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For upcoming media policy events, see http://www.benton.org/calendar.htm

EMERGENCY COMMUNICATIONS
Millions Said to Be Lacking Phone Service of Any Kind
Delivering News Of the Storm That Stopped The Presses
PBS Seeks Federal Funds for Katrina-Hit Public TV Stations

BROADCASTING
United Church of Christ Challenges Spanish-language TV Licences
NAB Launches Campaign to Win Multicasting in DTV Bill

INTERNET/BROADBAND
When Brotherly Love Goes Wireless
States Expanding Push for Internet Taxes

QUICKLY -- Alternative Papers Consider Merger; Australia Considers Media=20
Ownership Rules; SBC May Use the AT&T Name; MCI Sets Oct. 6 Vote On Bid=20
From Verizon; Can't Kill P2P; Tech helps special-needs kids pass key=20
tests; Wireless raises security concern; In Eastern Europe, A Gumshoe=20
Chases Internet Villains

EMERGENCY COMMUNICATIONS

MILLIONS SAID TO BE LACKING PHONE SERVICE OF ANY KIND
Efforts to get food, water and electricity to the hundreds of thousands of=
=20
survivors of Hurricane Katrina have been hampered by a lack of an essential=
=20
tool: the ability of aid groups, citizens and even the phone companies to=
=20
communicate with one another. Landline and wireless phone service across=20
the Gulf Coast from New Orleans eastward has been largely cut off, and=20
restoring it will take weeks, if not months. As many as 750,000 BellSouth=
=20
landline customers and millions of cellphone customers are thought to be=20
without service across Alabama, Louisiana and Mississippi, though precise=
=20
figures are hard to come by because phone companies have been unable to get=
=20
to all their equipment to assess the damage. CommDaily reports that=20
BellSouth said preliminary reports show some 1.75 million customers lost=20
landline phone service to Hurricane Katrina. Of those, about 750,000 are in=
=20
New Orleans and other coastal cities in Louisiana and Mississippi The rest=
=20
are inland in those states, Alabama and Florida. A spokesman said BellSouth=
=20
had roughly 220 switches and 1,800 remote network terminals in La. and=20
Miss. using backup power, with the main immediate job being to keep=20
generators fueled and batteries charged.
[SOURCE: New York Times, AUTHOR: Ken Belson]
http://www.nytimes.com/2005/09/01/business/01tele.html
(requires registration)
* Power Outages Hamstring Most Emergency Communications
http://online.wsj.com/article/0,,SB112553304837128550,00.html?mod=3Dtoda...
us_page_one
* Hard to Get Word Out After Hurricane
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/31/AR200508...
2656.html

DELIVERING NEWS OF THE STORM THAT STOPPED THE PRESSES
Among the many cruelties delivered by Hurricane Katrina, there was this:=20
The people most in need of information about the storm were the least=20
likely to be able to see, hear or read about it. With electricity wiped out=
=20
in the affected areas, receiving local broadcast or cable TV signals was=20
nearly impossible. Only New Orleans radio station WWL-AM reportedly stayed=
=20
on the air. Printing a newspaper in New Orleans was a cosmic absurdity:=20
Even if the Times-Picayune, New Orleans's largest daily, hadn't had its=20
presses disabled by rising floodwaters, delivering a printed paper would=20
have been an act of madness, given the state of roads and bridges in the=20
paper's circulation area.
[SOURCE: Washington Post, AUTHOR: Paul Farhi and Teresa Wiltz]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/31/AR200508...
2682.html
(requires registration)
* TV Networks Navigate Floodwaters To Get on Air
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/31/AR200508...
2692.html

PBS SEEKS FEDERAL FUNDS FOR KATRINA-HIT PUBLIC TV STATIONS
The Corporation for Public Broadcasting and the Department of Commerce are=
=20
working on plans to provide additional funding for public broadcasters=20
damaged by Hurricane Katrina. PBS has not been able to make contact with=20
the eight public TV stations in Louisiana, but given the location of the=20
New Orleans station, it is feared to have suffered extensive flooding=20
damage. The public radio station in New Orleans is also off the=20
air. Mississippi and Alabama public TV stations are running on generators=
=20
and have concerns about maintaining service because of the fuel situation=
=20
in the area. Meanwhile, the FCC Media Bureau is providing relief to cable=
=20
operators and TV and radio broadcasters affected by the hurricane. The FCC=
=20
released two public notices (links below) that will mean additional,=20
expedited assistance to get systems and stations back on the air, the FCC=
=20
said. For TV and radio stations, the FCC will: 1) Promptly handle special=
=20
temporary authority (STA) requests; 2) Let FM and TV stations erect=20
temporary antennas without prior FCC authority, and let AM stations use=20
emergency antenna; 3) Let AM stations use their full daytime facilities=20
during nighttime hours to broadcast emergency information; 4) Waive rules=
=20
on notification of discontinued operations and accept notifications within=
=20
30 days and requests to remain silent within 60 days of the discontinued=20
operation; and 5) Give, on request, permittees of broadcast stations=20
located in a federal disaster area an extra 90 days to complete constructio=
n.
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar, Jonathan Make, Tania=
=20
Panczyk-Collins]
(Not available online)
* Procedures to Provide for Emergency Communications in Areas Impacted by=
=20
Hurricane Katrina
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260820A1.doc
* Relief for Cable Operators and Broadcast Stations
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260810A1.doc
* FCC Aids Katrina-Damaged Media
http://www.broadcastingcable.com/article/CA6253052?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* CPB Helps Hurting Noncoms
http://www.broadcastingcable.com/article/CA6253144?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

BROADCASTING

UNITED CHURCH OF CHRIST CHALLENGES SPANISH-LANGUAGE TV LICENSES
Standing up for the educational needs of Hispanic children, the Office of=
=20
Communication of the United Church of Christ, Inc. (OC, Inc.) today asked=
=20
the Federal Communications Commission to deny the license renewal=20
application of a Spanish-language television broadcaster in the Cleveland,=
=20
Ohio, area, for failure to comply with children's educational programming=
=20
standards. The UCC's action against Univision Cleveland, Inc. (WQHS-TV)=20
represents the first time that a Spanish-speaking station's license renewal=
=20
has been challenged for failure to comply with the Children's Television=20
Act of 1990 and the children's educational guidelines, adopted by the FCC=
=20
in 1996, that require local stations to air at least three hours per week=
=20
of specifically educational programming. At issue is the station's airing=
=20
of "Complices al Rescate," a telenovel that "fails miserably" to satisfy=20
the FCC's children's educational programming guidelines, according to=20
Gloria Tristani, managing director of the UCC's OC, Inc., and a former FCC=
=20
Commissioner. Univision, the fifth largest U.S. broadcast network in any=20
language, is the leading Spanish-language media company in the United=20
States, reaching 98% of this country's Spanish-speaking population. Almost=
=20
all of the Univision Network broadcasters relied on "Complices al Rescate"=
=20
as their only children's educational program.
[SOURCE: United Church of Christ Press Release]
http://www.ucc.org/ocinc/news/083105.htm
* UCC Challenges Two More TV Licenses
[SOURCE: Broadcasting&Cable, AUTHOR: ]
http://www.broadcastingcable.com/article/CA6252896?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

NAB LAUNCHES CAMPAIGN TO WIN MULTICASTING IN DTV BILL
Focused "like a laser" on winning mandated carriage of multiple digital TV=
=20
signals on cable systems, the National Association of Broadcasters is=20
flying in 91 broadcasters to meet Sept. 8 with House and Senate Commerce=20
Committee members who will be considering digital television transition=20
legislation in the coming weeks. The group also plans a 2-page ad to run in=
=20
Capitol Hill publications slamming cable =93monopolies,=94 which NAB says w=
on't=20
run broadcasters=92 programming unless forced by Congress. NAB is =93puttin=
g on=20
the table=94 plans for more public interest obligations in exchange for=20
multicast carriage. The NAB released a new study showing that 85% of TV=20
stations intend to create new local programming if Congress mandates=20
multicast carriage, but 80% won't pursue such programming without a=20
congressional mandate."NAB's tired rhetoric doesn't disguise the fact that=
=20
broadcasters are asking the government for another handout that the FCC has=
=20
already twice rejected, would harm diversity in programming and would do=20
nothing to speed the digital TV transition,=94 an NCTA spokesman said. Cabl=
e=20
has said it will carry broadcasters=92 programming without congressional=20
mandate, but broadcasters said cable views multicast as a competitive=20
threat. Key allies for broadcasters in Congress are Sens. Hutchison (R-TX)=
=20
and Snowe (R-ME).
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)
* NAB URGES PASSAGE OF PRO-CONSUMER MULTICAST DTV MANDATE
http://www.nab.org/newsroom/pressrel/Releases/083105_DTVNewsConference.htm
* NAB Launches Multicast Assault
http://www.multichannel.com/article/CA6253087.html?display=3DBreaking+News
* Broadcasters Mass for DTV Carriage Push
http://www.broadcastingcable.com/article/CA6253000?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

INTERNET/BROADBAND

WHEN BROTHERLY LOVE GOES WIRELESS
[Commentary] Instead of investing in building citywide wireless Internet=20
capacity in Philadelphia and other cities, Verizon lobbied hard to quash=20
public-sector competition. And close to midnight one evening last November,=
=20
lawmakers in Harrisburg quickly passed House Bill 30, whose fine print=20
barred any "political subdivision" (government or nonprofit set up by the=
=20
government) from providing a public telecom service for a fee. After an=20
outcry, Philadelphia got a waiver, but Verizon is the one that sounds like=
=20
a political subdivision. For the cost of its lobbyists, it should have just=
=20
installed the citywide system and held off competition. Clearly Verizon is=
=20
hiding something: But what? It turns out cities get to sort of cheat, cite=
=20
eminent domain, and place a lot of gear on their own light poles and radio=
=20
towers. No startup gets that deal. And new mesh technologies mean=20
Philadelphia can plug into the Internet just once, paying wholesale rates,=
=20
unlike the folks who run Starbucks or hotel hotspots, who overpay (probably=
=20
to Verizon) for the Internet connection their Wi-Fi users share. But the=20
real whopper is that by the third year, Philadelphia will be saving $2=20
million a year on its $150 million IT budget by not having to pay Verizon=
=20
for Internet access at its 24,000-employee city offices. By rigging the=20
city with wireless hotspots under the guise of helping the disadvantaged,=
=20
Philadelphia may completely bypass Verizon. A T1 line from Verizon, which=
=20
carries 1.5 megabits of data per second, runs anywhere from $400 to $1,300=
=20
a month. With Municipal Wi-Fi (Mu-Fi), that could drop to $300, heck, maybe=
=20
even $20 a month. Consumers (read voters) are happy and small businesses=20
will save tons of money. No wonder phone companies are circling the wagons.
[SOURCE: Wall Street Journal, AUTHOR: Andy Kessler]
http://online.wsj.com/article/0,,SB112554143253428743,00.html?mod=3Dtoda...
us_opinion
(requires subscription)

STATES EXPANDING PUSH FOR INTERNET TAXES
Come this fall, 13 states will start encouraging - though not demanding -=
=20
that online businesses collect sales taxes just as Main Street stores are=
=20
required to do, and more states are considering joining the effort. Right=
=20
now, buyers are expected to pay sales taxes on Internet purchases=20
themselves directly to the state when they pay their income taxes. But it's=
=20
not widely enforced, and states say it costs them upwards of $15 billion a=
=20
year in lost revenues, collectively. Organizers of the states' effort,=20
known as the Streamlined Sales Tax Project, sought to unify tax rules and=
=20
definitions among the states. They hope to persuade federal lawmakers to=20
pass a new law to overcome a Supreme Court ruling and allow states to take=
=20
the next step - demanding online companies levy the taxes.
[SOURCE: Associated Press, AUTHOR: Robert Tanner]
http://www.mercurynews.com/mld/mercurynews/business/technology/12528274.htm
Also see --=20
http://www.streamlinedsalestax.org/http://www.streamlinedsalestax.org/

QUICKLY

A MERGER PROPOSAL EMERGES
New York=96based Village Voice Media, which owns six urban newspapers=20
including Seattle Weekly, and New Times Newspapers of Phoenix, which owns=
=20
another 11, got slapped down by the U.S. Justice Department for colluding=
=20
to create monopolies in Los Angeles and Cleveland. Now, according to the=20
San Francisco Bay Guardian, a locally owned weekly that competes with New=
=20
Times, the companies plan even closer collaboration, merging into a=20
17-paper chain serving many of the biggest media markets in the country.=20
Besides Seattle Weekly, Village Voice Media owns New York's Village Voice,=
=20
LA Weekly, OC Weekly in Orange County, Calif., City Pages in Minneapolis,=
=20
and Nashville Scene. New Times owns SF Weekly, East Bay Express, Cleveland=
=20
Scene, Phoenix New Times, Westword in Denver, Miami New Times, New Times=20
Broward-Palm Beach in Florida, the Dallas Observer, the Houston Press,=20
Riverfront Times in St. Louis, and The Pitch in Kansas City.
[SOURCE: Seattle Weekly, AUTHOR: Roger Downey and Chuck Taylor]
http://www.seattleweekly.com/features/0535/050831_news_altweeklies.php

MEDIA GIANTS MAY JOIN FORCES
Australian Communications Minister Helen Coonan outlined that government's=
=20
long-awaited plans for a major revamp of cross-media and foreign ownership=
=20
laws now that it has control of the country's senate. Under the plans, a=20
single media company could own a TV station, two radio stations and a=20
newspaper in the one market. Foreign media players could also snare=20
Australian TV networks and newspapers, subject to government approval.
[SOURCE: News.com.au, AUTHOR: Belinda Tasker]
http://finance.news.com.au/story/0,10166,16449221-31037,00.html

SBC MAY USE THE AT&T NAME AS IT LOOKS FOR NATIONAL PROFILE
SBC Communications, which has been debating what to do with the AT&T name=
=20
after its acquisition of the long-distance company is approved, is now=20
leaning toward calling itself by the name of its former parent. AT&T,=20
whose roots as American Telephone & Telegraph Co. go back before 1900,=20
remains a name that's known world-wide. Yet the name has some issues: It's=
=20
known among older customers who grew up hearing about Ma Bell. And it comes=
=20
with the baggage of being considered a business failure, at least in some=
=20
circles. For much of the 20th century, AT&T's monopoly over phone service=
=20
in the U.S. was so complete that it put little emphasis on branding or=20
marketing, which only became critical after the federal government broke up=
=20
its monopoly in 1984. At that point, the regional companies, which were=20
formed from groups of Bell companies that provided local phone service,=20
took on their own identities. SBC is aspiring to become a national and even=
=20
international telecommunications provider. Its main competitor will be=20
Verizon Communications Inc., another company formed in the 1984 AT&T=20
breakup that recently acquired long-distance carrier MCI Inc.
[SOURCE: Wall Street Journal, AUTHOR: Dionne Searcey dionne.searcey( at )wsj.com]
http://online.wsj.com/article/0,,SB112552935412328422,00.html?mod=3Dtoda...
us_page_one
(requires subscription)

MCI SETS OCT 6 VOTE ON BID FROM VERIZON
MCI shareholders plan to vote Oct. 6 on Verizon Communications Inc.'s $8.4=
=20
billion offer to buy the telephone company. Shareholder approval of the=20
deal is likely, though some investors say MCI should have accepted Qwest=20
Communications International Inc.'s $9.7 billion bid. MCI's board chose=20
Verizon's lower offer after a bidding war, because it said the larger,=20
wealthier company would be a better partner than Denver-based Qwest.
[SOURCE: Wall Street Journal]
http://online.wsj.com/article/0,,SB112552065975028214,00.html?mod=3Dtoda...
us_marketplace
(requires subscription)

CAN'T KILL P2P
[Commentary] People want to get their music online, and currently P2P is=20
the best way to get it -- not because it's free, but because it's there.
[SOURCE: AlterNet, AUTHOR: Annalee Newitz]
http://www.alternet.org/mediaculture/24748/

TECH HELPS SPECIAL-NEEDS KIDS PASS KEY TESTS
Whether, how, and how much educators should deploy technology to help=20
special-needs students on high-stakes tests are complex issues in the era=
=20
of the No Child Left Behind Act (NCLB). As mandated by the federal law,=20
teachers and administrators around the nation must strive to make sure=20
special-needs kids meet the same high standards as their peers. That=20
struggle was underscored in July, when the U.S. General Accounting Office=
=20
(GAO) released a report highlighting the difficulties inherent in giving=20
achievement tests to special-needs learners. To achieve NCLB's goal of=20
testing every child, regardless of need, researchers concluded the=20
Education Department must do a better job of providing guidance for=20
alternative forms of testing.
[SOURCE: eSchoolNews, AUTHOR: Corey Murray]
http://www.eschoolnews.com/news/showStory.cfm?ArticleID=3D5859

WIRELESS RAISES SECURITY CONCERN
Lost laptops on college campuses can give thieves access to information=20
such as Social Security numbers, credit-card numbers, or passwords. Young=
=20
students or college employees may not be savvy about protecting such data.=
=20
Beyond identity thieves, colleges and universities are also threatened by=
=20
hackers who can turn school computers into "zombies" to send out spam=20
e-mails or target Web servers with denial-of-service attacks.
[SOURCE: The Christian Science Monitor, AUTHOR: Gregory Lamb]
http://www.csmonitor.com/2005/0901/p12s02-legn.html

IN EASTERN EUROPE, A GUMSHOE CHASES INTERNET VILLAINS
Peter Fifka is one of Microsoft's high-tech gumshoes, part of the software=
=20
giant's intensifying efforts to combat cyber crime at a time when consumers=
=20
and businesses are becoming increasingly frustrated with fraud and virus=20
attacks.
[SOURCE: Wall Street Journal, AUTHOR: Cassell Bryan-Low=20
cassell.bryan-low( at )wsj.com]
http://online.wsj.com/article/0,,SB112554423119628807,00.html?mod=3Dtoda...
us_page_one
(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.
--------------------------------------------------------------

For upcoming media policy events, see http://www.benton.org/calendar.htm

TODAY'S STORIES
The FCC's Cable Crackdown
Wi-Fi With Its Own Zip Code
Vendors Seek Changes in New List of E-Rate Eligible Services
Most Kids Play Video Games Daily; Web Ads Gaining Importance

QUICKLY-- Broadcast Networks Buy Into Search Key Words; U.K. seeks to ban
violent online porn

TODAY'S STORIES

THE FCC'S CABLE CRACKDOWN
FCC Chairman Kevin Martin has been quietly meeting with religious activists
and industry leaders to organize a push for new indecency standards for
broadcast, cable and satellite television. At the same time, Chairman
Martin's allies in the Senate have been considering new laws that could
increase broadcast indecency fines, break up cable TV offerings to allow
parents to cut off racy channels, and -- most controversially -- give the
FCC the power to fine basic cable programs, like MTV's "Real World" and
Comedy Central's "Daily Show," for crude and lewd content. Television
industry executives fear a possible assault -- on their bottom line [all
puns intended]. "Everybody should be frightened by the notion that this
process could be hijacked by a very few people," says Jim Dyke, a
Republican who now leads TV Watch, a group founded by Viacom (CBS, MTV,
Comedy Central), General Electric (NBC, Bravo) and News Corp. (Fox) to
argue against new regulation. "They are trying to make decisions about what
our children can see." In the coming weeks, observers expect Chairman
Martin to act upon between 30 and 50 outstanding indecency complaints, the
first step in clearing a backlog of hundreds of allegedly inappropriate
broadcasts on television and radio. He has promised to remake the indecency
process, speeding FCC responses and establishing a clearer precedent of
what constitutes indecent programming.
[SOURCE: Salon, AUTHOR: Michael Scherer]
http://www.salon.com/news/feature/2005/08/30/fcc_indecency/index_np.html
(subscribership or watching an ad required)

WI-FI WITH ITS OWN ZIP CODE
As towns across the country launch wireless broadband networks to bring
affordable Web access to their residents, companies from tiny RedMoon to
heavyweights such as Hewlett-Packard are jockeying to become their
partners. Their motivation: Getting in on the ground floor of a potentially
fast-growing business while creating an alternative to the Bells and cable
outfits that control most of the country's broadband pipes. The muni
wireless business is still in its infancy. But with 300 cities launching or
soon to launch Wi-Fi networks, the market could yield roughly $200 million
in revenues a year, according to market tracker Yankee Research. The rush
to build muni wireless zones has got the Bell and cable companies plenty
worried. They have mounted lobbying campaigns in 14 states to bar local
jurisdictions from creating their own networks, but have failed in all but
one. In Congress, the issue will likely get ironed out as part of an
impending overhaul of the 1996 telecom law. To fend off the Bell and cable
lobbies, many cities are opting for outsiders to own their Wi-Fi network.
The new competition already may be having an effect: Verizon Communication
just dropped its DSL pricing to $14.95 a month. Cities, meantime, see these
networks as a necessity of the Information Age. "Just as with the roads of
old, if broadband bypasses you, you become a ghost town," says Dianah L.
Neff, Philadelphia's chief information officer. As more and more burgs rush
to get connected, Techdom senses a potentially lucrative business in the
making.
[SOURCE: BusinessWeek, AUTHOR: Catherine Yang & Ben Elgin]
http://www.businessweek.com/magazine/content/05_36/b3949053_mz011.htm

VENDORS SEEK CHANGES IN NEW LIST OF E-RATE ELIGIBLE SERVICES
The Federal Communications Commission is reviewing the Universal Service
Administrative Company's list of E-rate eligible equipment and services.
Equipment vendors such as Cisco and Citrix Systems told the Commission that
the eligibility rules in general tend to discourage less-costly equipment
configurations. Cisco asked the FCC to "adopt a balanced approach to
eligibility determinations that takes into consideration the goals of the
application and available technologies, and weighs this against the costs
of various configurations." Cisco said such individualized determinations
"may add a layer of complexity to the eligibility determination process"
but "the savings to E-rate beneficiaries and the provision of funding to
additional applicants more than justifies this approach." Several entities
expressed concern about a proposal to require school districts to file
separate funding applications for bundled telecom and Internet access
services. The State E-rate Coordinators' Alliance (SECA) said dual filings
would be "onerous and administratively burdensome."
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)

STUDY: MOST KIDS PLAY VIDEO GAMES DAILY; WEB ADS GAINING IMPORTANCE
According to a recent study from Netherlands-based marketing agency
JuniorSeniorResearch, video games have become a central part of the lives
of today's children. The study polled 4,000 kids up to the age of
15-years-old (both boys and girls) and discovered that 61 percent play
video games on a daily basis. Although much of the industry concentrates
its marketing on the coveted 18 to 35 male demographic, this study also
shed some light on some advertising trends for the younger crowd. Among
children, advertising doesn't appear to be as important as word of mouth.
The study found that 32 percent of children learned about new games through
their friends. Younger children tended to get more information from friends
and family members than from advertising. But practically every child (92
percent) has seen an ad for a game, with television being the predominant
format at 63 percent. The Internet, however, is seen as a growing medium
for advertising to children. More than 15 percent of children said they
view video game ads on the Internet, while only 11 percent said they see
them in print media.
[SOURCE: BusinessWeek]
http://www.businessweek.com/innovate/content/aug2005/id20050829_928076.htm

QUICKLY

BROADCAST NETWORKS BUY INTO SEARCH KEY WORDS
Facing fragmented audiences and a plethora of media choices, marketing
chiefs at the broadcast networks need to find ever more inventive ways to
entice viewers, and this season they're turning to key words -- that is,
online search terms. For instance, for Prison Break a sponsored link on
Google.com leads Web surfers to a promotional site about the fall series.
The site is supported by advertising. Search terms can be bought for 2
cents and up (depending on how fierce the bidding is) per click and can be
bid on by anyone, even a broadcaster's competitors.
[SOURCE: AdAge, AUTHOR: Claire Atkinson]
http://adage.com/news.cms?newsId=45920

UK SEEKS TO BAN VIOLENT ONLINE PORN
The U.K. government is seeking to outlaw the possession of violent
pornography obtained over the Internet. The Home Office on Tuesday
announced a proposal to ban "extreme pornography" and discussed what
changes in the law are necessary to prevent people downloading images of
sexual abuse.
[SOURCE: C-Net|News.com, AUTHOR: Dan Ilett]
http://news.com.com/U.K.+seeks+to+ban+violent+online+porn/2100-1028_3-58...
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

For upcoming media policy events, see http://www.benton.org/calendar.htm

AGENDA
DTV Bill Tops Busy D.C. Docket

TELEVISION
FCC Chief Considers Forcing Cable TV Competition
Comcast Flexing Content Leverage
Is there a sweatshop behind 'Survivor'?
NCTA Seeks Signal-Fee Reform
FEC Change Could Hurt PSAs
Cable Nets Grab a Bigger Share

OWNERSHIP
Intelsat Sets Deal To Buy PanAmSat For $3.2 Billion
Media Executives Court China, but Still Run Into Obstacles
CDT Offers Recommendations on Broadcast Flag Legislation

QUICKLY -- $34.6 Million in Rural Technology Development Funds; NAB Zeros=
=20
In On Fritts Successor; Interactive Ads: Beyond Watercooler Buzz; FCC=20
Extends VoIP/E-911 Deadline; Copps: Martin=92s FCC Strongly Committed To=20
Homeland Security

AGENDA

DTV BILL TOPS BUSY DC DOCKET
A digital transition bill, two new FCC commissioners and the start of the=
=20
rewrite of media-ownership rules will all be on the to-do list when=20
policymakers and regulators get back to business after Labor Day. While=20
Members have been away, Congressional aides have been working on the text=
=20
of digital television bills -- a DTV bill needs to get to the budget=20
committee by Sept. 16 to be included in a larger budget-reconciliation=20
package that requires various committees to find money for the treasury.=20
Slowing the DTV bills has been debate over subsidies for analog-only TV=20
households and whether to require cable systems to carry all the non-pay=20
channels a broadcaster can fit into its digital channel. The hard date is=
=20
now expected to be June or July 2009. Originally, it had been targeted for=
=20
Jan. 1, 2009, but that date will likely change to push it past the January=
=20
college bowl games, the Super Bowl and the May sweeps and into the=20
low-viewing summer months. In early September, look for the White House to=
=20
finally nominate two new FCC commissioners and renominate Democrat Michael=
=20
Copps. Still expected to get the nods for the two Republican seats are=20
telecom policy adviser Richard Russell and Tennessee utility commissioner=
=20
Deborah Tate.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6252080?display=3DNews&referral=
=3DSUPP
(free access for Benton's Headlines subscribers)
Also --
* Sept. 7 - 8 Event to Lobby for Multicast Must-Carry
More than 85 broadcasters from 22 states plan to meet September 7 - 8 in=20
Washington, DC to educate members of Congress on the need for cable=20
carriage of multicast signals. Legislation to complete the digital=20
television transition is accelerating in both the House and Senate.=20
Specifically, it is expected the House Commerce Committee will consider=20
digital television language the week of September 5, the first week=20
Congress returns from its August recess. The Senate Commerce Committee will=
=20
likely consider its own DTV bill the following week. "Given this compressed=
=20
timetable," the NAB tells its members, "and the need to make our case=20
before the two Committees vote in September, make your plans today to=20
attend the NAB Washington DTV Fly-In." For more info, contact the NAB at=20
1-800-424-8806 or publicaffairs( at )nab.org.
[SOURCE: National Association of Broadcasters]

TELEVISION

FCC CHIEF CONSIDERS FORCING CABLE TV COMPETITION
Reported one week ago, FCC Chairman Kevin Martin apparently thinks the=20
Cable Act of 1992 gives the FCC authority to compel cities to let the=20
regional Bells compete head-on with cable TV operators -- and to do so=20
quickly. The provision of the '92 act -- Section 621(a)(1) -- states that=
=20
local franchising authorities "may not unreasonably refuse to award an=20
additional competitive franchise" for video. By some readings, that means=
=20
cities can't erect obstacles to keep out video competitors. Verizon and SBC=
=20
are spending billions to deploy advanced broadband services =97 voice, data=
=20
and video =97 across the country. Before they can deploy video, however,=20
cities want them to submit to the cable TV franchising process. But there=
=20
are thousands of local franchising authorities, and each has its own=20
licensing process and timetables
[SOURCE: USAToday 8/22, AUTHOR: Leslie Cauley]
http://www.usatoday.com/money/industries/telecom/2005-08-22-telecom-usat...
htm

COMCAST FLEXING CONTENT LEVERAGE
Comcast is taking some bold steps to transform and beef up its content=20
portfolio, from acquiring professional hockey for Outside Living Network=20
(OLN) to starting affiliate-sales consolidation for its networks. According=
=20
to industry sources, Comcast=92s game plan is to use sports programming --=
=20
from its emerging OLN as well as its regional sports networks -- to gain=20
what major programmers like News Corp. and Walt Disney all have: leverage=
=20
with distributors. That leverage will be a tool for top cable operator to=
=20
seek license-fee increases and wider carriage for its growing programming=
=20
stable, by packaging the various services through one central=20
affiliate-sales force.
[SOURCE: Multichannel News, AUTHOR: R. Thomas Umstead & Linda Moss]
http://www.multichannel.com/article/CA6252103.html
(requires subscription)

IS THERE A SWEATSHOP BEHIND 'SURVIVOR'?
In an Aug. 23 move that Writers Guild of America (WGA) calls "the largest=
=20
organizing effort" since its founding in 1933, ten reality TV writers=20
alleged that Fox Broadcasting Co. and Rocket Science Laboratories have=20
violated California labor laws. On behalf of 1,000 other story editors,=20
field producers, and editor assistants at over 70 companies, the=20
WGA-supported class action lawsuit also claims unlawful practices of=20
perpetrating and concealing overtime. Observers say the litigation will=20
shine light into the behind-the-scenes world of television's newest genre,=
=20
reality TV, whose emergence is generally dated to the debut of "Survivor"=
=20
in 2000. Because the Guild has signed up so many complaints at other=20
production companies, some say the suit could have serious repercussions on=
=20
the way production companies and networks treat the creators of reality=20
shows, and determine union protections for the future. Some observers say=
=20
the legal action could curtail further development of reality shows, which=
=20
are attractive to networks because they carry lower price tags compared to=
=20
dramas and sitcoms. Others say a more likely outcome could be the emergence=
=20
of a higher quality of show, as the genre could attract and hold better=20
writers.
[SOURCE: The Christian Science Monitor, AUTHOR: Daniel B. Wood]
http://www.csmonitor.com/2005/0829/p02s02-wmgn.html

NCTA SEEKS SIGNAL-FEE REFORM
Cable operators deserve a break in the fees they pay for compulsory=20
licenses to carry stations affiliated with broadcasters Fox, UPN, The WB=20
and Paxson Communications Corp., the National Cable & Telecommunications=20
Association asserts in a recent filing with the federal Copyright Office.=
=20
In its Aug. 17 petition for rulemaking, the NCTA contends that stations in=
=20
those groups now meet the definition of network, not independent, stations.=
=20
The definition is important: cable systems pay a full distant-signal=20
equivalent, calculated at 0.956 of 1% of a station's gross revenues, as=20
royalties for an independent station. The payment drops by three-quarters=
=20
for network stations.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA6252104.html?display=3DTop+Stories
(requires subscription)

FEC CHANGE COULD HURT PSAs
The Federal Election Commission is seeking comment on changes to campaign=
=20
finance rules that could narrow the exemptions from prohibited=20
"electioneering communications" and change the definition of "publicly=20
distributed" to include PSAs by excluding unpaid as well as paid TV or=20
radio appearances by a federal candidate. The current definition of=20
"publicly distributed" is "aired, broadcast, cablecast or otherwise=20
disseminated for a fee through the facilities of a television station,=20
radio station, cable TV system or satellite system." The FEC wants comment=
=20
on whether removing the "for a fee" language and subjecting PSAs to the=20
electioneering restrictions would discourage broadcasters from airing them.=
=20
The FEC is also considering narrowing or even eliminating, the=20
"electioneering" exemption for national and local charities and nonprofits.=
=20
The controversial status of so-called 527s, like Swift Boat Veterans for=20
Truth, is not addressed in the notice of proposed rulemaking issued Aug.=20
24, which is targeted to addressing the specific court findings. Comments=
=20
are due Sept. 30 and a hearing is slated for Oct. 19.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6251760?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
For more info from the FEC see=20
http://www.fec.gov/pdf/nprm/exemption_doc_films/notice_2005-20.pdf

CABLE NETS A BIGGER SHARE
Projections for summer season television viewing ratings have cable winning=
=20
a 61% share to broadcast's 32%. Broadcast=92s showing marks an all-time low=
=20
for the medium, its largest decline since 1997. This will be the fifth=20
summer in a row that cable has outdelivered broadcast in primetime.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA6252109.html
(requires subscription)
* Summer Migration: Viewers Turn to Cable
http://www.nytimes.com/2005/08/29/business/29drill.html

OWNERSHIP

INTELSAT SETS DEAL TO BUY PANAMSAT FOR $3.2 BILLION
Intelsat will acquire PanAmSat for $3.2 billion, bidding to create the=20
world's largest commercial-satellite fleet with unparalleled influence over=
=20
new offerings such as high-definition television and Internet access. With=
=20
its global reach, 53-satellite fleet and ability to manage in-orbit=20
satellites to cope with malfunctions and minimize outlays for additional=20
launches, the merged company would have unparalleled influence over the=20
satellite-communications sector. The nearest competitor would be SES Global=
=20
SA of Luxembourg, which has been the industry leader and trendsetter in=20
terms of major acquisitions and joint ventures. Consolidation has been=20
building among satellite operators for years, as they struggle amid weak=20
demand to pare the costs of launching and operating spacecraft designed to=
=20
beam television programs, voice traffic and all sorts of government and=20
corporate data. But even more powerful forces have prodded major shifts in=
=20
strategy and management: Seeking to leverage the ability of satellite firms=
=20
to generate cash, a long list of well-known private equity firms pumped=20
about $9 billion into the sector in recent years. They also have taken=20
advantage of generous capital markets to unveil a series of initial public=
=20
offerings, special dividends and merger plans to notch significant profits.=
=20
The Federal Communications Commission and the government's antitrust=20
authorities will review the deal.
[SOURCE: Wall Street Journal, AUTHOR: Dennis K. Berman=20
dennis.berman( at )wsj.com and Andy Pasztor andy.pasztor( at )wsj.com]
http://online.wsj.com/article/0,,SB112528363497425318,00.html?mod=3Dtoda...
us_page_one
(requires subscription)
See more coverage:
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/28/AR200508...
1185.html
http://www.nytimes.com/2005/08/29/business/29deal.html

MEDIA EXECUTIVES COURT CHINA, BUT STILL RUN INTO OBSTACLES
The long-held optimism of Western media companies about venturing into the=
=20
Chinese market has suffered several setbacks recently. At the beginning of=
=20
the month, as part of an effort to tighten control over cultural products,=
=20
China's Propaganda Department, the Ministry of Culture and four other=20
regulators published new rules that further restricted what foreign=20
filmmakers and television companies can do in China. Last week, the News=20
Corporation's plan for a new television channel to be co-owned with a=20
Chinese company was quashed by the government. The question facing Western=
=20
media companies is how long the newly tightened restrictions will hold.=20
Pessimists in media organizations worry whether the latest crackdown=20
reflects a longer-term shift under a more cautious Chinese president, Hu=20
Jintao. Optimists suggest that the recent moves are just the latest in a=20
long series of episodic, sometimes short-lived efforts by the Chinese=20
Communist Party to preserve social control. Over the longer term, access to=
=20
the China media is crucial to American companies like Time Warner and Walt=
=20
Disney, in addition to Viacom and the News Corporation. Growth at these=20
giant conglomerates has slowed and their stock prices have been under=20
pressure. If they can export their feature films, cable and TV programs, or=
=20
even co-produce new shows with Chinese companies, the returns could be=20
substantial.
[SOURCE: New York Times, AUTHOR: Geraldine Fabrikant]
http://www.nytimes.com/2005/08/29/business/worldbusiness/29china.html
(requires registration)

CDT OFFERS RECOMMENDATIONS ON BROADCAST FLAG
As Congress considers mandating a "broadcast flag" regime to protect=20
digital television signals from piracy, the Center for Democracy and=20
Technology is urging lawmakers to ensure that such a law does not interfere=
=20
with the rights of individuals to use digital content, or of inventors to=
=20
develop new technologies. To that end, CDT has drafted a report outlining=
=20
key considerations for Congress. Though it is unclear whether Congress will=
=20
move on legislation this year, pressure to enact a law has increased since=
=20
a federal court struck down broadcast flag rules written by the Federal=20
Communications Commission. CDT is not endorsing a flag regime, but believes=
=20
if one is passed, it must include appropriate limitations and safeguards.
[SOURCE: Center for Democracy and Technology]
http://www.cdt.org/copyright/20050822BroadcastFlag.pdf
http://www.cdt.org/copyright/20020825broadcastflagletter.pdf
* Digital Group Changes Its Stance On 'Broadcast Flag'
http://www.njtelecomupdate.com/lenya/telco/live/tb-NKRO1124989543658.html

QUICKLY

$34.6 MILLION IN RURAL TECHNOLOGY DEVELOPMENT FUNDS FOR RURAL AMERICA
On August 18, Agriculture Deputy Secretary Chuck Conner announced the=20
approval of $34.6 million in USDA Rural Development funds to support the=20
development and expansion of rural telecommunication technologies in=20
targeted rural areas in the states of Alabama, Indiana, Maryland, Michigan,=
=20
New Hampshire and Virginia. The funding will bring first-time telephone=20
service to remote areas of Michigan, and for the first time, USDA will=20
finance broadband infrastructure using electric power lines.
[SOURCE: US Department of Agriculture]
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=3Dtr...
contentid=3D2005/08/0317.xml

NAB ZEROS IN ON FRITTS SUCCESSOR
Apparently the National Association of Broadcasters has narrowed its list=
=20
for a successor for outgoing president Eddie Fritts: 1) former Congressman,=
=20
nonprofit executive, Love Boat co-star, and WMAL radio morning jock Fred=20
Grandy; 2) Disney/ABC Lobbyist Mitch Rose (ABC has just rejoined the NAB);=
=20
and perhaps the leading candidate David Rehr, president of the National=20
Beer Wholesalers Association.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6252029?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

INTERACTIVE ADS: BEYOND WATERCOOLER BUZZ
Given the rate of digital-TV deployment -- particularly digital video=20
recorders, video-on-demand and broadband video options that allow consumers=
=20
to time-shift or bypass ads -- advertisers believe they must shape the=20
future of interactive TV themselves.
[SOURCE: Broadcasting&Cable, AUTHOR: Joe Mandese]
http://www.broadcastingcable.com/article/CA6252123?display=3DAdvertising...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

FCC CUTS VOIP PROVIDERS SLACK TO GET CUSTOMER E-911 REPLIES
The FCC Enforcement Bureau delayed imposition of a rule requiring VoIP=20
providers to disconnect subscribers who haven't responded to alerts about=
=20
911 service limitations. The FCC will extend the August 30 cutoff date 30=
=20
days, until September 28. But VoIP providers must file two more reports on=
=20
their progress educating customers and gaining their acknowledgments.=20
Reports filed in early August indicated some providers have replies from=20
90% or more of customers. Vonage claimed a 96% response rate. But tens of=
=20
thousands of phones still could have been cut off next week without the=20
extension.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
See the Bureau's announcement at:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2358A1.doc

COPPS:MARTIN'S FCC STRONGLY COMMITTED TO HOMELAND SECURITY
Speaking to the Association of Public-Safety Communications Officials last=
=20
week, FCC Commissioner Michael Copps expressed confidence that the=20
Commission under Chairman Kevin Martin will be strongly committed to public=
=20
safety and homeland security. Commissioner Copps offered his own ideas for=
=20
the FCC to focus on as it proceeds. =93The Commission needs to be=20
front-and-center in the action, pushing for interoperability, striving for=
=20
redundancy, acting as a convener, an expediter and a planning innovator.=94=
=20
=93The FCC is not even mentioned in The 9/11 Commission Report,=94 Commissi=
oner=20
Copps noted. =93We need a higher profile -- not for the sake of profile but=
=20
for the sake of progress. The Commission has more to contribute than it=20
has.=94 One focus of a separate FCC homeland security office -- which Copps=
=20
has long advocated -- =93could be to help local public safety organizations=
=20
share ideas, prepare plans, vet proposals and coordinate them with both=20
government and industry.=94
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)
--------------------------------------------------------------
OK, OK, there's always next year, Cubs fans.
--------------------------------------------------------------
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.
--------------------------------------------------------------