions or sponsorships on their site. That process=
=20
means siphoning viewers and money from television, cable, and other sources=
=20
of news and entertainment. To make it work, however, the companies must=20
navigate a complex set of copyright and business issues.
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/content/article/2005/10/03/AR200510...
1580.html
(requires registration)
* Lost Underground? Check Your iPod
Site Offers Subway Maps for Download; Some Cities Claim Copyright Violation
http://www.washingtonpost.com/wp-dyn/content/article/2005/10/03/AR200510...
1581.html
(requires registration)
--------------------------------------------------------------
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.
--------------------------------------------------------------